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Feed Amino Acids Market size is forecast to reach $7.38 billion by 2025, after growing at a CAGR of 3.90% during 2020-2025. Increased demand of meat and dairy products, industrialization in the livestock sector as food habits have changed and animal diseases are increasingly penetrating, may lead to the growth of industry. Increased customer awareness about meat quality and safety can boost the demand of the market for amino acids feed. Standardizing of meat products due to disease outbreaks, growth in feed production and the introduction of advanced methods in Livestock farming to improve meat quality are expected to be the key factors driving the demand. In addition, over the projected period, total demand rises.
Type – Segment Analysis
Threonine segment held the largest share for Feed Amino Acids market during the forecast period. Threonine in the feed is used mainly as a way of enhancing protein synthesis and gathering weight. It also helps to preserve immunity and intestinal integrity. Its deficiency affects the growth of animals and may lead to digestive problems. L-threonine also leads to better use of lysine, optimizes the composition of food, and lowers animal processing costs and the extraction of nitrogen. The threonine market segment is guided by these factors
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Livestock – Segment Analysis
Poultry segment held the largest share for Feed Amino Acids for many years at a CAGR of 5.9%. The increase in animal health issues and a better awareness of the advantages of amino acids in animal feed has led to a rising poultry feed demand for amino acids. At the global level, total production of poultry has increased; with the rise in poultry production and consumption, the emphasis on meat quality became more important for meat producers.
Geography – Segment Analysis
APAC dominated the Feed Amino Acids Market share with more than 52.68%, followed by North America and Europe, Due to the rising consumer perception about the effect on animal products such as meat and dairy products of quality feed given to livestock. In addition, the ongoing modernization of the techniques of animal processing is expected to boost demand in this region for different types of feed acids. Asia Pacific’s highest market share is attributed to rapid industrialization and urbanization, which helps to increase people’s per capita income and has contributed to a growth in demand from protein-rich food. The number of feed mills in 2016 decreased by about 39 percent, respectively 18 percent and 13 percent, in countries such as India, South Korea and Vietnam, as compared with 2015. This decrease in the number of feed mills indicates that, despite the continuous growth in consumption of animal protein, agricultural and feed production has consolidated.
Drivers – Feed Amino Acids Market
Growth in awareness among consumers about BSE
Bone and meat meal has historically been used for nutrients, calcium, vitamins and energy in the feed. Ruminant leftover animals which contain the protein called prion have also been fed. The cause of BSE, also known as a mad cow disease, is the root cause of bovine spongiform encephalopathy. Changes in behavior, assault on others, low head, milk yield loss and nervousness were main symptoms of the disease. The ingestion of infected carcasses can easily be transferred to humans. Cattle with this disease usually lose their beet and body movement coordination. The first in the United Kingdom was BSE suspected in 1986, followed by Europe, Asia and North America. In the 1990’s, Europe battled BSE, which crippled the livestock market. Because of the higher standards of hygiene, the FDA banned mammalian protein in animal feed for ruminants in 1997. Dairy farmers were thus forced to restrict the use of animal protein, such as blood meal in foods, which increased the use of amino acids in ruminant feed. Food protection regulations are enforced in many countries to restore public trust in the supply chain. Amino acids therefore have a fair chance for bone and meat meal to be an acceptable alternative.
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Challenges – Feed Amino Acids Market
Alternative protein sources
Many food sources may provide amino acids including maize leaf, maize by-products and dried distillery grains. The most cost-effective source of high-quality protein is soya meal. In contrast to the dairy cow’s requirement for optimum output it produces less methionine. Seaweed is a coastal marine algae which is a renewable protein plant for animal feed. It is rich in minerals, vitamins and fatty acids, thereby reducing costs and increasing quality of feed. Meal of the sunflower comes from the extraction of oil from the seeds of flowers. It has a high fibre content and is hence used in small amounts. These alternative sources may serve as a barrier to the growth of amino acid markets because of their high protein content and cost efficiencies.
Technology launches, acquisitions and R&D activities are key strategies adopted by players in the Feed Amino Acids Market. In 2019, the market of Feed Amino Acids has been consolidated by the top five players accounting for xx% of the share. Major players in the Feed Amino Acids Market are Cargill, Incorporated, Archer Daniels Midland Company, DSM, Novus International, Sunrise Nutrachem Group, Phibro Animal Health Corporation, CJ CHEILJEDANG CORP., MEIHUA HOLDINGS GROUP CO., LTD., Sumitomo Corporation, Evonik Industries, Ajinomoto Co., Inc., Adisseo, Kemin Industries, Inc., Global Bio-chem Technology Group Company Limited and Novus Biologicals, among others.
With growing understanding of the benefits and an increase in acceptance, the feed additives penetration rate among feed products will increase, as long as no adverse regulatory position has an effect on growth. Assuming that the feed inclusion rate for amino acids remains steady in the future, the global feed industry ‘s growth and increased penetration of additives are expected to drive the amino acid market, which directly correlates with feed output volume.
Amino acids are used for induction of growth, development, lactation, health and reproduction as additives in animal feed. The increased demand for poultry products that can drive overall industry growth has resulted in steady changes of the diet of protein. Feed amino acids consist of several ingredients that include nutrition (fats, oils and carbohydrates), proteins (amino acids), vitamins, and minerals. They contain a range of ingredients.
However, the end use industries are being significantly affected due to the COVID-19 pandemic, as most of the countries have issued “stay at home guidance” i.e., lockdown. This factor is limiting the market growth in current situation.
Related Reports :
A. Meat and Poultry Safety Testing Market
B. Animal Feed Additive Market
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