Global Feed Amino Acids Market - 2023-2030

Overview

Global Feed Amino Acids Market reached US$ 6.9 billion in 2022 and is expected to reach US$ 9.3 billion by 2030, growing with a CAGR of 5.5% during the forecast period 2023-2030.

Livestock industry is one of the fatest growing market globally due to many factors including rising incomes, shifting dietary preferences, and population increase. U.S. has one of the largest feed and livestock businesses in the world, producing more than 284 million tonnes of finished feed and pet food annually with its more than 5,800 animal feed manufacturing plants. The growing livestock industry demands a larger amount of feed amino acids to increase feed efficiency.

Feed formulations are tailored to meet the specific nutritional requirements of different animal species, growth stages, and production goals. For instance, an insufficient quantity of amino acids will cause dairy cows to produce less milk. Hence, the growing focus on the nutritional requirement of the animal acts as a key trend for the feed amino acid market.

In the global feed amino acid market, the poultry industry commands a substantial 1/3rd market share, highlighting its significant role in the sector. Simultaneously, Asia-Pacific also holds a substantial 1/3rd market share due to several key factors. According to Alltech Agri-Food Outlook 2023, China has the highest feed production with 260.739 million tonnes.

Dynamics

Rising Feed Production

Formulating feeds with the right amino acid profiles helps optimize feed utilization, reducing the amount of feed needed for the same level of production. Modern animal nutrition science emphasizes the importance of providing animals with diets that meet their precise nutritional requirements.

Correct balance of amino acids in feed formulations contributes to improved animal growth, feed conversion rates, and overall performance. According to the 11th annual Alltech feed survey, 2021, international feed production increased to 1.235 billion tonnes, up from 1.187 billion tonnes in 2020. As feed production increases the need for amino acid as an essential component of feed formulations rises as well.

Rising Focus on Animal Health and Nutrition

The growing focus on animal health and nutrition caused a greater understanding of the specific nutritional requirements of the animal body. Amino acids are crucial for many physiological functions, which include growth, metabolism, immunity, and reproduction. Formulating feeds with precise amino acid profiles helps meet these specific needs, contributing to better animal health.

Amino acids are fundamental to promoting growth and maximizing performance in animals. With the trend to reduce the use of antibiotics in animal production, amino acids have gained popularity as alternatives for promoting growth and maintaining health. By ensuring that animals receive the necessary amino acids in their diets, producers can optimize weight gain, feed efficiency, and product output.

Rising Demand for Protein From Animal-Sources

As the world's population continues to grow and economies develop, there is an increased need for animal-based protein sources such as meat, milk, and eggs. For instance, according to FAO's estimation in comparison to the base period average of 2018-2020, the expected growth in meat protein consumption during the following 1o years is 14%. As the demand for animal-based protein grows, livestock production needs to increase to meet this demand.

Proper amino acid supplementation ensures that animals receive all the essential nutrients necessary for their health and productivity. Amino acids influence the quality of animal products such as meat, milk, and eggs. Adequate amino acid intake leads to improved meat quality, higher milk yields, and better egg production rates, meeting consumer expectations for high-quality protein sources.

Competition from Alternative Protein Sources

Consumer and industry preferences are shifting towards alternative protein sources such as plant-based proteins, insect meals, and algae. For instance, 15-30% of the diets of animals often consist of oilseed meals and legumes. Most frequently utilized as a source of protein is soybean meal, particularly in the diets of poultry.

Such alternatives are often marketed as more sustainable and environmentally friendly options, potentially diverting demand away from traditional animal-derived amino acids. If these alternatives provide adequate nutrition, feed manufacturers and producers will choose them over amino acid supplementation.

Segment Analysis

The global feed amino acids market is segmented based on type, livestock, form, source, distribution channel and region.

Rising Demand for Poultry Meat and Eggs

Poultry meat and eggs are widely consumed globally due to their affordability, nutritional value, and versatility. According to FAO, world meat markets for the period 2021-30, poultry meat consumption is expected to rise to 152 Mt globally throughout the forecast period, making up 52% of the increased meat consumed. The aforementioned high demand for poultry products directly results in a larger demand for poultry feed, including amino acids.

To promote growth, egg production, and overall health, poultry diets are designed to specifically address the nutritional requirements of various production phases (such as broilers and layers). The addition of amino acids to poultry feed, allows producers to precisely balance diets, ensuring that poultry get the required nutrients in the most efficient and cost-effective manner. As a result, the demand for amino acids in poultry feed remains consistently high.

Geographical Penetration

Asia-Pacific's Growing Livestock Industry Coupled with Strong Presence of Key Players

The rising demand for animal-based protein sources such as meat, milk, and eggs in Asia-Pacific due to the growing population and increasing disposable income is a primary contributor for the growth of the market. The respective fact drives the need for efficient and sustainable livestock production, which in turn boosts the demand for feed amino acids.

In July 2022, AB Agri opened a new 240,240,000-capacity feed mill in Tongchuan City, Shaanxi Province, China, to further expand production capacity. Further, there is a growing focus on the livestock industry in various countries of Asia-Pacific. In June 2023, India Union Minister of Fisheries, Animal Husbandry, and Dairying launched the Nandi portal to help farmers by promoting the livestock industry.

Key players in the feed and agriculture sectors have established a strong presence in the Asia Pacific, bolstering market growth. For instance, in December 2021, Trouw Nutrition, an animal nutrition company announced a partnership with Stellapps, India's leading dairy-tech start-up. Through this partnership, Trouw Nutrition's high-quality feed products, like premixes and feed additives to support animal health and productivity are available to over 3 million smallholder.

Competitive Landscape

The major global players include: Adisseo, Archer Daniel Midland Co., Evonik Industries AG, Sumitomo Chemical Co., Ltd., Ajinomoto Co., Inc., CJ CHEILJEDANG CORP, Global Bio-chem Technology Group Company Limited, AMINO GmbH, Kemin Industries, Inc., Welding GmbH & Co. KG.

COVID-19 Impact Analysis

The supply has been severely impacted by the COVID-19 outbreak even though the demand for animal feed has remained stable. The supply has been severely impacted by the COVID-19 outbreak even though the demand for animal feed has remained stable. Lockdowns, travel restrictions, and labor shortages disrupted supply chains and potentially affected the production and distribution of amino acids and other feed ingredients. This led to delays, shortages, and increased costs of feed amino acids.

The demand for certain types of animal products, such as meat and dairy, saw fluctuations due to changing consumer behavior during the pandemic. Poultry and pork have experienced significant impacts as there are rumors that chickens and their products would spread the disease. Such changes in consumer demand and market led to less livestock production which caused less demand for amino acid in their feed.

Russia- Ukraine War Impact

The on-going Russia-Ukraine conflict disrupted supply chains, including the transportation of goods and materials. The respective fact also affected the distribution of amino acids and other feed ingredients, impacting availability and pricing on the global market. The war impacted livestock production which reduced the demand for animal feed.

The largest lysine producer in Russia is apparently in difficulty after shelling. The significant cross-border shelling is likely to hinder operations at Premix Plant Number 1 in the city of Shebekino. More than half of the feed lysine demand in the Russian market is satisfied by premix plant number 1, which produces about 80,000 tonnes of it annually. Shebekino, a town of 40,000 just 10 km from the border, suffered occasional shelling during the war.

By Type

• Lysine
• Methionine
• Threonine
• Tryptophan
• Glutamic Acid
• Valine
• Arginine
• Others

By Livestock

• Poultry
  • Broilers
  • Layers
  • Others

• Ruminants
  • Calf
  • Dairy
  • Beef
  • Others

• Swine
  • Starter
  • Grower
  • Sow
    • Aquatic Animals
    • Equine
    • Pets

By Form

• Dry
• Liquid
• Granules

By Source

• Natural
• Synthetic

By Distribution Channel

• Company Owned Stores
• Veterinary Care
• E-Commerce
• Others

By Region

• North America
  • U.S.
  • Canada
  • Mexico

• Europe
  • Germany
  • UK
  • France
  • Italy
  • Russia
  • Rest of Europe

• South America
  • Brazil
  • Argentina
  • Rest of South America

• Asia-Pacific
  • China
  • India
  • Japan
  • Australia
  • Rest of Asia-Pacific

• Middle East and Africa

Key Developments

• On 25 May 2023, Evonik, a manufacturer of chemical products, introduced an updated Biolys product for animal feed. Biolys offers a higher amount of L-lysine.
• In May 2022, METEX NOOVISTAGO, an animal nutrition expert launched a new solution, inneus range for pigs and poultry. The inneus range of products is based on amino acids.
• In March 2023, Corteva Agriscience, an agricultural chemical and seed company, and Bunge collaborated to introduce amino acid-enhanced soybean meal for the animal feed industry.

Why Purchase the Report?

• To visualize the global feed amino acids market segmentation based on type, livestock, form, source, distribution channel and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of Feed Amino Acids market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as Excel consisting of key products of all the major players.

The global feed amino acids market report would provide approximately 77 tables, 85 figures and 278 Pages.

Target Audience 2023

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies