Derived from non-conventional sources like insects, plants, micro-organisms, and other similar sources, alternate proteins are experiencing rising demand from the consumers. The global alternative protein for animal feed market size is poised to exceed USD 4.0 billion by 2026, driven by various factors, including increasing meat consumption, growing concerns of greenhouse gas emissions and livestock diseases, and the mounting demand for high-quality proteins.
Livestock segment to play a key role in boosting the alternative protein industry for animal feed landscape
The alternative protein industry for the animal feed, based on livestock is forecast to witness noteworthy growth in the coming years.
The poultry livestock segment in the alternative protein market for animal feed registered the highest revenue in 2019 and is set to expand rapidly through 2026, attributed to the increasing poultry meat consumption. Citing an example, the Asia Pacific poultry meat consumption was more than 39,000 kilotons in 2016 and is poised to surpass 50,000 kilotons by 2026.
Furthermore, the cattle segment, including dairy, calf, and others, in which calves are slaughtered for veal or calfskin or reared to become adult cattle, was valued at USD 627.61 million in 2019 and is likely to expand at 7.3% CAGR in the forecast timeframe. The growth is supported by the rising demand for beef & beef products coupled with mounting agricultural activities and a growing market for dairy products.
For instance, the U.S. exported beef worth USD 6.9 billion in 2019, which was reported to be nearly 13.4% of overall beef exports around the world. The US was followed by Brazil with 12.6%, the Netherlands with 6.1%, and India with a 6% contribution of the total worldwide beef exports.
The swine livestock segment including, starter, grower, sow, and other animals, held USD 578.62 million revenue of alternative protein market for the animal feed in 2019 and is likely to register 7.3% CAGR through 2026.
Brazil’s rising beef exports will fuel the global alternative protein for animal feed industry size expansion
Being the third-largest exporter of beef across the world, Brazil accounted for a revenue of USD 6.5 billion, and the region’s beef export is estimated to rise to 2.5 million metric tons by 2028, further positively impacting the augmentation of alternative protein market for animal feed in the region.
Latin America and the Asia Pacific are also set to witness steady growth in the forecast timeframe. As per the reports, the Latin American alternative protein industry share for animal feed was valued at USD 276.71 million in 2019. The Asia Pacific accounted for the highest revenue in 2019 and due to the high consumption of meat, the region is set to witness the highest growth rate.
Insect-Based Alternative Protein for the Animal Feed Industry Share to Witness Substantial Growth
With insects consisting of the highest amount of proteins, insect-based alternative protein for the animal feed market is poised to witness significant growth attributed to the less cultivation cost compared to other sources and extensive R&D in the sector.
Citing a recent development in this regard, Archer Daniels Midland Co, the U.S. grain trader and processor collaborated with InnovaFeed, a French biotech firm to build the largest insect protein plant in the world in Decatur, Illinois. The plant is estimated to annually produce nearly 60,000 tons of animal feed protein from Hermetia Illucens along with 400,000 tons of fertilizer, 20,000 tons of oils for poultry and swine rations.