Animal Feed Alternative Protein Market

Animal Feed Alternative Protein Market (2024 to 2034)

The global animal feed alternative protein sales is expected to reach a valuation of USD 180 billion by the year 2024, accelerating with a CAGR of 8.0% by 2024 to 2034.

Sales of Animal feed alternative protein is experiencing a major transformation driven by the escalating need for sustainable practices in livestock management. Traditional feed production has long been associated with environmental concerns, prompting a surge in the exploration of innovative alternatives.

Insects, algae, single-cell proteins, and plant-based ingredients are emerging as sources for various end use feed applications, offering sustainable and eco-friendly solutions to mitigate the ecological impact of conventional feed production and processing.

Alternative proteins applications in animal feed industry has emerged as a transformative force across diverse livestock segments, addressing sustainability concerns and revolutionizing traditional feed practices. In the poultry sector, alternative feeds cater to boilers, layers, turkeys, and ducks, offering eco-friendly solutions that reduce environmental impact.

Swine farming, encompassing starter, grower, and sow phases, benefits from innovative feed sources, emphasizing efficient resource utilization. Cattle, including dairy cows, calves, and other categories, witnessed a shift toward sustainable nutrition practices.

Equine nutrition is also influenced by alternative feeds, reflecting a commitment to environmentally conscious choices. Additionally, aquaculture, spanning salmon, trout, shrimps, and carp, experiences advancements in feed technology, aligning with the global drive towards responsible and sustainable livestock nutrition.

Report Attribute	Details
Animal Feed Alternative Protein Market Size (2024E)	USD 180 Billion
Animal Feed Alternative Protein Market Projected Size (2034F)	USD 388.5 Billion
Value CAGR (2024 to 2034)	8.0%
Top 3 Countries Market Share	27.1%

The industry is undergoing a revolutionary transformation driven by innovative technologies that redefine traditional feed production methods. Extrusion, a process involving the application of heat and pressure, enhances the nutritional value of feeds, making it suitable for various livestock.

Fermentation, a biological process, produces nutrient-rich feed through microbial action, promoting sustainable practices. Enzyme treatment optimizes nutrient utilization, enhancing feed efficiency for different animals.

Micronization involves fine grinding to improve digestibility, while extraction and refinement techniques yield high-quality feed components. These technological advancements not only address environmental concerns but also contribute to increased efficiency and nutritional value in alternative animal feeds. As the industry evolves, these diverse technologies play a pivotal role in reshaping the landscape of sustainable and responsible livestock nutrition.

Semi Annual Market Update

Particular	Value CAGR
H1	7.8% (2023 to 2033)
H2	7.9% (2023 to 2033)
H1	8.0% (2024 to 2034)
H2	8.3% (2024 to 2034)

The above table presents the expected CAGR for the global animal feed alternative protein sales over several semi-annual periods spanning from 2024 to 2034. In the first half (H1) of the decade from 2023 to 2033, the business is predicted to surge at a CAGR of 5.8%, followed by a slightly lower growth rate of 7.8% in the second half (H2) of the same decade.

Moving into the subsequent period, from H1 2024 to H2 2034, the CAGR is projected to decrease slightly to 7.9% in the first half and remain relatively moderate at 8.0% in the second half. In the first half (H1) the industry witnessed an increase of 20 BPS while in the second half (H2), the industry witnessed an increase of 40 BPS.

Key Industry Highlights

Insects and Algae Driving Resource-Efficient Animal Feed Practices

New sources of protein are insects and algae, which stand out as more sustainable and resource-efficient versus the traditional livestock farming in their ability to convert feed into biomass. As a result, insects like black soldier fly larvae or mealworms, alongside algae prove highly affective in utilizing inputs for proteinaceous biomass.

In contrast to conventional livestock, they use much less land, water, and feed resources. Insect-based proteins require only small areas for production since these organisms can be grown vertically or in small-scale facilities. They also have low water footprints compared to conventional livestock that help address water scarcity concerns.

This way, they contribute not only to the meeting of growing animal protein demand but also help reduce the environmental impacts associated with resource-intensive conventional farming systems by efficiently converting feed into biomass.

For an increasingly crowded planet searching for sustainable solutions in food production, these qualities identify insects and algae as potential alternative sources of environmentally safe yet economically viable animal feeds.

Waste-to-Protein, Insect Larvae Driving Circular Economy in Agriculture

The alternative animal feed industry’s circular economy approach depends largely on the role played by insect larvae like black soldier flies and mealworms. Such bugs convert organic waste materials into premium quality protein content at remarkable efficiency levels.

Through eating up waste matter and altering it through digestion process they participate in waste recycling hence supporting circular economies model principles. This type of sustainability mitigates organic wastes’ environmental effects while producing natural nutrient rich insect based proteins that cost nothing except some time for harvesting them from bins etc., instead of letting them go unused.

In the circular economy model, insect larvae’s biological processes exemplify a closed-loop system in which waste is turned into a resource. This means that by effectively converting organic wastes into biomass, these insects offer a sustainable way to manage waste while at the same time increasing availability of protein for animal feed.

From this perspective, it can be argued that it is important to include insect larvae as part of the animal feed production process because they represent an innovative way towards circular resource utilization.

Sustainable Feed Solutions attracting Government Incentives

Various governments around the world are increasingly recognizing alternative animal feeds as having immense potential for addressing environmental concerns while ensuring food security.

This recognition comes from the sustainability and efficiency of such feed which contributes to the overall objective of reducing environmental degradation brought about by conventional livestock farming practices. The trend has seen many countries enacting supportive regulations and offering incentives aimed at promoting use of alternative feed sources including:

• The European Union has been at the forefront in stimulating sustainable agriculture. The EU has set aside funds for research and development with regard to alternative proteins.
• In addition, The Farm Bill in USA has provisions backing up investigation on different and new feed ingredients.
• China has also enacted policies that support the growth of the insect farming industry as a source of animal feed due to its challenges in meeting rising demand for animal protein.

Algae and Plant Proteins beyond Nutrition: Guardianship over Animal Health

Some alternative feeds particularly algae and specific plant-based proteins have been identified as having potential health benefits thus improving disease resistance among animals. Algae provide all essential elements like omega 3 fatty acids, vitamins and minerals required for better health status and immune system functionality.

Also, algae based feeds are known improve disease resistance since they contain biologically active compounds capable of supporting immunity function in animals. Similarly, some plant-based proteins known for their nutritional properties have been found to enhance health aspects within animal diets hence;

Plant proteins such as those from peas or legumes contain antioxidants and anti-inflammatory agents that promote animal well-being and overall disease resistance. Processors and framers and now focusing more towards alternative feed and feed ingredients indicating health and nutritional benefits for livestock seeking sustainable approaches to livestock management.

Market Concentration

The largest share in the industry is taken up by local mid-level players, which make up 68.0% of the total sales. This shows a presence of regional or smaller companies within the industry. These companies may have strong connections to local industries and distribution networks thereby giving them some advantage in certain regions.

Multinational corporations (MNCs) account for 25.0% of the industry competition; hence, they have substantial industry shares. This involvement therefore indicates that these firms extend their reach globally due to this, there are potentially significant financial resources available to them. It can be inferred that MNCs would aim at leveraging economies of scale and state-of-the-art technology to outdo each other within the industry.

Startups hold a much lower proportion at 7% in terms of industry share but it still represents a significant rise in innovation and entrepreneurship within the animal feed alternative segment. Startups might come up with disruptive innovations or new ways of tackling changing consumer needs or sustainability concerns.

Therefore, presence of both start-ups as well as MNCs suggests an atmosphere conducive for innovation which could lead to possible disruptions in future. Competitions among these entities may result into development on technologies for alternative feeds product lines based on sustainability grounds. Such advancements will enable consumers’ access different alternatives while ensuring ecological soundness

To succeed in the animal feed alternative sales, it is important to understand local peculiarities and preferences as significant shares are controlled by local mid-level players. Indeed, these players can have a leg up on their rivals by having established relationships with the locals and hence suppliers, farmers, and distributors for better addressing specific category needs.

Country-wise Insights

The following table shows the estimated growth rates of the significant five geographies of sales. Brazil and India are set to exhibit high animal feed alternative protein consumption, recording CAGRs of 13.5% and 11.2%, respectively, through 2034.

Countries	CAGR 2024 to 2034
United States	5.4%
Germany	5.8%
China	9.2%
India	11.2%
Brazil	13.5%

United States Steady Growth in Alternative Proteins

The United States’ animal feed alternative protein sales is projected to grow at a steady CAGR of 5.4% between 2024 and 2034. This growth is driven by an increasing demand for sustainable and eco-friendly protein sources in animal feed.

Some eye-catching protein alternatives in the industry include insect-based proteins, plant-based proteins, fish meal alternatives, single-cell proteins et al., including seaweed and algal oil among others. The use of these substitutes has been enabled by developments in food technology and heightened awareness of the environmental impact resulting from traditional animal feed.

Germany Leading the European Charge

Alternative proteins for animal feed are expected to rise by 5.8% CAGR in Germany, which leads Europe according to estimates. In other words, this development is being fueled by German consumers and businesses demanding other types apart from insects-based protein products such as plant-based or fish meal alternatives as well as single cell ones like seaweed or algal oil.

This trend reflects a broader movement aimed at reducing livestock production’s ecological footprint while also ensuring a more sustainable food supply chain.

China: Rapid Expansion Driven by Innovation

Over the next ten years, China anticipates witnessing a huge growth rate equaling 9.2% in its animal feed alternative protein sales. To accelerate this rapid expansion however, China has made strategic investments on food technology plus sustainable agriculture practices.

These new sources of alternative protein include but not limited to insect based proteins (also called entomophagy), other than insects there are plants (vegetarianism) or single cell like seaweed or algal oil (veganism) among others. These developments are necessary to supply animal protein in a sustainable manner as the demand for such foods skyrockets.

India Booming Market for Sustainable Solutions

With an impressive CAGR of 11.2%, India has emerged as one of the key players in the Animal Feed Alternative Protein Market. In fact, Indian farmers and feed manufacturers who are increasingly using alternative high-protein sources like insect based proteins, plant-based products, fish meal alternatives and single cell ones like seaweed or algal oil have also contributed to this transition.

This shift is driven by the need to enhance efficiency and sustainability within livestock production systems that will cater to large populations with varying food demands.

Brazil High Growth Potential in Alternative Proteins

Brazil is positioned for substantial growth in Alternative Protein Market, with a remarkable CAGR of 13.5%. Animal feed industry shall also have a positive impact considering growth in technical innovations, change in consumption pattern, and investment support in near future.

Alternative proteins ecosystem in Brazil has significant contribution from insect-based proteins, plant-based proteins, fishmeal alternatives, single-cell proteins, seaweed and algal oil ingredients. This growth is fueled by the need to reduce the environmental impact of livestock production and ensure the long-term viability of the agricultural sector.

Category-wise Insights

Which Feed Type is recording a Boost in the Sales?

Segment	Feed Type (Plant based Protein)
Value Share (2024)	21.1%

In 2024, plant-based proteins are set to capture a substantial 21.1% value share of the animal feed alternative protein category. This significant portion highlights the increasing shift towards sustainable and eco-friendly feed options. As global awareness of environmental impacts rises, farmers and feed producers are embracing plant-based proteins to reduce the carbon footprint of livestock farming.

These proteins not only offer a greener alternative but also promise nutritional benefits that are vital for animal health. The continued innovation in this sector is expected to drive further growth, making plant-based proteins a cornerstone in the future of animal feed.

Why Livestock is Experiencing Prominent Demand?

Segment	Form (Cattle)
Value Share (2024)	38.3%

Cattle feed represents the largest segment within the animal feed alternative protein category, commanding a 38.3% value share in 2024. This dominance underscores the critical role of alternative proteins in enhancing the sustainability and efficiency of cattle farming. As the global demand for beef and dairy products grows, so does the need for more sustainable feeding practices.

Alternative proteins offer a viable solution by improving feed efficiency and reducing environmental impact. The focus on cattle feed innovation is not just about meeting demand but also about ensuring that the cattle industry can thrive in a more eco-conscious world.

Which Form is the Most Preferred Type?

Segment	Form (Meal)
Value Share (2024)	47.1%

The meal form of alternative proteins is the most favored format, holding a commanding 47.1% value share in 2024. This preference is driven by the meal form's versatility and ease of incorporation into various feed blends. Meals are finely ground, allowing for uniform mixing and better nutrient absorption, which is crucial for animal growth and health.

The high adoption rate of meal-form alternative proteins reflects their practicality and effectiveness in delivering consistent nutritional benefits. As the animal feed industry continues to evolve, meal forms are expected to remain at the forefront, providing a reliable and efficient option for feed producers worldwide.

Competitive Landscape

The animal feed alternative protein industry is characterized by a dynamic and competitive landscape, led by key players such as Cargill, ADM, Evonik, and Wilmar International Ltd. These companies collectively hold a significant share of the value and are at the forefront of innovation and industry penetration.

Cargill, with a commanding 22.7% industry share, stands as the industry leader, leveraging its extensive portfolio and global reach to dominate the sector. Its focus on sustainability and innovation in feed formulations, supported by substantial investments in research and development, has been instrumental in providing high-quality, nutritionally balanced feed options.

ADM, holding a substantial 20.9% market share, is a close contender. The company's strength lies in its integrated value chain, enabling efficient production and distribution of alternative proteins. ADM's expertise in agricultural processing and ingredient manufacturing, coupled with its commitment to sustainability and strategic partnerships, enhances its competitive edge.

Evonik, with a 17.0% market share, is known for its innovative approach to feed formulations, particularly its emphasis on amino acids and nutritional additives. The company’s dedication to research and sustainable practices ensures its products meet and exceed industry standards, solidifying its market presence.

Wilmar International Ltd., holding a 9.8% market share, leverages its diverse operations across various segments of the agricultural value chain to integrate alternative proteins into its product lines effectively. Its extensive distribution network and strategic investments in sustainability and innovation bolster its market standing.

Collectively, Cargill, ADM, Evonik, and Wilmar International Ltd. Holds significant share in the industry. these companies drive the growth of alternative proteins in animal feed ecosystem, ensuring their dominance in the market, currently. Their commitment to innovation, sustainability, and high-quality products positions them well to shape the future of the animal feed industry as the demand for sustainable and efficient feed solutions continues to grow.

Leading Animal Feed Alternative Protein Brands

• Hamlet Protein
• Royal De Heus
• Nutreco
• Roquette Freres
• Haid Group
• Calysseo's FeedKind
• ADM
• Cargill
• Charoen Pokphand Group
• Perfect Companion Group Co., Ltd.
• Betagro Public Company Limited
• Corbion
• Wilmar International Ltd, Singapore
• Evonik
• Greenfeed, Vietnam

Key Segments of the Report

By Feed Type:

Animal Feed Alternative Protein industry is segmented as Insect Based Protein, Plant based Protein, Fish Meal Alternative, Single-cell proteins, Others (Seaweed & Algae, Algal Oil)

By Livestock:

As per Livestock, the industry has been categorized into Poultry, Swine, Cattle, Equine, Aquaculture

By Form:

Form further includes Meal, Pellets, Liquid and Freeze-dried or dehydrated

By Region:

Industry analysis has been carried out in key countries of North America, Latin America, Europe, East Asia, South Asia, Oceania and Middle East & Africa

Frequently Asked Questions

How big is the Animal Feed Alternative Protein Industry?

The Animal Feed Alternative Protein sales shall reach nearly USD 180 billion by 2024.

What is the North America Animal Feed Alternative Protein Sales Outlook?

The North American Animal Feed Alternative Protein Sales has a share of around 20.4% in 2024.

At What Rate, will Animal Feed Alternative Protein Demand Grow in Europe?

The demand for Animal Feed Alternative Protein is anticipated to grow at a 7.4% CAGR between 2024 and 2034.

What Are the Key Trends Shaping the Animal Feed Alternative Protein Category?

Sustainability and Environmental Impact, Advancements in Biotechnology, Consumer Demand for Ethical and Safe Food, Regulatory and Industry Standards, Economic Considerations and Cost Efficiency, Focus on Nutritional Quality and Performance are among the most well known trends.