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The global rendered products market size stood at USD 21.89 billion in 2019 and is projected to reach USD 24.64 billion by 2027, exhibiting a CAGR of 2.3% during the forecast period.
Rendering is a process in which animal waste tissue is transformed into useful and stable by-products such as poultry fat and protein meals. The increasing utilization of rendered products in the animal feed and food industry and rising concerns regarding environmental sustainability are expected to drive the global market. In order to meet the increased demand for rendered animal products, prominent players are investing profoundly in the market.
Disruption in Global Supply Chain to Impede Business during COVID-19 Pandemic
The outbreak of the COVID-19 pandemic has halted the industry globally. There are gradual lockdowns, shortage of laborers, and raw materials that have interrupted ongoing production work. Also, regulatory delays have affected the new product approvals. The short-term shutdown of slaughterhouses across some countries due to the pandemic has resulted in the decreased production of raw materials required for the manufacturing of rendered livestock products. However, the rendering industry has faced challenges owing to the altered eating habits and decreased prices of animal by-products.
Although the demand for rendered animal products from the animal feed industry has been comparatively stable, the coronavirus crisis has hit the supply chain brutally. The industry is facing interruptions and production decline due to raw material scarcity and government-mandated regulations. Prominent players operating in the market are continuously making efforts to retain their production supply levels. For instance, companies have established task forces to monitor the situation and take appropriate measures to reduce or eliminate production or supply hindrance that is prevalent or is expected to emerge in the upcoming months.
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Development of Novel Products Using Animal By-products is a Current Trend
The manufacturing of novel products using animal by-products is an innovative idea and is still in the initial stages of development. Intensifying research on the improvement in the quality of animal feed by increasing the application of rendered products is an emerging trend in the global market. For instance, the new research has introduced a prospect of biotransformation of meat, bone meal, & leftover red blood cells into high-quality antioxidant and astaxanthin for animal feed.
Rising Utilization of Rendered Products in Feed Industry to Augment Growth
The increasing utilization and application of various animal by-products in the food, animal feed, and pet food applications are predicted to drive the global market in the forthcoming years. With the evolution of the meat and fish processing industry, farmers are expanding their livestock production to fulfill the consumers’ demand. Therefore, the demand for value-added animal feed has increased in recent years. The increasing popularity of protein meal and poultry fat as a cost-effective alternative to several plant-based ingredients is expected to positively impact market growth. Moreover, the rising utilization of rendered animal products for the production of high-value or specialty pet food is anticipated to further support the growth of the market.
Increasing Concerns over Environmental Sustainability to Support Growth
The rendering industry offers an essential service by handling fallen stock from an extensive range of materials such as bones, blood, feathers, and many others from the meat processing industry and converting them into useful by-products. The rendering process includes the recycling of animal waste from various sources. If these animal wastes are not processed properly, they could present serious health and environmental risks. The rendering industry offers several benefits to the environment such as decreasing the amount of landfill space required for animal waste disposal and eradicating the excess release of carbon dioxide from animal waste, thereby, limiting greenhouse gas emissions. Hence, rising concerns regarding environmental sustainability are expected to drive the global rendered animal products market.
Strict Regulations on Rendering Animals to Restrict Market Growth
Strict regulations regarding the rendering of animals and their by-products are expected to restrict the market growth in the coming years. The trade of rendered animal products is subjected to rules imposed by exporting and importing regions. Therefore, the complication of approval for such transportation can hinder the market growth. Moreover, the emerging trend of plant-based products has increased the demand for vegetarian protein sources, which, in turn, can restrict the utilization of the products in the food industry.
Poultry Segment to Exhibit Highest CAGR Backed by Increasing Consumption of Chicken
The slaughter of chickens is at an all-time high and hence, the poultry segment is expected to grow at a considerable rate during the forecast years. For instance, according to a national association dedicated to the chicken industry named the National Chicken Council (NCC), the average Americans consumed an estimated 93.5 pounds of chicken in 2018. The average beef and pork consumption for the year was only 56.9 and 50.1 pounds, respectively, making chicken still the most popular meat in the country. The abundant availability of poultry by-products i.e. feather meal, blood meal, poultry fat, and many others, and their increasing application in the rendered industry are predicted to aid the growth of the segment.
Tallow Segment to Dominate Backed by its Rising End-user Applications
The increasing end-user application of tallow is predicted to boost the growth of this segment in the forthcoming years. Tallow has been used in several ways in the food, as well as the feed industry. It is widely used as an ingredient and as a cooking oil in food preparation due to its high smoke point. Moreover, it has been used for making candles, soaps, and as a lubricant for wood, metal, and leatherworking industries. The rising end-user application of tallow is predicted to boost its share in the global market.
The protein meal segment is predicted to grow at the highest CAGR in the global marketplace. The increasing utilization of protein meal in the animal feed industry due to its contribution to the healthy growth of animals is predicted to support the growth of the segment.
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Feed Grade Rendered Products Segment to Lead Throughout the Forecast Period
Owing to several hygiene reasons, a large quantity of rendered animal products are rejected from the food-grade segment. Therefore, the animal feed grade segment secured a larger revenue in 2019 followed by the industrial-grade segment. The rising demand for high-value animal feed and the growing sale of specialty pet foods are predicted to boost the utilization of rendered animal products for the production of value-added animal feed and specialty pet foods. Furthermore, the increasing utilization of rendered fats and other ingredients for the production of soaps, creams, and other personal care products is predicted to raise the demand for industrial-grade products.
North America Rendered Products Market Size, 2019 (USD Billion)
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North America is the leading market for rendered products at present and it is projected to account for a significant proportion of the market during the forecast period. The tremendously increasing demand for high-quality animal feed to maximize the potential of ranch animals is likely to boost the utilization of rendered animal products for value-added animal feed. Furthermore, the increasing popularity of specialty pet food is expected to further propel the market growth in this region.
The market in Asia Pacific is expected to grow speedily owing to the rising population, evolving economies, and growth of the food animal sector in the region. The region has experienced a substantial increase in the consumption and production of livestock products, which, in turn, can strengthen the rendering activities in meat-producing countries such as China and India. In addition, the growing utilization of rendered animal products to manufacture aquaculture feed due to the increasing demand for high-value aquaculture feed is predicted to support the growth of the regional market.
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The production and distribution of food animals have been a long-established source of livelihood of South America & it remains the major segment of agriculture and the economy. The rising number of rendering facilities in countries such as Brazil and Argentina is expected to be a favorable factor for the growth of the regional market. The European market is majorly fuelled because of the rising interest in environmental safety and sustainability. Moreover, the expansion of export networks for rendered animal products from Europe to other regions such as North American countries is predicted to further drive the regional market.
Increasing Consolidation due to Collaborations and Mergers & Acquisitions to Open Growth Opportunities
The rendered animal products market is becoming more consolidated owing to brand loyalty, a wide range of product offerings, and strong distribution networks of prominent companies in developed, as well as developing economies. Furthermore, key players are embarking on mergers & acquisitions to increase their global prominence. Tyson Foods Inc. is one of the leaders operating in the rendered products market. Mergers & acquisitions and collaborations are some of the key strategies adopted by the company to compete in the global market.
An Infographic Representation of Rendered Products Market
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The research report provides qualitative and quantitative insights on the rendered products market and detailed analysis of market size and growth rate for all possible segments in the market. Along with this, the report provides an elaborative analysis of the market dynamics, SWOT analysis, and competitive landscape. Various key insights provided in the report are the overview of related markets, recent industry developments such as mergers & acquisitions, the regulatory scenario in key countries, and key industry trends.
Value (USD Billion)
By Source, Type, Grade, and Region
Fortune Business Insights says that the global market size was USD 21.89 billion in 2019.
Registering a CAGR of 2.3%, the market will exhibit robust growth during the forecast period (2020-2027).
The poultry segment in terms of the source is expected to hold a prominent share in the global market.
The intensifying demand for animal by-products in animal feed and food industries is predicted to drive the growth of the global market.
JBS S.A., Tyson Foods Inc., and Darling Ingredient Inc., are some of the top players in the market.
North America is expected to hold the highest share in the global market.
The tallow segment in terms of type is expected to hold the dominant market share.
The development of innovative products using animal by-products is an emerging trend in the global market.
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