Animal By-Product Market Outlook

The global animal by-product market is projected to reach a valuation of approximately USD 100 billion by 2035, growing at a CAGR of around 7% during the forecast period from 2025 to 2035. The increasing demand for high-quality protein sources, the rising awareness regarding the nutritional benefits of animal by-products in feed formulations, and the growing adoption of sustainable agricultural practices are driving this growth. Furthermore, advancements in processing technologies and the expanding applications of animal by-products in various industries, including pharmaceuticals and cosmetics, are contributing significantly to market expansion. As consumers become more conscious of food sources and sustainability, the utilization of by-products is expected to gain traction, fostering a more circular economy within the animal husbandry sector.

Growth Factor of the Market

The animal by-product market is experiencing substantial growth due to several key factors. First, the global populationÔÇÖs increasing focus on sustainable food sources has led to a rising demand for alternative protein options, which animal by-products can effectively fulfill. Additionally, the livestock industryÔÇÖs commitment to minimizing waste by utilizing by-products for animal feed, fertilizers, and other applications plays a pivotal role in market growth. Furthermore, advancements in processing techniques improve the quality and safety of animal by-products, thereby boosting consumer confidence and acceptance. The integration of animal by-products in pet food formulations also promotes a higher nutritional profile, further enhancing market demand. Lastly, the expanding pharmaceutical and cosmetic applications of animal by-products are opening new revenue streams for manufacturers, contributing significantly to the market's upward trajectory.

Key Highlights of the Market

• Projected market size of USD 100 billion by 2035 with a CAGR of 7%.
• Rising demand for sustainable and high-quality protein sources.
• Increasing applications in pharmaceuticals and cosmetics.
• Significant growth in the use of by-products for animal feed formulations.
• Advancements in processing technologies enhancing product safety and quality.

By Product Type

Meat Meal:

Meat meal is a highly concentrated protein source that is derived from rendered animal tissues, primarily meat. It is a crucial ingredient in animal feed, providing essential amino acids necessary for growth and reproduction. The increasing demand for meat meal in livestock and aquaculture feed formulations is driven by the need for cost-effective protein sources. Additionally, meat meal serves as a sustainable alternative that helps reduce waste in the meat processing industry, thereby promoting environmental sustainability. As the livestock sector continues to expand, the market for meat meal is expected to gain momentum, bolstered by its nutritional benefits and affordability.

Bone Meal:

Bone meal is produced from the crushed or ground bones of animals, typically cattle, and is rich in calcium and phosphorus, making it an excellent supplement for animal feed. It is widely used in poultry and livestock feed to enhance bone development and overall health. The increasing awareness of the importance of minerals in animal nutrition has led to a surge in demand for bone meal. Furthermore, with the rise of organic farming practices, the use of bone meal in fertilizers is also gaining traction, as it is a natural and sustainable source of essential nutrients for plants, thus contributing to its market growth.

Blood Meal:

Blood meal is a by-product obtained from the processing of animal blood, primarily from slaughterhouses. Rich in protein, blood meal is often used as an ingredient in animal feed due to its high digestibility and amino acid profile. The market for blood meal is expanding as livestock producers increasingly turn to alternative protein sources to meet the nutritional needs of their animals. Additionally, blood meal is recognized for its role in enhancing growth performance in livestock and poultry, making it a valuable component in feed formulations. Its increasing use in organic fertilizers further contributes to its market potential.

Feather Meal:

Feather meal is derived from processed poultry feathers and serves as an excellent source of protein and amino acids, particularly keratin. This by-product is increasingly utilized in animal feed, especially for poultry and swine, due to its high protein content and digestibility. The growing emphasis on cost-effective feed solutions drives the demand for feather meal, as it provides a sustainable alternative to traditional protein sources. Moreover, its use in fertilizers is also on the rise, with feather meal contributing to soil health and fertility, thereby promoting its acceptance in organic farming practices.

Fish Meal:

Fish meal is produced from fish processing waste, primarily from species such as menhaden, herring, and anchovies. It is an exceptionally rich protein source, containing high levels of omega-3 fatty acids, making it invaluable in aquaculture and livestock feed formulations. The growing aquaculture industry is a significant driver of fish meal demand, as fishmeal provides essential nutrients for healthy fish growth. Additionally, its nutritional benefits for pets and livestock are gaining recognition, further enhancing its market growth potential. The sustainability of fish meal production practices is also being prioritized, which aligns with the increasing consumer demand for environmentally friendly products.

By Application

Animal Feed:

Animal feed is one of the primary applications for animal by-products, as it provides essential nutrients to livestock and poultry. The increasing global demand for meat, dairy, and eggs fuels the need for high-quality and sustainable feed ingredients. Animal by-products, such as meat meal, bone meal, and fish meal, are rich sources of protein and other vital nutrients, making them integral to feed formulations. The growing trend toward sustainable agriculture and the reduction of feed costs further enhance the market for animal feed applications, as producers seek alternatives that can maintain or improve livestock productivity. The nutritional benefits and cost-effectiveness of animal by-products solidify their role in the animal feed sector.

Fertilizers:

Animal by-products are increasingly recognized for their value as organic fertilizers. Bone meal and feather meal, in particular, are rich in nutrients like nitrogen, phosphorus, and potassium, which are essential for plant growth. The shift towards organic farming practices has led to a growing acceptance of animal by-products in fertilizer applications, as they contribute to soil fertility and enhance crop yields. Additionally, the environmental benefits of utilizing waste materials as fertilizers align with consumer preferences for sustainable food production methods, driving the market for this application. The increasing demand for organic produce is expected to further boost the use of animal by-products in fertilizers.

Pharmaceuticals:

The pharmaceutical application of animal by-products is a niche yet significant segment of the market. Components such as gelatin, derived from collagen found in animal tissues, are widely used in the production of capsules, tablets, and other drug formulations. The increasing prevalence of chronic diseases and the subsequent rise in demand for pharmaceuticals are driving the need for high-quality animal by-products in this sector. Additionally, the use of animal-derived ingredients in vaccines and other medical applications underscores the importance of this market segment. The ongoing research into the therapeutic benefits of various animal by-products is expected to expand their application in pharmaceuticals further.

Cosmetics:

Animal by-products also find applications in the cosmetics industry, where ingredients such as collagen and gelatin are prized for their skin-enhancing properties. These components are commonly used in anti-aging products, skincare formulations, and hair care items, owing to their ability to promote skin elasticity and hydration. The increasing consumer interest in natural and sustainable beauty products drives the demand for animal-derived ingredients in cosmetics. Moreover, the trend towards cruelty-free and ethically sourced products is influencing manufacturers to adopt sustainable practices in sourcing animal by-products, thereby boosting their acceptance in the cosmetics sector.

Others:

Beyond the primary applications of animal by-products in animal feed, fertilizers, pharmaceuticals, and cosmetics, there are several other emerging applications. For instance, certain animal by-products are being explored for use in biofuels, bioplastics, and even food products for humans. The growing interest in alternative and sustainable supply chains is prompting companies to investigate innovative uses for these by-products, which can help reduce waste and promote a circular economy. The versatility of animal by-products allows them to be adapted for various applications, thus widening their market potential across different sectors.

By Distribution Channel

Online Stores:

The rise of e-commerce has transformed the distribution landscape for animal by-products. Online stores provide convenience and accessibility for consumers and businesses alike, allowing them to source high-quality animal by-products from various suppliers effortlessly. The growing trend of online shopping, accelerated by the COVID-19 pandemic, has resulted in an increasing number of suppliers establishing a robust online presence. Additionally, online platforms often provide detailed product information and customer reviews, enabling consumers to make informed purchasing decisions. This trend is expected to continue, driving growth in the online distribution channel for animal by-products.

Pet Stores:

Pet stores are an essential distribution channel for animal by-products, particularly those intended for pet nutrition and care. Products such as meat meals, bone meals, and fish meals are increasingly available in specialized pet stores that cater to the growing market for premium pet food. The rise in pet ownership and the increasing consumer preference for high-quality and nutritionally balanced pet food are contributing to the growth of this distribution channel. Additionally, pet stores often provide expert advice and recommendations, enhancing the shopping experience for pet owners and driving the sales of animal by-products.

Veterinary Clinics:

Veterinary clinics play a critical role in the distribution of animal by-products, especially those used in specialized dietary formulations for pets and livestock. Clinics often recommend specific products that contain animal by-products based on the nutritional needs of the animals they treat. The collaboration between veterinary professionals and animal by-product manufacturers is crucial in ensuring that the right products are available to meet the health and dietary requirements of various animals. As awareness of the benefits of animal by-products in animal health continues to grow, veterinary clinics are likely to become an increasingly important distribution channel.

Supermarkets/Hypermarkets:

Supermarkets and hypermarkets serve as key distribution channels for animal by-products, particularly those targeted at mainstream consumers. These retail outlets provide a wide range of products, including protein-rich feeds and supplements derived from animal by-products. The increasing focus on nutrition and health among consumers drives the demand for these products in supermarkets, as shoppers seek convenient and accessible options. Retailers are also adapting to consumer preferences for transparency and sustainability by offering certified and responsibly sourced animal by-products, further enhancing their appeal in this distribution channel.

Others:

Other distribution channels for animal by-products include agricultural supply stores, feed co-operatives, and specialty stores that cater to niche markets. These channels serve specific segments of the market, providing tailored products that meet the unique needs of different consumers. For instance, agricultural supply stores may offer bulk purchases of animal by-products for livestock farmers, while specialty stores may focus on organic or premium products. The diversity of distribution channels allows for a broader reach and ensures that animal by-products are accessible to various market segments, contributing to overall market growth.

By Ingredient Type

Collagen:

Collagen, a vital protein found in animal tissues, is a key ingredient derived from animal by-products that has gained significant attention in various industries. In the food sector, collagen is used as a supplement to support joint health, while in cosmetics, it is prized for its skin-firming properties. The growing awareness of the health benefits associated with collagen consumption is driving its demand across multiple applications. Additionally, as consumers become more interested in natural and sustainably sourced ingredients, the market for collagen derived from responsibly sourced animal by-products is expected to expand, creating opportunities for manufacturers in this segment.

Gelatin:

Gelatin is another important ingredient derived from animal by-products, produced through the hydrolysis of collagen. It is widely used in the food industry for its gelling properties, commonly found in products such as desserts, confectionery, and yogurt. Beyond the food sector, gelatin is also utilized in pharmaceuticals for capsule production and in cosmetics for various formulations. The growing demand for gelatin in health supplements and functional foods further drives its market potential. As consumers increasingly prioritize transparency and the provenance of their ingredients, the demand for high-quality gelatin sourced from animal by-products is expected to rise in the coming years.

Tallow:

Tallow, rendered from animal fat, serves as a valuable ingredient in various applications, including animal feed, soap production, and biofuels. Its high energy content makes it an attractive option for livestock nutrition, while its use in the cosmetics and personal care industry is also gaining traction. The increasing adoption of tallow as a sustainable and versatile ingredient aligns with the growing consumer preference for eco-friendly products. Furthermore, as industries seek to reduce waste and utilize by-products more effectively, the market for tallow is anticipated to experience significant growth, driven by its multifunctional applications.

Lard:

Lard, rendered from pig fat, is experiencing a resurgence due to its culinary applications and increasing recognition as a natural cooking fat. In the food industry, lard is valued for its flavor and texture-enhancing properties, particularly in baking. Beyond food production, lard is also used in cosmetics and personal care products for its emollient properties. The growing trend of clean-label and natural food products is driving the demand for lard, as consumers seek alternatives to synthetic fats. The versatility of lard as an ingredient across multiple sectors contributes to its market growth potential, appealing to health-conscious and environmentally aware consumers.

Poultry By-Products:

Poultry by-products encompass a range of materials derived from the processing of chickens and turkeys, including feathers, entrails, and offal. These by-products are rich in protein and nutrients, making them valuable ingredients for animal feed formulations. The increasing global consumption of poultry products drives the demand for poultry by-products, as they serve as a cost-effective and nutritious option for livestock and pet diets. Additionally, the use of poultry by-products in organic fertilizers aligns with sustainable agricultural practices, further enhancing their market appeal. As the poultry industry continues to expand, so too will the utilization of poultry by-products across various applications.

By Region

The North American region holds a significant share of the animal by-product market, accounting for approximately 35% of the total market value. The well-established livestock industry, coupled with a high demand for animal feed and organic fertilizers, contributes to this dominance. The United States, in particular, is a major producer of animal by-products, with numerous companies engaged in rendering and processing operations. The region is expected to register a CAGR of around 6% during the forecast period, driven by the increasing focus on sustainable agricultural practices and the growing awareness of the health benefits associated with animal by-products. Moreover, the expansion of the pet food sector in North America is anticipated to further bolster the market for animal by-products.

In Europe, the animal by-product market is also poised for significant growth, driven by the increasing awareness of sustainability and the circular economy. The region is expected to account for approximately 30% of the global market share. Countries such as Germany, France, and the United Kingdom are leading contributors to the market, with robust regulations promoting the utilization of animal by-products in various applications. The growing trend of organic farming and the rising demand for organic fertilizers are expected to propel the market forward, with a projected CAGR of 7% during the forecast period. Additionally, the rise in premium pet food products in Europe is contributing to the increasing consumption of animal by-products in this region.

Opportunities

The animal by-product market presents numerous opportunities for innovation and growth, particularly in the area of sustainable practices. As global awareness of environmental issues continues to rise, there is an increasing demand for sustainable and ethically sourced ingredients in various industries. Companies that can successfully develop sustainable sourcing and processing methods for animal by-products will likely gain a competitive edge in the market. Additionally, the rise of the circular economy is encouraging businesses to explore novel applications for animal by-products, leading to reduced waste and enhanced resource efficiency. This not only benefits the environment but also opens up new revenue streams for companies willing to invest in research and development.

Moreover, the growing trend towards health and wellness among consumers presents opportunities for the animal by-product market. As individuals become more conscious of their dietary choices, there is a rising demand for high-quality protein sources and functional food ingredients. Animal by-products such as collagen, gelatin, and protein meals are increasingly being recognized for their nutritional benefits, driving their incorporation into health supplements and functional foods. By capitalizing on these trends, companies can further expand their market presence and cater to the evolving preferences of consumers seeking nutritious and sustainable food options.

Threats

Despite the promising growth prospects in the animal by-product market, several threats could potentially hinder progress. One significant challenge is the increasing scrutiny and regulatory pressure surrounding animal by-products. As consumer awareness of food safety and sustainability rises, regulatory bodies are implementing stricter guidelines for the sourcing, processing, and labeling of animal by-products. Companies must navigate these regulations effectively to maintain compliance and consumer trust, which can be resource-intensive and may limit market opportunities. Additionally, any incidents of contamination or foodborne illnesses associated with animal by-products can lead to reputational damage and a decline in consumer confidence, further threatening market stability.

Another potential threat is the competition from plant-based protein alternatives. The growing popularity of plant-based diets and the increasing perception of meat consumption as unsustainable is driving consumers to seek alternatives to traditional animal products. This shift in consumer behavior poses a challenge for the animal by-product market as it may lead to decreased demand for certain products. To mitigate this threat, companies must focus on innovation and differentiate their offerings by highlighting the nutritional benefits and sustainability of animal by-products while also exploring niche markets where these products can thrive.

Competitor Outlook

• Darling Ingredients Inc.
• Valley Proteins, Inc.
• Andersons, Inc.
• Proliant Meat Ingredients
• Brooks Animal Nutritional
• Sonneveld Group
• Ingredion Incorporated
• Smithfield Foods, Inc.
• Envigo
• Trouw Nutrition
• Rousselot
• GELITA AG
• Omega Protein Corporation
• Farbest Brands
• Fisher & Paykel Healthcare

The competitive landscape of the animal by-product market is characterized by a mixture of established players and new entrants, all vying for market share in this rapidly growing sector. Key companies such as Darling Ingredients Inc. and Valley Proteins, Inc. are recognized leaders in rendering and processing animal by-products, leveraging their extensive networks and operational expertise to ensure high-quality product offerings. These companies have adopted strategic partnerships and collaborations to enhance their supply chains and expand their distribution capabilities. Moreover, their commitment to sustainability and innovation in processing technologies positions them well to capitalize on emerging market trends and consumer preferences.

Another notable player in the market is Proliant Meat Ingredients, which specializes in producing high-quality protein meals and other by-products for use in animal feed and pet food. The company focuses on continuous improvement in sustainability and product quality, ensuring its offerings meet the evolving demands of the livestock and pet food sectors. Additionally, companies like Smithfield Foods, Inc. are diversifying their product lines to include a broader range of animal by-products, catering to various applications such as fertilizers and pharmaceuticals, thereby enhancing their competitive positioning in the market.

Rousselot and GELITA AG are significant players in the gelatin market, providing high-quality animal-derived ingredients for food, pharmaceuticals, and cosmetics. Their focus on research and development allows them to innovate and introduce new product lines that meet consumer demands for clean-label and sustainable ingredients. As the market continues to evolve, these companies are likely to remain at the forefront, leveraging their expertise and commitment to quality to capture new opportunities in the growing animal by-product sector.