Ruminant Methane Reduction Market Size, Share & Trends Analysis Report By Product (Feed Additives/ Supplements (Plant-based, Chemical-based, Microbial-based)), By Animal Type (Cattle, Sheep, Goats), By Region, And Segment Forecasts, 2024 - 2030

Ruminant Methane Reduction Market Trends

The global ruminant methane reduction market size was estimated at USD 2.47 billion in 2023 and is projected to grow at a CAGR of 7.03% from 2024 to 2030. This can be attributed to the rising investments in research and development (R&D), technological advancements, growing awareness about climate change and need for ruminant methane reduction, and increasing in livestock population. According to the Livestock and Poultry: World Markets and Trade report of the U.S. Foreign Agricultural Service, the U.S. had 87.8 million cattle and 74.97 million swine stock as of January 2024.

Increased research and development (R&D) efforts are a significant factor driving the growth of the ruminant methane reduction market. The agricultural sector is collaborating with research projects to reduce methane emissions from cattle feedlots. Companies are funding research to create new and efficient solutions that help the environment and enhance productivity and efficiency in the industry. For instance, in May 2023, the Nissui Corporation invested in the Immersion Group, an Australian startup that focuses on cultivating Asparagopsis, a red seaweed known to reduce methane emissions from ruminants.

The development of innovative technologies, such as feed additives, vaccines, and dietary supplements, has provided effective ways to reduce methane emissions from ruminants without compromising their health or productivity. These advancements have fueled the market growth. For instance, in December 2023, Mootral, a biotech organization based in the UK, announced the completion of the in vitro development and testing phase of its Enterix Advanced technology and is set to begin a series of in vivo trials that will significantly enhance the methane reduction efficacy of the original Enterix.

Growing awareness about climate change and ruminant methane emissions is a significant driver for the adoption of methane reduction strategies in the livestock industry. As public awareness of sustainable practices increases, stakeholders recognize the significance of reducing emissions from livestock to meet climate commitments. Hence, demand for solutions to reduce methane from ruminants is anticipated to grow, fostering development and adoption of innovative technologies and practices within the market.

The increase in livestock population is a major factor propelling the market growth. With the continuous rise in the global demand for meat and dairy products continues to rise, there has been a corresponding increase in the number of ruminant animals such as cattle, sheep, and goats. Ruminant animals are known to produce methane as part of their digestive process, primarily through enteric fermentation in their rumen. This increased methane production contributes to climate change and highlights the urgency of implementing methane reduction measures. The Ministry of Fisheries, Animal Husbandry & Dairying reports that as per the 20th Livestock Census in India, there are approximately 303.76 million bovines (cattle, Mithun, buffalo, and yak), 9.06 million pigs, 148.88 million goats, 74.26 million sheep, and around 851.81 million poultry.

Market Concentration & Characteristics

Market growth stage is medium and the pace of growth is accelerating. The ruminant methane reduction market is characterized by a high degree of innovation, owing to the rapid technological advancements, increasing R&D, and collaborations between industry stakeholders, research institutions, and government agencies. For instance, in October 2023, the Department for Environment, Food and Rural Affairs (DEFRA) announced its commitment to collaborating with industry to implement measures by introducing methane-suppressing feed products to reduce livestock emissions

The market is also characterized by a moderate level of merger and acquisition (M&A) activity. This is due to several factors, including the aim to leverage synergies, accelerate product development, and expand market reach within the sector. In May 2023, Alltech acquired a majority stake in Agolin, a Swiss company specializing in plant-based nutrition solutions. The partnership aimed to enhance herd performance and sustainability, leveraging Agolin's certified feed additive for methane reduction in ruminants, contributing to global climate protection initiatives, and supporting farmers in achieving environmental goals.

The market for ruminant methane reduction is also subject to increasing regulatory scrutiny as governments across countries aim to tackle climate change by reducing greenhouse gas emissions. Regulatory bodies such as the Environmental Protection Agency (EPA) in the U.S., the European Union, and various national governments have implemented regulations and policies to address this issue. These regulations often include emission reduction targets, incentives for adopting methane reduction technologies, and monitoring requirements to ensure compliance.

The market has high product expansion. The key market players have been actively expanding their product portfolios to offer a wider range of solutions for farmers looking to reduce methane emissions from their livestock. In April 2023, CH4 Global, Inc. introduced Methane Tamer Beef Feedlot, a proprietary methane-reducing feed formulation for cattle, featuring Asparagopsis seaweed to achieve up to 90% reduction in methane emissions.

Key players have been expanding their presence regionally to capitalize on the growing demand for sustainable solutions to reduce methane emissions from ruminant livestock. In January 2024, CH4 Global began construction of the world's first commercial-scale Asparagopsis seaweed facility in South Australia, aiming to reduce CO2- equivalent emissions by a billion metric tons by 2030.

Product Insights

The feed additives/ supplements segment dominated the market and accounted for a revenue share of over 90% in 2023. Ongoing R&D efforts have led to the discovery of new feed additives and supplements more effective at reducing methane emissions without compromising animal health or productivity. These advancements have generated interest and increased adoption among livestock producers. For example, Agolin SA, a Swiss company, has developed a feed additive containing extracts from coriander seed oil, clove, and wild carrot, which has been shown to shift microbial populations in the rumen and increase milk production while reducing methane emissions by 10% per animal.

The other products segment is anticipated to grow at the fastest CAGR of 9.98% from 2024 to 2030. Other products include wearables devices such as Zelp and ozone in drinking water. As awareness of the harmful effects of methane emissions grows, the demand for innovative methane reduction solutions is expected to increase, driving further R&D in this field and expanding the market for methane reduction products and services.Furthermore, growing strategic initiatives such as partnerships between key players to advance ruminant methane reduction solutions are expected to boost demand for ruminant methane reduction solutions. For instance, in June 2021, Cargill and ZELP partnered to offer European dairy farmers a wearable device that reduces methane emissions from cattle by up to 95%. This innovative technology combines methane oxidation and data processing to minimize environmental impact and improve animal welfare.

Animal Insights

The cattle segment accounted for the largest revenue share in 2023. This is attributable to the increasing awareness of the environmental impact of methane emissions from cattle and rising focus of government and regulatory bodies are on reducing greenhouse gas emissions, including methane, from agricultural sources. For instance, In December 2023, Canada introduced economic incentives for beef cattle farms to reduce methane emissions through the Reducing Enteric Methane Emissions from Beef Cattle (REME protocol), encouraging changes in diets and management practices to cut enteric methane emissions and earn offset credits.

The goats segment is expected to register the fastest CAGR during the forecast period, owing to the increasing awareness of the environmental impact of methane emissions. Furthermore, developing new technologies and innovations specifically targeted at reducing methane emissions from goats is also driving demand for methane reduction solutions in the goat farming sector. These advancements may include dietary supplements, feed additives, or management practices that minimize methane production.

Regional Insights

The North America ruminant methane reduction market dominated in 2023. The investments in ruminant methane reduction initiatives and the availability of financial incentives and support mechanisms for methane reduction projects are contributing to the expansion and sustainability of the North America market. For instance, in December 2023, the United States Department of Agriculture’s (USDA) National Institute of Food and Agriculture (NIFA) announced a USD 10 million investment in two groundbreaking & interdisciplinary initiatives to advance the understanding and mitigation of methane emissions, a potent Greenhouse Gas (GHG) naturally produced by ruminant animals.

U.S. Ruminant Methane Reduction Market Trends

The ruminant methane reduction market in the U.S. dominated with a share of over 90% in 2023. This can be attributed to the government initiatives aimed at incentivizing and supporting livestock producers in adopting methane reduction technologies and practices. For instance, the U.S. Methane Emissions Reduction Action Plan, part of the Inflation Reduction Act, aims to diminish methane output across sectors, including ruminant agriculture.

Europe Ruminant Methane Reduction Market Trends

The ruminant methane reduction market in Europe is expected to grow during the forecast period. Europe was identified as a lucrative region due to the stringent environmental regulations, such as those set by the European Union directives and national policies. These regulations create a legal framework that compels agricultural stakeholders to reduce methane emissions from ruminants. These regulations often include targets & standards for emissions reduction, incentivizing the adoption of technologies and practices aimed at mitigating methane.

The UK ruminant methane reduction market is expected to grow rapidly in the coming years, due to rising government initiatives. Through policies and programs aimed at mitigating climate change & promoting sustainable agriculture, the government fosters innovation and adoption of technologies & practices to reduce methane emissions from ruminants. Initiatives such as the Agriculture Bill, the Clean Air Strategy, and the Environmental Improvement Plan provide regulatory frameworks, incentives, and support for farmers to implement methane reduction measures

Asia Pacific Ruminant Methane Reduction Market Trends

The ruminant methane reduction market in Asia Pacific is anticipated to witness the fastest CAGR during the forecast period. The escalating methane emissions are catalyzing this growth. With a significant portion of global methane emissions originating from ruminant livestock in this region, there is a pressing need for effective mitigation strategies. This rise in emissions is spurring increased demand for methane reduction solutions. According to the Food and Agriculture Organization of the United Nations, the livestock sector in the Asia Pacific is confronting unprecedented challenges due to population expansion and the effects of climate change

The Japan ruminant methane reduction market is expected to grow rapidly in the coming years due to R&D efforts to develop effective feed additives and technological innovations. In December 2023, KAJIMA CORPORATION developed a groundbreaking technology using seaweed to drastically reduce methane emissions from cow burps. Methane is a potent GHG, and the seaweed, Asparagopsis taxiformis, has proven effective in suppressing these emissions when added to cattle feed. Collaborating with dairy farmers, Kajima aims to commercialize this innovation.

The ruminant methane reduction market in China held a substantial revenue share in 2023, owing to collaborations between government agencies, research institutions, and industry stakeholders. By pooling resources, expertise, and efforts, these collaborative initiatives enable the development and adoption of innovative methane reduction solutions tailored to the specific needs and challenges of the Chinese agricultural sector. In 2021, China announced its anticipated methane reduction plan, Beijing's initial pledge to mitigate methane emissions at Cop26 in Glasgow.

Key Ruminant Methane Reduction Company Insights

Some key companies operating in the ruminant methane reduction market include DSM; Alltech; Fonterra Cooperative Group Limited; and Cargill Incorporated.

• DSM is a global science-based company that focuses on nutrition, health, and sustainable living. They offer solutions for reducing methane emissions in ruminants through innovative feed additives and nutritional products. Its portfolio includes Bovaer, a feed additive that reduces enteric methane emissions by about 30% for dairy cows and up to 90% for beef cows.

• Alltech focuses on providing natural-based products and solutions to address agronomic, horticultural, and animal nutrition challenges worldwide. It offers a wide range of products & services aimed at improving plant, feed, and food quality through nutrition and scientific innovation. Alltech’s methane reduction products include Yea-Sacc and Agolin Ruminant.

CH4 GLOBAL, INC; Mootral; and Elanco Animal Health Inc. are some other market participants.

• CH4 GLOBAL, INC. focuses on delivering innovative products that help the food industry significantly reduce greenhouse gas emissions. One of their key products is Methane Tamer feed additives for feedlot cattle.

• Mootral is a Swiss AgriTech company that offers a natural feed supplement aimed at reducing methane emissions from ruminant animals. Mootral's flagship product, Mootral Ruminant, is a natural feed supplement designed to reduce methane emissions from cattle by up to 38%.

Recent Developments

• In February 2024, dsm-firmenich and Donau Soja partnered to highlight the environmental impact of feed ingredients using Sustell, aiding businesses in measuring & improving sustainability in the animal protein value chain. Their collaboration aimed to reduce greenhouse gas emissions from food production and enhance transparency in the feed & food industry.

• In January 2024, Rumin8 successfully opened its manufacturing demonstration plant in Perth, Western Australia, to refine production processes for its methane-reducing feed and water supplements for livestock.

• In November 2023, Athian.ai introduced the first voluntary livestock carbon in setting marketplace, collaborating with Elanco Animal Health to reduce enteric methane emissions and enhance feed utilization in the dairy industry.

Ruminant Methane Reduction Market Report Scope

Global Ruminant Methane Reduction Market Report Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments. For this study, Grand View Research has segmented the global ruminant methane reduction market report based on product, animal type and region:

• Product Outlook (Revenue, USD Million, 2023 - 2030)

  • Feed Additives/ Supplements

    • Plant-based

    • Chemical-based

    • Microbial-based

  • Other Products

• Animal Type Outlook (Revenue, USD Million, 2023 - 2030)

  • Cattle

  • Sheep

  • Goats

• Regional Outlook (Revenue, USD Million, 2023 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • Germany

    • UK

    • France

    • Italy

    • Spain

    • Norway

    • Denmark

    • Sweden

  • Asia Pacific

    • Japan

    • China

    • India

    • South Korea

    • Australia

    • Thailand

  • Latin America

    • Brazil

    • Mexico

    • Argentina

  • Middle East and Africa (MEA)

    • South Africa

    • Saudi Arabia

    • UAE

    • Kuwait