Amino Acids Market Size, Share & Trends Analysis Report By Source (Plant Based, Animal Based), By Product (L-glutamate, Lysine, Tryptophan), By Application, By Livestock, By Region, And Segment Forecasts, 2020 - 2027

Report Overview

The global amino acids market size was valued at USD 21.18 billion in 2019 and is expected to grow at a compound annual growth rate (CAGR) of 7.8% from 2020 to 2027. The market is anticipated to be driven by increasing demand for amino acids from the food, pharmaceutical, and nutraceutical industries. The product is widely being used in dietary supplements owing to its ability to treat muscle soreness and sprain and mental fatigue.

Amino acids can be synthesized via protein hydrolysis, chemical synthesis, or microbiological (biotechnological) methods. The choice of method depends on the available technology, cost of raw materials, market characteristics, cost of running fermentation versus synthesis reactions, and the environmental impact of the method itself.

Biotechnological methods are widely utilized to produce amino acids. Even though biotechnology-based production is capital intensive, it plays a significant role in the production of amino acids. Modern biotechnology is applied to increase the production yield. For instance, genetic and metabolic engineering are used for strain improvement. However, enzyme catalysis is expected to remain the preferred method for production of amino acids and its derivatives.

The fermentation process is applied to industrial production of most L-amino acids. This method utilizes the phenomenon under which microorganisms convert nutrients to various vital components required. Raw materials such as syrups are added to microorganisms culture media and proliferating microorganisms can produce amino acids. Enzymes play an important role in the production of amino acids by fermentation.

Plant-based raw materials such as soybean, wheat, and corn are gaining popularity owing to higher amino concentrations and availability.  In order to maintain a consistent supply of raw materials for production, key players in the market are adopting forward as well as backward integration strategies aimed at securing high quality and stable supply of raw materials. Such steps of vertical integration are proving a higher degree of certainty of raw material supply and are offering them the opportunities for the development of new and innovative products from the existing raw materials.

Rising demand for dietary supplements, along with bolstering expansion of the healthcare industry in countries, such as India, China, Mexico, and the U.S., is expected to propel the product demand in the extended run. Among different types of amino acids, lysine and valine are gaining significant traction among end-users.

Source Insights

The plant-based source segment accounted for the largest revenue share of 85.5% in 2019 and is expected to witness the fastest growth over the forecast period owing to growing consumer preference for naturally sourced products. The plant sources include soybean, wheat, corn, potato, and peas. Currently, soybean is used for commercial development of the product on account of its high consumption and large-scale production. However, soybean processing is known to alter amino acid composition, which proves to be a major concern for sourcing raw material.

Growing consumer awareness regarding natural and organic products is expected to drive the worldwide production and consumption of plant-based amino acids. In addition, augmented social awareness related to animal slaughter is expected to positively impact the demand for plant-based sources. However, the production of plant-based amino acids is limited owing to the lack of production technology and requirement of high capital cost.

Animals are the primary sources for the extraction of amino acids. Animal meat includes pork, beef, and chicken, along with other by-products, such as muscle, skin, gut, blood, and placenta of fish. Animal by-products can be sourced from slaughterhouses, meat processors, and aquaculture farms. Key players involved in meat processing include JBS S.A.; Tyson Foods, Inc.; and Smithfield Foods. Rising meat consumption across the globe has driven its production. According to the report published by the Food and Agriculture Organization (FAO), the total meat production was 336.4 million tons in 2019. This is expected to create an uninterrupted supply of raw materials for amino acid production.

Product Insights

L-glutamate accounted for the largest revenue share of 50.6% in 2019 and is anticipated to maintain its lead over the forecast period. L-glutamate, also known as l-glutamic acid, is a non-essential amino acid. It is extensively used as a nutritional supplement, flavor enhancer, feed additive, and intermediate for manufacturing organic chemicals. In the food and beverage sector, sodium salt of l-glutamate, namely monosodium glutamate (MSG), also known as seasoning salt, is commercially used to improve the food palatability. Increasing demand for processed food products, along with growing product penetration in animal feed, is projected to drive the product demand over the forecast period.

Lysine being an essential amino acid has witnessed remarkable growth in the recent past. As human body cannot synthesize such acid, its demand is moderately driven by the growth of the dietary supplements market. Apart from human consumption, the product has gained popularity as an animal feed additive.

It is mainly used for body protein deposition and the amount of lysine ingested every day directly influences animal growth performance. Modifying the dietary lysine concentration according to the feed intake capacity optimizes animal growth, feed quality, and efficiency. Growing product demand from animal feed manufacturing companies, along with increasing consumption in dietary supplement formulations, is expected to augment the lysine demand over the forecast period.

Application Insights

The food and dietary supplements accounted for the largest revenue share of 59.4% in 2019 and is anticipated to maintain its lead over the forecast period. Amino acids are used in the food processing industry as flavor enhancers, preservatives, and nutrition enhancers. Glycine and alanine are commonly used as flavor and taste enhancers. Monosodium glutamate (MSG), a derivative of glutamic acid, is widely used as a flavor enhancer in canned vegetables, soups, processed meat, salad dressings, bread, carbohydrate-based snacks, and ice cream. It is regulated under the U.S. Food and Drug Administration (FDA) as GRAS (Generally Recognized as Safe). The product is popular among Asian countries and is widely used in several food preparations.

The animal feed segment is expected to witness the fastest growth over the forecast period. Amino acids are used as additives in animal feed formulations to promote growth performance, reproduction, and fulfill the protein requirement in animals. Supplementation with amino acids promotes feed conversion efficiency, thereby lowering feed costs per unit of weight gain of production. In addition, amino acid requirement varies from species to species and depends on the development stage of the animal.

For instance, in calves, the most vital amino acids required are isoleucine, lysine, methionine, leucine, and threonine. The deficiency in any of these amino acids slows down animal growth and delays the onset of maturity. In the growth stage of poultry animals, arginine is an essential part of their diets as it does not contain a urea cycle, which is responsible for synthesizing protein. Arginine deficiency in chicken often results in deformation. In addition, lysine deficiency can have a similar effect on turkeys.

Cystine is used in several beverages such as fruit juices as a preservative, whereas tryptophan and histidine are used as preservatives in milk powder. Phenylalanine and aspartic acid are used in combination to develop aspartame, which is gaining popularity as a sugar substitute in several soft drink formulations.

Livestock Insights

The poultry segment accounted for the largest revenue share of 49.6% in 2019 and is expected to witness the fastest growth over the forecast period. The poultry segment consists of chicken, duck, turkey, and boilers. Rising demand for chicken and boiler meat in the countries, such as U.S., Russia, and Mexico, is expected to drive the poultry feed market, giving rise to higher consumption of feeds additives, including amino acids, such as lysine and arginine.

Increasing fast food chains and growing demand for processed food in Asia Pacific and North America are driving the demand for poultry product in these regions. This has resulted in an upsurge in poultry farming activities, which, in turn, is driving the demand for poultry feed. However, the recent COVID-19 outbreak has resulted in a worldwide shutdown, which has created volatility in the availability and supply of poultry products.

Regional Insights

Asia Pacific led the market with a volume share of 50.74% in 2019. The region is expected to witness the fastest growth in terms of revenue over the forecast period. This can be attributed to increased consumer spending, growing adoption of healthy lifestyle, and expansion of the end-use industries, such as nutraceutical, pharmaceutical, personal care, and cosmetics.

Increasing production of amino acids in the region and growing exports of feed additives from key countries, such as China and Japan, are anticipated to contribute to the regional market growth. Amino acids are primarily used to treat liver and cardiovascular disorders and reduce muscle fatigue and breakdown. Burgeoning population in developing economies, such as China and India, along with the presence of young age population, has resulted in high demand for amino acids in the above-mentioned countries.

European countries such as Germany, the U.K., France, and Italy have witnessed increased meat consumption over the past few years. Growing use of animal feed additives containing a proportionate amount of prominent amino acids, such as lysine, methionine, and threonine, for improving animal growth performance is expected to drive the regional market. Besides, rising demand for high-quality meat and meat products is anticipated to drive the feed additives market in the region, which, in turn, is expected to fuel amino acid consumption in the feed industry.

However, the region is severely impacted by the COVID-19 outbreak. In addition, Italy and the U.K. are the worst-hit countries, thus resulting in the shutdown of several manufacturing companies. This is expected to severely impact the supply chain of feed additives, thereby adversely affecting the market growth in the region.

Key Companies & Market Share Insights

The market has been characterized by the presence of the established players with large production capacities. With the augmented product demand, these players are focusing on acquisition, expansion, and investment strategies to enhance their product portfolio and meet the growing demand from the end-use markets. For instance, Ajinomoto Co., Inc., one of the major players in the market, has recently undertaken construction of a new facility in Brazil for the production of amino acids to cater to the product demand arising from the personal care industry. Some of the prominent players in the global amino acids market include:  

• Ajinomoto Co., Inc.

• KYOWA HAKKO BIO CO., LTD.

•  Evonik Industries AG

•  AMINO GmbH

• Taiwan Amino Acids Co. Ltd.

Amino Acids Market Report Scope

Segments Covered in the Report

This report forecasts volume and revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2020 to 2027. For the purpose of this study, Grand View Research has segmented the global amino acids market report on the basis of source, product, application, livestock, and region:

• Source Outlook (Volume, Kilotons; Revenue, USD Million, 2016 - 2027)

  • Plant-Based

  • Animal Based

• Product Outlook (Volume, Kilotons; Revenue, USD Million, 2016 - 2027)

  • L-Glutamate

  • Lysine

  • Methionine

  • Threonine

  • Tryptophan

  • Leucine

  • Iso-Leucine

  • Valine

  • Glutamine

  • Arginine

  • Glycine

  • Phenylalanine

  • Tyrosine

  • Citrulline

  • Creatine

  • Proline

  • Serine

  • Others

• Application Outlook (Volume, Kilotons; Revenue, USD Million, 2016 - 2027)

  • Animal Feed

  • Food & Dietary Supplements

  • Pharmaceutical

• Livestock Outlook (Volume, Kilotons; Revenue, USD Million, 2016 - 2027)

  • Swine

  • Poultry

  • Cattle

  • Others

• Regional Outlook (Volume, Kilotons; Revenue, USD Million, 2016 - 2027)

  • North America

    • The U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • The U.K.

    • France

    • Italy

  • Asia Pacific

    • China

    • India

    • Japan

    • South Korea

  • Central & South America

    • Brazil

    • Argentina

  • Middle East & Africa

    • South Africa

    • Saudi Arabia