Amino Acids Market Analysis By Product (L-Glutamate, Lysine, Methionine, Threonine, Tryptophan, Leucine, Iso-Leucine, Valine, Glutamine, Arginine, Glycine, Phenylalanine, Tyrosine, Citrulline, Creatine, Proline, Serine), By Source (Plant-Based & Animal-Based), By Application (Animal Feed, Food & Dietary Supplements & Pharmaceuticals) And Segment Forecasts To 2022

Industry Insights

Global amino acids market demand was 6.19 million tons in 2013. Rising meat consumption coupled with high livestock production such as swine, broiler and cattle are expected to drive animal feed additive demand. This trend is expected to remain a key driving factor for the market growth over the next seven years. Threonine, lysine, tryptophan, and methionine are widely used in animal feed additives as they are essential for good health and regulate all metabolic processes. Feed acids help in faster growth and appropriate weight gain of the livestock. Growing meat consumption as a source of protein around the world is slated to positively influence market growth.

Amino acids are generally produced through processes such as fermentation, extraction, and chemical synthesis. Fermentation is the most widely used process and accounts for major share in global production of amino acids. Production processes for various amino acids can vary from one to another depending upon the composition, raw material, state or form and yield.

Growing awareness regarding benefits of feed additives coupled with the recent outbreak of diseases has prompted increased consumption of additives in animal feed. Population expansion coupled with growing per capita disposable income, specifically in emerging economies of Asia Pacific such as China and India are expected to fuel animal feed additives demand and in turn, augment amino acids industry growth.

Increasing food & dietary supplements demand owing to ageing population coupled with improving health standards is expected to increase global demand. Increasing obesity prevalence among the younger generation in the U.S. and the UK is projected to propel dietary supplements market and drive the industry growth. The ageing population in Japan and Brazil is also expected to increase food & dietary supplement consumption. Increasing sports supplements demand from athletes and bodybuilders specifically in U.S. and UK is expected to impact the global growth positively.

Rising l-glutamate demand from food & beverage industry owing to flavor enhancement properties is expected to fuel market growth. L-Glutamate is widely used in processed and convenience food, owing to excellent flavor enhancing properties. The sodium salt of l-glutamate acid provides an umami taste that intensifies meaty and savory food flavor. Increasing processed food consumption in emerging regions of Asia Pacific and Latin America owing to changing food habits coupled with hectic lifestyle is expected to drive demand for l-glutamate and in turn to drive the global industry.

Rising living standards combined with a higher purchasing power of consumers is expected to product demand for pharmaceutical applications. Rising sweeteners demand from convenience food and ready-to-drink beverages is projected to drive demand for L-aspartic acid and phenylalanine. Tight raw material supply is expected to pose challenges for industry participants and may hinder global growth. Increasing prices of raw materials such as corn, soybean and wheat in recent years is expected to impact market profitability. The advent of microfiltration process for increasing yield is expected to provide lucrative opportunities for industry participants.

Product Insights

L-Glutamate was the leading product and accounted for close to half of overall volume in 2014. L-Glutamate is extensively used in food & beverage industry due to flavor enhancing properties. It is an element of aged or fermented foods such as cheese and soy sauce. Increasing processed food consumption is expected to drive l-glutamate demand over the forecast period. Lysine, methionine, threonine and tryptophan together accounted for the majority of amino acids market share in animal feed additives market. Lysine is majorly required for pork industry whereas methionine is widely consumed by the poultry industry. Increasing food & dietary supplements demand in U.S. and UK owing to the ageing population, and rising consumer awareness is supporting the industry growth. Citrulline, Creatine, proline, and tyrosine are used in dietary supplements production.

Source Insights

Plant-based raw materials have been the leading source of amino acids over the past few years. Soybean, corn, and wheat based acids are widely used in end-use industries such as animal feed additives, food & dietary supplements, flavor enhancer and pharmaceutical industry owing to high health benefits. Growing consumer preference towards bio-based products among consumers is further expected to generate high demand for plant-based acids. Animal based raw materials such as fish silage and meat meal are expected to witness moderate growth owing to consumer sentiments and the ban on meat & bone meal in Europe. Shortage of plant-based raw material availability is expected to create hindrances for the industry growth.

Application Insights

Animal feed applications dominated globally in 2014. Lysine, methionine, tryptophan, and threonine are extensively used in animal feed additives industry, owing to health benefits such as high metabolism and weight gain. Increasing meat consumption in Asia Pacific and Latin America is expected to drive global market growth over the forecast period. The advent of innovative plant based and animal based acids are expected to provide lucrative opportunities to industry participants. Food & Dietary Supplements are another key application market, projected to exhibit significant growth owing to demographics coupled with changing food habits. Growing sports supplements demand is slated to impact positively demand. Demand from pharmaceutical applications is expected to grow at the significant rate owing to increasing application such as buffering agents in antacids, analgesics, and antiperspirants..

Regional Insights

Asia Pacific amino acids market dominated global demand in 2014 and is expected to continue its dominance over the forecast period. China has been a key pork exporter over the past few years, with the domestic industry characterized by the presence of numerous small-scale players. Europe is expected to witness moderate growth in demand over the forecast period owing to increasing demand from food & dietary supplements. North America amino acids market is expected to witness steady growth rate over the forecast period. Rising obesity and CVD prevalence is expected to drive demand for food & dietary supplements in the region.

Competitive Insights

Amino acids production is highly fragmented with the top five manufacturers dominating the 70% of market share in producing the each of the amino acid products. Key prominent manufacturers include Ajinomoto Co., Cargill Inc., ADM, Royal DSM, Prinova U.S. LLC, and Evonik Industries AG. Participants such as Royal DSM and Kemin Europa are completely integrated across the entire value chain, using soy meal, sesame seeds and other ingredients for amino acid production. Beijing FortuneStar S&T Development Co., Ltd. uses amino acids for the further production of chelates.

Biotechnology methods are widely used in the production of amino acids. Despite the fact that some of the amino acids cannot be produced cost effectively via biotechnology, it plays a significant role in the production of amino acids. Companies are investing in R&D activities to produce amino acid through biotechnology.

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