Amino Acid Market Is Estimated To Witness High Growth Owing To Rising Demand From Animal Feed And Pharmaceutical Industries
Market Overview:
Amino acids are organic compounds that combine to form proteins. They are commonly associated with protein synthesis but also have a wide range of industrial and dietary uses as well. The major applications of amino acids include nutritional supplements, animal feed additives, pharmaceuticals and cosmetics.
Market Dynamics:
The growth of the amino acid market is majorly driven by rising demand from animal feed and pharmaceutical industries. According to statista, the global market for compound feed was estimated at around US$ 500 Bn in 2020 and is expected to grow at over 4% annually until 2027. This rising demand for compound feed will subsequently drive the consumption of amino acids which are an essential source of protein for livestock. Additionally, amino acids find wide application in protein drugs and dietary supplements. The growing dietary supplement industry coupled with increasing health consciousness among consumers is expected to propel the demand for amino acids over the forecast period.
The other drivers of this market include expansion of biotechnology industry, growing demand for nutraceuticals and processed food and increasing preference for alternative proteins such as pea and soy. However, stringent regulations regarding the usage of amino acids and availability of substitutes may hamper the market growth.
The global Amino Acid Market Demand is estimated to be valued at US$ 27.4 Bn in 2023 and is expected to exhibit a CAGR of 8.4% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
SWOT Analysis
Strength: The global amino acid market is supported by strong demand from the food & dietary supplements, pharmaceutical, and animal feed industries. Amino acids play a vital role in metabolism, protein synthesis, and various other biochemical functions in humans and animals. In addition, they are used as flavor enhancers and preservatives in food products. Major amino acid producers have well-established production facilities and supply chains to cater to the growing demand.
Weakness: High raw material and production costs associated with amino acid manufacturing can reduce profit margins for companies. Stringent regulatory policies pertaining to the usage of amino acids in certain pharmaceutical and food applications also act as a challenge.
Opportunity: Rising consumption of dietary supplements and functional food products rich in proteins provides lucrative growth opportunities. Increasing demand for amino acid from the animal feed industry to enhance the nutritional value of feed is another key opportunity. Growing use of amino acids in biomedical research and therapeutics development presents a major window for expansion.
Threats:presence of substitute products and easy availability of pirated amino acid products at lower costs pose threats. Volatility in raw material prices can impact overall production costs.
Key Takeaways
The global amino acid market is expected to witness high growth, exhibiting a CAGR of 8.4% over the forecast period 2023 to 2030, due to increasing consumption of dietary supplements, functional foods and animal feed.
Regional analysis: North America dominates the global amino acid market, owing to rising health consciousness, strong demand from dietary supplements industry and presence of key players. Asia Pacific exhibits the fastest growth led by China, driven by expanding food processing and pharmaceutical industries.
Key players analysis: Key players operating in the Amino acid market are Ajinomoto Co., Inc., KYOWA HAKKO BIO CO., LTD., AMINO GmbH, Bill Barr & Company, IRIS BIOTECH GMBH, Taiwan Amino Acids Co. Ltd., BI Nutraceuticals, Sichuan Tongsheng Amino acid Co., Ltd, Wacker, Chemie AG, Adisseo, and CJ CheilJedang Corp. These players are focusing on new product innovations and capacity expansions to strengthen their market position.
Read More: https://blogger-veritas.blogspot.com/2023/11/essential-amino-acids-is-fastest.html
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