Amino Acid Market Is Estimated To Witness High Growth Owing To...

Amino Acid Market Is Estimated To Witness High Growth Owing To Increasing Demand From Food Industry

Posted 2024-01-23 12:22:15

Amino acids are organic compounds that combine to form proteins. Amino acids are also building blocks of neurotransmitters and hormones in human body. They play an important role in protein synthesis and maintenance of nitrogen balance. L-Leucine, L-valine, L-isoleucine are majorly used in dietary supplements manufacturing. Glutamine, argenine, lysine, tryptophan, and leucine find applications in pharmaceuticals production. The growing food processing sector demands high amount of amino acids to enhance the nutritional value of food products. Development of innovative plant-based food items is boosting the amino acid consumption.

The global Amino Acid Market is estimated to be valued at US$ 31.57 Mn in 2023 and is expected to exhibit a CAGR of 4.5% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.

Market Dynamics:
Increasing demand from food industry remains a key driver for amino acid market. Rapid urbanization, changing consumer food preferences and rising health consciousness have been augmenting the development of functional and nutritive foods. Hence, food processors incorporate amino acids to cater to nutritional requirements of population. This has significantly driven the amino acid consumption. Further, growth of pharmaceutical sector has also contributed to the amino acid demand. Amino acids like glutamine are widely used in manufacturing of medicines, thereby supporting the market expansion.

SWOT Analysis
Strength: Amino Acid is an essential building block for life. It is a key component of proteins that are needed for growth, development and maintenance of our overall health. Due to its critical functional impact on physiology, the demand for Amino Acids is always high. The ingredients like Lysine, Methionine and Threonine have wide applications across various end use industries like Nutraceuticals, Food processing, and Animal Feed.

Weakness: Prices of essential amino acids fluctuate periodically based on availability of raw materials. Plant proteins and crops that are sources of amino acids witness seasonal variations impacting steady supply. The manufacturers have limited control over raw material prices. High import dependency on few countries like China makes supply vulnerable to geo-political disruptions.

Opportunity: Rise in health awareness among consumers is driving growth in Nutraceuticals and Functional Food and Beverage products fortified with essential amino acids. Growth opportunities exist in untapped regional markets of Asia Pacific and Latin America. Technology advancements in fermentation processes help optimize yields and reduce production costs.

Threats: Intense competition among established players limits pricing flexibility and margins. Potential trade barriers by regulatory bodies can impact cross border trade. Stringent safety and quality standards pose compliance challenges. Substitute ingredients may emerge as alternatives in future.

Key Takeaways
The global Amino Acid Market Demand is expected to witness high growth.

The Asia Pacific region currently dominates the market owing to large consumer base, rising living standards and growing health consciousness. China contributes to over 30% of the global amino acid demand on account of large animal feed production.

Key players operating in the Amino Acid market are ADM (U.S.), Olam International Limited (Singapore), Ajinomoto Co. Inc. (Japan), Evonik Industries (Germany), and CJ Cheil Jedang Corp. (South Korea). Players focus on expanding production capacities and investing in R&D to develop fermentation based process technologies for cost optimization. Mergers and acquisitions remain key strategies to strengthen portfolio and geographical footprint.

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