AMINO ACID MARKET ANALYSIS

The global amino acids market size was valued at US$ 25.28 Billion in 2022 and is anticipated to witness a compound annual growth rate (CAGR) of 8.4% from 2023 to 2030. Growing demand for dietary supplements, functional foods and animal feed is driving growth of amino acids market. Moreover, increasing consumption of meat and protein-enriched foods is again driving the demand for animal feed amino acids, which are crucial for nutritional diets and prevent metabolic diseases. Also, growing demand for amino acid ingredient from personal care, cosmetics, and pharmaceuticals are further expected to propel the market growth.

Global Amino Acids Market: Regional Insights

Based on geography, the global amino acids market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.

Asia Pacific is expected to dominate the global amino acids market over the forecast period owing to the rapid economic growth of the region, increasing adoption of healthy lifestyle, and the strong growth of end-use sectors like pharmaceutical, nutraceutical, and personal care. Moreover, the increasing livestock production in China and India is again boosting the need for feed amino acid such as lysine to prevent metabolic diseases.

North America is a second leading region in the global amino acids market owing to the growing demand for amino acids from animal feed and nutraceutical industries. Moreover, the region is characterized by the presence of strong animal feed-producing countries such as the U.S. and Canada which is again fuelling the regional market growth. According to the International Trade Centre (ITC), the U.S. feed exports accounted for US$ 2.8 billion in 2019, contributing to 11% of the global animal feed exports.

Figure 1. Global Amino Acids Market, By Region, 2023

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Global Amino Acids Market Drivers:

Growing demand for nutraceutical & pharmaceutical products to foster market growth

Amino acids are projected to experience high demand from food and dietary supplement manufacturers due to the increasing consumer spending capacity and rising awareness among individuals regarding healthy lifestyle and preventive care. Amino acids are widely used to manufacture health supplements to manage muscle pain, reduce fatigue, and lower the risk associated with cardiovascular diseases. Moreover, amino acids are also witnessing demand in nutritional sports supplements as many athletes prefer consuming amino acid-based supplements in the form of powders, tablets, and drinks for muscle growth.

Increasing demand from pet food and animal feed sector to augment market growth

Amino acids are mainly used as bioactive supplements as they provide various health benefits to animals. Amino acids are also used as feed ingredients in pet food formulations as they improve digestion and boost healthy gut in animal. According to the American Pet Products Association, the spending on pet food in North America was the highest in 2019, reaching US$ 31.68 billion on account of high consumption of dog food with quality ingredients.

Global Amino Acids Market Opportunities:

Growing consumption of meat is driving demand for amino acids from animal feed industry. This is expected to provide potential market growth opportunities. According to the The World Counts, the production of meat has doubled in the 30 years from 1988 to 2018 and increased four-fold since the mid-1960s. And production is expected to continue to grow. By 2050, global meat consumption is projected to reach between 460 Billion and a staggering 570 Billion tons. 570 Billion tons would mean a consumption of meat twice as high as in 2008.

Increased adoption of a plant-based diet is expected to serve major growth opportunities. In January 2022, Google revealed that searches for "vegan food near me" have dramatically increased in 2021. The term achieved "breakthrough status", meaning it increased by 5,000 percent or more indicating the rising popularity of vegan diets.

Global Amino Acids Market Trends:

Growing popularity of ready-to-drink beverages

The trend of consuming ready-to-drink beverages is influencing the demand for aspartame, which in turn will the demand for amino acids. Aspartame includes two amino acids—phenylalanine and aspartic acid. Ready-to-drink beverages are also gaining demand on the account of growing working population and increasing disposable income of consumers.

Changing fashion trend is creating demand for personal care products

Growing demand for amino acids from personal care products will uplift the market growth. For instance in January 2020, The Marquie Group, Inc.  an emerging markerter in the global beauty and wellness marketplace, along with its licensed brand, Whim™ has announce the addition of a slate of premium amino acid-based products to its health and beauty platform ahead of its upcoming launch

Global Amino Acids Market Restraints:

Price volatility of raw materials is expected to hamper the market growth

Raw materials such as soybean oilseeds, wheat, and corn are being used for amino acid production. They have been witnessing price volatility over the past few years. This factor is expected to hinder the market growth.

High capital investment

High capital investment required for the set-up of production facilities of amino acids is anticipated to restrict the market growth. The fermentation technology used for production of amino acids is cost intensive and also requires high amount of water and energy. This is projected to restrict the market growth.                  

Figure 2. Global Amino Acids Market, By Application, 2023

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Global Amino Acids Market Segmentation:

The global amino acids market report is segmented into source, livestock, product, application, and region

Based on source, the market is segmented into plant based and animal based. Out of which, plant based is expected to dominate the global market over the forecast period and this is attributed to the large-scale production and high consumption of plant-based ingredients.

Animal based segment is also expected to witness significant growth in the near future and this is owing to the growing consumption of animal- based proteins due to its various health benefits.

Based on livestock, the market is segmented into swine, poultry, cattle, and others. Out of which, swine is expected to dominate the global market over the forecast period and this is attributed to the growing demand for pork meat. The total pork consumption across the globe accounted for 100,904 thousand metric tons as of 2019, according to report published by United States Department of Agriculture.        

Poultry segment is also expected to witness significant growth in the near future and this is owing to the growing demand for meat and poultry products around the globe. The amino acids market demand for poultry stood at 1,264.6 kilotons in 2019 and is anticipated to reach 2,036.7 kilotons till 2027.

Based on product, the market is segmented into L-Glutamate, Lysine, Methionine, Threonine, Tryptophan, Leucine, Iso- Leucine, Valine, Glutamine, Arginine, Glycine, Phenylalanine, Tyrosine, Citrulline, Creatine, Proline, Serine, and Other. Out of which, L-Glutamate is expected to dominate the global market over the forecast period. It is used as a nutritional supplement, flavor enhancer and in the production of a number of processed food items, including soups and sauces.

Methionine segment is also expected to witness significant growth in the near future. It is an important amino acid and a potent antioxidant. Its key applications include cell culture media preparation, parenteral nutrition, pet food, enteral nutrition, and pharmaceuticals.

Based on application, the market is segmented into Animal Feed, Food & Dietary Supplements, and Pharmaceuticals. Out of which, Food &dietary supplements is expected to dominate the global market over the forecast period and this is attributed to the growing use of amino acids as a preservatives, flavor enhancers, and nutrition enhancers in food industry.

Animal Feed segment is also expected to witness significant growth in the near future and this is owing to the growing use of amino acids as a additives in animal feed formulations to uplift the reproduction, growth performance, and fulfill the protein requirement in animals. For instance, in calves, the most vital amino acids required are leucine, lysine, isoleucine, methionine, and threonine.

 Global Amino Acids Market: Key Developments

In June 2019, Ajinomoto Co., Inc. announced the construction of its first amino acid-based surfactant manufacturing facility in Brazil. The surfactants are specifically designed for personal care applications and will be marketed under the brand name Amisoft. The addition of new manufacturing facility is expected to result in scaling the company’s amino acid-based surfactant production capacity by nearly 60%.

In February 2020, Amino GmbH, which manufactures high-quality pharmaceutical-grade amino acids for pharmaceutical, medical and clinical dietetic nutrition applications, announced its plans to double production capacity by building a new facility at its Frellstedt, Germany location.

In March 2020, Amino GmbH announced the registration of L-aspartic acid as U.S. DMF (Drug Master File). DMF is a document provided by the organization to the regulatory body that contains information related to manufacturing procedures, facilities, etc. The DMF filing enables the firm to safeguard its intellectual property along with maintaining compliance with regulatory requirements for disclosure of processing details. The FDA registration enables the company to expand its sales to the U.S. market, in particular to the pharmaceutical sector and is a part of its internationalization strategy.

Global Amino Acids Market: Key Companies Insights

The global amino acids market is highly competitive. This is attributed to continuous launch of new technologies due to ongoing R &D and efforts by value chain participants. Moreover, key players are adopting various business growth strategies in order to expand their presence on regional as well as global basis. Some of the key players in the global amino acids 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.

*Definition: Amino acids are the building blocks of proteins and play a vital role in maintaining proper body function. They are used in a wide range of applications in the food and beverages industry, such as flavor enhancers and nutritional additives. They are also used in the production of industrial products such as fertilizers, biodegradable plastics, and intermediate manufacturing organic chemicals.