CAGR: 8%Current Market Size: USD 27 BillionFastest Growing Region: Europe
Largest Market: APACProjection Time: 2022-2029Base Year: 2021
The global amino acid market is expected to grow from USD 27 billion in 2021 to USD 49 billion by 2029, at a CAGR of 8% during the Projection period 2022-2029. The growth of this market is mainly driven owing to the increasing demand for amino acids in several industries.
Proteins are made up of substances called amino acids. Proteins and amino acids are the components of life. Animal and human nutrition both heavily rely on amino acids. They are required for important bodily functions like the production of hormones and neurotransmitters. They are beneficial for boosting the immune system, preventing cancer and arthritis, and treating tinnitus and rectal illnesses. Amino acids are more in demand today since they help treat ailments like depression, sleep difficulties, premenstrual dysphoric disorder (PMDD), quitting smoking, bruxism, and attention deficit hyperactivity disorder (ADHD). Additionally, red meat, shellfish, eggs, dairy products, and soy products are also rich sources of amino acids. Protein hydrolysis, chemical synthesis, and microbiological (biotechnological) processes can all be used to make amino acids. The method to choose relies on the technology available, the cost of raw materials, market factors, the expense of running fermentation vs synthesis reactions, and the approach's own environmental impact. A lot of techniques using biotechnology are used to make amino acids. Although biotechnology-based production requires a lot of resources, it is crucial to the manufacture of amino acids. The application of contemporary biotechnology boosts output yield. For instance, strain enhancement uses genetic and metabolic engineering. However, it is anticipated that enzyme catalysis will continue to be the favored process for the creation of amino acids and their derivatives.
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Market Dynamics:
Drivers:
Since the production of amino acids depends heavily on the availability of high-quality raw materials. Prominent market players are utilizing forward and backward integration approaches designed to assure high quality and dependable supply of raw materials in order to maintain a continuous supply of raw materials. Such vertical integration methods increase the supply reliability of raw materials and give opportunities for the creation of novel products using existing raw materials. As a result, a reliable supply chain is set up to enable the manufacturing of amino acids. Additionally, the producers' strong and quick direct and indirect distribution channels guarantee the prompt delivery of goods, driving up demand for amino acids.
Restraints:
The fierce competition among the market's established players presents a significant barrier to entry for new players because many of them are providing high-quality amino acid products to a variety of end-users, such as food and beverage producers, the pharmaceutical industry, and producers of dietary supplements, and others. Additionally, some small-scale producers and local businesses sell low-quality or fake goods at lower rates, which has an impact on the global amino acids industry. The other competitors in the market will face intense rivalry as the number of producers offering a wide variety of amino acids for various purposes rises.
Opportunities:
The manufacturers of amino acids will have more opportunities to grow the worldwide amino acids market as they debut new products, expand their operations, make investments, and take other efforts. Due to their numerous health benefits, including their ability to build muscle, support body tissue repair, and maintain healthy skin, hair, and nails, amino acids are becoming more and more in demand across a range of industries, including food and beverage, cosmetics, pharmaceuticals, and dietary supplements. The demand for amino acids will rise as consumer awareness of the health advantages of amino acids increases, allowing producers to introduce new products into the market.
Challenges:
The difficult production process is the main hindrance to market expansion. The synthesis of amino acids will also have high logistic costs, which will impede market expansion. On the other hand, the availability of a variety of amino acids is anticipated to present a growth potential for the industry worldwide. The implementation of stringent restrictions for the sale of products containing amino acids, however, poses an obstacle to the market's expansion.
Segmentation Analysis:
The global amino acid market has been segmented based on raw materials, products, applications, livestock, and regions.
By Raw Materials
The raw materials segment is plant-based and animal-based. The plant-based segment led the largest share of the amino acid market with a market share of around 15.66% in 2021. The market for plant-based raw materials is predicted to grow at the fastest rate throughout the Projection period as a result of customers' increased preference for products manufactured from naturally occurring sources. One or more examples of plant sources are wheat, corn, soybeans, potatoes, and peas. Currently, soybean is used in the commercial development of the product due to their large consumption and extensive production. But it is common knowledge that processing soybeans alter the proportion of different amino acids, which presents a considerable challenge when sourcing raw materials.
By Products
The products segment includes L-Glutamate, Lysine, Methionine, Threonine, Tryptophan, Leucine, Isoleucine, Valine, Glutamine, Arginine, Glycine, Phenylalanine, Tyrosine, Citrulline, Creatine, Proline, Serine, and Others. The lysine segment led the amino acid market with a market share of around 8.37% in 2021. Being an essential amino acid, lysine has grown significantly in popularity recently. Because the human body cannot produce such an acid, the market for nutritional supplements is gradually driving increased demand for it. The product has grown in popularity as an animal feed ingredient in addition to being consumed by humans. Lysine is primarily utilized for body protein synthesis, and daily lysine intake has a direct impact on an animal's ability to grow. Animal development, feed quality, and efficiency are optimized by adjusting the dietary lysine concentration in accordance with feed intake capacity. During the Projection period, it is anticipated that rising dietary supplement usage and growing product demand from businesses that produce animal feed would contribute to an increase in lysine demand.
By Applications
The applications segment includes Animal Feed, Food & Dietary Supplements, and pharmaceuticals. The food & dietary supplements segment led the amino acid market with a market share of around 11.34% in 2021. The application related to food and nutritional supplements made up the largest portion. In the food processing sector, amino acids are utilized as flavor enhancers, preservatives, and nutrition boosters. As a flavor enhancer in canned vegetables, soups, processed meat, salad dressings, bread, carbohydrate-based snacks, and ice cream, monosodium glutamate (MSG), a derivative of glutamic acid, is frequently employed. It is governed as GRAS by the Food and Drug Administration (FDA) of the United States (Generally Recognized as Safe). The item is commonly utilized in numerous meal preparations and is popular among Asian nations.
Global Amino Acid Market- Sales Analysis.
The sale of amino acid raw materials, application, and livestock expanded at a CAGR of 4.5% from 2015 to 2021.
The pharmaceutical sector is quickly adopting amino acids due to their many advantages. To aid in the treatment of various ailments and illnesses, many amino acids are employed in dietary supplements. Tryptophan, for instance, is used to treat narcolepsy, depression, ADHD, sleep difficulties, and chronic fatigue syndrome. Additionally, a diet rich in all the essential amino acids, carbs, and vitamins is advised for people with inflammatory bowel disease or other digestive disorders. Growing public awareness of the importance of leading a healthy lifestyle and an increase in the prevalence of diseases among people have increased the demand for pharmaceutical products, propelling the expansion of the sector. Over the Projection period, this is predicted to have a beneficial effect on the inclusion of amino acids in pharmaceutical goods.
The main factors driving the growth of the amino acids market are rising consumer awareness of dietary supplements and the rising consumption of amino acids. The market for amino acids is expanding as a result of rising demand for exotic, fresh plants and animals as a source of amino acids. People are searching for healthier foods and diet supplements as they become more health-conscious and desire to live healthy lifestyles. This is yet another important aspect propelling the market for amino acids. The availability of ready-to-use healthy products and a variety of drinks that contain sources of amino acids is also fueling the growth of the amino acids market.
Thus, owing to the aforementioned factors, the global amino acid market is expected to grow at a CAGR of 8% during the Projection period from 2022 to 2029.
By Regional Analysis:
The regions analyzed for the amino acid market include North America, Europe, South America, Asia Pacific, the Middle East, and Africa. The Asia-Pacific region dominated the amino acid market and held a 39.1% share of the market revenue in 2021.
Global Amino Acid Market- Country Analysis:
Germany's amino acid market size was valued at USD 0.17 billion in 2021 and is expected to reach USD 0.19 billion by 2029, at a CAGR of 2% from 2022 to 2029.
The increase in meat consumption in Germany is primarily responsible for expanding the amino acid market. Furthermore, rising demand for high-quality meat and meat products is expected to drive the region's feed additives market, which is expected to increase amino acid consumption in the feed industry.
China’s amino acid market size was valued at USD 0.63 billion in 2021 and is expected to reach USD 1.0 billion by 2029, at a CAGR of 6% from 2022 to 2029. Import and export in this region are increasing rapidly due to the rising use of processed and convenient foods. This might be attributed to an increase in consumer spending in the area, the expansion of a healthy lifestyle, and the rapid growth of end-use industries such as nutraceuticals, pharmaceuticals, personal care, and cosmetics.
India's amino acid market size was valued at USD 0.47 billion in 2021 and is expected to reach USD 0.66 billion by 2029, at a CAGR of 4.5% from 2022 to 2029. Because of the rising populations in emerging markets such as India, as well as the presence of a young population, the demand for amino acids is high in the aforementioned countries.
Key Industry Players Analysis:
To increase their market position in the global amino acid business, top companies focus on tactics such as adopting new technology, mergers & acquisitions, product developments, collaborations, partnerships, joint ventures, etc.
Latest Development:
Report Metrics
Report Attribute |
Details |
Study Period |
2021-2029 |
Base year |
2021 |
CAGR (%) |
8% |
Market Size |
27 billion in 2021 |
Projection period |
2022-2029 |
Projection unit |
Value (USD) |
Segments covered |
By Raw Materials, By Products, By Applications, By Livestock, and By Region. |
Report Scope |
Revenue Projection, competitive landscape, company ranking, growth factors, and trends |
Companies covered |
Ajinomoto Co., Inc., KYOWA HAKKO BIO CO., LTD., Evonik Industries AG, AMINO GmbH, and Taiwan Amino Acids Co. Ltd. |
By Raw Materials |
|
By Products |
|
By Applications |
|
By Livestock |
|
Regional scope |
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Scope of the Report
Global Amino Acid Market By Raw Materials:
Global Amino Acid Market By Product:
Global Amino Acid Market By Application:
Global Amino Acid Market By Livestock:
Global Amino Acid Market By Region:
Global amino acid market is expected to reach USD 49 billion by 2029, at a CAGR of 8% from 2022 to 2029.
Leading market players active in the global amino acid market are Ajinomoto Co., Inc., KYOWA HAKKO BIO CO., LTD., Evonik Industries AG, AMINO GmbH, Taiwan Amino Acids Co. Ltd.
The amino acid market is projected to have a CAGR of 8%.
On the basis of application, the amino acids market is segmented into animal feed, food & dietary supplements, and pharmaceutical.
Rising health consciousness among people, and increasing consumption of dietary fibers and proteins to build the body is driving the growth of the Amino Acids Market.
Based on raw material, the global amino acids market has been segmented into plant-based and animal-based.
Political Factors- Political difficulties, such as wars, competitive political environments, the risk of military invasion, etc., significantly impact the variables that can affect amino acids' long-term profitability in a given country or market. The enormous international industry that amino acid engages in exposes it to a variety of political structures and environmental issues. To prosper in a dynamic, globally distributed industry like food, manufacturing, automotive, or pharmaceuticals, one must diversify the systemic risks of the political environment.
Economical Factors- The macroenvironmental elements, such as the inflation rate, savings rate, interest rate, foreign exchange rate, and economic cycle, impact the aggregate demand and investment in an economy. While factors like industry norms in the surroundings have an impact on the firm's competitive advantage. By using economic indicators at the industry and country levels, such as growth rates and inflation, as well as indicators at the industry level, such as industry growth rates, consumer spending, etc., amino acid can Projection the growth trajectory of not only various sectors but also that of the organisation.
Social Factors- The social mores and culture of a society have an impact on the organisational culture in a particular setting. When creating a marketing plan for amino acid consumers, different societal demographics and cultural perspectives should be considered. Before making amino acid available to the general public, marketers must take into account the common values and attitudes of the population.
Technological Factors- The use of technology is increasingly upending several sectors. The chemical business is a fantastic illustration of this concept. Over the past five years, the business has changed swiftly, making it impossible for even established companies to adjust. Technology firms like artificial intelligence and the Internet of Things are driving the automation of the chemical industry. These technologies are frequently employed to boost amino acid sales. A business should evaluate the technological state of the sector and the speed of technological disruption. Rapid technological disruption may provide a firm little time to adapt and be successful, but slow technological disruption will give more time.
Environmental Factors- Different marketplaces' norms and environmental criteria might impact an organization's profitability. States frequently have different liability and environmental requirements, even within the same country. In the US, Florida and Texas, for instance, have different liability laws in the event of accidents or environmental disasters. Similarly to this, many European countries provide significant tax breaks to companies operating in the renewable energy sector. Before joining or starting a new operation in an existing market, the company should carefully evaluate the environmental requirements necessary to operate in those locations.
Legal Factors- The structures and legal frameworks of many countries are insufficient to protect an organization's intellectual property rights. A business should carefully weigh its choices before entering such markets because doing so could lead to the theft of its undiscovered competitive edge. The usage of amino acids and their selling of it are governed by various laws and regulations in various nations and areas. Many national agencies keep an eye on it.
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