Rising consumption of quality meat to fuel protein market demand for animal feed application

One of the key factors driving the expansion of the protein market for animal feed application is the robust demand for naturally available resources to increase the nutrition of livestock and pets. As per statistics from String Bio, the feed sector is dependent on more than 75% of soy and 65% of the total harvested fish worldwide to maintain its output and cater to the demand for quality food.

Unlike other protein sources including milk and meat, soy protein animal feed is known for its healthy characteristics like a high content of essential amino acids. Soybean meal is also considered the most economically feasible and effective protein feed for livestock in developing nations like India.

Furthermore, the rise of animal farming and the growing concern about livestock emissions are expected to contribute to the overall industry growth trajectory over the forthcoming years. As per DSM’s data, animal farming holds around 14.5% of all human-derived GHG emissions, influencing various science-based companies to introduce a sustainable way of producing healthy animal protein.

For example, the company unveiled its unique feed additive known as Bovaer®, which can reduce methane emissions from livestock by over 30%. Developments such as these are adding significant impetus to the demand for sustainable protein-based animal feed ingredients over the years ahead.

Animal protein is rapidly emerging as a sustainable and healthy source of nutrients for poultry and other livestock, solving the commercial and sustainability challenges across the globe. As nearly one-third of animal protein-based foods are wasted, governments are focusing on introducing favorable policies and standards to promote the product. Citing an instance, in 2021, a ban on the use of feed made of animal remains was expected to be lifted across the EU to enable consumption of affordable pig protein by chickens.

According to the data from Menus of Change, animal-based foods such as eggs, poultry, fish, meat, and dairy account for over 70% to 85% of the dietary protein among Americans. On average, Americans also consume around 81g of protein per day, out of which, approximately 85% is animal protein. Proteins are thus serving as a key ingredient in the success of the burgeoning poultry farming business since it contributes heavily to the production of safe chicken eggs and meats.

Moreover, healthcare professionals are advising higher intake of protein to boost recovery from the COVID-19 disease, thus promoting protein awareness and consumption globally, Promising factors such as these, alongside the shifting interest towards alternative and clean protein-based solutions, could fuel the reliance on protein sources for poultry feeds and in turn, stimulate the protein market for animal feed application in the upcoming years.

The novel COVID-19 pandemic has resulted in short-term, localized shortages of food, particularly livestock products, in countries including the U.S. Apart from this crisis, consumers also witnessed increasing prices of meat at the retail level. For example, data released by the USDA in July 2021 revealed that the price paid for one pound of retail beef has risen by 5% in America since January 2020. Factors such as these may have negatively influenced the intake of meat and consequently posed a considerable setback for the protein market for animal feed application.

To successfully offset the challenges associated with livestock production during the pandemic, the federal agency started issuing over $270 million to contract producers of eligible poultry and livestock who applied for Pandemic Assistance. Such initiatives, alongside the high emphasis on building a better food system in the U.S., have made it a prominent region for the protein industry for animal feed application over the foreseeable future.