Global Citrus Pulp Pellets Market - 2022-2029

Global Citrus Pulp Pellets Market - 2022-2029

Market Overview

Citrus pulp pellets are dried forms of feed manufactured from residual peel and seeds of citrus fruits such as oranges, grapefruits, and others. These residual forms of feed are generally available in bags or bulk materials. Citrus pulp pellets packaging requires low concentration and moisture as higher levels of humidity, and moisture promotes mite infestation and quality deterioration. These pulp pellets are the most consumed animal feed products and second in line after corn pellets. Its increasing consumption among end-users and the growing citrus fruit (orange and grapefruit) production across several regions create an opportunistic market for manufacturers and retailers.

Citrus-based pulp pellets have a high level of fiber content to meet the nutrients necessary for growth, reproduction, and health maintenance. The product's water absorption capacities to the high fiber substance also rise. Because livestock prefers to drink water in small bursts, the water-holding capability of these pellets is supreme. Furthermore, they have high phytonutrients, such as carotenoids, flavonoids, and polyphones. Citrus fruits accomplish the dietary need, increasing the demand for citrus pulp pellets.

The global citrus pulp pellets market was valued at USD YY million in 2021. It is forecasted to reach USD YY million by 2029, growing at a CAGR of 3.56% during the forecast period (2022-2029).

Market Dynamics: Rising demand for the citrus pulp pellet market with the presence of high total digestible nutrients

Citrus pulp pellets market is estimated that around YY million tons of total digestible nutrients are consumed by animals annually. Citrus pulp pellet has high nutritional values due to a high content of readily fermentable carbohydrates that contain high energy substrates for ruminal microbes. Ruminal microbes contain soluble carbohydrates and digestible neutral detergent fiber in a fraction. The feedstock is widely used for feeding beef and cattle in their adolescent stage. It is estimated that YY% of the dried citrus pulp can be used in the diet for cattle to avoid any flattening among the cattle. These products are considered unsuitable for feeding milking cows to avoid decreasing milk production. Therefore, the key benefits obtained from these pulp pellets due to the high total digestible nutrient content fuel the growth of the citrus pulp pellets.

Companies are also launching new products fortified with additional nutrients and vitamins, expanding their business through acquisitions and mergers. For instance, on 26 September 2022, Louis Dreyfus Company Asia Pte. Ltd. (LDC) announced an agreement to the acquisition with Emerald Grain Pty. Ltd. The company Louis Dreyfus, the leader in the juice business, offers orange, lime and lemon juices and associated by-products. When they process citrus fruits, nothing is wasted. Juice is extracted, oils are recovered, and all remaining pulp is transformed into citrus-pulp pellets. The fiber-rich pellets are used as an animal feed ingredient. In contrast, the oil essences and aromas are primarily used by the flavor and fragrance industries, to which they are a major supplier.

However, commercial obstacles to the expanding demand for citrus pulp pellets include fluctuating composition within agro-based industrial products, short product life spans, and restricted availability of raw materials for production. The presence of a high level of moisture content acts as a restraining factor to the market growth as it shortens the product lifecycle. Furthermore, the high competition from its competitor products, such as corn pellets and the growth of toxins such as aflatoxins further restrain the market growth.

Market Segmentation: The swine feed segment is expected to be the largest share of the citrus pulp pellets market

Citrus pulp pellets are extensively utilized for swine feed due to their better-quality nutritional possessions. They are prosperous in fiber and vitamins. It is also a high-quality foundation of healthy nutrients, which helps improve livestock health. The swine feed segment is projected to grow considerably in the upcoming years. Citrus pulp pellet accounts for a major share of dairy rations in the citrus-rising areas as it is an additional financial benefit and edible feed.

Swine feed available in pellet form is getting wider adoption due to its outstanding palatability, efficacy in improving swine performance, and highly sophisticated structure. Moreover, the demand for mash feed is anticipated to increase among small swine growers. For instance, on the 1st of March 2021, Royal De Heus completed the acquisition of the Polish compound feed company Golpasz. The transaction has been finalized after approval by the Polish antitrust agency. With annual sales of almost 500,000 tonnes of compound feed, Golpasz is a market leader in turkey feed on the Polish market and has secured a leading position in broiler feed. This acquisition is consistent with De Heus’ ambition of further strengthening its leading position in Poland. Golpasz offers a complete range of compound feeds for multiple animal categories, including turkey, broilers, pigs, and other poultry. Golpasz, driven by its quality philosophy, experienced strong growth over the past ten years. It is estimated that the swine feed segment will grow significantly shortly.

Geographical Penetration: Asia Pacific the dominating region during the forecast period

On regional evaluation, it is estimated that Asia Pacific is considered the significant consumer of citrus-based pulp pellets due to a considerably high livestock population compared to the others regions. Several emerging countries, such as China, India, Indonesia, Vietnam, and the rest of the Asean countries, will drive the growth of this market owing to increasing awareness regarding livestock nutrition, increasing per capita income, and several other factors. According to USDA, the Asia Pacific region is the largest producer of citrus pulp pellets. The 2021-2022 orange forecast released by the USDA Agricultural Statistics Board lowered 3.0 million boxes to 38.2 million. If realized, this will be 28 percent less than last season’s revised final production. The forecast consists of 18.2 million non-Valencia oranges (early, mid-season, and Navel varieties) and 20.0 million boxes of Valencia oranges. A 9-year regression has been used for comparison purposes.

Europe is estimated to be the second-largest importer of citrus pulp pellets due to the high demand for dairy-based products. Also, North America is estimated to hold a significant market share due to the presence of key market players such as Nestlé, Kraft Heinz Co, and others.

South America and Middle East & Africa are currently small markets. Still, they are projected to grow with a high CAGR during the forecast period due to the growing popularity of animal nutrition in livestock farming.

Competitive Landscape:

The global citrus pulp pellets market is competitive in nature, with many domestic and multinational players competing for market share. Emphasis is given to the merger, expansion, acquisition, and partnership of the companies, along with new product development, as strategic approaches adopted by the leading companies to boost their brand presence among consumers. Further, market key players are also planning to strengthen their distribution relationships with firms across various regions by merging or acquiring to leverage the customer base for future product launches. Some major global key players in the citrus pulp pellets market include Louis Dreyfus Citrus, SAF Feed & Food, Furst-McNess Company, LaBudde Group Inc, Suwannee Valley Feeds LLC, KW Alternative Feeds, Cefetra Group, Lhoist, Citrosuco North America,Inc and Citrus Products of Belize Limited (CPBL).

For instance, on 9 December 2021, BASF launched the new enzyme product Natupulse® TS for animal feed. Natupulse® TS is a non-starch polysaccharide (NSP) enzyme. As an endo-1,4-ß-D-mannanase, it hydrolyzes ß-mannans into smaller components, e.g., manno-oligosaccharides (MOS). Adding ß-mannanase to the feed decreases digesta viscosity, increases the digestibility of the feed and ensures a more sustainable production. A significant amount of nutrients in poultry diets of up to 30% remains undigested. The presence of NSPs is one of the key reasons for this. NSPs are considered anti-nutritional factors in broiler feed since broilers lack the endogenous enzymes to digest NSPs.

In January 21, 2020, the Furst-McNess Company, headquartered in Freeport, IL, launched their Furst Animal Health brand on January 20, 2020, to better distinguish their health-focused products in the marketplace. Products such as LeanFuel™, Furst Boost™ and Furst Water Boost™ for swine. Their Viribus™ product line for poultry, Furst Force™ Calf and Furst Force™ Receiver for cattle. Along with their species-specific Equalize™ products, they have been in the marketplace for several years.

In November 2022, the international agricultural trade specialist launched Cefetra Dairy, a new company offering a broad range of dairy products such as cheese, butter and milk powder, and milk alternatives. According to the CEO of Cefetra Group, their roots are in supplying ingredients to animal feed producers, which they complemented with specialty feed and food ingredients over the last years.

COVID-19 Impact: Negative impact on the global citrus pulp pellets market

The COVID-19 pandemic has affected the supply chain of inputs for livestock farming and the sale of end products. Most regions, such as North America and Europe, depending on the Asia Pacific for cheap animal feedstock. Since the pandemic has resulted in the lockdown of countries' borders, the demand for livestock healthy feed products, including citrus-based pellets, has gradually declined during the past few months.

Due to the COVID-19 pandemic, according to World Bank statistics, global GDP has shrunk by about 3.5% in 2020. Entering 2021, economic activity in many countries has started to recover and partially adapted to pandemic restrictions. The research and development of vaccines have made breakthrough progress, and many governments have also issued various policies to stimulate economic recovery, particularly in the United States, which is likely to boost economic activity. Still, prospects for sustainable growth vary widely between countries and sectors. The pandemic has exacerbated the risks associated with the decade-long wave of global debt accumulation. It will also likely steepen the long-expected slowdown in potential growth over the next decade.

The global citrus pulp pellets market report would provide access to approximately 61 market data tables, 53 figures and 170 pages