Animal Feed Alternative Protein Market Size By Product (Insect Protein, Soy Protein Isolates, Soy Protein Concentrates, Fermented Soy Protein, Duckweed Protein, Single Cell Protein {Algae Protein, Grain Protein, Fungal Protein, Yeast Protein}, Hamlet Prot

Animal Feed Alternative Protein Market Size By Product (Insect Protein, Soy Protein Isolates, Soy Protein Concentrates, Fermented Soy Protein, Duckweed Protein, Single Cell Protein {Algae Protein, Grain Protein, Fungal Protein, Yeast Protein}, Hamlet Protein) By Livestock (Poultry [Broiler, Layer, Turkey, Others], Swine [Starter, Grower, Sow], Cattle [Dairy, Calf, Others], Aquaculture [Salmon, Trout's, Shrimps, Carp, Others], Pet Food, Equine), COVID-19 Impact Analysis, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2023 - 2032

The global animal feed alternative protein market value is slated to increase substantially over 2023-2032, due to the increase in livestock farming and economic growth, especially in emerging economies.

As per the Agricultural and Fisheries Information Service (SIAP)’s Agri-Food Expectations report, in 2021, the production of dairy and poultry meat in Mexico rose by 297 million liters and 90,000 tons respectively, from a year earlier. Since farmers are readily accepting new and innovative food sources, this rise in livestock production is expected to stimulate the consumption of alternative plant-based proteins for animal nutrition.

The acceleration of exports across the meat industry is another factor influencing animal feed alternative protein industry trends. Between July 2021 and January 2022, 5,362.9 tons of meat worth more than USD 22 million were exported from Tanzania. This escalating meat trade is likely to encourage feed manufacturers to rely on alternative protein sources for animal health and safety.

The animal feed alternative protein industry is segregated based on product, livestock, and region.

With respect to the product, the market value from the hamlet protein segment is anticipated to cross USD 440 million by 2032. The strong focus on boosting the immune system and gut health of animals is a prominent factor fueling hamlet protein demand. The shift toward sustainable feed ingredients has also risen, augmenting the use of these alternative proteins in animal feed.

The fermented soy protein segment also registered revenue worth over USD 375 million in 2022, given the high awareness of the adverse effects of anti-nutritive factors, including reduced nutrient absorption. Soy fermentation can improve absorption and digestibility through the elimination of anti-nutritive factors, enhancing livestock growth performance.

In terms of livestock, the industry value from the pet food segment is set to reach more than USD 270 million by 2032. Manufacturers have been utilizing protein ingredients ideal for wet pet foods. Additionally, the preference for ingredients resistant to heat treatment during processing is expected to augment the addition of alternative protein sources in wet pet food formulations.

From a regional perspective, the Latin American animal feed alternative protein market was valued at over USD 500 million in 2022. The growing meat intake and the subsequent growth of the livestock and poultry sector are among the growth drivers. The rate of meat exports has also surged, propelling the demand for alternative protein for use in animal feed.

The Middle East and Africa animal feed alternative protein industry size is slated to be worth more than USD 415 million by 2032, as a result of the industrialization of animal agriculture. The rising per capita meat consumption and growing demand for meat and dairy products are other reasons driving product sales in the region.