Rise in Health Awareness to Drive the Market for Amino Acid Market
The amino acids market is evaluated at US$15.743 billion for the year 2020, growing at a CAGR of 4.84% reaching a market size of US$21.917 billion by the year 2027.
Proteins are made up of organic compounds known as amino acids. These substances are necessary for all living things, including humans and bacteria. Amino acids have numerous uses in the food sector, pharmaceuticals, and animal feed, which is a significant element supporting the market expansion on a global scale. Due to their capacity to alleviate mental fatigue and treat muscle aches and sprains, amino acids are widely used in dietary supplements. As a result, the demand for amino acids has increased due to growing concerns among millennials in both developed and developing economies, which will help drive market expansion until the end of the projected period. Additionally, a rise in the number of people who are health-conscious has led to an even greater increase in the consumption of wholesome foods in diets, particularly in developed nations. Furthermore, the ongoing involvement of market participants and a large number of end-user companies in the introduction of new amino acid products along with new products in which the utilization amino acids are required further demonstrates the market’s growth potential and the business expansion opportunities over the following five years.
Amino Acid Market to Benefit from Growing awareness for Health
As consumers have become more aware of their health, there has been an upsurge in the demand for nutritious food. This has forced food and beverage producers to make products boosted with necessary nutrients, such amino acids, which have increased consumer demand for amino acids. Protein-rich diets are popular among athletes and bodybuilders because they enhance performance and promote muscle growth. The market share of amino acids is increased by sports supplements such energy drinks, nutrition bars, low-carbohydrate diets, and nutritional supplements. The virus’s spread increased consumer demand for immunity-boosting goods, which in turn boosted demand for amino acids. The need for amino acids is growing since they assist with conditions like depression, sleep issues, premenstrual dysphoric disorder (PMDD), giving up smoking, bruxism, and attention deficit hyperactivity disorder (ADHD). The creation of proteinogenic amino acids, which are integrated into proteins during translation, has greatly profited from advancements in biotechnology. These elements are projected to increase demand for amino acids.
For instance, Lycored the leader in the world for research and development of lycopene and carotenoid supplements, opened a new processing facility in New Jersey in January 2022, to improve the processing of its amino acids, vitamins, carotenoids, minerals, and natural food ingredients. The new facility boosts output capacity while maximizing product purity, potency, and shelf life.
Most businesses are emphasizing their growth into branded consumer goods offered in company-run specialized stores and supermarkets. Numerous entrepreneurs are attempting to break into the amino acid sector because of the significant potential for revenue growth. ProtienQure is one such platform that focuses on fresh peptides that have been adjusted for binding, specificity, and other pharmacokinetic characteristics. It also produces proteins with many binding domains.
The Leverkusen, Germany-based pharmaceutical company Bayer AG announced the release of Ambition in January 2022, an amino acid-based medication developed exclusively for the Chinese market. The substance includes glutamic, alanine, and glycine acid among its 19 various types of amino acids.
The growing animal feed requirement will steer the demand for amino acid market
Amino acids are used in animal feed to increase the metabolic rate and supply nutrition to animals like cattle, broilers, and pigs. Additionally, amino acids in feed support animal reproductive, lactation, and overall health. Isoleucine, lysine, methionine, leucine, and threonine are the amino acids that calves need the most. Animals grow more slowly and hold back attaining adulthood due to any one of these amino acid deficits. For instance, Lysine has grown significantly popular recently. As the human body cannot produce such an acid, the market for nutritional supplements is gradually driving increased demand for it. The product has become more popular as an animal feed component in addition to for human use. The amount of lysine consumed daily has a direct impact on the ability of animals to grow, as it is primarily used for body protein deposition. The best way to maximize animal development, feed quality, and efficiency is to adjust the dietary lysine concentration in accordance with the feed intake capacity. Rising demand for chicken and broiler meat in countries like the United States, Russia, and Mexico is projected to drive the poultry feed industry. As a result, the need of feed additives such lysine and arginine amino acids will rise. For instance, a new product named “HiPhorius,” created by the DSM-Novozyme cooperation, released in January 2022. Its goal is to help chicken breeders provide protein that is both profitable and sustainable.
Asia Pacific to hold a major share owing to growing awareness for human and animal feed requirements
The Asia Pacific region dominated the amino acid market in 2021 with a 48.5% sales share. The rise in the growth of market can be attributed to a surge in consumer spending in the region, the adoption of a healthy lifestyle, and the rapid expansion of end-use industries like pharmaceuticals, neutraceuticals, personal care, and cosmetics. The regional market for amino acids is anticipated to grow primarily as a result of the existence of a substantial demographic base, expanding production of amino acids and rising exports of feed additive from countries such as China and Japan. Amino acids are mostly used to treat liver and cardiovascular diseases, as well as to slow down the degeneration and exhaustion of muscles. Due to the expanding populations in developing markets like China and India as well as the presence of a young population, the demand for amino acids is considerable in the countries. Additionally, the increasing consumption of animal feed in nations like China and India further supplements the region’s consumption of amino acids, contributing to the market’s expansion. According to Alltech’s annual feed production study, Jan 2022, China experienced the biggest rise in feed production by tonnage, rising 8.9% to 261.424 mmt. The market for animal feed additives in China is governed by a legal framework that includes registration, authorization, supervision, and inspection. The State Ministry of Agriculture and the province feed administration departments are the relevant government agencies. Chiatai Macro of Thailand and Ajinomoto of Japan have both established their joint ventures in China to produce feed-grade lysine for the feed business. In Tianjin, Round-Planc has established a joint venture to manufacture feed grade methionine.
Difficult production and high competition will hinder the market’s growth
The challenging 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. 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, 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. A significant challenge is emerging in the global amino acids market due to an increase in the number of manufacturers providing high-quality amino acids for various applications.
