Market Trends of Butyric Acid Industry
Increasing Demand from the Animal Feed Sector
- Butyric acid has been gaining popularity as an ingredient for animal feed. Butyric acid is the key feedstock for different butyrate salts and glycerine esters-so-called butyrins. Salts are incorporated into feed premixes as fat-coated or non-coated administrative forms to channel the active ingredient to the target organs in the animal's intestine.
- For the cattle, poultry, and aquaculture industries, butyric acid derivatives are used as feed additives. Butyric acid is essential for animals and is used to help animals meet the necessary health requirements.
- The right type of feed is necessary to provide nutritious ingredients to animals, so butyric acid is a beneficial ingredient for the animal feed industry. Butyric acid products help improve health, provide a proper diet for animals, and help to raise animals more efficiently.
- The rising incidences of animal diseases have led to the increased use of butyric acid in animal feed in various regional markets. In Asia, the meat per capita is still very low compared to the developed regions like Europe and North America. However, due to rising incomes and urbanization, meat consumption will explode in the region. The burgeoning wealth of the relatively new middle class across most of Asia drives the high demand for animal products.
- The rising penetration of major food corporations like KFC and McDonald's, who have made low-price meat increasingly available in Asian markets, is also contributing to this growth. According to Asia Research and Engagement report named 'Charting Asia's Protein Journey,' has forecast that meat consumption will rise to 33% by 2030 and 78% by 2050 in Asia.
- The top eight countries are China, the U.S., Brazil, Russia, India, Mexico, Spain, and Turkey. Together, they account for 55% of the world's feed production and contain 59% of the world's feed mills.
- In 2021, the United States imported around USD 1.53 billion in dog and cat food. Canada is the United States' largest export market for pet food, specifically dog and cat food, and the third-largest export destination for all United States agricultural products.
- The Chinese pet food sector revenue rose significantly from CNY 28 billion (USD 4.29 billion) in 2015 to CNY 138.2 billion (USD 21.6 billion) in 2021. According to the National Bureau of Statistics of China (NBS China), most people with pet dogs or cats are elderly. Approximately 61% of the 65+ age group live with a pet.
- All such growth depicting factors in animal feed consumption drives the market for butyric acid over the forecast period.
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Asia-Pacific Region to Dominate the Market
- Asia-Pacific region is expected to dominate the global market, owing to China's highly developed healthcare sector, coupled with the continuous investments done in the region to advance the food processing and chemical sector through the years.
- Butyric acid consumption for animals has been significantly rising. It helps maintain animal intestinal health and growth performance, especially in young and vulnerable animals.
- According to the IQVIA Institute for Human Data Science, the Chinese pharmaceutical sector has shown the highest growth rates over previous years. In 2021, the pharmaceutical industry in China generated total revenue of over CNY 3.3 trillion (USD 487.5 billion), representing a year-on-year growth of almost 20 percent.
- Furthermore, China is the second-largest market for pharmaceuticals globally. The pharmaceutical market is emerging rapidly, owing to the country's growing middle-class and aging society, rising incomes, and increasing urbanization.
- In India, drug & pharmaceutical exports stood at USD 24.60 billion in FY22 and USD 24.44 billion in FY21. High economic growth along with increasing penetration of health insurance to push expenditure on healthcare and medicine in India. India's domestic pharmaceutical market stood at USD 42 billion in 2021 and is likely to reach USD 65 billion by 2024 and further expand to USD 120-130 billion by 2030.
- The food and beverage industry in China is growing at a rapid pace. China accounts for almost one-fourth of the global population, and the country hosts one of the most rapidly developing consumer markets in the world, which greatly boosts the food and beverage industry.
- In 2021, the food industry in China generated a total profit of about CNY 618.7 billion (USD 91.4 billion), decreasing from around CNY 621 billion (USD 91.7 billion) in the previous year. The food manufacturing industry contributed approximately CNY 165.4 billion (USD 24.4 billion) to the total profits.
- China's livestock industry has expanded rapidly in recent years as diets are shifting toward more animal-based proteins. Currently, China is the world's largest producer of livestock products and the largest animal feed manufacturer.
- All the factors above are expected to drive the demand for butyric acid over the forecast period.
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