Microbial Protein for Feed Market is Estimated to Grow at a Promisable CAGR During Forecast Period 2028
Microbial protein, also known as single-cell protein, is mainly produced from a fermentation process. Selected strains of microorganisms are allowed to multiply on suitable raw materials in controlled cultivation processes directed to the growth of the culture; this is followed by the separation of cell mass. Different fermentation technologies are used to produce microbial protein, such as submerged fermentation and semisolid fermentation. The governments of various countries, especially the UK, France, and China, are taking several initiatives to promote sustainability and reduce their overall environmental footprints. They are encouraging animal feed manufacturers and livestock breeders to use sustainable feed ingredients to reduce the overall environmental impacts of the animal feed industry. This factor is significantly driving the microbial protein for feed market.
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The key players operating in the global microbial protein for feed market include Calysta, Inc.; Avecom; Arbiom; KnipBio; ICC; and Alltech. These companies are highly involved in research and development activities to launch microbial protein for animal feed at competitive prices. Moreover, these companies are adopting new technologies to scale up their production to meet the rising demand for microbial feed protein across the globe. These companies are also receiving government grants, approvals, and financial assistance to develop microbial protein that can commercially substitute conventional sources of feed proteins such as soybean meal and fish meal.
Based on application, the global microbial protein for feed market is segmented into poultry, ruminants, aquaculture, and others. The aquaculture segment held the largest share of the global microbial protein for feed market in 2021. The global aquaculture industry is heavily dependent on fish meal for its protein intake. Fish meal is not a sustainable source of feed protein, as the process of sourcing these ingredients is associated with a reduction in global fish stocks, causing significant harm to the marine ecosystem. Moreover, due to the volatile prices of fishmeal and overfishing, it is not a sustainable feed ingredient. Therefore, aquafeed manufacturers are looking for sustainable feed protein sources, which signifies strong growth potential for microbial protein manufacturers catering to the aquaculture industry.
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Asia Pacific is expected to register the highest CAGR in the global microbial protein for feed market over the forecast period. Asia Pacific raises the second largest aquafeed demand, after North America, which results in high animal feed production in the region. According to the Alltech Global Feed Survey 2021, China ranks first in world feed production, with ~240 million tons of feed produced annually. Thus, with the increasing feed production, Asia Pacific is a lucrative market for feed ingredient providers, especially microbial protein, which contributes to the sustainability of animal feed. However, the microbial protein market in Asia Pacific is in a nascent phase as manufacturers are still working on various aspects, such as production scale-up and product stability.
Developing countries such as China and India have a significant livestock population. According to a report by Dairy India, the Indian cattle feed industry grew at a rate of ~6% per annum during 2010-2020, making India one of the world's most significant and fastest-growing cattle feed markets. Despite this growth, there is a massive gap between requirement and production. Thus, cattle feed formulators have a huge opportunity to reposition themselves in India to enhance the outcomes of livestock farming. Thus, although the microbial protein for feed market is in a nascent stage in Asia Pacific, the region provides lucrative growth opportunities to the market players.
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