April 29, 2013

Global methionine market may reach US$3.3 billion by 2018

Global Industry Analysts, Inc. released a comprehensive global report on methionine markets of which it is projected to reach US$3.3 billion by 2018, driven by population growth, rising meat consumption, growth in global poultry industry and increasing need for improving food efficiency.

Meat consumption continues to grow across the globe. Steady growth in global population and rising per capita gross domestic product (GDP) in developing countries are major factors driving growth in meat consumption. Growing demand for meat products is exerting pressure on meat producers to enhance production and maximise yield, which in turn is generating demand for animal feed additives, including methionine. Methionine, an important poultry and livestock dietary supplement, helps in enhancing farm economics and yield with minimal inputs.

Poultry represents the largest end-use market for methionine. As a result, demand and production of methionine moves parallel with changes in production levels of poultry. During the year 2008, decline in production of poultry worldwide led to a drop in sales of methionine, resulting in piling of stocks and reduction of prices. The market however recovered in 2009 as a result of resurgence in demand for poultry meat.

Despite the availability of several methionine sources, use of hydroxy analog free acid (HMTBa) has been rising over the years. One of the key factors driving adoption of HMTBa is the expansion of its use beyond the poultry segment. HMTBa is increasingly being used in ruminant feed. Key factors driving the use of HMTBa in livestock and poultry feed include commercial benefits, such as, optimised animal growth and higher meat yields.

Developments in natural methionine supplements as a result of growing focus on sustainable livestock development are forecast negatively impact demand for synthetic methionine. There is a growing preference among livestock producers for cost effective methionine-rich feed composition for feeding animals. Researchers are currently developing a new breed of methionine rich corn for feeding cattle. Meanwhile, manufacturers of synthetic methionine are continuing to focus efforts on developing eco-friendly means of methionine extraction. CJ Cheiljedang, a Chinese company, recently developed a technology to extract methionine from dextrose and raw sugar.

As stated by the new market research report on methionine, Asia-Pacific represents the largest market for methionine worldwide. The region is also forecast to emerge as the fastest growing market with a projected compounded annual growth rate (CAGR) of 6.0% over the analysis period. Growth in Asia is led by China, which is expected to witness strong demand for methionine, primarily driven by increasing demand for meat products. Significant growth is also expected to emerge from Latin America, driven by increasing chicken consumption in the region and establishment of large broiler farms in Brazil.

The research report titled "Methionine: A Global Strategic Business Report" announced by Global Industry Analysts Inc., provides a comprehensive review of market trends, issues, drivers, company profiles, mergers, acquisitions and other strategic industry activities. The report provides market estimates and projections in US dollars for all major geographic markets including the US, Canada, Japan, Europe, Asia-Pacific, Middle East & Africa, and Latin America.