Animal by-product Market, Global Outlook and Forecast 2025-2032

MARKET INSIGHTS

The global animal by-product market was valued at USD 25.05 billion in 2024 and is projected to grow from USD 26.83 billion in 2025 to USD 30.07 billion by 2032, exhibiting a CAGR of 2.7% during the forecast period.

Animal by-products (ABPs) encompass entire bodies or parts of animals, as well as products of animal origin not intended for human consumption. These materials are processed into valuable commodities including meat and bone meal, feather meal, blood meal, and animal fats. The meat and bone meal segment currently dominates the market, holding a 60% share, driven by its widespread use in animal feed applications.

North America and Europe collectively account for 55% of the global market share, benefiting from established meat processing industries and strict regulations governing ABP utilization. The market growth is supported by increasing demand for sustainable protein sources in animal feed, which represents 40% of total application. However, challenges include fluctuating raw material availability and evolving environmental regulations. Key players like Darling Ingredients, SARIA, and Valley Proteins are investing in processing innovations to enhance product quality and regulatory compliance across global markets.

MARKET DYNAMICS

MARKET DRIVERS

Surging Demand for Sustainable Protein Sources to Fuel Market Expansion

The global push toward sustainable agriculture and protein production is significantly driving the animal by-product market. With livestock production accounting for approximately 14.5% of global greenhouse gas emissions, the recycling of animal by-products into high-value proteins presents an environmentally sound solution. Meat and bone meal production reduces waste while generating protein-rich ingredients that can substitute up to 50% of conventional protein sources in animal feed formulations. This circular economy approach aligns with global sustainability goals and creates substantial market opportunities.

Expansion of Pet Food Industry to Accelerate Market Growth

The booming pet food sector, projected to reach $170 billion globally by 2026, represents a major growth driver for animal by-products. Premiumization trends in pet nutrition have increased demand for high-protein ingredients like rendered meals and animal fats. These by-products provide essential nutrients at cost-effective price points, with the global pet food market utilizing nearly 20% of total animal by-product output. The humanization of pets and rising demand for specialized nutrition formulas continue to create robust opportunities for value-added animal-derived ingredients.

Regulatory Support for By-product Utilization to Enhance Market Potential

Stringent food safety regulations and waste management policies are creating a favorable environment for market growth. Regulatory frameworks now actively promote the safe processing and utilization of animal by-products, with the European Union's Animal By-Products Regulation serving as a global benchmark. Such policies prevent environmental contamination while enabling valuable resource recovery. Recent amendments have streamlined by-product classification and processing standards, facilitating market expansion while ensuring safety across the value chain.

MARKET RESTRAINTS

Fluctuating Raw Material Availability to Constrain Market Stability

The animal by-product market remains vulnerable to inconsistent supply of raw materials due to cyclical livestock production patterns and disease outbreaks. African Swine Fever alone reduced global pork production by nearly 25% in affected regions, creating supply chain disruptions for pork by-products. Seasonal variations in slaughter volumes and changing consumer meat consumption patterns further complicate production planning, leading to pricing volatility that deters long-term market investment.

Plant-Based Protein Shift to Challenge Market Position

The rapid growth of alternative proteins presents a significant restraint, with plant-based protein production expanding at approximately 14% annually. While animal by-products currently maintain cost and nutritional advantages in feed applications, technological advancements in plant protein processing are narrowing this gap. The feed industry's increasing adoption of pea and soybean protein concentrates, which now account for nearly 18% of specialty feed proteins, continues to pressure traditional animal-derived ingredients.

Biosecurity Concerns to Limit Market Expansion

Stringent biosecurity requirements surrounding animal by-product processing create substantial operational challenges. Thermal processing regulations mandate equipment investments exceeding $2 million for mid-sized rendering plants, while traceability requirements increase administrative burdens. Outbreak risks, such as bovine spongiform encephalopathy (BSE), continue to influence import restrictions and processing protocols, adding complexity to global trade flows and limiting market accessibility in certain regions.

MARKET CHALLENGES

Energy-Intensive Processing to Challenge Profit Margins

Rendering operations face mounting pressure from rising energy costs, with thermal processing accounting for nearly 60% of total production expenses. Recent energy price spikes have increased processing costs by 30-40% in key markets, squeezing already narrow profit margins that typically range between 5-8%. While some operators are investing in renewable energy solutions, the capital requirements for such transitions remain prohibitive for smaller players, potentially driving industry consolidation.

Other Challenges

Consumer Perception Barriers
Negative consumer perceptions regarding animal by-products continue to challenge market growth, despite rigorous safety standards. A recent consumer survey revealed that nearly 45% of respondents expressed discomfort with by-product utilization in pet food and feed applications. Overcoming these perceptions requires substantial educational efforts regarding nutritional benefits and sustainability advantages.

Infrastructure Limitations
In developing regions, inadequate collection and processing infrastructure limits market potential. Approximately 40% of animal by-products in emerging markets currently go unprocessed due to logistical constraints and limited processing capacity. Addressing these gaps requires coordinated public-private investment in collection networks and processing facilities.

MARKET OPPORTUNITIES

Expansion in Renewable Fuel Sector to Unlock New Revenue Streams

The growing renewable energy sector presents a transformative opportunity, with animal fats emerging as a valuable feedstock for biodiesel production. Recent policy incentives have increased biodiesel blending mandates to 10-20% in major markets, driving demand for alternative feedstocks. Animal fat-based biodiesel production has grown at 12% annually, with projections indicating it could account for 15% of total biodiesel feedstocks by 2026. This diversification opportunity helps stabilize prices across the animal by-product value chain.

Technological Innovations to Enhance Product Value

Advanced rendering technologies are creating opportunities for premium product segmentation. Novel low-temperature processing methods preserve protein quality, enabling by-product utilization in higher-value aquaculture and specialty pet food applications. The global specialty protein market for these enhanced by-products is projected to reach $5.8 billion by 2027, offering substantial margin expansion potential for early adopters of these technologies.

Emerging Market Expansion to Drive Future Growth

Rapid urbanization and meat consumption growth in developing economies present untapped potential. Asia's animal by-product market is expanding at 5% annually, nearly double the global average, driven by industrialization of meat production. Strategic investments in local processing capacity and quality standards could unlock this high-growth potential, particularly as regional feed demand continues to outpace conventional protein supply.

Segment Analysis:

By Type

Meat and Bone Meal Segment Dominates Due to High Nutritional Value in Animal Feed Applications

The market is segmented based on type into:

• Meat and Bone Meal

• Feather Meal

• Blood Meal

• Animal Fats

• Others

By Application

Animal Feed Segment Leads Owing to Increasing Demand for Sustainable Protein Sources

The market is segmented based on application into:

• Animal Feed

• Pet Food

• Fuel

• Others

By End-User

Agriculture Sector Holds Significant Share Due to Rising Livestock Production

The market is segmented based on end-user into:

• Agriculture Sector

• Biofuel Industry

• Pet Food Manufacturers

• Others

COMPETITIVE LANDSCAPE

Key Industry Players

Strategic Expansion and Innovation Drive Competition in Animal By-Product Sector

The global animal by-product market features a diverse competitive environment with Darling Ingredients, SARIA, and Valley Proteins collectively holding approximately 15% market share as of 2024. The market structure remains semi-consolidated, with these industry leaders competing alongside regional players across North America and Europe, which together dominate 55% of market volume.

Darling Ingredients maintains market leadership through vertical integration across the value chain, processing over 10 million tons of raw materials annually. Their recent acquisition of Brazilian operation FASA Group in 2022 significantly expanded South American footprint. Meanwhile, SARIA leverages its German engineering expertise to lead in high-value specialty fats production, while Valley Proteins focuses on sustainable rendering solutions with 14 processing facilities across the Eastern U.S.

These companies continue to invest in technological advancements, particularly in odor control systems and energy-efficient rendering processes, to address environmental concerns while improving yield efficiency. The shift toward circular economy models has prompted all major players to develop new applications for by-products, from biofuels to bioplastics, creating additional revenue streams.

Emerging competitors like Ridley Corporation and Sanimax are challenging incumbents through niche specialization - Ridley in premium aquaculture feed ingredients and Sanimax in pet food collagen peptides. Their growth underscores the importance of application-specific product development in this market.

List of Key Animal By-Product Companies Profiled

• Darling Ingredients Inc. (U.S.)

• Valley Proteins, Inc. (U.S.)

• SARIA Group (Germany)

• Leo Group Ltd. (UK)

• Ridley Corporation Limited (Australia)

• FASA Group (Brazil)

• Sanimax (Canada)

• JG Pears (UK)

• Advanced Proteins (UK)

• Birmingham Hide & Tallow (U.S.)

• West Coast Reduction Ltd. (Canada)

• MOPAC (South Africa)

• Terramar Chile (Chile)

• Boyer Valley Company (U.S.)

• PRODIA SAS (France)

ANIMAL BY-PRODUCT MARKET TRENDS

Sustainability Initiatives Driving Growth in Animal By-Product Utilization

The global animal by-product market is witnessing a positive shift due to increasing sustainability initiatives across the food and agriculture sectors. Rising awareness about waste reduction and circular economy principles has led to greater utilization of animal by-products for value-added applications. The sector is projected to grow at 2.7% CAGR through 2032, reaching a valuation of $30.07 billion. A key factor driving this trend is the conversion of slaughterhouse waste into high-protein animal feed ingredients, with meat and bone meal currently dominating 60% of market share. Regulatory frameworks in Europe and North America are encouraging responsible processing methods, prompting investments in advanced rendering technologies that maximize resource recovery while minimizing environmental impact.

Other Trends

Pet Food Industry Expansion

The booming pet food sector is emerging as a major consumer of processed animal by-products, particularly protein-rich blood meal and poultry by-product meal. With premiumization trends in pet nutrition, manufacturers are increasingly incorporating high-quality animal-derived ingredients to meet demand for specialized diets. The global pet food market's 6% annual growth directly correlates with increased consumption of rendered animal proteins, which provide essential amino acids at competitive costs. Europe leads in regulatory standards for by-product utilization in pet nutrition, followed by North America where sustainable sourcing practices are gaining traction among conscious consumers.

Biofuel Applications Gaining Momentum

Animal fats are increasingly being recognized as viable feedstock for biofuel production, creating new revenue streams for rendering plants. The renewable energy sector's push for low-carbon alternatives has elevated demand for tallow-based biodiesel, which offers superior oxidation stability compared to vegetable oils. Approximately 15% of global animal fat production now flows into energy applications, with Europe demonstrating particularly strong adoption due to RED II sustainability mandates. Technological advancements in fat processing and purification are enabling wider adoption across transportation and industrial fuel markets, while rendering industry collaborations with energy companies are creating vertically integrated supply chains.

Regional Analysis: Animal By-product Market

North America
North America dominates the animal by-product market, accounting for a significant share of global revenue due to well-established meat processing industries and stringent regulatory frameworks. The U.S. leads in production and utilization, with meat and bone meal being widely used in animal feed and pet food formulations. However, the market faces challenges from growing consumer preference for plant-based alternatives and increasing environmental concerns over waste management. The region's focus on sustainable practices is driving innovations in rendering technologies to improve efficiency and reduce carbon footprints. Major players like Darling Ingredients and Valley Proteins are investing in advanced processing facilities to meet rising demand across feed, fuel, and industrial applications.

Europe
Europe represents another key market for animal by-products, characterized by strict EU regulations (Regulation (EC) No 1069/2009) governing their processing and usage. The region emphasizes circular economy principles, with high-value applications in pet food, fertilizers, and biofuels gaining traction. Germany and France are major contributors, leveraging advanced rendering technologies to comply with environmental standards. However, restrictions on certain by-products in feed applications (e.g., ruminant feed bans) limit growth in some segments. The shift toward sustainable protein sources is accelerating R&D in alternative uses, such as biodiesels from animal fats, supported by policy incentives for renewable energy.

Asia-Pacific
Asia-Pacific is the fastest-growing market, driven by expanding meat production in China, India, and Southeast Asia. Rising meat consumption fuels by-product volumes, with meat and bone meal dominating feed applications. However, infrastructure gaps in rendering capacities and uneven regulatory enforcement lead to underutilization in some areas. Countries like Japan and South Korea exhibit higher processing standards, while emerging markets prioritize cost-effective solutions for feed formulations. Urbanization and industrialization are gradually increasing demand for sustainable waste-to-value solutions, though cultural practices around by-product usage vary significantly across the region.

South America
South America demonstrates steady growth, supported by robust livestock sectors in Brazil and Argentina. The region exports substantial volumes of animal by-products, particularly animal fats for biodiesel and feed ingredients. However, inconsistent regulatory oversight and economic volatility hinder market potential. Local players focus on improving processing efficiencies to meet international quality standards, while export-oriented strategies are critical due to lower domestic demand for value-added applications. Infrastructure limitations in rural areas further slow the adoption of advanced rendering technologies.

Middle East & Africa
The Middle East & Africa is an emerging market with growth driven by increasing meat production and Islamic-compliant (halal) processing standards. The UAE and Saudi Arabia are key importers of by-products for feed and pet food industries, while local rendering capacities remain underdeveloped. Challenges include limited investment in waste management infrastructure and fluctuating demand due to economic dependencies on oil revenues. Nonetheless, rising awareness of sustainable practices and gradual regulatory improvements offer long-term opportunities for market expansion.

Report Scope

This market research report offers a holistic overview of global and regional markets for the forecast period 2025–2032. It presents accurate and actionable insights based on a blend of primary and secondary research.

Key Coverage Areas:

• ✅ Market Overview

  • Global and regional market size (historical & forecast)

  • Growth trends and value/volume projections

• ✅ Segmentation Analysis

  • By product type or category

  • By application or usage area

  • By end-user industry

  • By distribution channel (if applicable)

• ✅ Regional Insights

  • North America, Europe, Asia-Pacific, Latin America, Middle East & Africa

  • Country-level data for key markets

• ✅ Competitive Landscape

  • Company profiles and market share analysis

  • Key strategies: M&A, partnerships, expansions

  • Product portfolio and pricing strategies

• ✅ Technology & Innovation

  • Emerging technologies and R&D trends

  • Automation, digitalization, sustainability initiatives

  • Impact of AI, IoT, or other disruptors (where applicable)

• ✅ Market Dynamics

  • Key drivers supporting market growth

  • Restraints and potential risk factors

  • Supply chain trends and challenges

• ✅ Opportunities & Recommendations

  • High-growth segments

  • Investment hotspots

  • Strategic suggestions for stakeholders

• ✅ Stakeholder Insights

  • Target audience includes manufacturers, suppliers, distributors, investors, regulators, and policymakers

FREQUENTLY ASKED QUESTIONS:

What is the current market size of Global Animal by-product Market?

-> The Global animal by-product market was valued at USD 25,050 million in 2024 and is projected to reach USD 30,070 million by 2032, growing at a CAGR of 2.7% during the forecast period.

Which key companies operate in Global Animal by-product Market?

-> Key players include Darling Ingredients, SARIA, Valley Proteins, Leo Group, Ridley Corporation, and FASA Group, among others. The top 3 players hold approximately 15% of the global market share.

What are the key growth drivers?

-> Key growth drivers include rising demand for animal feed, increasing meat consumption globally, and sustainable utilization of animal waste. The pet food industry expansion also contributes significantly.

Which region dominates the market?

-> North America and Europe collectively dominate the market with about 55% share, while Asia-Pacific shows the fastest growth potential due to expanding livestock industries.

What are the emerging trends?

-> Emerging trends include advanced rendering technologies, biofuel production from animal fats, and increasing adoption of circular economy principles in animal by-product processing.