Rendered Poultry Products Market Size, Share, and COVID-19 Impact Analysis, By Type (Poultry Fat, Grease, Protein Meal, and Others), By Grade (Food Grade, Feed Grade, and Industrial Grade), and Regional Forecast, 2023-2030

The global rendered poultry products market size was valued at USD 6.74 billion in 2022 and is projected to grow from USD 6.92 billion in 2023 to USD 8.65 billion by 2030, exhibiting a CAGR of 3.24% during the forecast period. North America dominated the rendered poultry products market with a market share of 56.38% in 2022.

Rendering of animals is one of the oldest forms of recycling, where the byproducts of animal tissues are processed into useful products such as meat meal, poultry meal, bone meal, and others. Such derived products are widely used as feed ingredients for livestock, poultry, aquaculture, and other domestic animals. According to Render Magazine, 2021, the U.S. produced approximately 10,245 metric tons of rendered poultry products (tallow, poultry fat, grease, and meat meal) by slaughtering animals such as cattle, sheep, and others. Moreover, the growing utilization of animal byproducts in various applications such as food and feedstock and rising concerns over environmental sustainability further boost the global market size.

COVID-19 IMPACT

Sluggish Growth in Domestic Production Due to Restrictions in Processing Industries 

The rendering industry observed significant disruptions in the marketplace due to the sudden outbreak of the COVID-19 pandemic. In the year 2020, nationwide lockdowns and strict governmental regulations across various countries have severely affected the food and feed processing industries in terms of ongoing production, raw material procurement, and new product approvals. According to the North American Renderers Association, in 2020, the production of all rendered poultry products was around 10.2 million metric tons, which is down by more than 4% from 2019. Moreover, livestock slaughter activity was largely limited, causing farms to either hold or mercy killing of animals. According to the U.S. Department of Agriculture, in 2020, the total cattle slaughter was around 32.8 million head, which declined as compared to 2019. Thus, such instances further limit the rendering activities across the markets. Although the demand for rendered poultry products remained stable, the pandemic crisis has harshly affected the global supply chain. The scarcity of raw materials and shortage of labor led to a number of interruptions and a production decline. Thus, the key players in the market are trying to recover their losses by working on appropriate measures to minimize or eliminate the hindrances in production and supply chains.

LATEST TRENDS

Rising Usage of Poultry Fat in the Production of Biodiesel to Boost Market Growth

The agro-food industry produces large amounts of waste that contributes to environmental contamination. Animal fat consists of the major relevant waste generated from animal slaughtering and the meat industry, and the treatment of such waste is quite costly due to stringent environmental regulations. However, a fraction of such costs can be reduced through the generation of bioenergy. Biodiesel contains a reasonable renewable source of energy and has emerged as a substitute for fossil diesel as it is biodegradable, non-toxic, and also contributes to reducing greenhouse gas emissions. The most common renewable sources used for the production of biodiesel mainly include vegetable oils and other recovered animal fats. The role of poultry fat is largely evolving and is currently considered to be a potentially superior low-cost raw material for biofuel production. According to the amount of research conducted, it is concluded that there are possible chances for obtaining biodiesel through a transesterification reaction of animal fats. Moreover, the companies are expanding their business line by diversifying their portfolio with biofuel, which will aid the way toward poultry rendering market growth. For instance, in August 2019, Eni opened its new bio-refinery in Gela, Italy, which uses animal fats, algae, and byproducts to manufacture high-quality biofuels.

DRIVING FACTORS

Role of Animal Rendering in Environmental Sustainability Plays a Vital Role in Driving Market Growth 

In today’s era, environmental sustainability is a crucial challenge, and the process of rendering can provide a solution to overcome such adverse effects on environmental health. Rendering is a vital process to reclaim and recycle leftover byproducts such as animal feed, used cooking oils (UCO), and others for new applications. According to the “American Feed Industry Association,” 2021, rendering minimizes greenhouse gas emissions by 72% and fossil fuel use by 80% and also avoids around 90% of the total GHG emissions as compared to industrial composting. The importance of rendering has existed for centuries and is recognized as the most sustainable practice for improving the carbon footprint, reducing food wastage, and water reclamation. According to the North American Renderers Association, 2020, approximately 62 billion pounds of raw materials are cooked and rendered to produce approximately 31.4 billion pounds of poultry products annually from the U.S. and Canada. As a result, these large volumes of animal byproducts and used cooking oils are further recycled, resulting in the overall reduction of carbon emissions.

Emerging Use of Rendered Poultry in the Food and Feed Industry Promotes the Growth Trajectory

For hundreds of years, the rendering process has been used to recycle unwanted animal tissues into feed and fertilizers, which are used to grow the next generation of food. Rendered poultry products play a vital role in several applications, such as in the production of pet food, jellies, jams, fertilizers, and pharmaceuticals. Moreover, in order to fulfil the surging demand for value-added animal feed, farmers are trying to intensify their livestock slaughtering activities, which will further improve the production rate worldwide. Rendering has emerged as a classic and eco-friendly way to produce valuable protein and fats, which improves the nutritional status of the animal food used by farmers to feed their poultry, fish, and other ruminants. Besides, rendered products, such as gel bone, are often used to develop gel caps for vitamin capsules, supplements, drugs, and other cosmetics. For instance, in May 2022, Rousselot introduced its latest pharmaceutical-grade gelatin, Quali-Pure HGP 2000, which is specially designed for wound healing applications. The product also offers additional benefits of controlled endotoxin levels, which further induces the scope of biomedical applications. Such instances further drive the rendered poultry products market growth.

RESTRAINING FACTORS

Stringent Regulations on Rendering Activities to Impede the Market Growth

The global rendered products market largely depends on strict veterinary laws to prevent widespread infection from animal diseases by keeping customer-centricity in mind. With the evolution of strict government rules & regulations across the globe, the rendering industry faces many challenges in terms of the growth and development of novel products. The European Fat Protein Renderers Association (EFPRA) and the Food Safety Modernization Act (FSMA) propose strict principles for rendering activities and thus fulfill the highest regulatory standards worldwide. Moreover, such restrictions often pose a halt in the import and transport activities of the products, thereby restricting growth. Apart from this, the rising trend of plant-based proteins has resulted in increased demand for better-for-you products, which, in turn, can shrink the growth of rendered poultry products in the forecast period.

SEGMENTATION

By Type Analysis

Usage of Poultry Fat in Various Applications to Contribute to the Segment’s Growth 

On the basis of type, the market is distributed into poultry fat, grease, protein meal, and others. The poultry fat segment is dominant due to its maximum usage in numerous applications. Poultry fat, also known as chicken fat, is mainly derived from rendered chicken tissues after processing. Poultry fat is highly consumed in every part of the world as it is the richest source of linoleic acid and other nutrients such as vitamin E and choline. Thus, it is largely used as a flavouring agent in chicken broth, spreads, and dressings for salads and others.

Protein meal is also one of the most utilized ingredients for preparing different types of animal feeds. Also, to fulfil the livestock's protein requirements, protein meals such as soybean meal and fishmeal are largely used for feeding. Thus, all such developments enhance the global market share of rendered poultry products.

By Grade Analysis

The feed Grade Segment is Leading Owing to the High Utilization of the Product in Animal Feed Applications

On the basis of grade, the market is segmented into food grade, feed grade, and industrial grade. The feed grade segment secured the leading position by holding the largest revenue share in 2022. Rendered poultry fats in animal feed are largely used as preservatives as well as binding agents, thus making it one of the essential ingredients in pet food and aqua feed. Furthermore, rendered fats increase growth rates and improve the feed efficiency and palatability of animal feeds, which further captivates the attention of ranchers.

The industrial-grade segment is also growing at a faster pace and is projected to proliferate in the upcoming years. The use of rendered fats is not only restricted to feed and food production but has also found its role at industrial levels for restaurants' grease and metal processing. Rendered fats, such as grease, act as a lubricant for equipment in feed mills, thereby boosting the utilization of animal byproducts worldwide.

REGIONAL INSIGHTS

North America is the prominent player in the market and was valued at USD 3.80 billion in 2022. The enormously rising demand for superior-quality animal feed for improving the potential of ranch animals is likely to escalate the sales of rendered poultry products in the forecast period. Additionally, the growing number of rendering plant installations in American countries contributes to the market’s growth. According to the Phase One Economic and Trade Agreement, 2020, between the U.S. and the Republic of China, they approved the installation of an additional 24 U.S. rendering plants, which strengthens the production capacity of protein meals and other poultry fats.

Asia Pacific is one of the fastest growing regions globally owing to the rising economic growth and growing concerns for the animal feed sector. The region witnesses a substantial demand for poultry-meat products due to their easy availability and affordability, which can refine rendering activities in countries such as China and India. According to the “National Poultry Newspaper,” 2021, global meat production is rising, with two-thirds of the increase directly originating from the Asia Pacific region. Such instances will likely add value to the growth of the region’s market during the forecast period.

Europe is predicted to grow at a noticeable pace in the coming years primarily due to the surging awareness about rendered animal fats and rising innovations in the development of value-added byproducts enriched products. According to the “Global Metrics for Sustainable Feed,” 2021, around 18 billion tons of animal tissues are processed annually to make them safe and stable. Moreover, the European Fat Processors and Renderers Association (EFPRA) promotes rendering activities that can be further useful in the production of pet food, aqua feed, biogas, fertilizers and others.

The markets in South America and the Middle East & Africa are growing at a stable pace and are expected to accelerate due to the rising investment in low-cost and high-quality feed manufactured with the help of rendered ingredients. In addition, the extensive practice of rendering animals is also anticipated to improve the global market growth.  

KEY INDUSTRY PLAYERS

Prominent Players are Launching Novel Products to Captivate Consumer’s Attention

Some of the prominent players operating in the market include Tyson Foods Inc., Darling Ingredients Inc., and JG Pears. The companies are extensively focusing on increasing their customer base by collaborating with other large business stakeholders or via joint ventures, which can help expand their profit income. Moreover, the rising utilization of such poultry byproducts in animal feed or biodiesel and the growing concerns for environmental sustainability further augment the market growth. For instance, in December 2022, KTC Edibles, one of the leading manufacturers of edible oils, announced the launch of a new lard, Premio Italian Lard, across the U.K. market. This premium lard is exclusively made from pigs fed on a variety of grains, cereals, and whey. Moreover, this new launch has emerged as one of the excellent solutions used in baking, frying, and roasting a wide variety of food products.

LIST OF KEY COMPANIES PROFILED: -

• Tyson Foods Inc. (U.S.) 


• JG Pears (U.K.)


• Brazilian Renderers (Brazil)


• West Coast Reduction Ltd. (U.S.)


• The Leo Group (U.K.)


• The Tonnies Group (Germany)


• Allanasons Pvt. Ltd. (India)


• Akiolis Group (France)


• Darling Ingredients Inc. (U.S.)


• Nordfeed (Turkey)

KEY INDUSTRY DEVELOPMENTS:

• November 2022: Darling Ingredients Inc., one of the leading animal food manufacturing companies, signed an agreement to purchase Miropasz, which processes around 25,000 metric tonnes of products through three rendering plants in Southeast Poland. This partnership will help the company to enhance its rendering production for a global supply of low-carbon feedstock.


• October 2022: The state Government of Kerala (India) is working toward handling poultry waste by installing chicken rendering plants in Mattanur, Kannur. The regulatory bodies are aiming to fix 40 chicken waste rendering plants across 10 districts to fulfil the surging demand for rendered animal products under the private-public partnership model.


• May 2022: Darling Ingredients Inc. completed its acquisition of 18 rendering plants of Valley Proteins Inc. as it has a successful rendering business, which can help in strengthening the business expansion as well as expanding its ability to provide additional low carbon intensity feedstock across the global market.


• April 2022: Tyson Foods Inc. announced its plan to construct a new rendering plant by replacing its existing River Valley Ingredients plant in Alabama, U.S. The new plant will be set up by the end of 2023 and will be adjacent to the Hanceville Cullman country site.


• May 2019: Damate Group announced the opening of its new turkey processing plant in Penza, Russia. Moreover, modern rendering equipment, Mavitec has been installed to process the byproducts, which can be later processed to feather meal, poultry meal, and blood meal.

REPORT COVERAGES

The research report includes quantitative and qualitative insights into the market. It also offers a detailed analysis of the market size and growth rate for all possible market segments. Various key insights presented in the report are an overview of related markets, competitive landscape, recent industry developments such as mergers & acquisitions, regulatory scenario in critical countries, and key rendered poultry products market trends.

Report Scope & Segmentation