Non-Protein Nitrogen Market size is forecast to reach $1.16 billion by 2025 after growing at a CAGR of 5% during 2020-2025. Non-protein nitrogen is used in animal nutrition to refer to components, which are not proteins but can be converted into proteins via microbes. The growth of the market is expected to be driven by the high demand non-protein nitrogen from the animal husbandry sector.
Asia-Pacific dominates the non-protein nitrogen market owing to increasing demand from poultry farms.
Growth of dairy industry will drive the growth of the market in the forecast period.
Major toxicity of non-protein nitrogen in ruminants will hinder the growth of the market in the forecast period.
By Type- Segment Analysis
Urea segment held the largest share in the non-protein nitrogen market in 2019. Urea is used for animal feed additive for ruminants to provide an inexpensive protein substitute in the diet. Ease in availability and low cost in comparison to natural protein sources is driving urea demand in non-protein nitrogen feed industry. Improving the efficacy of dietary nitrogen consumption and minimization of nitrogen defecation in urine and its environmental impacts will drive the overall growth of the market. Urea is mixed in total mixed rations for feedlot and dairy cattle. Urea is also used in forage programs where cattle are on pasture, but also fed liquid feed, cubes, or blocks that contain around 30% protein, nearly half from urea. This factor will drive the growth of the market of urea in the forecast period.
By Form- Segment Analysis
Dry non-protein nitrogen segment held the largest share in the non-protein nitrogen market in 2019. The presence of high amount of sulfur and protein content are driving the growth of the market. Excellent thermal stability during feed processing operations and better ease of handling are the factors supporting this segment’s growth. They are widely available in powdered and pellet grades across the world. Increasing necessity for the high nutritional value dairy & meat products is projected to provide significant growth opportunities for dry non-protein nitrogen segment. Furthermore, rising awareness regarding the need for providing quality and effective pet food will augment product demand. Factors such as ease of availability, the rise in cattle population and cost efficiency will positively enhance dry non-protein nitrogen segment. Liquid segment held the second largest share in the non-protein nitrogen market. Increased product availability at a competitive price & ease of storage compared to counterparts will drive the growth of the market.
By Livestock- Segment Analysis
Dairy Cattle held the largest share in the non-protein nitrogen market in 2019 growing at a CAGR of 7%. Dairy farmers have started utilizing improved high-protein sources to provide balanced nutrition to their dairy cattle and enhance their milk production. Genetically improved varieties of cattle require a higher amount of nutrition in order to offer a higher yield of milk. Increasing feed costs have pushed dairy farmers to use economic sources of nutrition, such as non-protein nitrogen. High protein deficiency in cows that are consuming low-quality fodder has propelled the product demand for this segment. Sheep and goat are ruminants held the second largest share in the non-protein nitrogen market. The use of feed non-protein nitrogen is greater in sheep as compared to goats. The rising demand for processed meat has created a significant need for high-quality ruminants. Protein is a vital component, as it is a source of nutrition for ruminants. Increasing necessity for the high nutritional value dairy & meat products is projected to provide significant growth opportunities. Improved processing of major feed additives including emulsifiers, vitamins, and enzymes will provide lucrative opportunities for industry players. Additionally, growing consumer awareness related to the importance of animal protein intake will play a vital role in influencing demand. These factor will drive the growth of non-protein nitrogen market in the forecast period.
Geography- Segment Analysis
APAC dominates the non-protein nitrogen market with a share of 42% followed by North America and Europe. The economy of APAC is mainly influenced by the economic dynamics of countries such as China and India, but with growing foreign direct investment for economic development of South East Asia, the current scenario is changing. Countries in South East Asia are witnessing rise in the livestock population in last few years is a key reason for the surge in product demand. Development of advanced technology for effective protein synthesis from non-protein sources in Asian countries has led to wide-scale product usage. Further, availability of dairy products through various channels has further increased product demand.
The coronavirus pandemic has had far-reaching consequences beyond the spread of the disease and efforts to quarantine it. Due to the consequence of the pandemic both the manufacturing and supply chain is affected. According to International Raw Material 2000, China is the largest producer of non-protein nitrogen. The production facilities of non-protein nitrogen are closed in the country. The impact of COVID-19 on non-protein nitrogen sector can be spotted till year 2020 followed by which the industry will have persistent growth during forecast period.
Driver- Non-Protein Nitrogen Market
High preference of protein as compared to other sources of feed drives the global feed non-protein nitrogen market in the forecast period
Livestock producers are aware of the fact that urea is the most common source of non-protein nitrogen in feed; it contains 46.7% nitrogen compared to 16% for most protein. Feed that contains urea has several positive impacts as compared to natural sources even in adverse conditions. It has several benefits related to body weight, growth rate, and also results in higher milk yields of livestock. Urea is found to be a source of readily available carbohydrates, helps in easy solubility of proteins, and provides an adequate supply of minerals. These are factors that accelerate urea utilization in ruminants. According to the Colorado State University, 281% of protein can be obtained from 13.5 pounds of urea, whereas 86.5 pounds of corn or similar grains are required to obtain the same amount of protein in the ruminant. Due to this advantage, livestock producers are showing a gradual shift from natural protein sources to non-protein nitrogen. This factor will drive the growth of the market in the forecast period.
Growing demand from animal husbandry will drive the growth of market in the forecast period
Growing demand from animal husbandry and increasing expenses to maintain proper animal health will drive non-protein nitrogen market. Furthermore, rising awareness regarding the need for providing quality and effective pet food will augment product demand. Factors such as ease of availability, the rise in cattle population and cost efficiency will drive the growth of market in the forecast period.
Challenge- Non-Protein Nitrogen Market
Toxicity of non-protein nitrogen in ruminant will hamper the growth of the market in the forecast period
The use of non-protein nitrogen increases in ruminant diets. Ruminants have the ability to metabolize non protein nitrogen like ammonia into protein. The non-protein nitrogen is a less expensive form of protein but must be used correctly. Ammonia is predominated source of non-protein nitrogen but there several others including biuret and ammonium salts. Ammonia from the metabolism of non-protein nitrogen is absorbed through the rumen wall and enters the blood stream. When the liver of ruminant cannot metabolize the ammonia quickly enough, ammonia concentration in the blood stream increases to a toxic concentration. Non-protein nitrogen toxicities is actually an ammonia toxicities. Ruminants need to acclimate to the non-protein nitrogen and if not consuming, they will lose their ability to metabolism rapidly. This cause the loss of life of a ruminant. This factor will hinder the growth of the market in the forecast period.
Technology launches, acquisitions and R&D activities are key strategies adopted by players in the non-protein nitrogen market. Major players’ non-protein nitrogen market are Archer Daniels Midland Company, Yara International ASA, Quality Liquid Feed, Anipro Feeds, Meadow Feeds, and Others.
Acquisitions/Technology Launches/Product Launches
In August 2015, Yara International ASA (Norway) acquired Galvani, a privately held fertilizer company headquartered in Brazil. Galvani is engaged in phosphate mining, Single Super Phosphate (SSP) production, and distribution of fertilizers in the central and northeast of Brazil.