The alternative protein market for animal feed application is projected to exhibit robust growth by 2027 primarily driven by surging product demand across the globe.
Alternative proteins or alt proteins refer to foods, beverages, or ingredients, wherein the protein is derived from non-animal sources. Recently, with rising climate consciousness, there has been an upsurge in consumer interest in the product, which has been favorable for industry expansion.
The alternative protein market for animal feed application has been divided on the basis of product, livestock, and region. Based on product, the market has further been bifurcated into soy protein isolates, insect protein, duckweed protein, soy protein concentrates, fermented soy protein, hamlet protein, and single cell protein.
The soy protein concentrates product segment is projected to gain significant traction by 2027, growing at a CAGR of around 7.8% through the assessment timeframe. Soy protein concentrates are an excellent source of easily digestible amino acids, which is set to support segmental demand in the coming years.
The single cell protein product segment has been categorized into yeast protein, grain protein, fungal protein, algae protein, and others. The grain protein segment is anticipated to observe optimistic growth to surpass a valuation of USD 120 million by the end of 2027 as grain protein is high in fiber and is considered a good source of protein for monogastric.
The fungal protein segment is expected to register above 6.7% CAGR through the review timeline. Fungal protein is a highly palatable source of nutrition in animal feed, which is likely to create massive growth potential for the segment over the following years.
The algae protein segment is set to reach a valuation of over USD 95 million by the end of the forecast timeline. Under single cell protein, the others segment is calculated to garner a notable revenue of more than USD 20 million by the end of 2027.
With respect to livestock, the alternative protein market for animal feed application has been segregated into poultry, cattle, swine, aquaculture, equine, petfood, and others. The poultry livestock segment has been segmented into layer, broiler, turkey, and others.
The broiler poultry segment is calculated to attain over USD 1.35 billion in revenue by the end of 2027. The layer poultry segment is likely to expand at approximately 8% CAGR through the forecast period to gain a substantial valuation by the end of 2027 owing to the nutritional benefits associated with layer poultry.
The turkey poultry segment is estimated to exceed a valuation of USD 70 million by the end of 2027. The alternative protein market for animal feed application from the others poultry segment is anticipated to exhibit stable growth at a CAGR of about 8% over the analysis timeline.
The cattle livestock segment has been divided into calf, dairy, and others. The dairy cattle segment was valued at over USD 340 million in 2020 and is expected to grow at a robust pace over 2021-2027. High demand for dairy based products is likely to propel segmental expansion over the following years.
The calf cattle segment is speculated to register a sizable revenue of more than USD 110 million by the end of 2027. The others cattle segment is anticipated to observe steady growth, delivering nearly 7% CAGR through the study timeline.
The aquaculture livestock segment has further been bifurcated into salmon, shrimps, trouts, carp, and others. The salmon aquaculture segment is estimated to progress at a CAGR of over 7% through the analysis time period. The trouts aquaculture segment is slated to witness lucrative growth to gain a valuation of above USD 10.5 million by the end of 2027.
The shrimps aquaculture segment was valued at around USD 20 million in 2020 and is projected to record significant growth through 2027 owing to surging demand for low-fat protein foods. The carp aquaculture segment is set to attain a valuation of over USD 35 million by the end of 2027. The alternative protein market for animal feed application from the others segment is foreseen to register above 7.5% CAGR over the review period.
The petfood livestock segment has been classified into dogs, birds, cats, and fish. The birds petfood segment is calculated to be valued at nearly USD 1.35 million by the end of 2027. The alternative protein market for animal feed application from the others livestock segment generated revenue of around USD 90 million in 2020 and is speculated to showcase considerable growth by 2027.
On the regional spectrum, the Latin America alternative protein market for animal feed application is expected to witness steady growth at a CAGR of approximately 8% over the forecast period. Rising pet parenting in different countries across LATAM, especially Brazil, has boosted the demand for alternative protein and is foreseen to impel regional market development in the forthcoming years.
Meanwhile, the Middle East & Africa alternative protein market for animal feed application was valued at over USD 135 million in 2020 and is anticipated to see profitable growth by 2027. Soaring uptake of plant-based and organic pet food in MEA is slated to foster regional market outlook in the future.