Lysine Market Size, Share & Trends Analysis Report By Type (Lysine Hydrochloride, Lysine Monohydrate), By Grade (Feed Grade, Food Grade, Pharma Grade), By Form (Powder, Liquid, Granules), By Application (Food and Beverages, Pharmaceuticals and Nutraceuticals, Personal Care, Animal Feed) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2024-2032

Lysine market Size

The global lysine market size was valued at USD 7.4 billion in 2023 and is projected to reach USD 14.4 billion by 2032, registering a CAGR of 7.7% during the forecast period (2024-2032). The health benefits of lysine consumption and its rising application in animal feeds are essential market drivers fueling the growth of the lysine market. 

Lysine is an essential amino acid that humans and animals need but cannot produce. It must be consumed through diet. Chemically, lysine is an α-amino acid, a protein building block. It differs from other amino acids because it has an amino group, a carboxylic acid group, and a side chain with a positively charged amino group. Growing population, wealth, and worldwide meat consumption, especially in emerging countries, will raise animal feed sector lysine demand. Animals require nourishment to grow swiftly. Lysine helps animals develop quicker and produce high-quality meat by absorbing nutrients from limited feed. 

Many countries have banned bone and blood meals, and feed prices have boosted the global market. More lysine is replacing it in animal feed. Lysine replaces expensive feeds for farmers and animals at a lower cost and with less nitrogen excretion. It's a sellers' market because escalating lysine demand exceeds production raw material availability. High feedstock prices will decrease demand, and government action may reduce market participants' profitability. This may prompt the study of tryptophan, methionine, and threonine diet choices. Manufacturers are increasing R&D spending to maximize capacity and lower prices. 

Highlights

• Lysine Hydrochloride accounts for the largest share by type.
• Feed Grade holds a significant market share by grade.
• Powder influenced the market by form.
• Food and beverages dominate the market through application.

Lysine Market Growth Drivers

Increasing demand for animal protein

The world's population is steadily growing, raising the demand for protein-rich foods like meat, eggs, and dairy. According to the United Nations World Population Prospects, the global population is expected to reach nearly 10 billion by 2050. Consumers tend to eat more animal protein as incomes rise, particularly in emerging economies. Urbanization also influences dietary habits, with urbanites consuming more animal protein than rural populations. Dietary preferences are shifting due to globalization, cultural influences, and health trends, resulting in increased consumption of animal protein. For example, the growing popularity of high-protein diets and the perception of animal protein as a symbol of prosperity drive demand.

According to the United Nations Food and Agriculture Organization (FAO), global meat production in 2023 is expected to be around 364 million tons, a slight increase over previous years. This is primarily due to the anticipated increase in poultry meat production, which is expected to grow the most in volume. Furthermore, global meat consumption is expected to rise by 14% by 2030, compared to the average from 2018 to 2020. This increase is primarily due to population growth (estimated at 11%) and income growth. The FAO also estimates that meat production will need to increase by more than 200 million tonnes to reach 470 million by 2050.

Furthermore, rising incomes and urbanization in China have significantly increased per capita meat consumption over the last few decades. China's per capita meat consumption has increased rapidly in recent decades, reaching 49 kg, or half that of the United States. However, statistics show that China's per capita meat supply is roughly double the consumption reported in a Chinese national household survey. China is the world's biggest consumer and producer of pork. In 2023, China produced 57.94 million metric tons of pork, up 4.6% from the previous year. 

Thus, rising demand for animal protein is a significant driver of the global lysine market. As the world's population grows, incomes rise, and dietary preferences shift, demand for lysine as a critical feed additive in animal nutrition is expected to rise further, boosting the global lysine market.

Market Restraints

Fluctuation in raw material prices

The lysine market is prone to price volatility due to fluctuations in raw material costs, such as corn and soybean meal, which are the critical sources of fermentation substrates for lysine manufacturing. Changes in commodity prices, currency exchange rates, and geopolitical variables can all impact the cost of raw materials, manufacturing expenses, and, ultimately, lysine pricing, providing issues for producers and end users regarding cost management and margin. 

For example, as of October 16, 2023, maize futures were trading between USD 4.70 and USD 5.00 per bushel, while soybeans were trading between USD 12.50 and USD 14.00 per bushel. However, the season average corn price in 2022/23 was USD 6.54 per bushel, and it is expected to fall to USD 4.80 in 2023/24 and USD 4.40 in 2024/25. Similarly, soybean prices are expected to fall from a season average of USD 14.30 in 2022/23 to USD 12.65 in 2023/24 and USD 11.20 in 2024/25.

Additionally, corn prices are frequently variable due to changing weather patterns and agricultural regulations. Soybean meal prices, another essential raw material for lysine synthesis, are likewise volatile. Weather-related delays to soybean crop production, trade tensions, and movements in demand from the feed and biofuel industries can all impact soybean meal pricing. Historical market patterns show that raw material costs significantly impact lysine prices. For example, during high corn and soybean meal prices, lysine prices tend to rise to reflect the increased production costs of lysine manufacturers. 

Market Opportunity

Expansion of livestock and poultry industries

Rising incomes, urbanization, and changing dietary habits drive significant growth in Asia, Latin America, and African livestock and poultry industries. China is the world's largest consumer and producer of pork and poultry products. The Chinese government's efforts to modernize and industrialize the agricultural sector have resulted in significant investments in large-scale livestock and poultry production facilities. By 2024, 113 million people are expected to join the global middle class, with Asia accounting for 91 million new consumers. The World Data Lab defines the global middle class as individuals who spend at least USD 12 per day. The rise of the middle class in emerging economies has increased meat consumption, driving up demand for lysine as a key feed additive to meet the nutritional requirements of livestock and poultry.

According to the Food and Agriculture Organization (FAO), global meat production has steadily increased over the last few decades, primarily due to poultry and pork expansion. According to China's National Bureau of Statistics (NBS), China slaughtered 16.82 billion birds in 2023, representing a 4.2% increase over the previous year. The country produced 25.63 million tons of poultry meat, up 4.9%, and 35.63 million tons of poultry eggs, up 3.1%. However, China's broiler production in 2023 was 14.3 million tons, consistent with the previous year.

Furthermore, countries such as Brazil and Mexico have seen significant growth in Latin America's livestock and poultry sectors. Brazil, in particular, is a large exporter of poultry meat and has made substantial investments in poultry production facilities. The growth of livestock and poultry industries in emerging economies creates opportunities for lysine producers to enter new markets and meet rising demand for feed additives.

Regional Analysis

Asia-pacific dominates the global market

Asia-Pacific is the most significant global lysine market shareholder and is estimated to grow at a CAGR of 7.4% over the forecast period. Rapid urban lifestyle changes and rising demand for ready-to-eat foods primarily drive market revenue growth in this region. China is Asia-Pacific's largest producer and consumer of lysine, accounting for more than 60% of total demand. The country's thriving animal husbandry industry and the growing demand for protein-rich animal-based products like meat, eggs, and dairy products drive up demand for lysine in animal feed. Furthermore, the country's expanding population and rising disposable income levels drive demand for lysine in personal care products. Disposable income levels. India is another significant lysine market in APAC, with the country's growing population and rising demand for protein-rich foods driving demand for lysine in animal feed. 

Furthermore, the country's expanding pharmaceutical industry is increasing the demand for lysine to manufacture various drugs and supplements. Other APAC countries, including Japan, South Korea, and Australia, are experiencing significant growth in the lysine market. Lysine demand in these countries is driven by a growing awareness of its health benefits and its increasing use in various applications such as personal care, food and beverages, and dietary supplements.

North America is anticipated to exhibit a CAGR of 7.8% over the forecast period. The North American lysine market accounts for the second-largest market share due to rising demand for online product availability, and delivery is a significant driver of market revenue growth. The region is dominated by the United States, the world's largest producer and consumer of lysine. The market is driven by rising demand for animal feed, pharmaceuticals, and personal care products. The animal feed industry primarily drives North America's lysine market.The European lysine market accounts for the third-largest market share due to increased consumer demand for animal-derived products and significant investments to improve living conditions. 

Segmental Analysis

By type

The market is further segmented by type into Lysine Hydrochloride and Lysine Monohydrate.The lysine hydrochloride segment accounted for the majority of lysine market revenue. Lysine hydrochloride is a synthetic form of lysine created by combining lysine and hydrochloric acid. It is widely used as a feed additive in animal nutrition to boost lysine levels in feed formulations. Lysine hydrochloride has a higher lysine concentration than lysine monohydrate, making it a more potent source of lysine. It comes in various forms, including powder and granules, and is highly soluble in water, making it ideal for feed manufacturing. Lysine hydrochloride is commonly used in poultry and swine diets to improve amino acid balance, promote growth, and increase feed efficiency. The market is expected to expand with the growing population and increased meat consumption. By 2050, the global population is expected to reach 9.74 billion, representing a 35% increase. 

Lysine monohydrate is a crystalline form of lysine that contains one molecule of water for every lysine. It is made through fermentation processes with microbial strains and is commonly used as a feed additive in livestock nutrition. Lysine monohydrate has a lower lysine concentration than lysine hydrochloride, but it is preferred in some feed formulations for its stability and handling properties. It comes in various particle sizes and can be easily mixed into feed formulations. Lysine monohydrate is used in poultry, swine, and other livestock diets to increase lysine levels, promote growth, and improve protein utilization.

By grade

The feed segment dominated the market in 2023 and is expected to be the fastest-growing segment over the forecast period. This segment contributed 80% of the total volume. Feed-grade lysine is primarily used as a feed additive in animal nutrition to increase lysine levels in feed formulations. It is commonly used to manufacture compound feeds for livestock and poultry, such as poultry, swine, cattle, and aquaculture species. Feed-grade lysine is critical for optimizing amino acid balance, promoting growth, increasing feed efficiency, and improving animal performance. It is available in various forms, including lysine hydrochloride and lysine monohydrate, providing feed formulation and application flexibility. Feed-grade lysine meets regulatory standards and quality specifications, ensuring safety, efficacy, and compliance with animal feed regulations.Moreover, it is an excellent option, a less expensive and more efficient alternative to costly crude proteins such as soybeans and corn. As a result, increasing applications of metal-based implants positively impact market growth. 

The food and beverage industry uses food-grade lysine as a nutritional supplement and flavor enhancer. It is used in various food products, including processed meats, dairy products, baked goods, beverages, and dietary supplements. Food-grade lysine is an important source of essential amino acids, especially for vegetarians and vegans who do not consume animal protein. It aids in protein fortification, improves amino acid balance, and increases the nutritional value of food products. Food-grade lysine is subjected to rigorous quality control measures to ensure purity, safety, and compliance with food safety regulations and standards.

By form

The market is sub-segmented based on form into Powder, Liquid, and Granules.The powder segment dominated the market in 2023. Powder is a standard treatment for herpes simplex virus-induced oral and genital lesions. Lysine powder, a dry, finely ground form of lysine, is widely used in animal feed formulations. It is produced by drying and milling lysine hydrochloride or lysine monohydrate. Lysine powder is highly soluble in water, making blending and incorporating into feed manufacturing processes simple. Recovery from a herpes infection can be expedited. Furthermore, it is used to treat shingles caused by herpes zoster virus. The human body cannot produce, so dietary or oral supplements are required.

Lysine liquid is a concentrated solution of lysine dissolved in water or another solvent. It dissolves lysine hydrochloride or lysine monohydrate in water to the desired concentration. Lysine liquid is easy to handle and dose accurately, making it ideal for liquid feed formulations or as a top dressing on finished feed products. It can be mixed directly into drinking water or added to liquid feed systems to provide lysine to animals. 

By application

The market can be bifurcated by application into Food and Beverages, Pharmaceuticals and Nutraceuticals, Personal Care, and Animal Feed.Food and beverages had the most significant segment share in 2023; owing to the increased health awareness and aging population, demand for food and nutritional supplements is expected to rise, boosting the lysine market growth. Lysine is used in the food and beverage industry as a functional ingredient and a nutritional supplement. Lysine is added to food products to boost protein content, improve amino acid balance, and increase nutritional value. It is widely used in processed meats, dairy products, baked goods, beverages, and dietary supplements. Athletes are expected to continue to demand sports nutrition supplements, a major driving force in this market segment.

Pharmaceuticals and nutraceuticals are the lysine industry's second-fastest-growing segment. Lysine is used in the pharmaceutical and nutraceutical industries due to its therapeutic and nutritional benefits. Lysine can be used in pharmaceutical formulations, dietary supplements, and medical products that treat various health conditions. It is used in treatments for wound healing, tissue repair, immune support, and metabolic disorders. Strategic alliances, mergers, and acquisitions drive revenue growth in this segment. 

Recent Developments

• April 2024-Cargill and Nestlé Purina collaborated on regenerative agriculture to reduce the carbon footprint of Purina dry pet food products.
• April 2024-dsm-Firmenich announced EU authorization of Hy-D® for ruminants and renewal in poultry and pigs.