Rendered Products Market

Market Overview

The global rendered products market size was valued at USD 22.34 billion in 2023 and is projected to reach a value of USD 28.64 billion by 2032, registering a CAGR of 2.8% during the forecast period (2024-2032). The increase in rendered products market share during the forecast period is related to sustainable and nutrient-rich alternatives.

Rendered products are substances acquired via the rendering process, wherein valuable materials are extracted by heating and segregating animal by-products. Prominent varieties consist of grease, which is obtained from animal fat and finds application in soap, candles, and biodiesel, and protein meal, which is procured from bones and meat leftovers for animal feed. As with bone meal, which is abundant in phosphate and calcium for fertilizers, feather meal, which serves as a protein source for animal feed, and blood meal, which is utilized in animal nutrition and lubricants, grease has industrial and lubricant applications. These commodities significantly contribute to recycling animal by-products, waste reduction, and advancing sectors, including agriculture, food, and bioenergy.

The evolution of the rendering industry, which has progressed from batch rendering to advanced continuous systems, indicates its dedication to efficiency and innovation. Dupps, presently a subsidiary of Haarslev, and Anco-Eaglin, among others, have played a pivotal role in providing cutting-edge equipment that guarantees continuous operations, minimal interruption, and optimal energy efficiency. Utilizing hammer mills and raw material grinders enables consistent particle size, thereby augmenting culinary efficacy and the overall quality of the product. Rendering, an integral component of the livestock industry's supply chain, mitigates waste accumulation and attends to sustainability considerations. Given the substantial amount of unused by-products from animals, the Rendered Products market serves to not only sustain the livestock industry but also promote resource conservation and environmental responsibility. Continuous advancements in rendering processes emphasize the critical significance of this technology in promoting a sustainable future and establishing a circular economy. 

Key Highlights

• The poultry segment stands out by source.
• The food grade segment dominates the market by type.
• Animal feed leads the market by application.

Market Dynamics

Global Rendered Products Market Drivers

Sustainable and Nutrient-Rich Alternatives

The demand for sustainable, nutrient-rich alternatives made from animal byproducts is a crucial driver of the Rendered Products Market. These alternatives, rich in high recoverable protein, are essential in agriculture, food, and bioenergy sectors. Animal byproducts such as bones, blood, and lipids are transformed into valuable products like meat and bone meal, poultry meal, hydrolyzed feather meal, blood meal, fish meal, and animal fats. This process reduces waste and supplies critical ingredients for various industrial and consumer applications, promoting sustainability and resource efficiency. By recycling meat and livestock waste into high-quality, high-value products, the industry supports environmental preservation and global efforts to reduce greenhouse gas emissions and encourage eco-friendly practices.

Furthermore, the growing popularity of non-vegetarian diets in South Asia and the Middle East is increasing the demand for animal proteins. Rendered products play a crucial role in animal feed, providing a sustainable and nutrient-rich source of proteins for livestock, poultry, and companion animals, thus driving market growth. Changing consumer preferences, environmental concerns, and the need for sustainable food sources propel the market for alternative proteins, including rendered products. Innovations in plant-based protein synthesis and animal protein fermentation technologies are transforming the market by offering sustainable, nutrient-rich alternatives to traditional animal-sourced food items.

Environmental Responsibility

Rendering processes recycle inedible animal byproducts into essential materials for numerous applications, contributing significantly to waste reduction and economic efficiency. Renderers convert animal waste into sustainable energy and nutritious animal feed, reducing waste and benefiting local, state, national, and global economies. Rendering transforms 99% of waste meat into valuable fat, oil, and protein, showcasing the industry's sustainability and resource efficiency commitment. This method significantly reduces greenhouse gas emissions compared to industrial composting.

Additionally, rendering helps mitigate environmental impacts by cutting at least 90% of greenhouse gas emissions and sequestering five times the emissions it generates. Financially robust and sustainable, the rendering industry contributes USD 10 billion annually to the economy, supporting skilled, well-paid jobs and fostering community growth. By reducing waste, utilizing animal byproducts, and promoting sustainability, the rendering industry plays a vital role in the circular economy and the global movement towards environmental responsibility and resource conservation.

Global Rendered Products Market Restraints

Stringent Regulations and Standards

The global market for rendered products faces significant constraints due to stringent regulations and standards. These regulations, set by governments and regulatory bodies, ensure the quality and safety of products but pose challenges for industry players. Compliance with health and safety regulations, environmental standards, and product quality criteria necessitates substantial investments in technology and operational procedures. Rendering facilities often need to adopt new technologies, develop advanced monitoring systems, and adhere to strict standards to meet regulatory requirements, increasing operational costs. Additionally, the evolving regulatory landscape requires frequent updates, adding complexity to the sector's operational environment.

Global Rendered Products Market Opportunity

Expanding Personal Care and Cosmetics Industry

The growing personal care and cosmetics industry presents a significant opportunity for the global rendered products market. Rendered products serve as raw materials in various cosmetic and personal care items, such as lotions, creams, and makeup. The increasing demand for organic, natural, and non-toxic ingredients in cosmetics and personal care drives market growth. The widespread availability of these products through diverse distribution channels and the rising emphasis on personal grooming further contribute to market expansion. The personal care and cosmetics industry has grown from USD 550.38 billion to USD 736.79 billion, illustrating the potential for rendered products in this sector.

Growing Pet Food Market

The expanding pet food market offers another substantial opportunity for the global rendered products industry. The pet food sector is experiencing significant growth due to rising pet ownership, increased consumer awareness of pet health, and the demand for innovative and high-quality pet food products. Rendered products are extensively used in pet food formulations for their nutritional value, palatability, and cost-effectiveness. The market is expected to grow further with the increasing adoption of animal byproducts in pet foods and the rising demand for premium animal feed. 

Regional Analysis

The global rendered products market analysis is conducted in North America, Europe, Asia-Pacific, the Middle East and Africa, and Latin America.

North America Dominates the Global Market

North America is the most significant market shareholder and is estimated to grow at a CAGR of 2.5% over the forecast period. North America, specifically the United States and Canada, holds a significant market share worldwide in rendered products. The area is characterized by intense competition and a notable concentration of rendering facilities that recycle a substantial proportion of the waste produced by poultry and livestock. The North American sector yields considerable daily raw material production and revenue. The region's highly developed transportation infrastructure enables the smooth and effective conveyance of basic materials required to produce finished goods. The North American Free Trade Agreement (NAFTA) facilitates market expansion by promoting the unrestricted flow of products at reduced import costs, thereby supporting market growth.

Europe is estimated to grow at a CAGR of 2.9% over the forecast period. Countries like the United Kingdom, France, Germany, Italy, and Spain are in this region. Europe's market is distinguished by an emphasis on using fuel additives and alternative fuels to mitigate carbon emissions. This trend corresponds to the increasing consumer demand for environmentally conscious and sustainable solutions. Rapid industrialization and increased use of ecologically favorable fuels in the region have increased the demand for rendered products. In addition, the substantial increase in demand for personal care products such as detergents and cosmetics in Europe has expanded the rendered products market.

The Asia Pacific region, which comprises Australia, Japan, China, and India, is a significant participant in the global market for rendered products. Increasing demand for rendered products in the food and beverage, agricultural, livestock feed, cosmetic, and biofuel sectors, among others, contributes to the expansion of the APAC market. Particularly in fish farming, the region's expanding research partnerships and emphasis on aquaculture have increased the demand for rendered products. The demand for fertilizers is propelled by economies such as China, India, and Brazil, which contributes to expanding the rendered products market in Asia-Pacific. 

Furthermore, the Asia-Pacific region is anticipated to witness a high CAGR, driven by the expanding food animal industry, fluctuating economies, and rising demand for high-value aquaculture feed. Industry consolidation through mergers, acquisitions, and collaborations is also expected to drive market growth. However, the market faces stringent regulations and standards, product safety and quality concerns, and a growing preference for sustainable and plant-based alternatives.

Segmental Analysis

The global rendered products market is segmented based on source, type, and application.

The market is further segmented by source into beef, pork, sheep, poultry, and other types of food.

The poultry segment stands out as particularly significant due to the record-high levels of chicken slaughter and the rising per capita chicken consumption, which is projected to increase further by 2032. The abundance of chicken byproducts, such as feather meal, blood meal, and poultry fat, heavily utilized in the rendering industry, underscores the importance of the poultry segment.

The pork segment of the global market encompasses a range of products derived from the rendering of pork byproducts. This segment includes pork fat, lard, meat and bone meal, and other processed and repurposed products for various applications.

The market is further segmented by type into Food, Feed, and Industrial.

The food grade segment dominates the market by type. These classifications are included in the market segmentation to differentiate the quality of rendered items and the purposes for which they are intended. Items that have been rendered to the food grade are acceptable for use in applications involving food and beverages. 

The feed-grade segment of the global rendered products market plays a crucial role in the agricultural and animal husbandry sectors. Feed-grade rendered products are primarily utilized in the production of animal feed, providing a cost-effective and nutrient-rich source of protein and fats for livestock, poultry, and aquaculture. These products, derived from various animal byproducts, are essential for promoting healthy growth and development in animals. They enhance the nutritional value of feed, improve feed efficiency, and support overall animal health.

The market is further segmented by application into animal feed, foods and beverages, cosmetics, biofuel, fertilizers, and other products.

In Animal feed, rendered products are utilized extensively, which accounts for a sizeable portion of the market. Animal feed is a popular application for rendered products. There is a significant probability that the market will expand due to the demand for high-quality animal feed to optimize the potential of ranch animals. Additionally, the growing demand for specialist pet food is anticipated to expand the market further. Since the food animal business is increasing, economies are changing, and the population is growing, the Asia-Pacific area is expected to have the highest compound annual growth rate possible.

In the food and beverage industry, producing edible fats, oils, and proteins is one of the many applications of rendered goods. Rendered products are also utilized in a variety of other applications. The food sector is anticipated to experience an increase in demand for processed animal protein due to the growing consumption of goods derived from meat and poultry.

Various cosmetics, such as soaps, shampoos, and lotions, incorporate rendered materials into the manufacturing process. Additionally, the demand for natural and organic cosmetics is anticipated to be the primary driver of market growth in the cosmetics segment.

Recent Developments

• Kemin Industries established a new facility in Missouri that is specifically focused on manufacturing clean-label functional proteins. Their latest product range, Proteus, is specifically tailored for chicken feed, demonstrating their dedication to promoting sustainable and top-notch animal nutrition.
• Friboi, a subsidiary of JBS S.A., recently opened a new facility in Mato Grosso, Brazil. This plant has the capability to process 500 animals per day. Initially, the focus will be on satisfying the domestic market before considering expansion.
• The Damate Group of Companies, in partnership with Mavitech LLC, recently developed a state-of-the-art rendering plant in Penza, Russia. This factory specializes in the processing of byproducts from turkeys and has the capacity to handle 20,000 birds per day. Its main purpose is to contribute to the manufacture of chicken meat meal, feather meal, and blood meal.