Non-Protein Nitrogen Market Size, Share, Industry, Forecast and Outlook (2024-2031)

Global Non-Protein Nitrogen Market is segmented By Type (Urea, Ammonia, Others) By Form (Dry, Liquid, Pellets) By Livestock (Dairy Cattle, Swine, Poultry, Others) and By Region (North America, Europe, South America, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2024-2031 

Market Overview

Global Non-Protein Nitrogen Market reached US$ 1.2 billion in 2022 and is expected to reach US$ 1.6 billion by 2031, growing with a CAGR of 4.1% during the forecast period 2024-2031.

The growing demand for meat and dairy products, particularly in developing countries, is driving increased livestock production. As per FAO estimation, in comparison to the base period average of 2018–2020, the expected growth in meat protein consumption during the following 1o years is 14%. This increasing demand for animal protein, in turn, was boosting the demand for non-protein nitrogen supplements to enhance animal nutrition and growth.

Increasing consumer awareness of health and nutrition has shaped the livestock industry, prompting the use of non-protein nitrogen supplements to enhance the quality of meat and dairy products. These supplements align with consumer preferences for healthier choices, highlighting their significance in the market.

Urea holds a significant share of the non-protein nitrogen market due to its cost-effectiveness. Asia-Pacific held a significant share of the non-protein nitrogen market due to its livestock industry. In June 2023, the India Union Minister of Fisheries, Animal Husbandry, and Dairying introduced the Nandi portal, aimed at supporting farmers and fostering the livestock industry. This heightened focus on the livestock sector is driving various products, including the non-protein nutrition market, within the region.

Market Scope

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Market Dynamics

Increasing Demand for Livestock Products

 The demand for animal protein like meat, eggs, and milk is growing due to income and population growth. Dairy products including milk, yogurt, and cheese are staples in many people's diets. According to USDA data, around 190 million tonnes of milk were consumed globally in 2020. Non-protein nitrogen compounds can increase the nitrogen supply to rumen microbes, promoting the efficient breakdown of fibrous feeds and enhancing milk production in dairy cows.

The demand for meat is increasing with the growing global population. According to World Animal Foundation, 340 million tonnes are consumed globally by people and it is estimated that global meat consumption is anticipated to range between 460 million and an astounding 570 million tonnes by 2050. Hence, there is a greater need for efficient animal nutrition to support livestock farming. Non-protein nitrogen compounds are utilized in animal feeds to boost protein levels, resulting in improved meat quality and increased production efficiency in the livestock industry and driving market growth.

Increasing Focus on Animal Health and Welfare

According to Health for Animals, Global Animal Health Association, the disease poses a significant threat to animal health, with one in five farm animals succumbing to illnesses annually. Non-protein nitrogen, such as urea, promotes healthy rumen activity in ruminant animals, vital for proper digestion and nutrient absorption, ultimately ensuring animal health and well-being.

By supplementing animal diets with non-protein nitrogen, the risk of protein deficiencies in livestock can be minimized. This helps prevent health issues related to inadequate nutrition. Non-protein nitrogen compounds enhance the feed efficiency and overall performance of livestock, which leads to healthier and faster-growing animals.

Regulatory Challenges

Regulatory agencies set safety and health standards for the use of non-protein nitrogen in animal feeds. In October 2022, the FDA announced that its regulation of animal food ingredient claims must adhere to animal nutrition science. Adherence to these standards is essential, and non-compliance can result in legal and financial penalties.

Regulatory requirements, such as maximum allowable levels of non-protein nitrogen compounds in animal feeds, can add compliance costs for producers. This may involve testing, record-keeping, and adherence to specific standards.

Segment Analysis

The global non-protein nitrogen market is segmented based on type, form, livestock and region.

Urea’s Cost-effectiveness and Efficiency in Rumen Fermentation

Urea is a non-protein nitrogen compound used as a cheap source of nitrogen. About 42-46% of feed-grade urea contains nitrogen, which is equivalent to 260 to 288% of crude protein. Urea is one of the most cost-effective sources of non-protein nitrogen. Its affordability makes it an attractive choice for livestock producers seeking economical feed solutions. 

Urea is efficient in promoting rumen microbial activity, which is vital for the digestion of fibrous feeds and nutrient absorption. This efficiency enhances animal performance and production. Urea is converted into ammonia in the rumen, providing a readily available source of nitrogen for microbial protein synthesis, which improves the overall nutritional value of feed.

Source: DataM Intelligence Analysis (2023)

Geographical Penetration

Asia-Pacific’s Growing Livestock Industry

Asai-Pacific has a robust livestock sector. According to the U.S., Department of Agriculture, China, the world's biggest consumer of meat, provided its inhabitants with more than 53 million tonnes of pork and 10 million tonnes of beef and veal in 2022 alone. Urea and ammonia, both non-protein nitrogen sources, can boost livestock feed quality, resulting in higher animal growth rates and improved meat and milk production.

There is a growing milk production in Asia-Pacific countries. According to the Ministry of Fisheries, Animal Husbandry & Dairying, India, India's milk output climbed by 51% over the last eight years, or between the years 2014–15 and 2021–22, reaching a peak of 22 crore tonnes in that period. Non-protein nitrogen sources are commonly used in ruminant diets to enhance microbial protein production in the stomach and improve the utilization of fibrous feeds.

Source: DataM Intelligence Analysis (2023)

Competitive Landscape

The major global players include Alltech, ADM, Yara, Kemin Industries, Inc., Antonio Tarazona, Fertiberia, Meadow Feeds, Incitec Pivot Fertilisers, EW Nutrition, vinipul Inorganics Pvt. Ltd.

COVID-19 Impact Analysis

COVID Impact

The COVID-19 pandemic disrupted global supply chains, including those in the agricultural and animal feed industries. This led to challenges in sourcing and distributing non-protein nitrogen supplements, affecting market growth. The demand for non-protein nitrogen supplements was affected by the pandemic. In some cases, reduced economic activity led to decreased demand for meat and dairy products, impacting the need for these supplements in livestock feed.

The overall economic uncertainty caused by the pandemic led to cautious spending in various sectors, including agriculture. Farmers and livestock producers may have delayed or reduced their investment in non-protein nitrogen supplements. Market volatility and uncertainty led to fluctuations in the prices of raw materials used in the production of non-protein nitrogen supplements, affecting production costs and, subsequently, market dynamics.

Russia- Ukraine War Impact

The conflict between Russia and Ukraine disrupted supply chains for various agricultural products, including those related to animal feed. The war led to economic uncertainty in the region. Economic uncertainty can influence farmers' and livestock producers' investment decisions, potentially impacting the demand for non-protein nitrogen supplements.

The conflict led to trade disruptions and restrictions on the movement of goods. This can affect the global trade of agricultural products, including livestock feed ingredients. The war impacted local agriculture and livestock production further impacting the non-protein nitrogen market growth.

Key Developments

• In February 2022, Yara International ASA, a chemical manufacturing company that produces and markets agricultural development and industrial products, acquired a 14% share in Orbia, a Brazilian online farm products trade platform. The goal of this project was to hasten the sales of its products through online channels and strengthen its position in the market.
• In September 2021, ADM signed an agreement to buy a 75% ownership in Pedigree Ovens, PetDine, NutraDine, and The Pound Bakery, four major suppliers of pet treats and nutritional products.

Why Purchase the Report?

• To visualize the global non-protein nitrogen market segmentation based on type, form, livestock and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of non-protein nitrogen market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as Excel consisting of key products of all the major players.

The global non-protein nitrogen market report would provide approximately 61 tables, 58 figures and 189 pages.

Target Audience 2024

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies