Global Butyric Acid Derivatives Market Report 2020: Market Expected to Decline by -5.2% in Response to Struggling Livestock Farming and Fresh and Processed Meat Industries - ResearchAndMarkets.com

The "Butyric Acid Derivatives - Global Market Trajectory & Analytics" report has been added to ResearchAndMarkets.com's offering.

As Supply Chains Choke, Depopulation of Farm Animals Sends Butyric Acid Derivatives Reeling Under a $24.8 Million Loss

The global market for Butyric Acid Derivatives is expected to decline by -5.2% in the year 2020, in response to struggling livestock farming and fresh and processed meat industries. Thereafter the market will recover and reach US$712.1 million by the year 2027, trailing a post COVID-19 CAGR of 6.7% over the analysis period 2020 through 2027.

COVID-19 has had a devastating impact on global food chain. Pre-Pandemic in early 2020, 130 million people faced acute food insecurity & the figure is expected to increase to 275 million by the end of 2020. Rumors of coronavirus transmitted via meat products resulted in over 25% of consumers reducing or stopping animal protein consumption. Demand for butyric acid derivatives is closely linked to the dynamics of the animal feed industry. The animal feed industry is relatively immune to economic vagaries. However, the industry has been witnessing volatility owing to the COVID-19 pandemic.

The large-scale disruption of supply chains due to lockdown measures resulted in uncertainty in the availability of animal feed across the world. For instance, restrictions on people movement resulted in lower manpower at plants. Closure of borders, national as well as regional, affected the movement of goods from production centers to consumption centers. The scarcity of raw materials also affected the animal feed industry.

For instance, the US mandated closure of ethanol plants, resulting in the shortage of Dried Distillers Grains, an important ingredient in the production of animal feed. China, one of the largest producers as well as consumers of soybean closed its borders in the initial days of the pandemic, affecting the flow of the soybeans worldwide. Closure of Chinese borders and ports also affected the supply of many animal feed ingredients, including butyric acid derivatives.

Demand side reduction also resulted in lower demand for meat, resulting in adverse effects for the animal feed industry. For instance, closure of restaurants and other on-premise consumption sectors across the world affected the demand for meat and disrupted the meat industry value chain. In addition, slaughter houses worked below their capacity owing to social distancing norms as well as non-availability of labor, leading to longer retention of animals with farmers.

Rise in COVID-19 infections at slaughter houses have disrupted meat processing activities & slaughter house capacity. Production capacity losses for beef slaughter plants have been up to 25%, while pork slaughter facilities and chicken slaughter plants have witnessed losses of up to 40-45% and 15-20% respectively. Pork industry has been among the worst affected sector in the meat industry, with pork reduction estimated at over 5% in comparison to 2019 production levels. The pandemic has impacted poultry production with meat processing facilities hit hard by the temporary closure of the facilities.

Concerns over safety of meat products and the negative impact of the pandemic on the foodservice industry led to significant downward trend in meat consumption and production. With general population looking for vegetarian and vegan options amidst the COVID-19 crisis, the demand for meat and meat products fell around the world, affecting industry operations. In countries such as the US and Canada, the shortage of temporary workers for meat processing plants and farms also impacted the industry.

Butyric acid derivatives find application in wide range of industries such as animal feed, food industry, pharmaceuticals, and perfume and fragrance industries. Among all applications, animal feed applications in swine, poultry, aquaculture, and ruminants represent the largest application for butyric acid derivatives. Butyric acid derivatives are micro-encapsulated to enable controlled release within the colon of the animal. Butyric acid derivatives provide benefits such as improving the gastrointestinal health, which aids in increased metabolism and digestion, as well as in prevention of ailments and infections of the animals. These properties ensure animals with good health and improved meat output.

Demand for butyric acid derivatives is expected to witness improved growth, in the post COVID-19 scenario, supported by the increasing awareness about the beneficial effects of the ingredient in swine, poultry, and other livestock animals in terms of improved feed conversion, improved gastrointestinal health and preventing occurrence of microbial diseases.

Competitors identified in this market include, among others:

• Celanese Corporation
• Alfa Aesar
• Cosmo Bio Co., Ltd.
• Aldon Corporation
• Anmol Chemicals Group
• Advanced Biotech
• Bioscreen Technologies Srl
• Augustus Oils Ltd.
• Consolidated Chemical & Solvents, LLC
• DIETAXION

Key Topics Covered:

I. INTRODUCTION, METHODOLOGY & REPORT SCOPE

II. EXECUTIVE SUMMARY

1. MARKET OVERVIEW

• Impact of COVID-19 and a Looming Global Recession
• Butyric Acid Derivatives: An Introduction
• Market Outlook
• Sodium Butyrate Accounts for Dominant Share
• Regional Landscape
• Competition
• Recent Market Activity

2. FOCUS ON SELECT PLAYERS

3. MARKET TRENDS & DRIVERS

• Growing Concern Over In-Feed Antibiotic Usage Opens Opportunities for Butyric Acid Derivatives as Substitute
• Increasing level of Compliance for Ban on Antibiotic Growth Promoters Augurs Well for Market Growth
• A Gist of AGP Ban and Prescription Requirements Status in Select Countries
• Focus on Animal Disease Management Stimulates Demand
• Manufacturers Focus on Product Innovations to Improve Efficacy
• Trends in Meat Production and Consumption Influence Growth Opportunities
• Swine Sector: A Major Market for Butyric Acid Derivatives
• Rising Consumption of Poultry Meat Spurs Opportunities
• Micro-encapsulation Aids in Enhanced Utilization Rates
• Macro Trends Influencing Demand
• Expanding Global Population and Continuous Rise In Meat Consumption to Drive Demand
• Changing Consumer Lifestyles and Growing Demand for Processed Meat

4. GLOBAL MARKET PERSPECTIVE

III. MARKET ANALYSIS

• GEOGRAPHIC MARKET ANALYSIS

IV. COMPETITION

• Total Companies Profiled: 40

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