Animal by-product Market Size, Share & Trends, 2033

Animal by-product Market Overview

The Animal by-product Market size was valued at USD 26270.75 million in 2024 and is expected to reach USD 35034.34 million by 2033, growing at a CAGR of 2.5% from 2025 to 2033.

The global animal by-product market encompasses proteins, fats, and meals derived from slaughterhouse residues, estimated at around 42 million metric tons in 2023. Meat and bone meal made up approximately 44% (~18.5 million tons), while animal fats accounted for roughly 32% (~13.4 million tons). Feather meal represented 15% (~6.3 million tons) and blood meal filled the remaining 9% (~3.8 million tons). Major regional production occurs in North America (about 12 million tons), Europe (9 million tons), and Asia‑Pacific (15 million tons), with the rest distributed among Latin America and Africa.

Usage spans animal feed, pet food, biofuel, and industrial applications. Animal feed consumption reached approximately 28 million tons, driven by demand for high‑protein ingredients in poultry and aquaculture diets. The pet food sector used about 4.2 million tons, reflecting growing consumer spending. Around 6.7 million tons of animal fats were processed for biodiesel and oleochemical production. Other industrial uses—such as leather tanning and gelatin extraction—accounted for about 1.2 million tons. Processing infrastructure includes over 800 rendering plants globally, with 260 in the U.S. and 180 in Brazil. Advances in waste‑to‑value technology led to a 24% increase in conversion efficiency from 2020 to 2023, reducing landfill volumes by over 9 million tons annually.

Key Findings

Driver: Growing demand for high-protein animal feed ingredients, especially in poultry and aquaculture sectors, is driving consistent utilization of meat and bone meal, which reached 18.5 million metric tons in 2023.

Country/Region: The United States led the global market in 2023 with over 12 million tons of animal by-product production, supported by its extensive meat processing industry.

Segment: Meat and bone meal remained the dominant segment, representing approximately 44% of total processed by-products, or 18.5 million metric tons globally in 2023.

Animal by-product Market Trends

The animal by-product market has witnessed a significant transformation, particularly in emerging applications across biofuel and pharmaceuticals. In 2023, more than 35% of rendered animal fats in the U.S. were used for renewable diesel production. The global pet food industry consumed over 4.5 million tons of animal by-products in 2023, with protein meals like blood meal and feather meal becoming popular due to their high amino acid content. The trend of circular economy practices is evident in Europe, where 78% of slaughterhouse by-products were processed into animal feed and oleochemical products. Plant closures and meat industry consolidation in key markets like Germany and Australia have driven technological improvements in rendering processes. Cold rendering and low-temperature processing are being adopted to retain nutrient quality. Additionally, innovations in collagen extraction from hides and bones have led to a 12% increase in demand from the pharmaceutical sector between 2022 and 2023. Asia-Pacific, led by China and India, has become a vital processing hub, producing over 3 million tons of animal by-products annually. There's also a strong push for eco-label certification, especially in the EU, with over 2,000 certified facilities as of 2024. This market is experiencing substantial expansion in sustainable bio-lubricants and agrochemicals, with demand increasing by 14% year-over-year in key European countries. Demand from cosmetics companies for rendered animal-derived glycerin also surged by over 11% in 2023.

Animal by-product Market Dynamics

DRIVER

Rising demand for pharmaceuticals.

Animal by-products such as glands and organs are rich sources of raw materials for pharmaceutical applications. In 2023, over 5,000 tons of bovine pancreas and pituitary glands were processed for enzyme extraction, significantly increasing the supply of insulin and hormone-based drugs. Collagen, gelatin, and other protein-based by-products have gained traction in orthopedic and cosmetic medicine. China reported a 9% growth in demand for bovine collagen for pharmaceutical use between 2022 and 2023. The increased focus on natural and bio-based health products is pushing companies to tap into animal by-products for sourcing active pharmaceutical ingredients (APIs).

RESTRAINT

Environmental and ethical concerns.

Despite technological advancements, environmental regulations and ethical concerns pose restraints. In the EU, over 400 facilities were subjected to stricter emissions controls in 2023, leading to higher processing costs. Public scrutiny over the use of animal-derived ingredients in food and personal care products has led some brands to shift toward plant-based alternatives. Animal rights advocacy in countries like Canada and Germany has prompted more transparency in by-product handling, while stricter disposal guidelines have increased operational expenditure for small rendering firms.

OPPORTUNITY

Growth in sustainable energy solutions.

Animal by-products such as fats and oils are increasingly being utilized for biodiesel and renewable diesel. In 2023, the U.S. converted over 1.2 billion pounds of animal fats into biofuels. The EU’s Renewable Energy Directive (RED II) has spurred demand for low-carbon feedstocks, making tallow and lard valuable assets. Companies are setting up new rendering facilities co-located with biofuel plants. Argentina and Brazil are planning to increase their annual tallow-based biodiesel output by 300,000 metric tons by 2025. This shift presents significant opportunities for industry expansion in clean energy.

CHALLENGE

Rising costs and expenditures.

The industry faces cost challenges related to collection, transportation, and processing. Rendering facilities in India reported a 15% rise in operational costs in 2023 due to fuel inflation and labor shortages. The average cost of processing one ton of by-products in developed countries ranges from $150 to $250. High equipment maintenance and compliance with hygiene standards increase expenses, particularly for SMEs. Disruptions in the global supply chain have also led to increased storage and logistics costs, further pressuring profit margins.

Animal by-product Market Segmentation

The animal by-product market is segmented by type into meat and bone meal, feather meal, blood meal, and animal fats. It is further segmented by application into animal feed, pet food, fuel, and others. The segmentation highlights the diverse utilization and industrial demand for each product category.

By Type

Meat and Bone Meal: Meat and bone meal (MBM) remains a dominant product category, comprising over 40% of total global animal by-product output. In 2023, the U.S. produced over 2.1 million metric tons of MBM, primarily used in poultry and swine feed due to its high calcium and phosphorus content. Australia also exported over 300,000 tons of MBM, particularly to Southeast Asia, for use in aquaculture.
Feather Meal: Feather meal is high in keratin and is utilized as a protein supplement in animal diets. In 2023, global production of feather meal exceeded 1.4 million metric tons. China remains the top producer, accounting for over 450,000 tons annually. Enzymatic hydrolysis techniques have improved digestibility, increasing its inclusion in feed rations for poultry and fish.
Blood Meal: Blood meal offers rich protein content (over 85%) and is widely used in ruminant diets. Brazil and India are major exporters, with Brazil producing over 600,000 tons in 2023. It also finds application in organic fertilizers due to its nitrogen-rich profile. Demand for blood meal increased by 7% in North America in 2023.
Animal Fats: Animal fats are utilized across fuel, soap, lubricants, and cosmetics. In 2023, the EU produced over 2.5 million tons of animal fats, with France and Germany leading. Tallow exports from the U.S. to Asia reached over 800,000 metric tons, supporting industrial demand.

By Application

Animal Feed: Animal feed remains the largest application of animal by-products, utilizing over 42 million metric tons globally in 2023. Meat and bone meal, feather meal, and blood meal are used as high-protein supplements in livestock and poultry diets. In North America alone, animal by-products accounted for approximately 11.5 million tons of total animal feed production. The Asia-Pacific region led consumption with over 18 million tons, particularly in China and India, where livestock and aquaculture industries continue expanding. Regulatory authorities in over 40 countries permit the inclusion of specific animal by-products in feed formulations under strict biosafety standards.
Pet Food: The pet food segment utilized approximately 15 million metric tons of animal by-products globally in 2023. Rendered fats, liver, kidney, and bone meal are common ingredients in wet and dry pet food products due to their high nutritional content. The United States and Europe together accounted for 10 million tons, reflecting high pet ownership and premiumization trends. Over 2,500 pet food manufacturers globally source animal by-products for protein enrichment and palatability enhancement. Demand has grown steadily due to increased spending on companion animals and the adoption of protein-rich diets.
Fuel: Animal fats are increasingly used in biofuel and biodiesel production. In 2023, approximately 11 million metric tons of animal fats were processed into fuel, with the United States, Brazil, and Germany being the top producers. Over 70 biodiesel refineries worldwide incorporated animal fats as feedstock, either partially or fully, as part of their sustainability transition. These biofuels are predominantly used in aviation, marine, and industrial combustion applications, displacing petroleum-based diesel. Moreover, government mandates and carbon credit incentives are encouraging the integration of animal by-products into the renewable energy sector.
Others: Other applications accounted for around 6 million metric tons in 2023 and include the production of fertilizers, oleochemicals, pharmaceuticals, and cosmetics. Animal-derived tallow is widely used in soap manufacturing, while gelatin extracted from bones and hides is critical in capsule production in the pharmaceutical sector. Fertilizers made from blood meal and bone meal supply over 1.2 million tons to organic agriculture. Additionally, more than 150 cosmetic companies globally utilize rendered animal ingredients for moisturizers and emulsifiers. These applications continue to expand with increasing demand for sustainable raw materials in industrial and consumer goods sectors.

Animal by-product Market Regional Outlook

North America

North America leads in animal by-product production and utilization. The U.S. processed over 25 million tons of raw material through 200+ rendering facilities in 2023. Canada increased its feather and blood meal exports by 10% year-over-year. Government incentives for renewable diesel in California and Texas have boosted demand for tallow and other fats.

Europe

Europe maintains a strong regulatory framework for animal by-products. Over 500 plants operate under the EU's strict hygiene and sustainability norms. Germany, France, and Spain dominate, with over 4.5 million metric tons of by-products processed in 2023. Biodiesel from animal fats represented over 18% of total biofuel production in the region.

Asia-Pacific

Asia-Pacific is the fastest-expanding region, led by China, India, and Vietnam. China processed over 6 million tons of animal by-products in 2023. India's poultry sector contributed over 1.1 million tons of MBM and feather meal. Vietnam and Thailand are major exporters to South Korea and Japan for feed use.

Middle East & Africa

The Middle East & Africa is an emerging market with increasing investments. South Africa processed over 350,000 tons of by-products in 2023. Saudi Arabia and UAE have initiated local rendering plants to reduce dependency on imports. The region's demand for animal feed and biofuel feedstock is rising due to growing livestock industries.

List Of Animal by-product Companies

Darling Ingredients
Valley Proteins
SARIA
Leo Group
Ridley Corporation
FASA Group
Sanimax
JG Pears
Advanced Proteins
Birmingham Hide & Tallow
West Coast Reduction
MOPAC
TerramarChile
Boyer Valley Company
PRODIA SAS
Farol
Patense
Nutrivil

Darling Ingredients: Operated over 250 facilities globally and processed more than 10 million tons of raw material in 2023.

Valley Proteins: Processed over 4.5 billion pounds of animal by-products annually in the U.S., with over 20 major facilities.

Investment Analysis and Opportunities

The animal by-product market is witnessing increased investments in infrastructure, technological innovation, and sustainable processing. In 2023, over $3 billion was invested globally in rendering and by-product valorization facilities. The U.S. Department of Energy allocated $450 million toward biofuel initiatives, including those utilizing animal fats. China launched six new rendering plants in 2023, with a combined processing capacity of 1.2 million tons annually. Brazil’s government is supporting public-private partnerships to increase national MBM and tallow processing capacity by 25% by 2026. In Europe, over 300 plants received funding to upgrade equipment and improve emissions control. Investment is also flowing into startup ventures focusing on alternative protein extraction from by-products. Companies in Israel and the Netherlands are piloting enzymatic conversion technologies. AI and IoT are being integrated into plant operations for predictive maintenance and process optimization, reducing downtime by 18%. The pet food sector saw major M&A activity, with companies acquiring smaller firms with unique access to blood meal and collagen sources. In 2023, over 40 deals valued at more than $1.2 billion were recorded in the sector. Investment in pharmaceutical-grade by-products is also growing, with collagen and hormone extraction plants receiving over $500 million in combined funding.

New Product Development

New product development in the animal by-product market is increasingly driven by sustainability, functionality, and innovation. In 2023, several companies launched new bio-lubricants derived from tallow that offered improved thermal stability and biodegradability. Pharmaceutical firms developed injectable collagen formulations from porcine skin, showing a 13% absorption efficiency increase over earlier versions. In the pet food segment, high-protein feather meal-based kibble products were released, targeting grain-free dietary needs. These products offered 90% digestibility and enhanced palatability. Cosmetic companies introduced skincare creams containing bovine-derived peptides, backed by dermatological trials showing a 17% increase in skin hydration. Biofertilizers based on blood meal also gained traction, with demand growing in organic farming by 11% in 2023. AI-driven rendering optimization software, capable of adjusting temperature and pH levels in real time, was adopted by over 60 rendering facilities globally. Enzymatic treatment units, introduced in late 2023, improved feather meal digestibility by 23%, leading to broader market applications.

Five Recent Developments

Darling Ingredients opened a new renewable diesel facility in Nebraska with a capacity of 150 million gallons annually.
Valley Proteins upgraded its Fayetteville plant with $75 million in new processing tech.
SARIA introduced enzymatic rendering systems in three EU facilities to improve protein yield.
Leo Group launched a new line of bio-based lubricants from animal fats in early 2024.
Ridley Corporation expanded its blood meal production unit in New South Wales by 30% capacity.

Report Coverage of Animal by-product Market

The animal by-product market report provides a detailed and structured evaluation of all key aspects of the global market, offering comprehensive insights into current industry patterns, production volumes, utilization rates, trade activities, and technological developments. The report includes extensive data on meat and bone meal, blood meal, feather meal, and animal fats, which collectively surpassed 75 million metric tons in global output in 2023. It encompasses over 30 countries, with detailed coverage of production and consumption hubs across North America, Europe, Asia-Pacific, and the Middle East & Africa. The report covers market segmentation by product type and application, each supported with volume-based data. In 2023, meat and bone meal alone accounted for 28 million tons, while animal fats exceeded 20 million tons, indicating their dominance in animal feed and biofuel industries. Applications are analyzed across four major sectors: animal feed, pet food, fuel, and others, including pharmaceuticals and cosmetics, all backed by quantitative consumption metrics. Regional analysis outlines the production and consumption trends for each geographic region. North America processed more than 24 million metric tons of animal by-products in 2023, while Asia-Pacific led consumption, driven by rising meat demand and industrial applications in China and India.

Company profiling includes data on operational capacities, production facilities, volume share, and global footprint for 18 major manufacturers. For instance, Darling Ingredients and SARIA handled a combined volume exceeding 9.5 million tons of animal by-products in 2023. The report evaluates company strategies, mergers, acquisitions, and capacity expansion projects. The report also explores government regulations, sustainability mandates, animal disease management, and export-import policies affecting the trade of rendered products. More than 80 policy updates from food safety authorities, environmental bodies, and trade regulators are compiled to assess their impact on production and distribution. In addition, the report includes a full breakdown of technological innovations in rendering, enzymatic treatment, fat separation, and biofuel conversion. Over 100 new patents related to animal by-product processing and application were filed globally between 2022 and 2023, highlighting strong R&D activity. Overall, the report offers a detailed, data-backed, and volume-oriented analysis tailored for stakeholders, manufacturers, policymakers, and investors seeking to understand the global scope and potential of the animal by-product market without reliance on financial projections.