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The global lysine market has witnessed significant growth, generating a revenue of US$ 8,472.6 million in 2022. It is expected to continue its upward trajectory and reach a market value of US$ 15,523.2 million by 2031, reflecting a robust CAGR of 7.1% during the forecasted period of 2023-2031.
The global lysine market is being driven by several factors, including the increasing demand for animal feed, particularly in developing countries. The rising global population and increasing meat consumption have led to a surge in demand for animal feed, which has subsequently boosted the demand for lysine. Lysine is an essential amino acid that plays a crucial role in animal growth and development, making it a crucial component of animal feed.
Furthermore, lysine is increasingly being used as a dietary supplement due to its numerous health benefits, including improving athletic performance and supporting healthy immune function. This trend is particularly prevalent in developed countries, where there is a growing awareness of the importance of a healthy lifestyle and diet. The lysine market is also benefiting from the growth of the pharmaceutical industry, where lysine is used as an active pharmaceutical ingredient in several drugs. For instance, lysine is used in drugs to treat herpes simplex virus infections and is also used in parenteral nutrition formulations.
However, the market growth is restrained by factors such as the availability of alternative amino acids and the fluctuation in raw material prices. The production of lysine requires several raw materials such as corn, soybean, and wheat, whose prices are subject to market volatility. This can impact the production and pricing of lysine, which can, in turn, restrain the growth of the market.
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Key Dynamics of Lysine Market
Growing Demand for Renewable Chemicals
The demand for renewable chemicals, including lysine, is expected to drive the growth of the global lysine market. The increasing awareness about sustainability and the negative impact of traditional petrochemicals on the environment have led to a shift towards renewable chemicals. Lysine, being a renewable amino acid, is being increasingly preferred over its synthetic counterparts, thereby driving the growth of the market. The use of lysine in animal feed has also led to a reduction in the use of antibiotics, which is contributing to the growth of the market.
Increasing Demand for Animal Protein
The global population is expected to reach 9.7 billion by 2050, which is driving the demand for animal protein. This, in turn, is expected to boost the demand for animal feed, which is one of the major applications of lysine. With the growing demand for meat and dairy products, the demand for lysine as an essential amino acid for animal feed is also expected to rise, driving the growth of the market.
Fluctuating Raw Material Prices
The fluctuation in raw material prices is a major restraint for the lysine market. For instance, the prices of corn, a major raw material used in lysine production, can be subject to significant fluctuations due to factors such as weather conditions, government policies, and global supply and demand. In 2019, the average price of corn was around $3.70 per bushel, but by 2021, it had increased to around $5.00 per bushel due to factors such as adverse weather conditions and supply chain disruptions caused by the COVID-19 pandemic.
Similarly, the prices of soybean, another major raw material used in lysine production, can also be subject to significant fluctuations. In 2019, the average price of soybean was around $9.00 per bushel, but by 2021, it had increased to around $14.00 per bushel due to factors such as supply chain disruptions caused by the pandemic and strong demand from China.
The prices of lysine can also be impacted by fluctuations in the prices of other raw materials such as wheat and sugar. These fluctuations can make it challenging for manufacturers to maintain their profit margins and can impact the growth of the lysine market.
Technological Advancements in Production Techniques
The lysine market is witnessing significant technological advancements in production techniques. These advancements are aimed at improving the production efficiency, reducing production costs, and minimizing the impact on the environment. For instance, new fermentation techniques that use bacteria to produce lysine are being developed, which are more efficient and cost-effective than traditional methods.
The trend towards sustainable and eco-friendly production methods is also driving the growth of the lysine market. As the demand for lysine continues to rise, the market is expected to witness further technological advancements and innovations in production techniques, which will contribute to its growth.
Lysine monohydrochloride is expected to hold the highest market share during the forecast period, with a CAGR of 7.3%. This is because it is a vital component of numerous metabolic processes and is frequently utilized within the body to produce proteins and absorb calcium. Lysine monohydrochloride also helps with both renal retention and intestinal calcium absorption. This type of lysine is produced through microbial fermentation of sugar, resulting in mass production.
Furthermore, lysine monohydrochloride is crucial for animal nutrition in the global lysine market as it is used to increase the protein content of chicken, beef, and pork in cattle breeding. As a result, the increasing demand for meat is expected to drive the growth of lysine monohydrochloride in the market.
Feed Grade is expected to hold the largest lysine market share during the forecast period, with a CAGR of 7.2%. It generated US$ 7567.8 Million in 2022 and is expected to reach US$ 13994.7 Million by 2031. Pheasants gain weight and have better meat quality when fed feed grade lysine, contributing to the segment's growth. Additionally, the growing demand for processed chicken meat and the need to improve meat quality are expected to drive growth in the industry over the forecast period.
On the other hand, Food Grade and Pharma Grade are expected to grow at the same CAGR of 6.1% during the forecast period.
Lysine Powder is expected to hold the largest market share during the forecast period, with a CAGR of 7.6%. Lysine powder is used in medicine for the prevention and treatment of herpes simplex labialis virus cold sores, as it can be taken orally or applied to the skin. The consumption of lysine in powder form is faster, lasts longer, and does not require swallowing large, hard objects. These features make it a preferred form of lysine for consumers.
Cream, on the other hand, holds the highest market share in 2022 at US$ 811.6 Million, with a CAGR of 5.8%.
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Animal Feed is expected to hold the largest market share during the forecast period, with a CAGR of 7.3%, due to the rising global meat consumption. This has led to the need to cultivate high-quality animals in a shorter amount of time, driving growth in the animal feed industry in the lysine market.
The second largest market is Food & Beverages in the market due to the supplement and protein powder industry. Protein powders containing lysine can easily add 25-50 grams to a person's daily protein intake, making them a popular choice among fitness enthusiasts, weight-loss hopefuls, and others whose diets lack sufficient protein. As a result, the lysine market is gaining prominence in the food and beverage industry.
Top Players in Lysine Market
North America holds a significant market share with a CAGR of 8.2% and is projected to generate revenue of US$ 3909.8 million by 2031. On the other hand, Asia Pacific holds the largest market share in the lysine market and is estimated to reach US$ 6,882 million by 2031, growing at a CAGR of 7.9% during the forecast period.
North American market is primarily driven by the increasing demand for processed foods such as meat and protein supplements, which demonstrate a rising demand for lysine-based products. Moreover, the rapid growth of e-commerce, growing consumer awareness of pet food, and rising pet ownership are expected to contribute significantly to the expansion of the lysine market in North America.
In the Asia-Pacific region, the market has witnessed significant growth due to the shift towards a more urban lifestyle and an increase in the consumption of healthy diets in developing economies. Furthermore, athletes and fitness enthusiasts frequently consume protein-based diets and supplements, contributing to the growth of the market in the region. The increasing demand for protein-rich food products, such as meat and dairy, is also expected to drive the growth of the lysine market in the Asia Pacific region.
|Market Size Value in 2022||US$ 8,472.6 Million|
|Expected Revenue in 2031||US$ 15,523.2 Million|
|Unit||Value (USD Mn)|
|Segments covered||By Type, By Grade, By Form, By Application, By Region|
|Key Companies||Ajinomoto Co., Inc., Alltech, Archer Daniel Midland (ADM), Cargill, Changchun Dacheng, Cheil Jedang Corp., Chenfu Group, COFCO Biochemical, Daesang, Dow, DuPont, Evonik Industries, Global Bio-Chem Tech, Juneng Golden Corn Co., Ltd., Kent Nutrition Group, Meihua Group, NOVUS INTERNATIONAL, Perdue Farms, Sunrise Nutrachem Group, Other Prominent Players|
|Customization Scope||Get your customized report as per your preference. Ask for customization|
The Global Lysine Market was valued at US$ 8,472.6 Million in 2022.
The Global Lysine Market is been expected to grow with a CAGR of 7.1% during the forecast year.
Shortage of synthetic lysine additive and disruptions in import and export activities of L-Lysine are few key factors hampering the growth of the market.
Rising focus on nutritional fulfilment due to increasing prevalence of health issues related to protein deficiency and demand for lysine in the animal feed industry are driving the market.
The threat of new entrants in the lysine market is high because many new companies and startups are entering in the market which can give rigid competition to established players.
Top players in the market are Ajinomoto Co., Inc. , Alltech and Archer Daniel Midland (ADM) among others.
During the pandemic there was enormous shortage of synthetic lysine additive/dry lysine which further disrupted the import and export of lysine, leading to a dip of 3.0% in 2020.
Lysine Monohydrochloride held the highest share of 68.8% in 2022 in the lysine market.
Feed Grade is expected to grow with a highest CAGR of 7.2%.
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