Feed Non-Protein Nitrogen Market

Feed nonprotein nitrogen (NPN) refers to nitrogen sources that is not in the form of protein but can be converted into protein by microbes in the rumen of ruminant animals such as cows, sheep, and goats. The most common sources of NPN in animal nutrition are urea and biuret. This can be used to supplement low-protein diets or as a replacement for some of the protein in high-protein diets. When animals consume NPN sources, the microbes in their rumen break down the NPN into ammonia, which is then converted into microbial protein. This microbial protein can be used by the animal as a source of dietary protein.
The growing global population and rising income levels are driving the demand for meat and dairy products, which is increasing the demand for animal feed products, including NPN sources. According to the Food and Agriculture Organization of the United Nations, global meat production is projected to reach 376 million tons by 2030, up from 335 million tons in 2018. The cost-effectiveness of NPN sources are fuel the demand of these market owing to NPN sources such as urea and ammonia are less expensive than natural protein sources such as soybean meal and fish meal, making them an attractive option for livestock producers looking to reduce their feed costs. The high preference for proteins as compared to other sources of feed is driving the global feed NPN market. Urea, the most common source of NPN in feed, contains 46.7% nitrogen compared to 16% for most protein, and feed containing urea has several positive impacts on livestock growth and milk yields. Livestock producers are gradually shifting from natural protein sources to NPN due to its several benefits, including readily available carbohydrates, easy solubility of proteins, and an adequate supply of minerals. According to Colorado State University, 13.5 pounds of urea can provide 281% of protein, whereas 86.5 pounds of corn or similar grains are required to provide the same amount of protein in the ruminant. This shift in preference is expected to drive market growth in the forecast period.
However, potential toxicity risks in ruminants due to improper usage of NPN and limited availability of raw materials may hinder the market growth. The availability and cost of raw materials can impact the supply of NPN sources for animal feed, and natural gas prices and fertilizer production can affect their availability. According to a report by the U.S. Department of Agriculture, natural gas prices and fertilizer production can affect the availability of urea and other NPN sources.
Nonetheless, the NPN market is expected to witness significant growth due to the growing demand for animal husbandry, rising expenses for maintaining proper animal health, and increasing awareness about the importance of providing high-quality pet food. In addition, the adoption of precision feeding practices is expected to contribute to market growth, as it can improve feed efficiency and reduce the use of natural protein sources in animal feed. Precision feeding has the potential to reduce the use of natural protein sources by up to 30%, according to a report by the National Pork Board.
Key developments and new launches in the feed NPN market.
In February 2022, Yara International ASA acquired a 14% stake in Orbia, an online farm products trade platform. This strategic move aims to enhance Yara's product sales through digital channels, enabling the company to expand its presence in the industry.
In September 2021, Archer Daniels Midland Company acquired a 75% stake in prominent pet treat and supplement providers, Pedigree Ovens, PetDine, NutraDine, and The Pound Bakery. This acquisition was intended to facilitate the expansion of the company's pet supplement business and strengthen its presence in the industry.
Segment overview:
By type: The feed NPN market is bifurcated into urea, ammonia, and others. Urea is the dominant segment in the market, capturing the largest market share. This can be attributed to its widespread use as an animal feed additive for ruminants, as it provides a cost-effective protein substitute in the diet. In addition, urea is easily available at a lower cost than natural protein sources, making it an attractive option for livestock producers looking to reduce their feed costs. The ammonia segment is expected to experience significant growth in the animal nutrition market due to its potential to enhance feed efficiency and reduce the cost of protein supplementation in animal feed. In addition, the increasing demand for meat products and the growing awareness of the benefits of ammonia as an NPN source in animal nutrition is expected to drive the growth of this segment. The "others" segment, including amino acids and nucleic acids, is expected to witness steady growth due to the focus on targeted nutrient supplementation for animal health and productivity improvement.
By form: The market is segmented into dry, liquid, and pellet. The dry segment holds the largest market share due to its high sulfur and protein content, which provides excellent thermal stability during feed processing operations. In addition, the dry segment offers ease of handling, which is highly valued by livestock producers.
By livestock: The feed NPN market is categorized into beef cattle, dairy cattle, sheep & goat, and others. The beef cattle segment dominates the market due to the high demand for meat products and the use of NPN sources in beef cattle diets. The dairy cattle segment is also a significant market contributor due to the need for milk production and the use of NPN sources in dairy cattle diets. The sheep and goat segment is expected to witness the fastest growth due to the increasing demand for mutton and chevon products and the use of NPN sources in their diets. The "others" segment, which includes various livestock such as pigs and poultry, is also expected to contribute significantly to the market growth due to the rising demand for meat products and the use of NPN sources in their diets.
By region: The feed NPN market is categorized into North America, Europe, Asia-Pacific, and others. The North American feed NPN market is led by the U.S., with a large livestock population and high demand for animal feed products. According to the U.S. Department of Agriculture, in 2021, the U.S. livestock industry is expected to produce a record amount of meat, dairy, and poultry products. This is driving the demand for NPN sources in animal feed, particularly in the beef and dairy cattle segments. In Europe, there is growing awareness of the benefits of NPN sources and regulations promoting sustainable livestock farming practices. The Asia-Pacific region is expected to witness the fastest growth due to the increasing demand for meat products and the focus on improving animal health and productivity. According to the Food and Agriculture Organization of the United Nations, the Asia-Pacific region accounts for more than half of the global livestock production. This is driving the demand for NPN sources in animal feed, particularly in the beef cattle and dairy cattle segments. The LAMEA region has a large livestock population and a growing demand for meat and dairy products, particularly in Brazil, driving the demand for NPN sources in animal feed.
 
Competitive analysis and profiles of the major players in the feed NPN market, such as Alltech Inc, Antonio Tarazona, Archer Daniels Midland Company, Borealis, Incitec Pivot Ltd., Kay Dee Feed Company, Nutri Feeds, Petroleo Brasileiro, The Potash Corporation of Saskatchewan, and Yara International.

 Feed Non-Protein Nitrogen Market Report Highlights