$7.3bn
$XXX.Xm
10,768
236
$XXX.Xm
Meat byproduct renderers have benefited from surging prices for key inputs driven by crop shortages. Supply chain issues and heightened demand amid rising production in the post-pandemic years made the price of feed expensive, which in turn boosted the price of meat products. Renderers have upped their prices to pass these increases downstream, which lifted profit. Imports skyrocketed during the same period, but strong demand kept the industry on an upward trajectory. Industry-wide revenue has been growing at a CAGR of 5.6% to $7.3 billion over the five years to 2023, including an estimated 6.5% decline in 2023 alone.The industry is currently dominated by two companies, Tyson and Darling, which control a combined 93.8% of the US market. This gives Tyson and Darling immense power to set prices, and expanding demand from biofuel and other growing industries is giving them reason to charge more for their products. Combined with successful management of wage costs and control at multiple points in the supply chain through vertical integration, industry profit has been on the rise.Over the next five years, meat byproduct processers are expected to face muted growth. Falling feed and fertilizer prices will temper demand from the industry's major markets as downstream industries cut back on production. The agricultural price index is set to drop, which will cut the cost of inputs. The depreciation of the US dollar will make domestic rendered meat byproducts more attractive in overseas markets, promoting exports and cutting imports. This relief from import competition will allow renderers to better control prices. Overall, industry revenue is forecast to grow at a CAGR of just 0.2% over the five years to 2028 to total $7.4 billion.
Industry revenue has grown at a CAGR of 5.6 % over the past five years, to reach an estimated $7.3bn in 2023.
Market size is projected to grow over the next five years.
Company | Market Share (%)
2023 | Revenue ($m)
2023 | Profit ($m)
2023 | Profit Margin (%)
2023 |
---|---|---|---|---|
Tyson Foods, Inc. | 4,361.7 | 177.5 | 4.1 | |
Darling Ingredients Inc. | 1,175.0 | 211.5 | 18.0 | |
Baker Commodities, Inc. | 88.9 | 3.4 | 3.9 |
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Industry revenue is measured across several distinct product and services lines, including Animal and marine feed and fertilizer byproducts, Lard, inedible tallow and other grease and Meat and bone meal. Animal and marine feed and fertilizer byproducts is the largest segment of the Rendering & Meat Byproduct Processing in the US.
Animal and marine feed and fertilizer byproducts
This industry renders animal fat, bones and meat scraps. It does not include companies that blend animal fats with vegetable fats; these companies are classified under the Margarine and Cooking Oil Processing industry report (IBISWorld report 31122).
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NAICS 31161 - Rendering & Meat Byproduct Processing in the US
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Spiking prices have pushed revenue through the roof. Meat byproduct renderers have been successfully able to pass rising input costs downstream, boosting revenue.
Learn about an industry's products and services, markets and trends in international trade.
Animal feed products are the most popular. The massive demand for meat in the United States and overseas makes maximizing feed’s nutritional value essential, benefiting bypro...
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
The Southeast helps renderers export. The many ports and existing infrastructure in the Southeast region allow processers to compete in overseas markets.
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Meat byproduct renderers compete in different markets. While large companies can supply many different industries, small suppliers are surviving by directing their efforts to...
Learn about the performance of the top companies in the industry.
Darling and Tyson dominate the industry. Both companies have a staggeringly high market share, leaving just 6.2% remaining for other companies.
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Renderers need to comply with quality regulations. The FDA and USDA enforce strict standards for the industry’s products in order to prevent the spread of disease in livestoc...
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Revenue growth is lifting profit. Renderers are enjoying price hikes stemming from high demand and high feed costs, which have made other expenses much more manageable.
Including values and annual change:
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Key data sources in the US include:
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The market size of the Rendering & Meat Byproduct Processing in the US industry in United States is $7.3bn in 2024.
There are 236 businesses in the Rendering & Meat Byproduct Processing in the US industry in United States, which has declined at a CAGR of 0.8 % between 2018 and 2023.
The market size of the Rendering & Meat Byproduct Processing in the US industry in United States has been growing at a CAGR of 5.6 % between 2018 and 2023.
Over the next five years, the Rendering & Meat Byproduct Processing in the US industry in United States is expected to grow.
The biggest companies operating in the Rendering & Meat Byproduct Processing market in United States are Tyson Foods, Inc., Darling Ingredients Inc. and Baker Commodities, Inc.
Rendering and processing animal feed and Rendering and processing marine feed are part of the Rendering & Meat Byproduct Processing in the US industry.
The company holding the most market share in United States is Tyson Foods, Inc..
The level of competition is moderate and steady in the Rendering & Meat Byproduct Processing in the US industry in United States.