Animal by-product market seen reaching $32 billion by 2034

The animal by-product market is projected to grow from $25.2 billion in 2025 to $32.0 billion by 2034, as processors turn bones, fats, feathers and other residues into feed, fuel, fertilizer and specialty ingredients. Regulatory support in Europe, rising pet food demand and growth in renewable fuels are helping shift the sector from disposal to resource recovery.

Why it matters: - Animal by-products are moving from waste handling to value recovery across food, feed, energy and industrial supply chains. - The market’s growth reflects rising demand for animal-derived materials that can be processed into higher-value, compliant inputs. - The shift creates new revenue opportunities for renderers, collectors, processors and downstream manufacturers.

What happened: - The animal by-product market is projected to increase from $25.2 billion in 2025 to $32.0 billion by 2034. - The forecast implies a compound annual growth rate of 2.7%. - The market update was released on Aug. 28, 2026, from Pune, Maharashtra, India. - The report frames bones, blood, fat, offal, hides, feathers, shells, manure and former food products as recoverable resources. - The European Commission estimates that more than 20 million tonnes of animal by-products are generated each year in the European Union.

The details: - Rendered fats can move into oleochemical and energy uses, while processed proteins can support selected feed and pet food applications. - Other derived materials can be used in fertilizers, cosmetics, pharmaceuticals, technical products and biomaterials. - The European Commission recognizes end-use pathways including fertilizers, pet food, biofuels, textiles, cosmetics and pharmaceuticals. - EU rules also allow defined “end points,” where some derived products stop being regulated as animal by-products after they meet safety conditions. - Rendering remains the core conversion technology for turning animal tissues into stable fats and protein-rich materials. - Historical FAO material cited in the report says the global rendering industry processed about 60 million tonnes of animal by-products annually. - The same source says slaughter and processing can remove about 33% to 43% of live-animal weight as fat trim, viscera, bone, blood and feathers. - The main product segments are meat and bone meal, feather meal, blood meal and animal fats. - Meat and bone meal leads because of broad availability, concentrated protein content and cost advantage in permitted animal nutrition uses. - Animal feed is the largest application. - Pet food, fuel and other uses make up the rest of the demand base. - Direct sales are the leading distribution channel because large buyers want long-term supply agreements, consistent specifications and closer coordination with renderers. - Livestock producers are the primary end users, followed by pet food manufacturers and biofuel producers. - North America has one of the most mature animal by-product ecosystems, supported by large beef, pork and poultry processing. - The U.S. Energy Information Administration has highlighted rapid expansion in renewable diesel capacity, increasing competition for feedstocks including animal fats and used cooking oils. - Europe’s market is shaped by regulation, with EU rules controlling sourcing, treatment, traceability and permitted end uses. - Great Britain updated its list of approved animal-by-product operating plants in August 2026, after updates in February, March, April, May, June and July. - Asia Pacific combines large livestock and poultry production centers with major feed-consuming markets. - Latin America’s livestock and meat-processing base, especially in Brazil, expands the supply of recoverable proteins and fats. - The Middle East and Africa have less developed rendering infrastructure, but expanding livestock, poultry processing and organized food systems are creating room for new recovery capacity.

Between the lines: - The report suggests the industry’s competitive edge is shifting from volume alone to product quality, traceability and end-use optimization. - Compliance is becoming a differentiator, not just an operating requirement. - Processors that can document origin, category, treatment, movement and final application may be better positioned than low-cost bulk competitors. - Technology development could reshape the next growth cycle through more precise separation, controlled hydrolysis, improved protein functionality, advanced fat purification and nutrient recovery. - The most attractive technologies are likely to combine high recovery rates, consistent output quality, traceability and regulatory acceptance. - Pet food is a key example of upcycling becoming commercialized, with U.S. pet food sales reaching $51.7 billion in 2024 and more than 4 million tons of upcycled ingredients identified in the production ecosystem. - In July 2026, the European Commission notified a draft delegated regulation proposing additional derived animal-by-product materials for EU fertilising products, with a consultation deadline in September 2026.

What’s next: - Regulatory decisions in Europe, including fertilizer rules and end-point designations, are likely to shape where recovered materials can be sold. - Renewable-fuel demand should keep animal fats in competition with other feedstocks. - Companies are expected to keep investing in traceability, segregation and processing technologies that maximize value from each tonne of input. - The report points to continued growth in rendered products tied to feed, pet nutrition, fertilizers and bioenergy.

The bottom line: - The animal by-product market is becoming a circular-economy business, where compliance, recovery efficiency and downstream flexibility matter as much as processing scale.