Rendering and Meat Byproduct Processing in the US Industry Market Research Report Now Available from IBISWorld

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The industry's downstream markets grew during the five years to 2013, leading to sustained revenue growth for the period despite a poor global economy and the industry will continue to grow in the five years to 2018 thanks to increased imports and exports. For these reasons, industry research firm IBISWorld has added a report on the Rendering and Meat Byproduct Processing industry to its growing industry report collection.

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High demand from downstream markets helped the industry maintain revenue growth

The Rendering and Meat Byproduct Processing industry has benefited from growing demand from downstream markets in the five years to 2013. Industry operators render animal fat, bones and meat scraps for use in animal food production, industrial machinery, alternative energy and consumer goods. During the past five years, industry revenue is estimated to grow at an average annual rate of 1.0% to $4.4 billion. “Increased demand from animal food production and the rising price of feed have promoted industry growth; however, poor conditions in the global economy have limited the industry's increases, causing an estimated 1.2% revenue decline in 2013,” says IBISWorld industry analyst Andrew Krabeepetcharat. Demand from animal food production is estimated to rise at an average annual rate of 1.8% during the five years to 2013, and this is estimated to increase the demand for processed meat byproducts in food for farm animals and household pets. In this five-year period, the price of feed is expected to increase at an average annual rate of 4.7%, increasing the total revenue for processed meat byproducts. However, because of a weak global economy and trade disruptions after the discovery of diseases related to animal products, exports are estimated to fall at an average annual rate of 2.6% to $1.0 billion in 2013. Consequently, industry expansion was relatively slow during the period.

During the five years to 2018, industry revenue is expected to continue its growth. Expected increases in demand from animal food production and the price of feed are expected to fuel industry growth. Additionally, the industrial production index, which measures the output from the mining, manufacturing, electric and gas industries, is forecast to grow at an average annual rate of 2.8%, prompting rendered animal fats to be used in industrial burners. Consequently, long-term sustained industry growth is expected as oil prices rise and consumers seek alternative energy sources such as biodiesel produced from rendered animal fats.

The Rendering and Meat Byproduct Processing industry is estimated to have a medium level of concentration, with the top four companies making up less than 50.0% of the industry's market share. Market share concentration has increased in the five years to 2013 as competitors consolidated to increase profit margins amid the recession. According to Krabeepetcharat, Concentration increased significantly between 2010 and 2011, courtesy of the merger between Darling International Inc. and Griffin Industries Inc. Although industry concentration is classified as medium, the concentration in localized areas is often very low. This difference is because there are usually few rendering and animal byproduct processing facilities within localized areas. For more information, visit IBISWorld’s Rendering and Meat Byproduct Processing in the US industry report page.

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IBISWorld industry Report Key Topics

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 & Cooking Oil Processing in the US industry report (IBISWorld report 31122).

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.

Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.

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Gavin Smith
IBISWorld
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