The nucleotides market is expected to grow at a CAGR of over 8% during the forecast period. The major factor driving the market studied is the growing demand for nucleotides from pharmaceuticals and Increased Demand due to the COVID-19 Outbreak. On the flip side, the high manufacturing cost of nucleotides are hindering the growth of the market.
- Nucleotides from pharmaceutical applications are expected to dominate the market studied over the forecast period.
- North American region represents the largest market and is also expected to be the fastest-growing market over the forecast period owing to the increasing consumption from countries such as the United States and Canada.
Key Market Trends
Growing Demand of Nucleotides from Pharmaceuticals
Nucleotides are vital in terms of nutritional and physiological functions. Inosine monophosphate (IMP) and guanosine monophosphate (GMP) are widely used as palatability enhancers in food. This helps nucleotides to enhance palatability for feed. Also, nucleotides affect the recovery of intestinal epithelial cells, which helps boost immunity. Tissue cells involved in immunity cannot self synthesize nucleotides. Thus, immunity is strengthened by dietary nucleotides. The nucleotides in food are typically present as long strands of genetic material, which can contain several million nucleotides. Furthermore, nucleotides are known as flavor improvers and flavor enhancers. Nucleotides increase sensorial acceptance through the umami taste, maximize complexity, impact, continuity, and harmony of food flavors, potentiating the performance of aromas and allowing cost savings of one's formulations.
Additionally, since yeasts are rich in ribonucleic acid (RNA), a natural source of nucleotides (GMP, AMP, CMP, and UMP), yeast extracts enriched in natural nucleotides can be used as taste enhancers. Nucleotides are certainly present in milk (about 2-5% of the non-protein nitrogen in human milk). Since nucleotides have positive effects on infant nutrition, producers add nucleotides in baby milk powder. Also, since almost all foods and beverages are made up of either intact cells or cellular contents, nearly all foods provide a source of nucleotides. Some sources of nucleotides include grains, meats, fish, nuts, legumes, fruits and vegetables, fruit juices, and milk. Furthermore, nucleotides consumed by animals are digested in the gut, which also affects the proliferation of beneficial gut bacteria. Immediately after the death of an animal, owing to respiratory arrest, ATP breakdown process starts, leading to the formation of catabolite nucleotides - inosine monophosphate (IMP), inosine (Ino) and, at a later stage, hypoxanthine (Hx). Measuring nucleotide level in tissues provides an objective indicator of the freshness of fish and meat, such as beef, pork, lamb, poultry, and subproducts. The rising incidences of animal diseases demand for maintaining adequate metabolism rates in livestock. Consumer awareness has also grown in this segment, which has increased the demand for animal feed.
According to the International Feed Industry Federation, the global compound feed production has reached an estimated 1 billion tons annually. Global commercial feed manufacturing generates an estimated annual turnover of over USD 400 billion. The UN Food and Agricultural Organisation (FAO) estimates that the world will have to produce 60% more food by 2050, and it is believed that animal protein production will grow even more - meats (poultry/swine/beef) will double, as well as dairy, and fish production will almost triple by 2050, thereby increasing the food and animal feed consumption, in turn, driving the market studied.
The Asia-Pacific region is home to several of the top 10 animal feed-producing countries, including China, India, and Japan, and accounted for more than 36% of the world's feed tonnage. All such growth depicting factors in animal and food feed consumption are, in turn, driving the market for nucleotides, which form a part of the feed and are expected to have a sustainable market over the forecast period.
China to Dominate the Asia-Pacific Market
In Asia-Pacific, China is the largest economy, in terms of GDP. The country witnessed about 6.1% growth in its GDP during 2019, even after the disturbance caused due to its trade war with United States. Although China was the first country affected by the COVID-19 pandemic and its resultant lockdown, it was the first country to come out of lockdown, but the country has been witnessing recurring cases of the disease leading to further lockdowns. Owing to this, manufacturing appears to be heavily impacted, and this is expected to continue owing to the slow growth seen in 2020. Moreover, a major chunk of the Chinese economy is linked to foreign exports, whose demand is still low due to lockdowns being practiced in various countries owing to the COVID-19 pandemic. This has been negatively affecting the Chinese industry during 2020.
China is the second-largest market for pharmaceuticals, globally. The market for pharmaceuticals is emerging rapidly, owing to the growing middle-class and aging population in the country, rising incomes, and increasing urbanization. The pharmaceutical sales of the country are expected to reach up to USD 175 billion by 2022. This is expected to boost the growth of the market studied in terms of its usage in the pharmaceutical industry. The Chinese government promulgated Healthy China 2030, which is a blueprint that outlines its ongoing intent to prioritize health as a precondition for sustained social and economic development. Additionally, the growing research into pharmaceuticals in the country is also expected to augment the demand for nucleotides during the forecast period. Additionally, owing to the COVID-19 pandemic, the demand and production of pharmaceuticals has increased in the country. The world is in need of pharmaceuticals from China due to this impact caused by COVID-19.
Similarly, increasing incidence of lifestyle diseases, growing demand for affordable healthcare delivery systems due to increasing healthcare costs, technological advancements, as well as government initiatives, like e-health, together with tax benefits and incentives, are driving the healthcare industry in the country. In 2019, Chinese health expenditure was recorded to be ~USD 750 billion, which accounted for ~5.3% of the country's GDP. The healthcare market in China has been witnessing strong growth with a growing number of hospitals and increasing demand for medical assistance.
China's livestock industry has expanded rapidly in recent years as diets shift toward more animal proteins. At present, China is the world's largest producer of livestock products and the largest manufacturer of animal feed. According to the Chinese Ministry of Agriculture and Rural Affairs, the animal feed market was valued at more than USD 45 billion in 2019. This underscores the considerable size of the animal feed additives market, which can be further linked to the bulky market demand for Choline Chloride in the country. According to statistics of the National Animal Husbandry Station and China Feed Industry Association, the national feed additive output in 2019 was about 11.992 million metric ton, an increase of 5.8% over 2018. From 2014 to 2019, the compound annual growth rate (CAGR) of China's feed additive output was about 8.35%. Owing to all the above-mentioned factors coupled with the COVID-19 pandemic showing a positive impact on the pharmaceutical and healthcare sector, the market for nucleotides is projected to grow in the country during the forecast period.
The nucleotide market is highly consolidated with top players holding a lion's share in the market. The top players account for a share of around 80% of the total market. The key players in the market include CJ CheilJedang Corp., Ajinomoto Co., Inc., and Thermo Fisher Scientific Inc., DAESANG, and STAR LAKE BIOSCIENCE, among others
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TABLE OF CONTENTS
- 1.1 Study Assumptions
- 1.2 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET DYNAMICS
- 4.1 Drivers
- 4.1.1 Growing Demand of Nucleotides from the Pharmaceutical Industry
- 4.1.2 Increasing Demand Due to COVID-19
- 4.2 Restraints
- 4.2.1 Limited Penetration into the Aqua Feed Industry
- 4.3 Industry Value Chain Analysis
- 4.4 Porters Five Forces Analysis
- 4.4.1 Threat of New Entrants
- 4.4.2 Bargaining Power of Buyers
- 4.4.3 Bargaining Power of Suppliers
- 4.4.4 Threat of Substitute Products
- 4.4.5 Degree of Competition
5 MARKET SEGMENTATION
- 5.1 Nitrogeneous Base
- 5.1.1 Pyrimidine
- 5.1.2 Purine
- 5.2 Application
- 5.2.1 Pharmaceutical
- 5.2.2 Food and Animal Feed Additives
- 5.2.3 Drug Discovery
- 5.3 Geography
- 5.3.1 Asia-Pacific
- 220.127.116.11 China
- 18.104.22.168 India
- 22.214.171.124 Japan
- 126.96.36.199 South Korea
- 188.8.131.52 Rest of Asia-Pacific
- 5.3.2 North America
- 184.108.40.206 United States
- 220.127.116.11 Canada
- 18.104.22.168 Mexico
- 5.3.3 Europe
- 22.214.171.124 Germany
- 126.96.36.199 United Kingdom
- 188.8.131.52 France
- 184.108.40.206 Italy
- 220.127.116.11 Rest of Europe
- 5.3.4 South America
- 18.104.22.168 Brazil
- 22.214.171.124 Argentina
- 126.96.36.199 Rest of South America
- 5.3.5 Middle-East and Africa
- 188.8.131.52 Saudi Arabia
- 184.108.40.206 South Africa
- 220.127.116.11 Rest of Middle-East and Africa
6 COMPETITIVE LANDSCAPE
- 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
- 6.2 Market Ranking Analysis
- 6.3 Strategies Adopted by Leading Players
- 6.4 Company Profiles
- 6.4.1 Ajinomoto Co. Inc.
- 6.4.2 CJ CHEILJEDANG CORP
- 6.4.3 DAESANG
- 6.4.4 exoticbiosolutions.com
- 6.4.5 Jena Bioscience GmbH
- 6.4.6 MEIHUA HOLDINGS GROUP CO., LTD
- 6.4.7 Meridian
- 6.4.8 STAR LAKE BIOSCIENCE
- 6.4.9 ThermoFisher Scientific Inc.
7 MARKET OPPORTUNITIES AND FUTURE TRENDS
- 7.1 Application of Nucleotide Supplements in Broiler Chicken Diets