Rendering & Meat Byproduct Processing in the US - Industry Market Research Report

Rendering & Meat Byproduct Processing in the US - Industry Market Research Report

  • March 2020 •
  • 30 pages •
  • Report ID: 5065206 •
  • Format: PDF
Table scraps: Falling feed prices have hindered industry revenue growth


Rendering & Meat Byproduct Processing

Major companies in the Rendering and Meat Byproduct Processing industry include Tyson Foods Inc. (Tyson), Darling Ingredients Inc. (Darling Ingredients) and Baker Commodities Inc., with Tyson and Darling Ingredients commanding significant market share. Industry operators predominately produce three types of products, which include feed-grade fats, fuel feedstocks and edible fats.

Operators focus on rendering operations

· Major companies in the industry are well-established companies that focus solely on rendering operations, with the exception of Tyson. The industry’s largest operator, Tyson, is a vertically integrated meat producer that also operates rendering plants and a tallow refinery within its chicken and beef production segments, respectively.

Merger and acquisition activity expands global reach

· Major player Tyson acquired the poultry rendering operations of American Proteins Inc. in 2018 for $850.0 million. The acquisition has significantly bolstered Tyson’s market share in addition to its physical presence acrossthe Southeast.

· Major player Darling Ingredients acquired Dutch renderer VION Holding NV in 2014 for $2.2 billion. The acquisition was completed through the company’s subsidiary Darling Ingredients International, thus expanding the company’s global reach.

Pricing influences demand from downstream markets
· Companies in the Rendering and Meat Byproduct Processing industry compete on the basis of price, quality and variety. Since rendered fats and meat byproducts are primarily used as inputs, pricing is one of the most important factors influencing demand from downstream markets. Moreover, quality and variety represent important factors for niche and emerging downstream markets such as biofuel production.

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).

This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.

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