Rendering & Meat Byproduct Processing in the US - Market Research Report (2013-2028)
New York, United States
Last Updated: September 2023
NAICS OD5787Revenue
$7.3bn
Past 5-Year Growth
Profit
$XXX.Xm
Employees
10,768
Businesses
236
Wages
$XXX.Xm
Rendering & Meat Byproduct Processing in the US industry analysis
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.
Trends and Insights
- Spiking prices have pushed revenue through the roof. Meat byproduct renderers have been successfully able to pass rising input costs downstream, boosting revenue.
- 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 byproduct renderers.
- The Southeast helps renderers export. The many ports and existing infrastructure in the Southeast region allow processers to compete in overseas markets.
- Meat byproduct renderers compete in different markets. While large companies can supply many different industries, small suppliers are surviving by directing their efforts towards animal feed manufacturing, biofuel production or another key buyer.
Industry Overview
Market size and recent performance (2013-2028)
Industry revenue has grown at a CAGR of 5.6 % over the past five years, to reach an estimated $7.3bn in 2023.
Trends and Insights
Business is booming for the top renderers
- The industry is dominated by two companies, Tyson and Darling, which collectively control nearly 95.0% of the domestic market.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Falling production will temper growth
- Animal feed and fertilizer prices are both expected to slump over the next five years, limiting production from the industry's top markets.
Biggest companies in the Rendering & Meat Byproduct Processing in the US
| Company | Market Share (%)
2023 | Revenue ($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 |
To view the market share and analysis for all 3 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
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.
Trends and Insights
Animal and marine feed and fertilizer byproducts
- Animal and marine feed and fertilizer byproducts account for the largest share of industry revenue.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- There are no industries to display.
Complementors
- Agriculture, Forestry, Fishing and Hunting in the US
- Animal Food Production in the US
- Margarine & Cooking Oil Processing in the US
- Meat, Beef & Poultry Processing in the US
International industries
- Meat, Beef & Poultry Processing in Canada
- Meat Processing in Australia
- Meat Processing in New Zealand
- Meat Processing in the UK
- Meat Processing in Ireland
Table of Contents
About this industry
Industry definition
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).
What's included in this industry?
Rendering and processing animal feedRendering and processing marine feedRendering and processing fertilizer byproductsRendering and processing lard, inedible tallow and other greasesRendering and processing bone mealCompanies
Tyson Foods, Inc.Darling Ingredients Inc.Baker Commodities, Inc.Purchase this report to view all 3 major companies in this industry.
Related Terms
RENDERINGTALLOWBIODIESELBONE MEALIndustry Code
NAICS 31161 - Rendering & Meat Byproduct Processing in the US
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
Spiking prices have pushed revenue through the roof. Meat byproduct renderers have been successfully able to pass rising input costs downstream, boosting revenue.
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2013-2022) and forecast (2023-2028)
- Employees, including historical (2013-2022) and forecast (2023-2028)
- Businesses, including historical (2013-2022) and forecast (2023-2028)
- Profit, including historical (2013-2023)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
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...
In this chapter
- Products & Services
- Major Markets
- International Trade
Key metrics
- Largest market segment and value in 2023
- Product innovation level
- Total imports, level and trend
- Total exports, level and trend
- Trade Balance
Charts
- Products & services segmentation in 2023
- Major market segmentation in 2023
- International trade, including imports by country and exports by country
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
- Recent trends in import and export volumes, country of origin or destination, and expected future trends
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
The Southeast helps renderers export. The many ports and existing infrastructure in the Southeast region allow processers to compete in overseas markets.
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each state
- Share of population compared to establishments in each region in 2023
Tables
- Number and share of establishments in each state in 2023
- Number and share of revenue each state accounts for in 2023
- Number and share of wages each state accounts for in 2023
- Number and share of employees in each state in 2023
Detailed analysis
- Geographic spread of the industry across North America, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
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.
Analyst insights
Meat byproduct renderers compete in different markets. While large companies can supply many different industries, small suppliers are surviving by directing their efforts to...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2018-2023
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
Darling and Tyson dominate the industry. Both companies have a staggeringly high market share, leaving just 6.2% remaining for other companies.
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2019 through 2023
- Major companies in the industry, including market share, revenue, profit and profit margin in 2023
- Overview of Tyson Foods, Inc.'s performance by revenue, market share and profit margin from 2017 through 2023
- Overview of Darling Ingredients Inc.'s performance by revenue, market share and profit margin from 2017 through 2023
- Overview of Baker Commodities, Inc.'s performance by revenue, market share and profit margin from 2017 through 2023
Detailed analysis
- Description and key data for Tyson Foods, Inc., and factors influencing its performance in the industry
- Description and key data for Darling Ingredients Inc., and factors influencing its performance in the industry
- Description and key data for Baker Commodities, Inc., and factors influencing its performance in the industry
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
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...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2013-2028)
- Assistance historical data and forecast (2013-2028)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
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.
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2023
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2023
- Investment vs. share of economy
Data tables
- Industry Multiples (2016-2021)
- Industry Tax Structure (2016-2021)
- Income Statement (2016-2021)
- Balance Sheet (2016-2021)
- Liquidity Ratios (2016-2021)
- Coverage Ratios (2016-2021)
- Leverage Ratios (2016-2021)
- Operating Ratios (2016-2021)
- Cash Flow & Debt Service Ratios (2013-2028)
- Revenue per Employee (2013-2028)
- Revenue per Enterprise (2013-2028)
- Employees per Establishment (2013-2028)
- Employees per Enterprise (2013-2028)
- Average Wage (2013-2028)
- Wages/Revenue (2013-2028)
- Establishments per Enterprise (2013-2028)
- IVA/Revenue (2013-2028)
- Imports/Demand (2013-2028)
- Exports/Revenue (2013-2028)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2013-2028)
- IVA (2013-2028)
- Establishments (2013-2028)
- Enterprises (2013-2028)
- Employment (2013-2028)
- Exports (2013-2028)
- Imports (2013-2028)
- Wages (2013-2028)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in the US include:
- US Census Bureau
- US Bureau of Labor Statistics
- US International Trade Commission
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Rendering & Meat Byproduct Processing in the US industry in United States in 2024?
The market size of the Rendering & Meat Byproduct Processing in the US industry in United States is $7.3bn in 2024.
How many businesses are there in the Rendering & Meat Byproduct Processing in the US industry in 2023?
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.
Has the Rendering & Meat Byproduct Processing in the US industry in United States grown or declined over the past 5 years?
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.
What is the forecast growth of the Rendering & Meat Byproduct Processing in the US industry in United States over the next 5 years?
Over the next five years, the Rendering & Meat Byproduct Processing in the US industry in United States is expected to grow.
What are the biggest companies in the Rendering & Meat Byproduct Processing in the US market in United States?
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.
What does the Rendering & Meat Byproduct Processing in the US in United States include?
Rendering and processing animal feed and Rendering and processing marine feed are part of the Rendering & Meat Byproduct Processing in the US industry.
Which companies have the highest market share in the Rendering & Meat Byproduct Processing in the US in United States?
The company holding the most market share in United States is Tyson Foods, Inc..
How competitive is the Rendering & Meat Byproduct Processing in the US industry in United States?
The level of competition is moderate and steady in the Rendering & Meat Byproduct Processing in the US industry in United States.
