The market for ovo-sexing technology is anticipated to grow significantly, reaching an estimated US$ 105.84 million by 2031, up from US$ 54.00 million in 2023. This growth represents a compound annual growth rate (CAGR) of 8.8% from 2023 to 2031.
Growing Focus on Ethical Animal Welfare Drives Demand for Ovo-Sexing Technology
As reported by the University of Copenhagen in March 2024, the global egg production sector is responsible for the annual culling of around 7 billion male chicks shortly after hatching, primarily because they do not lay eggs and are not suitable for meat production. This practice has raised significant concerns regarding animal welfare and the ethical implications of such mass culling within the poultry industry. Ovo-sexing technologies present a viable solution to these ethical dilemmas by enabling producers to ascertain the sex of chicks prior to hatching. Techniques like in-ovo sexing allow for the identification and removal of male embryos before they are born, thereby eliminating the necessity for culling. By implementing in-ovo sexing, poultry producers can align their practices with ethical standards and animal welfare regulations that are increasingly being enforced, especially in Europe. Companies such as Hendrix Genetics BV and Innovate Animal Ag are at the forefront of developing these in-ovo sexing technologies. Egg producers that adopt ovo-sexing methods are often viewed positively by consumers and animal welfare advocates, which enhances their brand image. This transition not only meets the growing consumer demand for ethically produced goods but also positions these companies as leaders in animal welfare initiatives. Furthermore, ovo-sexing technologies contribute to sustainability by minimizing waste and optimizing resource use in poultry farming, making them essential to modern, responsible agricultural practices. Consequently, the rising concerns regarding animal welfare and the ethical ramifications of chick culling are significant factors driving the demand for in-ovo sexing technologies.
Despite the promising outlook, the high costs and complexities associated with in-ovo sexing technologies pose challenges to market growth. The financial burden of adopting these technologies can be prohibitive for many poultry operations. Smaller farms, in particular, often struggle with the expenses related to implementing ovo-sexing technology and acquiring the necessary advanced machinery. Many small to medium-sized poultry producers operate on thin profit margins, making it difficult to justify the substantial initial investment required for in-ovo sexing technologies. This economic hurdle contributes to the low adoption rates of these innovative methods, as many producers may continue to rely on traditional, less expensive techniques for egg production. The costs associated with in-ovo sexing tests, including those conducted using enzyme-linked immunosorbent assay (ELISA) or radioimmunoassay (RIA) methods, further deter producers from investing in these technologies. Concerns about recovering their investments (return on investment or ROI) and the overall feasibility of these technologies in the agricultural sector, particularly since they are still being scaled up, add to the reluctance. Additionally, many in-ovo hatched chicks have yet to reach the market as egg producers, which complicates the situation. The intricate nature of in-ovo sexing technologies also raises the risk of errors in gender determination or potential negative impacts on hatchability, which could hinder the acceptance of in-ovo screenings and impede the growth of the ovo-sexing technology market.
Insights Based on Techniques
The ovo-sexing technology market is categorized by technique into several segments: noninvasive imaging, genetic editing, volatile analysis, sex reversal, and liquid-based analysis. In 2023, the noninvasive imaging segment dominated the market and is projected to experience the highest CAGR from 2024 to 2031. Noninvasive imaging techniques for determining the sex of chick embryos utilize advanced technologies such as hyperspectral imaging, magnetic resonance imaging (MRI), Raman spectroscopy, and fluorescence spectroscopy. These methods allow for the examination of embryos within eggs without damaging the shell, thus preserving the integrity of the eggs. Various egg producers are increasingly adopting and developing noninvasive imaging technologies to enhance egg quality and alleviate ethical concerns associated with conventional sex determination methods. Notable examples of noninvasive technologies in the ovo-sexing market include Orbem?s Genus Focus system, which has been implemented in the laying hen hatchery of Hendrix Genetics, and AAT?s Cheggy technology. Orbem's imaging and classification technology, in collaboration with Vencomatic Group's automation equipment, facilitates reliable, noninvasive, real-time sex determination of chick embryos as early as day 12 of incubation. The installation at the French Hendrix Genetics hatchery is capable of analyzing approximately 250,000 eggs daily during the incubation of day-old chicks.