Aquafeed Market

Aquafeed Market Size, Share, and Revenue Forecast

The global aquafeed market is projected to reach USD 88.0 billion by 2028, at a CAGR of 7.3% over the forecast period. It is estimated to be valued USD 61.8 billion in 2023.

Several important factors are driving up demand for aquafeed products on a global scale. First, a growing worldwide population has an increased need for seafood, and aquaculture offers a sustainable way to meet this demand. Fish and prawn farming has become more popular because of the depletion of wild fish stocks. Aquafeed is crucial for the healthy growth and development of aquaculture aquatic species, increasing their output and decreasing their reliance on foraging wild fish. Aquafeed products are in high demand to support the expansion of the business since advances in aquaculture technology and practises have made it more effective and financially viable.

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Market Dynamics

Driver: Increase in consumption of fish

In recent years, there has been a significant increase in fish consumption worldwide. As people become more health-conscious and aware of the nutritional benefits of fish, it has become a popular choice for many individuals and families. One of the main reasons for the rise in fish consumption is the recognition of fish as a rich source of high-quality protein, omega-3 fatty acids, vitamins, and minerals. These nutrients are essential for maintaining a balanced diet and promoting overall well-being. Moreover, fish is often considered a healthier alternative to red meat due to its lower saturated fat content.

Another contributing factor to the increased demand for fish is the growing awareness of the environmental impact of meat production. As concerns about climate change and sustainability rise, more people are opting for fish as a more environmentally friendly protein source. Compared to land-based livestock farming, fish farming generally has a lower carbon footprint and requires fewer resources such as land and water. Additionally, advancements in technology and transportation have made fish more accessible to a wider range of consumers. Improved cold chain logistics and efficient global trade networks enable the availability of various fish species throughout the year, regardless of geographical location. This accessibility has opened up new culinary experiences and expanded the choices for seafood lovers.

Fishmeal is primarily used in animal diets, particularly for farmed fish. By 2030, it is estimated that 85% of fishmeal will be consumed by the aquaculture sector as feed. China, being the largest producer of aquaculture, will be the largest consumer of fishmeal, accounting for 38% of global fishmeal consumption by 2030. The consumption of fish oil is characterized by competition between the aquaculture industry and dietary supplements for human consumption. By 2030, 66% of fish oil is projected to be used as feed for farmed fish, particularly salmon. The European Union and Norway will remain the main consumers of fish oil, representing 16% and 14% of the world total, respectively, by 2030. Thus the expanding consumption of fish across different applications is a key contributing factor behind the surge in the aquafeed market.

Restraint: Lack of awareness about modern feeding methods in developing countries

The lack of awareness about modern feeding methods in developing countries can indeed be a restraint for the aquafeed market. Aquaculture, which is the farming of fish and other aquatic organisms, has become an increasingly important industry worldwide to meet the growing demand for seafood. However, the success of aquaculture largely depends on the availability and quality of aquafeed, which is the primary source of nutrition for farmed fish.

In many developing countries, traditional feeding methods are still prevalent due to a lack of knowledge and awareness about modern aquafeed practices. Farmers may rely on low-quality feeds or even household waste, which can result in inadequate nutrition for the farmed fish. This can lead to slower growth rates, higher mortality rates, and lower overall productivity of aquaculture operations.

Modern aquafeed formulations are designed to provide balanced nutrition for specific species of fish, promoting healthy growth and efficient feed conversion. These feeds often contain a combination of proteins, carbohydrates, fats, vitamins, and minerals tailored to meet the nutritional requirements of farmed fish at different stages of their life cycle. To overcome the restraint of lack of awareness, it is crucial to focus on educational initiatives and knowledge transfer programs in developing countries. These initiatives can include training programs for fish farmers, extension services, and collaborations with research institutions and international organizations. By providing farmers with information about the benefits of using modern aquafeed and demonstrating its effectiveness through field trials, awareness can be raised, and adoption of improved feeding practices can be encouraged. Additionally, it is essential to address the affordability and availability of quality aquafeed in developing countries. Cost-effective and locally sourced feed ingredients should be identified and promoted to make modern aquafeed more accessible to small-scale farmers.

Opportunity: Growth in support from governments

The aquaculture industry is growing due to the various initiatives taken by the governments of the respective countries, globally. In India, the Ministry of Agriculture is responsible for the planning, monitoring, and funding of centrally sponsored developmental schemes related to fisheries and aquaculture in all Indian states. It provides an opportunity for the aquaculture industry of India to focus on enhancing the aquaculture sector in the country.

Governments promote aquaculture through education and capacity building initiatives. They offer training programs and workshops to enhance the skills and knowledge of aquaculture farmers, enabling them to adopt best practices and improve productivity. Governments also facilitate the exchange of information and knowledge sharing among industry stakeholders, promoting innovation and collaboration. For instance, The European Union (EU) and the Food and Agriculture Organization (FAO) have been providing support to the Georgian government in the development of the National Aquaculture Development Strategy. The workshop aimed to initiate discussions among various stakeholders involved in aquaculture in Georgia, focusing on extensive aquaculture, mariculture, and fish farming. The objective was to support the formulation of the National Aquaculture Development Strategy of Georgia.

Challenge: Growth in environmental and human health concerns

One of the major environmental concerns associated with aquaculture is water pollution. Intensive farming practices can lead to the accumulation of excess nutrients, such as nitrogen and phosphorous, in the surrounding waters. These nutrients can cause eutrophication, leading to harmful algal blooms, oxygen depletion, and damage to aquatic ecosystems. Additionally, uneaten feed and waste from farmed fish can further contribute to water pollution, affecting the quality of both the local marine and freshwater environments. The establishment of fish farms often requires the conversion of natural coastal areas and wetlands, resulting in the loss of important habitats for various species. Furthermore, the physical structures and equipment used in aquaculture operations can damage or destroy sensitive ecosystems such as seagrass beds, coral reefs, and mangroves. These habitats play crucial roles in supporting biodiversity and providing essential ecosystem services, making their destruction a matter of significant concern.

To address these environmental concerns, governments and regulatory bodies have implemented stricter regulations and sustainability requirements for aquaculture operations. These measures aim to mitigate the industry's negative impacts and promote more sustainable practices. For instance, regulations may set limits on the amount of nutrients that can be released into the surrounding waters, and farms may be required to implement waste management systems to minimize pollution. For example, Regulation (EC) No.: 1831/2003 on additives for use in animal nutrition. This regulation establishes rules for the authorization and use of feed additives, including those used in aquafeed, within the EU. Another example, The Norwegian Food Safety Authority regulates aquaculture, including the use of feed, to ensure food safety and environmental sustainability.

Aquafeed Market Ecosystem

Prominent companies in this market include well-established, financially stable manufacturers of aquafeed. These companies have been operating in the market for several years and possess a diversified product portfolio, state-of-the-art, and strong global sales and marketing networks. Prominent companies in this market include ADM (US), Cargill, Incorporated (US), Ridley Corporation Limited (Australia), Nutreco (Netherlands), Alltech (US), Purina Animal Nutrition (US), Adisseo (Belgium), Aller Aqua A/S (Denmark), Biomin (Austria), Biomar (Denmark), Norel Animal Nutrition (Spain), Avanti Feeds Limited (India), De Heus Animal Nutrition B.V. (Netherlands), Novus International (US), and Biostadt India Limited (India).

By ingredients, soybean segment is projected to have the largest share during the forecast period.

Soybeans are among the non-fish sources of omega-3 fatty acids, proteins, and unsaturated fats. Soy protein is fed to farm-reared fish and shellfish to enhance their overall growth and development. Some of the commonly used soybean products in aquafeed include heat-processed full-fat soybean, mechanically extracted soybean cake, solvent-extracted soybean meal, and dehulled solvent-extracted soybean meal. Soybean isolates and different varieties of genetically modified soybeans are being introduced to replace fishmeal, which is a rich source of amino acids.

By form, dry segment is projected to have fastest growing rate during the forecast period.

Dry form of feed is preferred due to a few factors, such as ease of transportation, storage, and convenience associated with it, as opposed to the liquid form, which requires specialized facilities for storage and transportation. It can be purchased in bulk and is available with multiple ingredient options. Cost-effectiveness is another aspect that drives the growth of this market.

By species, fish segment is projected to have fastest growing rate during the forecast period.

In the aquafeed market, the fish segment is expanding for a variety of reasons. The need for high-quality and nutritionally balanced aquafeed is being driven by the increasing demand for fish protein on a global scale, the depletion of wild fish supplies, and the growth of aquaculture. To ensure optimum development, health, and sustainability in the sector, fish farming, with its well-established practises and different species, needs specialised feeds.

By lifecycle, grower segment is projected to have fastest growing rate during the forecast period.

Due to the growing demand for specialised feeds to support the growth and development of aquatic species raised for food, the grower section of the aquafeed industry is expanding. The demand for feeds that meet the unique nutritional needs of developing fish and prawns is increasing as aquaculture production scales up. This enables effective feed conversion, enhanced growth rates, and overall farm profitability.

By additives, amino acids segment is projected to have fastest growing rate during the forecast period.

Due to their vital function in fostering the growth, development, and general health of aquatic species, amino acids are witnessing expansion in the aquafeed market. As the building blocks of proteins, amino acids help to improve nutrient absorption, feed effectiveness, and disease resistance. Additionally, customised amino acid formulations suited to match the needs of particular species are now possible because to advances in research and technology, which are fuelling the segment's expansion.

Asia Pacific is expected to have the fastest growing rate during the forecast period.

The aquafeed market is expanding in the Asia Pacific region because of reasons like a growing population, rising seafood demand, favourable environmental conditions for aquaculture, technical improvements, and government backing. The expansion of the aquaculture sector is being fuelled by economic growth, shifting dietary tastes, and the need for sustainable protein sources, which is causing a commensurate rise in demand for aquafeed products.

Asia Pacific is Expected to Have Fastest Growing Rate During the Forecast Period

Key Market Players

The key players in this include ADM (US), Cargill, Incorporated (US), Ridley Corporation Limited (Australia), Nutreco (Netherlands), Alltech (US), Purina Animal Nutrition (US), Adisseo (Belgium), Aller Aqua A/S (Denmark), Biomin (Austria), Biomar (Denmark), Norel Animal Nutrition (Spain), Avanti Feeds Limited (India), De Heus Animal Nutrition B.V. (Netherlands), Novus International (US), and Biostadt India Limited (India). These companies have been focusing on expanding their market presence, enhancing their solutions, and partnering with many channel partners and technology companies to cater to consumers across the globe. The deep roots of these players in the market and their robust offerings are among the major factors that have helped them achieve major sales and revenues in the global aquafeed market.

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Scope of the Report

This research report categorizes the aquafeed market based on species, additives, form, lifecycle, ingredients, and region.

By Ingredient

• Soybean
• Corn
• Fishmeal
• Fish Oil
• Additives
• Other types

By Additives

• Antibiotics
• Vitamins & minerals
• Antioxidants
• Amino acids
• Enzymes
• Probiotics & prebiotics
• Other types

Aquafeed Market, By Species

• Fish
  • Tilapia
  • Salmon
  • Carp
  • Trout
  • Others
• Crustaceans
  • Crabs
  • Krill
  • Shrimp
  • Others
• Crustaceans
  • Oysters
  • Mussels
  • Others
• Others

By Form

• Dry
• Moist
• Wet

By Lifecycle

• Starter feed
• Grower feed
• Finisher feed
• Brooder feed

By Region

• North America
• Europe
• Asia Pacific
• South America
• Rest of the World

Aquafeed Market Recent Developments

• In November 2022, De Heus opened a fourth production facility in Indonesia. De Heus is strengthening the future entrepreneurship in livestock and aquaculture. They are supporting independent breeders, fish, and shrimp farmers in Indonesia. This expansion will help De Hues to increase production for aquafeed in Indonesia.
• In June 2022, Avanti Feeds expanded its feed production facility for shrimp feeds. With an installed capacity of 1,75,000 MT per annum this expansion will help Avanti Feeds to increase production for aquafeed in India.
• In November 2021, Ridley partnered with Australian Prawn Farms, based in Mackay, to successfully complete a commercial-scale trial of a ground-breaking prawn feed that uses no marine resources. The feed contains a microbial biomass component called Novacq that is manufactured from plant and animal raw materials.  With this Ridely is strengthening its position in Australia and has no marine resources in the feed.
• In May 2021, Cargill established a new web platform called MyEWOS to provide aquaculture producers with news, product information, and events. Aquaculture farmers may discover current information that highlights the company's products, services, events, promotions, and news on the website due to its user-friendly and intuitive design.
• In June 2020, ADM animal nutrition’ aquaculture brand, Ocialis, launched a new brand identity in Asia Pacific region as part of its long-term strategy to strengthen its industrial and commercial footprint, in addition to consolidating its position as a leading aquaculture player in the Asia Pacific region. The move also reflects the company’s investment in developing Ocialis as a global provider of aquaculture solutions and aquafeed products.

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