The North American aquafeed feed market is estimated at USD 1,987.8 million in 2024; it is projected to grow at a CAGR of 6.2% to reach USD 2,687.9 million by 2029. The markets within North America include the US, Canada, and Mexico. North America is a major importer of aquaculture products. The consumption of fish and seafood remains high in North America. According to the Fisheries of the United States report from 2020, commercial fishers in the US caught 8.4 billion pounds of fisheries worth USD 4.7 billion last year. Additionally, World Bank data shows that aquaculture production in North America reached 645,287 metric tons in 2022. As a result, there is a growing need for specialized aquafeed tailored to different species and life stages to support the growth of the aquafeed market in the region.
Market Dynamics
Drivers: Demand for tailor-made aquafeed
The demand for tailor-made aquafeed nutrition is gaining importance in the North American region. This has been driven by various factors, such as a rise in a shift towards sustainable aquaculture practices, which has led to a need for customized feed solutions to enhance the nutrition profile of aquatic species along with reduction of environmental waste. Furthermore, owing to the diverse aquaculture industry in North America, species such as salmon, trout, catfish, and shrimp require specialized nutrition. Thus, tailor-made feed meets the requirements to enhance the nutritional benefits for optimum health solutions. For instance, companies such as ADM (US) focus on formulating customized feed designed to combat a wide variety of aquaculture stressors at any life stage.
Restraints: Market volatility
The market volatility for the aquafeed industry in North America can be impacted by multiple factors. Due to the global supply-demand dynamics, there is a frequent fluctuation in raw material prices, especially for ingredients such as soy, fish meal, and fish oil, among others. Additionally, geopolitical tensions and trade restrictions are also expected to disrupt the prices for aquafeed as most of the raw materials are imported. Thus, in the US, high dependence on foreign fishmeal and fish oil suppliers creates vulnerability to international market disruptions.
Opportunities: Development of innovative products as a source of protein
According to the International Fish Meal and Fish Oil Organization (IFFO), the growing usage of fish meal and fish oil results in increased fishing pressure on wild-feed fish stocks. Thus, there is a growing need to develop alternative ingredients as a source of protein. Also, with the growing consumer preference for food that has minimal impact on the environment, many companies are investing in developing novel products. For instance, BioMar (Denmark) conducted a test to see the effect of insect meal in aquafeed and obtained promising results. Thus, insect meal would have a future as an alternative source of protein in aquaculture feed.
Challenges: Growth in environmental and human health concerns
One of the major environmental concerns associated with aquaculture is water pollution. Intensive farming practices can accumulate 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.
Based on ingredients, the fish meal is projected to be the fastest-growing segment in the market.
The use of fish meal in the diet of aquatic animals improves the overall efficiency of the feed and improves their growth, palatability, nutrition uptake, digestion, and absorption. According to the University of Florida, in 2021, on average, high-quality fish meal will have a crude protein content of between 60% and 72%. The preferred animal protein supplement for farm animals' diets is fish meal, which is also frequently the main source of protein in diets for fish and prawns. Fish meal is typically included in the diets of terrestrial animals at a rate of 5% or less on a dry matter basis. Thus, the addition of fish meal helps provide proteins to fish and prawns.
The fish segment in the North American aquafeed market is projected to have a dominant share.
The North American aquafeed market, particularly for fish, is anticipated to experience significant growth driven by increasing global demand for seafood, advancements in feed technology, and a shift towards more sustainable practices. According to the Food and Agriculture Organization (FAO) of the United Nations, global aquaculture production is projected to reach 114 million tons by 2030, with fish species continuing to dominate production volumes. This growth is largely driven by the rising consumption of fish due to its nutritional benefits and the expansion of aquaculture operations to meet seafood demand.
The US is the dominant region in the North American aquafeed market.
The US aquafeed market is positioned for growth, driven by a stable increase in aquaculture production. From 2000 to 2022, US production of aquatic animals showed consistent figures, rising from 457,000 tons in 2000 to 478,000 tons in 2022, capturing 9.6% of global regional production. This steady increase highlights the growing demand for aquafeed. Federal support through programs by NOAA and USDA, aimed at enhancing sustainable practices and technological innovation, further stimulates market growth. The continued rise in aquaculture production underscores the increasing need for advanced aquafeed solutions, propelling market expansion.
Key Market Players
ADM (US), Cargill, Incorporated (US), Alltech (US), Purina Animal Nutrition (US), Kemin Industries (US), Novus International, Inc. (US), Wilbur-Ellis Company LLC (US) are the key players.
Recent Developments
In October 2023, BioMar Group (Denmark) has partnered with Yield10 Bioscience (US) to commercialize Omega-3 Camelina crops, which are engineered to produce omega-3 oils (EPA and DHA) for aquafeed. This collaboration aims to provide a sustainable and scalable alternative to marine-derived omega-3s, enhancing the aquaculture industry's nutritional solutions. The move reflects BioMar's commitment to innovation and sustainability by integrating land-based omega-3 sources into their feed solutions, supporting both growth and environmental goals in aquaculture.
In June 2022, Innovafeed and Cargill extended their partnership to bring healthy novel ingredients to aquafarmers. The agreement combines Innovafeed’s expertise in formulating precision insect ingredients and Cargill’s global animal nutrition capabilities to scale up the use of insect ingredients in multiple types of animal feed. Under this new contract, Cargill will benefit sustainable ingredients for salmonids.
In July 2020, Charoen Pokphand Foods PCL (CPF) embarked on an innovative project by developing an “Aquaculture 5.0” shrimp farm in the US. This cutting-edge facility is designed to enable shrimp farming anywhere, year-round, regardless of external conditions. A key feature of this development is the use of sustainable feed ingredients, avoiding marine meals and soybeans sourced from ecologically sensitive areas. This initiative underscores CPF's commitment to environmental sustainability and technological advancement in aquaculture.
