Aquafeed Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

Aquafeed Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

The aquafeed market is projected to register a CAGR of 5.1% during the forecast period (2022-2027).

The COVID-19 pandemic slowed down the operations, with staff shortages and new sanitary guidelines for the operation of fisheries and processing. The marine ingredients industry has been considered a part of the essential food supply chain in many countries, due to which fishing and reduction operations have continued to be carried out almost everywhere.

Feed companies have ensured necessary supplies to farmers to safeguard the health and welfare of their animals and to maintain the production level on farms. The growing demand for fish has increased export-oriented aquaculture and increased the adoption of 'Scientific Aquaculture Management Practices' (SAMP). As a result, fish farming is anticipated to grow, presenting an opportunity for the aquafeed market to grow. Due to the limited availability of marine feed resources and the growing demand for fish, the fish farming trend is expected to increase, thus opening up an opportunity for the compound feed market to grow.

Asia-Pacific is anticipated to dominate the aquafeed industry in the next few years due to significant growth in the aquaculture industry. This is due to the ease of availability of natural resources, induced conditions for aquaculture, and cheap labor. In other regions such as Europe and North America, growing inclination toward salmon farming, rising demand for seafood, the hardiness of the species, and governmental interest have led to a higher demand for aquafeed from aquaculture species. Cargill Inc., Biomar, Aller Aqua AS, Charoen Pokphand Group, Nutreco NV, and Alltech Inc. are the key players dominating the market. Key players compete to gain market shares through new product launches, mergers, and acquisitions, among other strategies.

Aquafeed Market TrendsIncrease in Global Seafood Consumption

Population growth, rising incomes in developing nations, and urbanization have led to a surge in global fish and aquaculture production. The level of income and consumption of animal protein is positively related to the increasing consumption of fish and other seafood at the expense of staple foods. Driven by higher incomes and urbanization, the global consumption of fish is growing faster than the global population. Fisheries and aquaculture are increasingly becoming a primary source of protein, foreign exchange, livelihoods, and well-being of the population globally.

The highest growth in fish consumption is expected from the Asia-Pacific and Latin American regions because of changing diet patterns, urbanization, population, and economic growth. Chinese demand for fish continues to surpass the domestic supply, as stated by Agriculture and Agri-food Canada. North America and Europe, which have relatively small aquaculture industries, have a high demand for fish and other seafood products and depend on Asian producers to meet their demands. The per capita consumption of seafood in United States was 19.2 pounds in 2019. Also, the growing consumption of fish and aqua products in Europe and other parts of the world is raising aquaculture production, which drives the sales of aquafeed globally.

Asia-Pacific is Anticipated to Register Faster Growth

Asia-Pacific is anticipated to grow rapidly in the next few years due to significant growth in the aquaculture industry. Essentially, the rise in fish consumption in Asian countries has been driven by a combination of a large, growing, and increasingly urban population.

According to a new forecast by the World Bank, by 2030, Asian countries are likely to account for 70% of the global fish consumption. China is one of the rapidly developing economies, which is anticipated to provide 38% of the global seafood. China and other Asian countries are investing in developing the aquaculture industry. This may create demand for aquafeed.

More than half of the domestic production in countries like Vietnam, Thailand, the Philippines, India, and Indonesia are destined only for the European and North American markets. The aquafeed industry in the region is driven by expanding aquaculture and increased demand for seafood. China is one of the largest producers of compound feed globally, with the production valued at around 240 million metric ton in 2020, of which aquaculture accounted for 22.2 million metric ton.

Aquafeed Market Competitive Analysis

The aquafeed market is a fairly consolidated market, with major players holding 62.0% of the market share and the others holding 38.0%. Cargill Incorporated, Charoen Pokphand Group, and Nutreco NV are the major players in the market. Ridley Corporation, Biomin, Aller Aqua, and Inve Aquaculture Inc. are some other small players in the market. The players are investing in new products and improvisation of products, partnerships, expansions, and acquisitions for business expansions.

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