Where did I learn to Start with Aquafeed Market?

The global aquafeed market size is projected to reach USD 89.5 billion by 2027, according to a new report by Grand View Research, Inc., expanding at a CAGR of 4.3% from 2020 to 2027. The rapidly flourishing aquaculture industry, along with increasing fish and fish product consumption across the globe, is one of the major factors driving the market growth over the forecast period.

Primarily, fish oil and meal were used as prominent raw materials in aquafeed manufacturing. However, surging prices of these ingredients due to the scarcity of captured fish have resulted in the inclusion of other crops and grains containing equivalent nutrition levels. Rising awareness among breeders regarding the benefits of providing sufficient nutrition to fish has been one of the primary factors driving the market over the forecast period.

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Other ingredients such as wheat, corn, and soybean are used in the manufacturing of aquafeed. Increasing demand for these raw materials from other applications, including direct human consumption, pharmaceuticals, and industrial processes, is anticipated to result in tight raw material supply over the forecast period.

Furthermore, several feed additives such as amino acids, vitamins, and antibiotics are incorporated in the feed. These additives help enhance the overall nutritive value of the product, thereby improving the overall health. The contents of these additives in the feed can be altered based on various factors, including age, species, climatic conditions, and environment. Rising demand for high-quality fish products is driving the consumption of feed additives in feed products.

Further key findings from the report suggest:

• Asia Pacific led the market with a share of over 40.0% based on revenue in 2019

• Volatile raw material prices are anticipated to hamper aqua feed production, thereby adversely impacting market growth over the forecast period

• Product innovation for raw materials of aquafeed to reduce dependency on declining fish meal and oil volumes is likely to provide new avenues for the market over the forecast period.

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Alltech, DSM, BASF SE, ADM, and Cargill Incorporated are some of the key players involved in the aquafeed production. These players are integrated across the value chain and they procure these raw materials for manufacturing various grades specific to species. The ready products are then supplied to various companies engaged in aquaculture through numerous distribution and supply channels. Direct supply agreements and third-party agreements are the most commonly used distribution channels. Moreover, companies market their products through online portals and retail outlets.

Fish has low-fat content as compared to other forms of meat, such as cattle and poultry. Moreover, fish is a rich source of proteins and vitamins, therefore it is primarily used for direct human consumption. Fish consumption has observed an increase on account of several factors, such as increasing availability of a variety of fishes in the retail market and consumers’ preference for a variety of flavors. The aforementioned factors have resulted in a boost in the demand for fish and fish products, which, in turn, is projected to drive the industry.

Challenges faced by the industry include fluctuations in the prices of ingredients, such as corn and soybean, owing to several factors such as fluctuating oil prices, adverse weather conditions, and global currency fluctuations. These factors are anticipated to influence market growth in the near future. However, key players are likely to benefit from the supplemental additives to enhance the nutritional value of feed.

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Catfish led the market and held more than 25.0% share of the overall revenue in the U.S. Increasing demand for fish products, along with growing direct human consumption of farm-raised catfish in the U.S., has fostered the segment growth. Carp is one of the prominent aquaculture species in the Asian and European countries. Carps are extensively farmed in China and Indonesia owing to the high profitability associated with their cultivation. Moreover, better management practices for carp production in Central and Eastern Europe are expected to positively impact segment growth.

Atlantic salmon is one of the most farmed species, contributing to over 90% of the overall farmed salmon, on account of its robustness and ease of farming. Some varieties of Pacific salmon include Coho and Chinook. Its primary feed includes fish oil and fish meat. However, only a few manufacturers produce these feeds due to the presence of contaminants and heavy metals. This has initiated extensive research to find substitutes for fish products and replace them with vegetable oil sources and protein.

Other applications include species, such as flatfish, tuna, and cod. The growth of this segment can be attributed to increasing fish farming activities in countries such as China, Taiwan, and Vietnam. Growing consumption of aquafeed from such species, along with growing aquaculture production of these species, is projected to drive the demand for aquafeed additives over the forecast period.