MARKET REPORT 106 FEED & ADDITIVE MAGAZINE February 2026 1. Limited Ingredient Supply and Natural Resource Dependency Fishmeal and fish oil production relies heavily on marine fisheries and specific species (especially anchovy, sardine, and herring). The biological capacity of these resources is limited, and the risk of overfishing prevents expansion in production volumes. In many regions, the implementation of fishing quotas and stock conservation policies stand out as fundamental structural factors restricting supply growth. 2. Climate Change and Fluctuations in Ocean Conditions Although they have global impacts, climate events such as El Niño and La Niña significantly affect fish stocks, particularly along the South American coast (specifically the Peru-Chile line). These climate events, defined by abnormal changes in surface temperatures in the Equatorial Pacific Ocean and accompanying atmospheric circulation differences, can lead to severe year-on-year fluctuations in fishmeal and fish oil production by limiting the distribution and catchability of fish populations. This creates uncertainty in the supply chain and negatively impacts market stability. 3. Environmental Regulations and Fisheries Policies Strict regulations implemented in many countries in line with sustainable fishing goals indirectly limit fishmeal and fish oil production. Fishing bans, seasonal restrictions, quota systems, and certification requirements can increase costs while keeping production volumes under control. Environmental policies, particularly in the European Union and Latin America, cause structural pressures on the supply side. 4. High Volatility in Ingredients and Finished Product Prices Fishmeal and fish oil prices are extremely sensitive to the supply-demand balance. Depending on fishing seasons, climate conditions, and regulations, serious price fluctuations can occur in short periods. This volatility reduces cost predictability for feed manufacturers and farmers, limiting demand—especially in price-sensitive markets. 5. Increasing Competition from Alternative Protein and Oil Sources Demand for alternative ingredients such as plant proteins, insect meal, single-cell proteins, and algae-based Omega-3 sources is rising rapidly for both cost and sustainability reasons. As these alternatives become more accessible through technological progress, they may limit the share of fishmeal and fish oil in certain feed formulations. Increasing inclusion rates of fishmeal substitutes, particularly in aquafeeds, puts pressure on market growth. 6. Ingredient Competition Between Human Consumption and the Feed Industry Fish oil is considered a high-value-added ingredient for Omega-3 and nutraceutical (dietary supplement) products for human nutrition. This leads to a competition for limited fish oil supply between the feed industry and human nutrition. Supply shifting toward high-value-added segments can negatively affect accessibility and price stability in the animal nutrition sector. 7. Social and Environmental Sustainability Pressures Fishmeal and fish oil production is closely monitored by NGOs and the public due to environmental impacts and pressures on marine ecosystems. Potential negative perceptions regarding sustainability are influencing the procurement policies of large food and feed companies, increasing requirements for certification, traceability, and reporting. This represents an additional cost and operational burden for producers. Despite strong demand, the global fish meal and fish oil market faces structural constraints due to natural limitations on the supply side, environmental pressures, and the rise of alternative solutions. These factors are emerging as elements that limit the growth rate and cause fluctuations rather than completely halting the market's growth. The market's development in the coming period will depend on sustainable production models, more effective use of by-products, and how competition with alternative sources will be managed.
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