Today, modern aqua feeds are aimed to provide balanced nutrition for specific species of fish, promoting healthy growth and efficient feed conversion. The global aqua feed market, which has a significant growth potential in terms of both volume and value, has a size of approximately US$ 60-70 billion according to some sources. In terms of production amount, according to the Alltech Agri-Food Outlook 2023 report, aqua feeds constitute approximately 4.2% of the global compound feed tonnage, which reached 1.266 billion metric tons in 2022.
By Derya Yildiz
Aqua feed is defined as a commercially manufactured food for aquatic animals to fulfil their nutritional requirements. It is made up of various raw materials and additives, including plants, marine animals, grain products, terrestrial-based live feeds, vegetable protein, and fish oil. Today, modern aqua feed formulations are aimed 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, thus help in promoting effective growth and reproduction of aquatic animals.
According to a report by Markets And Markets, several important factors are driving up demand for aquafeed products on a global scale today. First, a growing worldwide population has an increased need for seafood, and aquaculture offers a sustainable way to meet this demand. Fish and shrimp farming has become more popular because of the depletion of wild fish stocks. Aqua feed is crucial for the healthy growth and development of aquaculture aquatic species, increasing their output and decreasing their reliance on foraging wild fish. Aqua feed 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.
GLOBAL AQUA FEED PRODUCTION
According to the Agri-Food Outlook 2023 report prepared by Alltech, aqua feed constitutes approximately 4.2% (52.9 million tons) of the global compound feed tonnage, which reached 1.266 billion metric tons in 2022. According to the report, the aquaculture sector experienced a total global aqua feed production growth of 2.7%. The top 5 aquaculture feed countries are China, Vietnam, India, Norway and Indonesia. Significant increases were reported in China, Brazil, Ecuador, the Philippines and the U.S. The aquaculture sector was one of a few sectors up in Europe, where large decreases in feed production were reported.
Aqua Feed Production on Regional Basis
In the global aqua feed market in 2022, while the overall tonnage increased by about 2.7%, there were significant differences from country to country. For example, while aqua feed production decreased by more than 2.3% in Africa countries, there was an increase of around 4.7% in Latin American countries.
Asia-Pacific is the world’s largest producer of aqua feed, and experienced more than 2.6% increase in production in 2022. Based on data compiled by Alltech, the aqua feed production of the region, which was 37.3 million tons in 2021, increased to 38.3 million tons in 2022. In the region, with the recovery of China’s economy and improvements in living standards in recent years, the demand for aquatic products has been increasing. The scale of the region’s aquaculture industry expanded in 2022. There was also feed production growth in the Philippines, Bangladesh, South Korea, Malaysia and others.
Latin America is the second largest producer of aqua feed in the world. The countries in the region produced around 5.6 million tons of aqua feed in 2021. This production amount increased by 4.8% to 5.9 million tons in 2022. According to the Alltech report, Ecuador, one of the countries in the region, has become the number 1 shrimp producer in the world, and 2022 was a record year for feed production. It had a 17% increase in feed tonnage.
Europe ranks third in world aqua feed production with 4.6 million tons. The production in the region increased by 1.7% compared to the previous year.
North America follows Europe with 1.7 million tons in world aqua feed production. According to Alltech’s report, in 2022, aquaculture feed tonnage in the region increased by 1.1% compared to the previous year due to increases in fish prices, favorable weather conditions and the lifting of size restrictions.
In Africa, 1.4 million tons of aqua feed was produced in 2022. According to the report, aquaculture feed production in the region was down 2.38% in 2022, though increases were reported in South Africa, Zimbabwe, Zambia, Ghana and Seychelles.
In the Middle East, where the total aqua feed production is around 500 thousand tons, all countries had feed tonnage increases or stayed at the same level as 2021.
Finally, in Oceania, which produces around 200 thousand tons of aqua feed, total production has also increased due to the increase in Australian feed tonnage by over 5% in 2022.
MARKET GROWTH EXPECTATIONS
There are different forecasts of the global commercial scale of the aqua feed market. For example, in a report prepared by Fortune Business Insights, the size of the market is estimated at around US$ 60 billion. According to the report, the global aqua feed market size was US$ 55.71 billion in 2020 and is projected to grow from US$ 58.19 billion in 2021 to US$ 85.17 billion in 2028 at a CAGR of 5.59% during the 2021-2028 period.
Markets And Markets also makes close predictions. According to the company’s report, the global aqua feed market size is expected to grow from US$ 61.8 billion in 2023 to US$ 88.0 billion by 2028, with a CAGR of 7.3% during the forecast period (2023-2028).
According to Future Market Insights, which made a lower estimate in its report than the other two research companies, the global aqua feed market value is projected to expand from US$ 46.8 billion in 2023 to US$ 90.9 billion in 2033, with a CAGR of 6.8% during the forecast period (2023-2033).
Making an estimate similar to the report by Future Market Insights, Mordor Intelligence estimates the market value to be US$ 50 billion. According to the company’s report, the aqua feed market size is expected to grow from US$ 50.05 billion in 2023 to US$ 60.90 billion by 2028, at a CAGR of 4% during the 2023-2028 forecast period.
Among the research companies, the highest estimate of the current size of the market is in the report of Grand View Research. According to the company’s report, the global aquafeed market size was valued at US$ 72.5 billion in 2022 and is anticipated to grow at a compound annual growth rate (CAGR) of 4.4% from 2023 to 2030.
On the other hand, Expert Market Research draws attention to the size and growth potential of the market in terms of volume in its report. According to the report, the global aquaculture feed market attained a volume of 47.2 million tons in 2022 driven by the rising mass production of fish and growing consumption of seafood. Aided by the growing adoption of sustainable farming practices, the market is expected to witness a further growth in the forecast period of 2023-2028, growing at a CAGR of 5.3%. The aquaculture feed market is projected to reach 64.2 million tons by 2028.
MARKET DRIVERS & RESTRICTIONS
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.
According to the report of Markets And Markets, 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.
In its report, the company also makes estimates for the use of fishmeal and fish oil, which are seen as an important problem in terms of sustainability. According to the company, 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.
Some of the major players:
AB Agri
Abalıoğlu Group
ADM Animal Nutrition
AGRAVIS Raiffeisen
Agrosuper Group
Aller Aqua
Alltech
Ambar
Anyou Biotechnology
Arasco Feed
Asia Pacific Zhonghui
Astral Foods
Avanti Feeds
Avril Group
Betagro Group
Biomar Group
Cargill
Charoen Pokphand Foods
Chubu Shiryo
Coppens International
Dabeinong Group
De Heus Animal Nutrition
Dibaq Aquaculture
East Hope Group
Eureden
Feed One
ForFarmers
Fujian Aonong Group
Godrej Agrovet
Gold Coin
GreenFeed
Growel Feeds
Guangdong Haid Group
Guangdong Yuehai Feeds
Harim Group
Huaxi Hope Group
Industrias Bachoco
INVE Aquaculture
Italcol
Japfa Comfeed
Kent Feeds
Land O’ Lakes
Leong Hup International
LifeCircle Nutrition
Malindo Feedmill
Marfrig Global Foods
Marubeni Nisshin Feed
Masan MEATLife
Nichiwa Sangyo
Nosan Corp
Nutreco (Skretting)
Purina Animal Nutrition
Ridley Corp.
San Miguel Foods
Shenzhen Alpha Feed
Sichuan Tequ Group
The Waterbase
Tieqilisi Group
Tongwei Group
TRS Group
Veronesi
Xinjiang Tiankang
Zeigler Bros.
Considering the lack of awareness about modern feeding methods in developing countries as a restraint, Markets And Markets emphasizes the following in its report: 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.
Considering the growth in government support for the aquaculture industry as an opportunity, research companies agree that the most important challenges are concerns about the environment and human health.
MARKET STATUS BASED BY REGION
On a regional basis, Asia-Pacific countries lead the global aqua feed market in terms of both production and consumption. For example, according to the report by Grand View Research, The Asia Pacific region dominated the global industry in 2022 and accounted for the largest share of more than 44.10% of the overall revenue. The regional market is estimated to expand further at the fastest growth rate maintaining its dominant position throughout the 2023 – 2030 forecast period. This is attributed to the substantial growth of the regional aquaculture sector. In addition, the availability of low-cost labor, inducing conditions to promote the growth of aquaculture, and the presence of natural resources in the region will boost the growth.
According to the company’s report, the aquaculture sector is also growing significantly across European countries, especially in the U.K., France, Italy, and Spain. Improvements in environment management, along with a significant increase in feed efficiency and nutrient consumption by aquatic species, have further fuelled the growth of the market in Europe. The North America regional market is also projected to have significant growth over the 2023 – 2030 forecast years. The aquaculture sector in North America is estimated to witness rapid growth over the 2023 – 2030 forecast period owing to the rising consumption of seafood, such as salmonids, mollusks, hard clams, oysters, and mussels.
AQUA FEED INDUSTRY OVERVIEW
Prominent companies in the aqua feed market include well-established, financially stable manufacturers of aquafeed. These companies have been operating in the market for years and possess a diversified product portfolio, state-of-the-art, and strong global sales and marketing networks. According to the report of Markets And Markets, 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 to achieve major sales and revenues in the global aquafeed market.
According to the report by Grand View Research, the global industry is highly fragmented owing to the presence of many players, such as BioMar, Cargill, Nutreco and Charoen Pokphand Foods. These market players are focused on mergers & acquisitions, partnerships, portfolio expansions, and collaborations to strengthen their presence in the value chain.
Resources:
1. Alltech, Agri-Food Outlook 2022 & 2023, https://www.alltech.com/agri-food-outlook/
2. Grand View Research, Inc.; Aquafeed Market, 2023 – 2030; https://www.grandviewresearch.com/industry-analysis/aquafeed-and-aquaculture-additive-market
3. Expert Market Research; Global Aquaculture Feed Market Outlook; https://www.expertmarketresearch.com/reports/aquaculture-feed-market
4. Markets And Markets; Aquafeed Market Size, Industry Analysis, and Forecast; https://www.marketsandmarkets.com/Market-Reports/aquafeeds-market-1151.html
5. Fortune Business Insights, Aquafeed Market, 2021-2028; https://www.fortunebusinessinsights.com/industry-reports/aquafeed-market-100698
