Aquafeed Market

Aquafeed Market Overview (2024-2029)

The global aquafeed market is on a trajectory of significant expansion, with an estimated value projected to reach USD 84.2 billion by 2029 from the 2024 valuation of USD 59.0 billion, displaying a promising Compound Annual Growth Rate (CAGR) of 7.4%. Demand for seafood and innovation in aquaculture technologies are driving the growth of the aquafeed market. According to FAO, global aquaculture production in 2022 reached a record level of 130.9 million tonnes, which represents 51% of global fish production. This surge in aquaculture has resulted in demand for high-quality aquafeed to ensure optimum growth and health in farmed species of aquatic origin.

According to NMFS, US aquaculture production reached more than 660 million pounds of seafood in 2022 alone; this level of production was backed by the aquafeed market. According to the USDA, there has been a steady increase in aquafeed production, driven by rising domestic aquaculture practices and specialized feed formulations.

Sustainability concerns are becoming alarming regulators, and most governments have initiated the promotion of the use of alternative ingredients in aquafeed in an attempt to reduce their dependence on fishmeal and fish oil. The European Union, through the Common Fisheries Policy, has adopted strict requirements for sustainable aquaculture practices, as well as the use and sourcing of fishmeal and fish oil in the production of aquafeed ingredients. This includes sourcing raw materials for the manufacture of aquafeed ingredients.

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Aquafeed Market Dynamics

Drivers: Rise in Seafood Trade Propelling Demand

According to the Food and Agriculture Organization, global fish production reached 179 million tonnes in 2022, out of which 89% was for human consumption. An increase in the consumption of fish has raised the demand for quality feed. This trend is benefiting the specialized aquafeed market by improving fish yields and quality. As more fish are farmed and consumed, the demand for effective and nutritious feed rises, helping ensure better fish production outcomes. Another important indicator is the increased share of farmed fish in global fish production, from 25.7% in the year 2000 to more than 46% in 2022, boosting the growth of the industry and the important place that aquafeed occupies in it. The trend is being supported by governments as well; for instance, China, the producer of the world's largest aquaculture products, has policies that would encourage aquafeed innovation and sustainability. Increased seafood trade not only drives the demand for aquafeed but also fuels feed formulation innovation toward compliance with tight export standards and consumer preferences. The aquafeed market is expected to grow alongside the seafood market, focusing on the specific nutrient needs of different fish species. This will help offer high-quality and sustainable seafood products to the global market.

Restraints: Lack of Awareness About Modern Feeding Methods in Developing Countries

In many parts of the world, traditional practice still characterizes aquaculture, resulting in suboptimal growth and feed efficiency. According to FAO, about 60% of small-scale aquaculture operations in Africa and parts of South Asia remain dependent on outdated, low-nutrient feeds that lower productivity and profitability. This lack of knowledge and space for the adoption of technology substantially constrains the potential for improvement of fish yield and quality—two critical elements of market growth. Moreover, access to resources, such as high-quality feed ingredients and training programs, is low in these countries, exacerbating the situation, which cannot fully exploit the benefits accruable from contemporary aquaculture practices. 

Most governments in developing nations lack the proper infrastructure or the finances to adopt extensive education techniques and large-scale adoption of advanced aquafeed methods, thus impeding further market development. This trend makes the growth of the global aquafeed market quite uneven, with slower progress in regions where modern feeding practices have not been widely adopted. This constraint can only be overcome through direct efforts by governments and international organizations to raise awareness, offer training, and increase access to modern technologies for aquaculture.

Opportunities: Development of Innovative Products as Source of Protein

Innovative aquafeed products offer a great opportunity for market growth, particularly as a source of protein. With an increase in demand for sustainable aquaculture, the need for alternative protein sources to replace traditional fishmeal is also increasing. According to the FAO, global fishmeal production is already reaching its maximum capacity with the constrained wild fish stocks; hence, new protein-rich feed ingredients have been studied and are being developed. The FAO has projected that insect proteins, algae, and plant-based alternatives will constitute about 30% of the ingredients in aquafeeds by 2030. This is expected to significantly reduce the reliance of aquafeeds on fishmeal and fish oil. Modern alternatives provide the necessary nutrients and support the trend of meeting consumer demands concerning sustainably sourced seafood. Governments are encouraging development through research grants and policy initiatives to promote sustainable aquaculture practices. For example, under the Horizon 2020 program, the European Union has funded projects on the use of insect protein for aquafeed. With the development of these innovative products, improved feed efficiency, reduced costs, and a huge contribution to the sustainable growth of the aquafeed market can be observed.

Challenges: Growth in Environmental and Human Health Concerns

Intensification of aquaculture has increased the analysis of the potential environmental impact of feed raw materials and health risks from farmed fish. Water pollution, habitat loss, and excessive use of antibiotics in feed will become the key issues affecting regulatory frameworks worldwide. For example, the European Union has applied stiffer controls over feed additives and the use of antibiotics in aquaculture to protect the environment and public health. Additionally, consumers are now pressurizing feed manufacturers to be eco-friendly and health-conscious. This requires huge investments in research and development to formulate feeds that are environmentally friendly and, at the same time, of nutritive quality and bio-safe for the aquaculture species. The issue is how to reconcile these problems with the continued production of cost-effective, efficient feeds since tighter legislation and evolving consumer attitudes are likely to raise some operating costs and add to the restraints on market growth. If not mitigated, this challenge could be the single most critical issue facing the long-term sustainability of the aquafeed industry.

Market Ecosystem

Dry Form Accounted for Higher Market Share Among Form Segments In 2023.

In the aquafeed market, the dry form includes pellets, crumbles, and powders. Dry feeds are mainly predominant due to the facility and convenience they provide over the other forms. Dry aquafeeds are easier to store, handle, and move compared to wet and liquid feeds that need more delicate management to avoid spoilage or contamination. This particularly fits large-scale aquaculture operations where logistic efficiency is very important.

Dry feeds in pellet form are favored by many aqua culturists as they offer a stable and precisely formulated nutritional profile. These feeds are designed to meet the specific dietary needs of various aquatic species, ensuring they receive balanced nutrition for optimal growth. Companies like ADM(US) and Cargill Incorporated (US) produce pelletized feeds for species such as salmon and shrimp, carefully blending proteins, fats, vitamins, and minerals in exact proportions.

Grower Feed in Lifecycle Segment To Be Dominant Market During Forecast Period.

Grower aquafeed meets the demand of aquatic species, switching to a more developed growth stage, normally containing 30–40% protein, which supports the continuity of development but synchronizes growth at reduced rates. It is cost-effective as it provides a balanced nutritional formulation tailored for optimal fish growth. Its pelletized form improves feed efficiency, reducing waste and enhancing nutrient absorption. This results in better growth and lower feed costs, making it economical for large-scale aquaculture operations. Grower feed, mostly in pelletized form, improves feed utilization and reduces waste due to the advanced feeding skills of the fish. Better feed conversion and lower waste combine with increased efficiency to help trigger growth. Technological advancements have led to grower feeds being refined with additives such as probiotics and prebiotics, enhancing performance and ensuring animal health. This has further cemented the importance of this stage in the industry. The dominance of grower feeds in the aquafeed lifecycle stage stems from their increasing ability to meet the nutritional requirements of fish, thus contributing to the sustainability and efficiency of the aquaculture industry.

Asia Pacific: Fastest-Growing Region for Aquafeed.

According to the FAO, in 2022, Asia produced 119.7 million tons of aquaculture, representing 91.4% of the global production. China led with 40%, followed by Indonesia with 10% and India with 7%. This significant output underscores Asia's dominance in global aquaculture. This intensive production is directly related to the high demand for seafood, which has resulted from a large, growing population and rising per-capita incomes. According to the National Bureau of Statistics of China in 2023, the country is the largest producer and consumer of seafood globally; it consumes approximately 63.4 million metric tons annually. Producers are compelled to expand and enhance their offerings to meet the nutritional needs of aquaculture farms. Government policies in the region further back this growth. The 14th Five-Year Plan of China focuses on both sustainable aquaculture and technological innovation, thereby improving production efficiency. Similarly, the Indian National Fisheries Policy is targeted at expansion in aquaculture and infrastructure investments, thus stimulating growth in the market.

Key Market Players 

The key players in this market include ADM (US), Cargill, Incorporated (US), dsm-firmenich (Switzerland), Nutreco (Netherlands), Alltech (US), Ridley Corporation Limited (Australia), Purina Animal Nutrition LLC (US), Adisseo (France), Aller Aqua Group (Denmark), Avanti feeds Limited (India), The Waterbase Limited (India), JAPFA LTD (Singapore), Charoen Pokphand Foods PCL (Thailand), BioMar Group (Denmark), and Norel Animal Nutrition (Spain).

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Scope of the Report

Aquafeed Market Segmentation

This research report categorizes the Aquafeed market based on ingredient, form, lifecycle, species, and region.

By Ingredients

• Soybean
• Fish Meal
• Corn
• Fish Oil
• Additives
  • Amino Acids
  • Vitamins & Minerals
  • Prebiotics & Probiotics
  • Enzymes
  • Antibiotics
  • Antioxidants
  • Other Additives
• Other Ingredients

By Form

• Dry
• Wet
• Moist

By Lifecycle

• Grower Feed
• Finisher Feed
• Starter Feed
• Brooder Feed
• Solid

By Species

• Fish
• Crustaceans
• Mollusks
• Other Species

By Function (Qualitative)

• Nutritional Support
• Growth Promoters
• Immunity Support
• Texture & Palatability
• Other Functionalities

By Region

• North America
• Europe
• Asia Pacific
• South America
• Rest of the World (RoW)

Recent Developments

• In June 2024, Nutreco launched its innovative "Garden of the Future," marking a significant advancement in phytotechnology. This groundbreaking initiative focuses on developing cutting-edge phytotechnology solutions designed to enhance the performance, health, and welfare of aquatic species, as well as farm and companion animals. The "Garden of the Future" represents a forward-thinking approach, leveraging advanced plant-based technologies to improve animal nutrition and overall well-being.
• In January 2024, the joint venture between ADM and Vitafort opened a new state-of-the-art feed mill in Hungary that is poised to achieve full production capacity. This reflects ADM's steadfast commitment to ushering in a new era of modernization in the region's production infrastructure.
• In July 2023, Charoen Pokphand Foods PCL partnered with the Thai Sustainable Fisheries Roundtable (TSFR) to promote the conservation and protection of the ecosystem and resources in the Gulf of Thailand through the Fishery Action Plan (FAP), a crucial component of the Fishery Improvement Project (FIP). This determination is strengthening the company’s commitment to a responsible aquafeed raw material supply chain. 

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