The aquafeed market is a critical component of the aquaculture industry, supporting the growth and health of farmed aquatic species. As global demand for seafood rises, the aquafeed sector has experienced rapid expansion, innovation, and transformation. In this blog, we’ll explore the current trends, challenges, and opportunities shaping the aquafeed market.
Aquafeed refers to specially formulated feed used in aquaculture to meet the nutritional requirements of fish, crustaceans, mollusks, and other aquatic organisms. The market has witnessed significant growth due to the increasing consumption of seafood, driven by population growth, rising incomes, and growing awareness of the health benefits of aquatic protein.
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%.
Shift Toward Sustainable Ingredients
- The industry is moving away from traditional fishmeal and fish oil-based feeds due to environmental concerns and limited natural resources.
- Alternatives such as plant-based proteins (soybean, peas), insect meal, and algae-based ingredients are gaining traction as sustainable options.
Focus on Functional Feeds
- Functional feeds that enhance immunity, improve growth rates, and reduce disease outbreaks are becoming popular.
- Additives like probiotics, prebiotics, and enzymes are increasingly incorporated into feed formulations.
Technological Advancements
- Precision nutrition and feed formulation technologies are helping optimize feed efficiency and reduce waste.
- Digital tools like IoT devices and data analytics are being used to monitor feeding behavior and water quality, improving feed management.
Rising Demand for Organic and Non-GMO Feeds
- Consumer preference for organic and sustainably farmed seafood has led to increased demand for organic and non-GMO aquafeed products.
Regional Market Growth
- Asia-Pacific dominates the aquafeed market, driven by large-scale aquaculture activities in countries like China, India, and Vietnam.
- Other regions, such as Europe and North America, are witnessing steady growth due to advancements in aquaculture technology and sustainable practices.
- Innovation in Ingredients: Developing cost-effective and sustainable feed ingredients, such as single-cell proteins and microalgae, presents significant growth opportunities.
- Expansion in Emerging Markets: Increasing aquaculture activities in emerging economies offer immense potential for market expansion.
- Collaboration and Partnerships: Collaborations between feed manufacturers, research institutions, and aquaculture farmers can drive innovation and address industry challenges.
- Emphasis on Circular Economy: Utilizing by-products and waste from other industries (e.g., agriculture, food processing) as feed ingredients aligns with circular economy principles and reduces environmental impact.
Top 10 Companies in the Aquafeed Market
- 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)
Recent Developments in the Aquafeed Industry
- 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.