The aquafeed market was estimated at USD 69 billion in 2018. This market is expected to register an estimated CAGR of 7.5%. Owing to the limited availability of marine feed resources and the growing demand for fish, the fish farming trend is expected to increase, thus opening up an opportunity for the compound feed market to grow. By 2024, more than 50% of the global fish supply is expected to be sourced from fish farms. Seafood is the preferred meat-type, especially in countries of Asia-Pacific, such as India, China, Indonesia, and the Philippines. A variety of fishes, prawns, lobsters, and crabs are abundantly available in these countries, and form an integral part of the local diet. The growth in Aqua farming is expected to be prominent in these countries.

Key Market Trends

Increase in the Global Fish Consumption

There has been an increasing pressure on the livestock industry to meet the growing demand for high-value animal protein, and fish is easily accepted as the best source of omega 3 fatty acids, EPA, and DHA. Population growth, rising incomes in developing nations, and urbanization have led to a surge in fish production globally. The level of income and consumption of animal protein are positively interrelated, with the increasing consumption of fish and other seafoods happening at the expense of staple foods. Due to the decline in prices of fish products, developing countries are embarking on higher fish consumption at much lower levels of GDP than the industrialized countries did a couple of decades ago. Urbanization has led to an increased demand for fish and cities now have a varied diet that is rich in animal proteins and fats, as compared to the less diversified diet of the rural communities. In addition, fish production is the livelihood of many rural farmers across several developing countries.

Asia-Pacific Dominates the Global Market

Asia-Pacific is the largest aquafeed market in 2018, accounting for over 53% of the global market’s revenue, and constituting more than 58% of the overall aquafeed consumption. The highest growth for fish consumption is expected from the Asia-Pacific and Latin American regions because of changing diet patterns, urbanization, population, and economic growth.

For example, the Chinese demand for fish continues to surpass the domestic supply, as stated by Agriculture and Agri-food Canada. North America and Europe, which have relatively small aquaculture industries, have a high demand for fish and other seafood products and depend on Asian producers to meet their demands.

Competitive Landscape

The aquafeed industry is a fragmented market, with the top 5-6 companies accounting for almost 40% of the market share. These companies are targeting countries in most parts of the world for business expansion, either by investing in new production units or acquiring established small players in specific regions. The investment in R&D activities to introduce new and efficient products is another strategy adopted by manufacturers to stay ahead of their competition in the matured markets of North America and Europe.

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