Aquafeed Market Size, Share & Trends Analysis Report By Form (Dry, Wet, Moist), By Ingredient (Animal By-product, Grain By-product, Oils & Fats, Additives), By Application, By Feed Type, By Region, And Segment Forecasts, 2020 - 2027

Report Overview

The global aquafeed market size was valued at USD 63.8 billion in 2019 and is expected to expand at a compound annual growth rate (CAGR) of 4.3% from 2020 to 2027. Growing direct human consumption of seafood and increasing demand for aqua products are projected to fuel the industry growth over the forecast period. The market is anticipated to be driven by ascending demand for animal by-products, such as fish meals, shrimp meals, and squid meals, in feed applications, especially in the emerging economies of Asia Pacific, including India, China, and Vietnam. Moreover, growth in the developed economies can be attributed to gradual technological advancements in feed formulation. Such factors have bolstered the aquafeed demand on a large scale.

Fish has low-fat content as compared to other forms of meat, such as cattle and poultry. Moreover, fish is a rich source of proteins and vitamins, therefore it is primarily used for direct human consumption. Fish consumption has observed an increase on account of several factors, such as increasing availability of a variety of fishes in the retail market and consumers’ preference for a variety of flavors. The aforementioned factors have resulted in a boost in the demand for fish and fish products, which, in turn, is projected to drive the industry.

Challenges faced by the industry include fluctuations in the prices of ingredients, such as corn and soybean, owing to several factors such as fluctuating oil prices, adverse weather conditions, and global currency fluctuations. These factors are anticipated to influence market growth in the near future. However, key players are likely to benefit from the supplemental additives to enhance the nutritional value of feed.

Form Insights

Dry form led the market and accounted for more than 36.0% share of the global revenue in 2019. Dry form feed is relatively easy to manufacture, store, and transport. One of the advantages of such type of feed is that it can be produced in a variety of sizes to suit specific needs. A variety of feed sizes and the production of specialized feed with such form are projected to fuel the segment growth over the forecast period.

The wet form of feed is prepared with high moisture ingredients, such as fishery waste, trash feed, and slaughterhouse waste. Increased palatability and high utilization rate are the major factors that are expected to positively influence the growth of the wet feed segment. Such type of feed is typically fed to carnivorous species, such as sea breams, sea bass, and eels.

Moist form of feed is prepared using both wet as well as dry form of feed. Such a form is more palatable with a soft consistency and promotes feed efficiency. However, such form is limited by the parameters, such as transportation and storage, as it needs a favorable environment or refrigeration to prevent spoilage.

Application Insights

Catfish led the market and held more than 25.0% share of the overall revenue in the U.S. Increasing demand for fish products, along with growing direct human consumption of farm-raised catfish in the U.S., has fostered the segment growth. Carp is one of the prominent aquaculture species in the Asian and European countries. Carps are extensively farmed in China and Indonesia owing to the high profitability associated with their cultivation. Moreover, better management practices for carp production in Central and Eastern Europe are expected to positively impact segment growth.

Atlantic salmon is one of the most farmed species, contributing to over 90% of the overall farmed salmon, on account of its robustness and ease of farming. Some varieties of Pacific salmon include Coho and Chinook. Its primary feed includes fish oil and fish meat. However, only a few manufacturers produce these feeds due to the presence of contaminants and heavy metals. This has initiated extensive research to find substitutes for fish products and replace them with vegetable oil sources and protein.

Other applications include species, such as flatfish, tuna, and cod. The growth of this segment can be attributed to increasing fish farming activities in countries such as China, Taiwan, and Vietnam. Growing consumption of aquafeed from such species, along with growing aquaculture production of these species, is projected to drive the demand for aquafeed additives over the forecast period.

Ingredient Insights

The grain by-product segment led the market and accounted for more than 37.0% share of the global revenue in 2019. This segment includes grain by-products such as soybean meal, cottonseed meat protein, canola meal, and cornmeal. Cost-effectiveness in feed formulation compared to animal by-products is one of the major factors fueling the segment growth. In addition, advances in amino acid profiles for the above-mentioned grains are projected to foster the segment growth.

Animal by-products are one of the prominent ingredient categories. This segment includes animal by-products such as fish meal, fish meat protein, squid meal, and shrimp meal. High protein content, coupled with an excellent amino acid profile, is projected to foster the segment growth. However, the growing adoption of soy-based products as a replacement to the fish meal is expected to challenge the segment growth over the forecast period.

Other types of ingredients include oils and fats, additives, and grains. Increasing demand for fish oil owing to its high content of omega-3 fatty acids, along with additives such as feed acidifiers, vitamins, and anti-parasitic, is projected to drive the product demand. Moreover, incorporation of grains, such as rice, wheat, rapeseed, and corn, to strengthen the nutritional profile of formulation is expected to fuel the industry growth.

Feed Type Insights

The grower feed segment led the market and accounted for 34.17% share of the global revenue in 2019. Grower feed has a high capacity in terms of protein deposition and better feed conversion rates. Moreover, such feed type allows high flexibility in terms of formulations. Increasing demand for supplementary feeds with the growing standing stock of grower fish is projected to foster segment growth over the forecast period.

Finisher and brooder diets are expensive on account of increasing prices of ingredients. In the Asia Pacific region, Japan, Korea, and Vietnam, among other nations, have the most expensive finisher diets in the industry. In addition, large scale aquaculture production in China and India is further expected to propel such feed types in the extended run.

Brooder diets are formulated on the basis of essential nutrient requirements and respective reproductive biology of different fish species. Fish farmers have adopted such types of diets to improve the performance potential and health of fishes as the quality is highly dependent on the offspring. Such a factor is highly linked to accumulation and nutrient delivery from females.

Regional Insights

Asia Pacific led the market and accounted for over 40.0% share of the global revenue in 2019 and is expected to maintain its lead over the forecast period. Aquaculture production in the region, predominantly in China, as well as factors such as the ease of fish farming, durability of species, and better water quality within closed farm systems are projected to drive the product demand over the forecast period.

Europe emerged as the second-largest consumer as it is one of the major producers of salmon. Salmon is increasingly farmed in nearly all European countries, especially in coastal areas with a temperate climate, which is anticipated to have a positive impact on market growth over the forecast period. Growing demand for salmon in the interior regions has led to the growth in the demand for anesthetics and sedation materials during transportation, thereby driving the demand for additives.

The aquaculture industry in Central and South America is concentrated in Chile, Brazil, Mexico, and Ecuador. As of 2019, these countries contributed to over 80% of the regional aquaculture production. The aquaculture industry in the region contributes to employment, food security, and foreign currency generation. Key aquatic species produced in the region include salmonids, shrimps, tilapia, mollusks, carp, and seaweed.

Key Companies & Market Share Insights

Manufacturers operating in the market are focused on backward integration to broaden their product portfolio and improve and control the quality of the final product. Backward integration within the value chain may lead to improved profit margins for the manufacturers on account of their ability to produce high-grade aquafeed additives, reduced distribution costs, and better control over product price. Manufacturers are also able to handle the manufacturing, distribution, and marketing of the final products efficiently and cost-effectively. Some of the major companies operating in the global aquafeed market are:

• Alltech

• BioMar

• Cargill, Incorporated

• Ridley Corporation

• Aller Aqua A/S

• Beneo GmbH

• Cermaq

• Norel Animal Nutrition

• Biomin Holding GmbH

• Archer Daniels Midland (ADM)

• Avanti Feeds Ltd.

Aquafeed Market Report Scope

Segments Covered in the Report

This report forecasts volume and revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2016 to 2027. For the purpose of this report, Grand View Research has segmented the global aquafeed market report on the basis of form, ingredient, application, feed type, and region:

• Form Outlook (Volume, Kilotons; Revenue, USD Million, 2016 - 2027)

  • Dry

  • Wet

  • Moist

  • Others

• Ingredient Outlook (Volume, Kilotons; Revenue, USD Million, 2016 - 2027)

  • Animal By-product

  • Grain By-product

  • Oils & Fats

  • Additives

    • Amino Acids

    • Antibiotics

    • Vitamins

    • Feed Acidifiers

    • Anti-parasitics

    • Others

  • Others

• Application Outlook (Volume, Kilotons; Revenue, USD Million, 2016 - 2027)

  • Carp

  • Rainbow Trout

  • Salmon

  • Crustaceans

  • Tilapia

  • Catfish

  • Seabass

  • Groupers

  • Others

• Feed Type Outlook (Volume, Kilotons; Revenue, USD Million, 2016 - 2027)

  • Starter Feed

  • Grower Feed

  • Finisher Feed

  • Brooder Feed

• Regional Outlook (Volume, Kilotons; Revenue, USD Million, 2016 - 2027)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • Spain

    • Norway

    • U.K.

    • France

    • Italy

  • Asia Pacific

    • China

    • Japan

    • India

    • South Korea

    • Indonesia

  • Central & South America

    • Brazil

    • Argentina

    • Chile

    • Ecuador

  • Middle East & Africa

    • South Africa

    • Egypt

    • Iran

    • Nigeria