Aquafeed Market Size, Share & COVID-19 Impact Analysis, By Type (Fish (Carps, Tilapias, Catfish, Salmons, and Others), Crustaceans, Mollusks, and Others), Ingredient (Soybean, Fishmeal, Fish Oil, Corn, Additives, and Others), Form (Dry and Wet), and Regional Forecast, 2020-2027

The global aquafeed market size was USD 56.92 billion in 2019 and is projected to reach USD 80.05 billion by 2027, exhibiting a CAGR of 5.3% during the forecast period.

This report covers COVID-19 impact analysis on Aquafeed Market

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The rising popularity of aquafeed incorporated with beneficial ingredients is holding steady growth opportunities for the market. Moreover, an increase in seafood trade due to growing global fish consumption is anticipated to drive the global market. Several government initiatives and schemes have been implemented to encourage farmers to utilize high-quality feed. For instance, the government of India has allocated USD 73.84 million for the continuation of the ‘Blue Revolution Scheme’ during the financial year 2020-21. This scheme will undertake various on-going fisheries development programs including marine fishery, mariculture, and aquaculture.

Disruption in the Global Supply Chain due to COVID-19 has Negatively Affected the Market Growth

The outbreak and the rapid spread of COVID-19 have sent shock waves across global markets. It has disturbed supply chains, leading to the closure of numerous manufacturing facilities worldwide, serious disruption of air and sea traffic, and closure of vital air routes. All industrial activities are being paused, transnational travel has stopped, and only essential business services are being permitted to function. These actions have a significant effect on feed production as factories are facing supply chain interruptions and labor scarcities.

The industry relies on marine ingredients, out of which most are imported. For instance, the Chinese population is primarily dependent on Chilean fish meal, which is usually imported from South America and requires weeks for shipping. With the pandemic, finding ships or planes for raw material shipment has been a challenge which has resulted in the supply chain disruption. Although the availability of trucks and overall logistical measures are progressively improving, there are still some regions where the availability of such resources is fairly limited, compared to the pre-COVID-19 scenario. Hence, companies are expected to expand their retailer base rapidly through various digital platforms that offer advertising and sale services. Moreover, the time of the recovery will depend on how early lockdowns are lifted in various parts of the world and how fast the world can recover from the COVID-19 pandemic.

LATEST TRENDS

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Organic Fish Production to Experience High Growth Trajectory

Organic fish farming is a newly developed idea and is still in the initial stages of development. Organic fish production emphasizes chemical-free, genetically modified products, and pesticides. It also ensures animal welfare by decreasing the stocking density. The use of organic fish feed helps in raising aquatic animals in a humane manner that is suitable. In recent years, it has been observed that the buyers’ inclination towards organic food has increased significantly, and hence increasing the production of organic feed is expected to be a favorable factor for market growth of the aquafeed.

DRIVING FACTORS

Rise in Seafood Trade to Play Crucial Role in the Market Growth

The increasing consumption of seafood and rising consumer spending on fish and fish products such as fish oil, fish meal, and fish silage are anticipated to escalate the production of aquaculture, which is predicted to boost the market growth. In addition, the increased demand for animal protein in well-established western economies and increasing trade of seafood across several global economies are expected to further propel the market growth in the forthcoming years.

 Increasing Investment in R&D Activities to Support the Market Growth

The increasing investment by market players and associations in the research and development of innovative products is expected to positively impact market growth. For instance, in August 2020, Milkfish Aquafeeds Research, Development, and Extension Project (RDEP) was launched in Guiuan. It aims to develop substitutes to fight the existing high cost of feeds in the market. A new substitute comprises the use of locally-made such as the use of plant-based proteins as a key ingredient for fish feed.

The companies are embarking on mergers and acquisitions to diversify their product portfolio and consumer offerings. For instance, in November 2019, The Washington-based feed and Ingredient company Wilbur-Ellis announced the acquisition of Renger Inc., the U.S. based producer and distributor of feed. This acquisition is predicted to help Wilbur-Ellis to strengthen its footprint in this market.

RESTRAINING FACTORS

Volatility of Raw Material Prices is Restricting Market Growth                 

High price volatility associated with the raw materials used in the feed preparation can hamper the growth of the market. For instance, a significant rise in the price of soybean, corn, or other raw materials can directly impact the final price of the product, which is expected to hamper the product sales. Moreover, a growing number of people opting for vegetarian diets and quitting non-vegetarian food is anticipated to reduce the demand for fish, which can further affect the market negatively.

SEGMENTATION

By Type Analysis

Fish Segment to Lead the Market Throughout the Forecast Period

The fish segment held and accounted for the largest aquafeed market share for the global market in 2019. The tremendous increase in fish farming to fill the gap between overall fish demand and supply is expected to positively impact the sales of fish feed. The good quality fish feed is a great way to support the base of the food chain and to help sustain a healthy fish community, which in turn, can drive the fish feed demand in upcoming years.

Among fish, tilapia and carp are some of the prominent consumers of feed. Carps are considered a high source of protein and they are widely utilized in fish and rice farming as well. As a result, the demand for carps is expected to increase in the forthcoming years, which in turn, can drive their demand.

At present, the mollusks segment holds the second-largest position in the global market. The increasing popularity of oysters and clams as an important source of nutrition to humans has led to a rise in production for clams and oysters, which is predicted to boost the demand for fish feed from mollusks growers.

By Ingredient Analysis

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Soybean Segment Held a Share of 29.53% in 2019

Soybean is one of the beneficial and cheapest non-fish sources of protein and omega-3 fatty acids. Henceforth, it is widely used in feed preparation to enhance the overall growth and development of aquatic species. The increasing utilization of soybean cake and soybean meal in the preparation of organic feed is anticipated to boost the demand for soybean in the industry.

The additives segment is predicted to grow at the highest CAGR in the global market. Aquafeed additives, especially amino acids are crucial macromolecules necessary for healthy growth, development, and overall maintenance of the aquaculture. Increasing fish growers’ inclination towards the adoption of high-quality feed is predicted to raise the demand for additives from manufacturers.

By Form Analysis

Dry Form of the Product to Witness Strong Growth in the Upcoming years

The dry form of the product has secured a larger revenue chunk in 2019 and the segment is expected to grow at a significant pace throughout the forecast period. The demand for pelleted feed is high among the aquaculture industry across the globe owing to their potential to improve the feed conversion ratio of fish. Aquafeed available in dry form is getting wider acceptance owing to their outstanding palatability and their efficiency in bringing enhancement in fish performance. Furthermore, the ease of storage and transport of the product and higher shelf life of the dry products as compared to wet or moist products are predicted to positively impact product sales.

REGIONAL INSIGHTS

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Asia Pacific is the leading market at present and it is anticipated to hold a significant proportion of the global market share during the forecast period. The Asia Pacific market has developed rapidly over the last decade with China and India occupying more than half of the regional sales. The demand for fish feed in China and India is expected to remain promising during the upcoming years owing to the tremendous increase in fish production rate. As a result, several key market players operating in the global market are expanding their business in India and China. For instance, in January 2018, Cargill Inc. inaugurated its first dedicated fish feed plant in India. The plant is strategically located in Andhra Pradesh as it is one of the prominent regions for farm-raised aquaculture in India.

The rising aquaculture production due to increasing seafood demand and growing inclination towards salmon production will propel the growth of the market in Europe. North America is predicted to witness considerable growth in the global market. The presence of prominent key players such as Cargill Incorporated, Archer Daniels Midland Company, Alltech Inc., in the U.S. is likely to act as a growth booster for the market in the region. Furthermore, high profit associated with the export of aquaculture is another reason attributed to the latent growth of quality fish feed industry within the region.

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KEY INDUSTRY PLAYERS

Industry Emphasis on New Product Development to Favorably Aid Market Growth

High fish consumption has a positive impact on aquaculture production, as a result, the demand for aquafeed is expected to increase at a stronger pace. The increasing demand for this product is encouraging market players to diversify their product portfolio and distribution network to increase their market reach and consumer base. Archer Daniels Midland Company is one of the leaders operating in the feed market. Innovations and mergers & acquisitions are some of the key strategies adopted by the company to compete in the global market.

December 2019 – Archer Daniels Midland Company inaugurated its new animal nutrition technology center. The company is focusing on the production of feed ingredients and nutritional products for aquaculture. The new center will support the company to expand its footprint in the global market.

February 2019 – Archer Daniels Midland Company announced the complete acquisition of Neovia. This acquisition is predicted to offer a strong platform for Archer Daniels Midland company’s future growth.

LIST OF KEY COMPANIES PROFILED:

• Cargill Incorporated (Minnesota, United States)


• Archer Daniels Midland Company (Illinois, United States)


• Alltech Inc., (United States)


• Purina Animal Nutrition (Missouri, United States)


• Ridley Corp Ltd (Australia)


• Nutreco N.V. (Amersfoort, Netherlands)


• Aller Aqua A/S (Christiansfeld, Denmark)


• BioMar A/S (Denmark)


• Dibaq Aquaculture (Spain)


• Beneo GmbH (Germany)

KEY INDUSTRY DEVELOPMENTS:

• In February 2020, European private equity firm Demeter’s food-focused Agrinnovation funds donated USD 1.65 million to French animal feed developer Huddle Corp. Huddle Corp had utilized this funding to scale up its aquafeed production.


• In February 2020, Aller Aqua A/S announced the launch of a new series of functional aquafeeds which include ingredients that promote growth and survival in a range of fish species.


• In July 2019, Redley Corporation Ltd. inaugurated a new state of the art extrusion plant in Westbury, Tasmania. The new facility has the capacity to produce an initial 50,000 tons of extruded feeds, including both aquaculture and pet food.

REPORT COVERAGE

An Infographic Representation of Aquafeed Market

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The aquafeed market research report provides qualitative and quantitative insights into the market and detailed analysis of market size and growth rate for all possible segments in the market. Along with this, the market research report provides an elaborative analysis of the market dynamics, swot analysis, and competitive landscape. Various key insights provided in the report are the overview of related markets, recent industry developments such as mergers & acquisitions, the regulatory scenario in key countries, and key industry trends.

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