With the globally increasing demand for fish and fish-based products, the compound feed demand in the aquatic animal food industry is also expected to increase. The growth is particularly high in emerging countries, such as China, India, and Brazil, owing to the increasing income levels due to expanding the middle class and increasing demand for seafood in these countries. The Asia-Pacific market, though accounts for a significant share in the overall market, is relatively unexplored, owing to the low level of organizing in the industry.
The world’s aquafeed business is highly fragmented, and global players, like Cargill compete with a lot of regional feed producers. Around 35% of the aquafeed market is divided among four global companies, none of which has more than a 12% market share.
The aquaculture business is centered in Asia, particularly, in China. The region accounts for more than one-third of the world aquaculture production, by volume. China alone comprised more than 50% of the global fish production. Besides China, the region is also home to major producers, such as India, Vietnam, and Thailand. The aquafeed industry in this region is driven by factors, such as increasing fish consumption and growth in the processed seafood industry, owing to rise in middle-class incomes in developing countries.
The demand for high-quality aqua feed from the industry, owing to growth in the aquaculture industry, has elicited the increase in consumption of compound feed and feed additives. The feed availability has become a critical issue for the aquafeed industry. With the growing global population and a corresponding rise in a food shortage, the industry is facing severe pressure in procuring raw feed, such as fish meal and fish oil, which are very crucial for manufacturing aqua feed and the growth of the aquaculture industry. Feed acids, antioxidants, and vitamins are mainly extracted from natural sources, such as seeds, tree barks, and plant leaves. The rising costs of extraction from these sources, coupled with stringent regulations over waste biomaterials and wastewater treatment, have a limiting effect on the global market. Oceans are tapped out, and the environmental regulations surrounding the wild, marine or inland fisheries has made it difficult to procure raw materials, such as fish meal and fish oil for feed. Prices are expected to soar owing to increasing demand, and adversely affect the aquafeed market. Regulatory issues are the biggest constraints for the feed industry.
The animal feed production comes under feedstuff regulations in most countries. The regulatory framework is getting increasingly strict, such as the ones in 2006 in European Union and in 2009 in the United States, where, the ban on the use of antibiotics, as growth promoters in animals, was seen. Many countries, including China, Thailand, and Vietnam that export fish to Europe and the United States do not have such regulations against antibiotics or animal proteins usage in animals or feeds. Such disparities in regulations have adverse effects on the global fish and aqua feed trade, especially between developed and developing economies. The feed and feed additive producers are required to follow strict regulations related to regional and national health and safety, for gaining product approval in the developed nations. These regulations ultimately affect the cost of the final product. Such regulatory initiatives are posing challenges for existing feed products, and increasing the price of new feed development.
Major Players: Nutriad International NV, Biomar A/S and Aller Aqua A/S amongst others.
October 2017: Epicore, a company operating in the North American and South American aquaculture market with specialization in the manufacture of larval feed and probiotics, was acquired by Neovia.
1.1 Study Deliverables
1.2 General Study Assumptions
2. Research methodology
2.2 Analysis Methodology
2.3 Study Phases
2.4 Econometric Modelling
3. Executive Summary
4. Market Overview and Trends
4.1 Current Market Scenario
4.2 Technology Trends
4.3 Porter's Five Forces Framework
4.3.1 Bargaining Power of Buyers
4.3.2 Bargaining Power of Supplier
4.3.3 Threat of New Entrants
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5. Market Dynamics
5.1.1 Growth in Aquaculture Industry
5.1.2 Supportive Government Policies in Major Markets
5.2.1 Use of Antibiotics in Aquaculture
5.2.2 Disease Outbreaks in Major Markets
5.3.1 Increasing Awareness Among Aquaculture Producers
6. Global Aqua Feed Market Segmentation
6.1 By Type
6.2 By Geography
6.2.1 North America
220.127.116.11 Rest of Europe
18.104.22.168 Rest of Asia-Pacific
6.2.4 Rest of the World
7. Competitive Landscape
7.2 Market Structure & Analysis
8. Company Profiles
8.1 Alltech Inc.
8.2 Aller Aqua A/S
8.3 Biomar A/S
8.5 Cargill Incorporated
8.6 Nutreco N.V.
8.7 Ridley Corporation
8.8 Archer Daniels Midland Co.
8.9 Hanpel Tech Co. LTD
8.10 Nutriad International