The market, account for USD 54,407.40 million in 2016, is expected to reach USD 98,154.35 million by 2022, registering a CAGR of 10.35%. With the growing global demand for fish and fish-based products, the compound feed demand in the aquatic animal food industry is also expected to increase. By 2022, more than 52% of the global fish supplies are expected to be from fish farms. The growth is higher in emerging countries, such as China, India and Brazil, owing to the increasing income levels and growing demand for seafood.
Growing Aquaculture Industry = Growth in Usage of Aquafeed
The aquaculture industry is driven by factors such as the increasing global fish consumption and growth in the processed seafood industry, owing to rise in middle class income, in developing countries. The high-quality aquafeed demand, due to the growing aquaculture industry, has elicited the growth in consumption of compound feed and feed additives. The raw materials used for aquafeed include fish feed and fish oil. The prices for these materials are soaring, because of various reasons. This condition has generated the replacement demand for additives that are cost-effective and can enhance the production. Home mixers and large farm owners provide additives and premixes to the fish, to ensure the steady supply of high-quality meat and derived products. The large-scale producers and manufacturers use the additive premixes, to ensure a steady supply of nutrients to fish and enhance production and performance. The global aquaculture industry is expected to register a steady CAGR of around 8%- 8.5%, during 2017-2022 (the forecast period). Hence, the growth in aquaculture demand is driving the aquafeed and aquafeed additive market.
Rising Demand for Functional Feed
The current dependence on fish meal and fish oil, as primary ingredients of aquafeed, is expensive and environmentally unsustainable. The agricultural waste streams, such as non-harvested or unmarketable green waste containing macronutrients (carbohydrates, proteins and lipids), micronutrients (vitamins and minerals) and bioactive compounds that are discarded, for now, represent an alternative source of nutrients that may potentially be suitable for formulation in aquafeed. Functional feeds have two-fold goals, including the development of aquafeed utilizing agricultural by-products (suitable for abalone culture) and the improvement of resistance to mortality-related heat stress. A majority of countries, producers and manufacturers have been investing in R&D and looking for a suitable replacement to raw materials and the combination & composition of functional feeds.
AQUAFEED DEMAND GROWING IN INDIA
Seafood production has been surging in India at the rate of 4% annually, since 2012, and the aquafeed demand in the country is also anticipated to be doubled, by 2022. The cultured shrimp industry is expected to continue as a growth driver for the aquafeed industry, at an expected rate of 56% per year. However, 26 Indian feed mills met less than half of the demand, and more than 56% of the imports requirement, leaving a considerable scope for the future expansion of the feed industry. India is known to be a large contributor to global aquaculture production. India had the status of being the second highest in aquaculture production after China, with a production of around 5 million metric tons in 2016. India is the fourth largest shrimp producing country, and the aquaculture production is improving. Moreover, this improvement will need immediate strategies and actions, to steer towards positive growth. India has more than 50 different types of fish and shellfish products, which are exported to 75 countries, worldwide. This sector provides employment to nearly 14 million people and, further, the per capita availability reached 9 kilogram per annum, which show a great growth potential. The future development of aquaculture depends on the acceptance of the innovative production advancements, utilization and management of less utilized water resources and proper market tie-ups. The current market players and feed mill investors are looking for diverse market options, to increase the feed capacity utilization. Therefore, these manufacturers use cheaper options, such as deoiled rice bran, wheat bran, cottonseed cake and groundnut cake, and fishmeal, squid meal, lecithin, cereal flour and fish oil as feed ingredients for freshwater aquaculture in prawn and shrimp feed formulations.
Increased Salmon Feed Sales Drive up BioMar Results
Danish feed group BioMar Group reported a strong improvement in its revenue for Q1 2017, driven the increase in salmon feed sales. All three geographical regions for salmon farming – Norway, Scotland and Chile – saw stronger sales, leading to a 24% lift in feed volumes sold. Sale, especially, in the 'salmon north' region soared, from DKK 680 million to DKK 1.04 billion. The overall volume sales rose from 166,000 metric ton to 205,000 metric ton. BioMar is strengthening its market-driven approach and over the past several years, the company has succeeded in optimizing its product range, introducing various functional types of feed, with a value-adding effect for customers. It is gradually winning back the volumes lost in Chile, due to the severe algal blooms in 2016.
Some of the major market players include:
- Cargill Inc. (US)
- BioMar Group (Denmark)
- Waterbase Ltd. (India)
- BASF (Germany)
- Alltech Inc. (US)
- Coppen International BV (Netherlands)
- Evonik Industries (Germany)
NOTABLE MARKET DEVELOPMENTS
- EU: Insect protein use in aquafeed likely within 12 months
- NutriAd opened new plant in China
- Freshwater microalgae may offer promise for aqua feed: Canadian team.
- Alltech bolsters aqua feed presence with Coppens acquisition
- Additive-based companies promote the usage of plant-based aquaculture feed.
- Super-additive leading the way to more sustainable aquaculture feed.
Our Global Aqua Feed Market Report Covers:
- Market trends & dynamics
- Latest News & developments
- Geographical insights
- Porter’s five force analysis
- Investment scope
- Deep-Dive Insights
1.1 Market Definition
1.2 Key Findings of the Study
2. Research Scope & Methodology
2.1 Study Deliverables
2.2 Study Assumptions
2.3 Research Methodology
2.4 Research Phases
3.1.1 Increase in the Global Fish Consumption
3.1.2 Growth in Aquaculture Production
3.1.3 Increase in Awareness Regarding Scientific Feeding of Aquaculture Species
3.2.1 Increase in Cost of Raw Materials
3.2.2 Disease Outbreaks in Major Markets
3.3 Porter's Five Forces Analysis
3.3.1 Bargaining Power of Suppliers
3.3.2 Bargaining Power of Buyers
3.3.3 Threat of New Entrants
3.3.4 Threat of Substitute Products and Services
3.3.5 Competitive Rivalry
4. Market Segmentation
4.1. By Type
4.1.1 Fish Feed
220.127.116.11 Carp Feed
18.104.22.168 Salmon Feed
22.214.171.124 Tilapia Feed
126.96.36.199 Catfish Feed
188.8.131.52 Other Fish Feed
4.1.2 Mollusk Feed
4.1.3 Crustacean Feed
184.108.40.206 Shrimp Feed
220.127.116.11 Other Crustacean Feed
4.1.4 Other Aqua Feed
4.2. By Geography
4.2.1 North America
18.104.22.168 Rest of North America
22.214.171.124 Rest of Europe
4.2.3 Asia Pacific
126.96.36.199 Rest of Asia Pacific
4.2.4 South America
188.8.131.52 Rest of South America
184.108.40.206 South Africa
220.127.116.11 Rest of Africa
5. Competitive Landscape
5.1 Most Adopted Strategies
5.2 Most Active Companies
5.3 Market Share Analysis
6. Company Profiles
6.1 BioMar A/S
6.2 Coppens International Bv.
6.3 Aller Aqua A/S
6.4 Cargill Inc.
6.5 Alltech Inc.
6.6 Archer Daniels Midland Co.
6.7 Ridley Corporation
6.8 Nutriad International NV
6.9 Hanpel Tech Co. Ltd.
6.10 Charoen Pokphand Group
6.11 Nutreco NV
6.12 East Hope Group Company Limited
6.13 Zheng DA International Group