Market Trends of India Aquafeed Industry
This section covers the major market trends shaping the India Aquafeed Market according to our research experts:
Increase in Fish Seed Production
The key driver behind the increasing demand for fish seed and aquaculture feed production is the increased demand for aqua food products. In India, under the scheme of contract farming, farmers are provided with aquafeed and fish seeds needed for the growth of aquaculture. For instance, according to the Ministry of Agriculture and Farmers Welfare (India), during the fiscal year 2020, fish production in India amounted to over 14 million metric tons, an increase from about 13.57 million metric tons in the fiscal year 2019.
Similarly, initiatives taken by many government agencies are increasing fish seed production and boosting the demand for aquafeed. For instance, according to the Ministry of Fisheries, Animal Husbandry and Dairying (India), fish seed production increased in 2021 which is INR 5,40,690 (USD 662.23) from INR 4,81,974 (USD 590.31) in 2019. Additionally, in August 2021, the Aquaculture Development Agency Kerala (ADAK) started stocking fish with seeds in three of Kerala's four reservoirs where cage fish culture is implemented. The agency asserted that introducing cage culture in reservoirs is a significant step toward enhancing fish production in light of declining wild catch. It enters a new era in utilizing the vast area currently available for aquaculture in the State.
Moreover, owing to the increase in health consciousness, people are consuming residue-free food, which is building pressure on exporters to grow seafood that is good for their health. It significantly affects the aquafeed industry as proper feed for aqua animals will help grow animals without diseases. This factor creates many new opportunities in the industry for the players to launch many natural and new-generation products.
Increase in Export Value for Fish
In India, fish traders usually pick up fish at harvest and trade it off for a higher price to different markets. However, fish exports are on the rise due to increased production and government initiatives. For instance, frozen shrimp remained India's major export item in quantity and value in 2021-22, accounting for a share of 53% in amount and 75% of the total revenue, as per government data. Shrimps make up a significant portion of the aquaculture sector. Thus, companies making aqua feed have started concentrating on creating more shrimp feed to meet domestic and global demand.
Moreover, people worldwide are consuming food free of residue due to rising health and hygiene awareness and increasing pressure on Indian exporters to produce healthy seafood. For instance, according to the Reserve Bank of India, in the fiscal year 2022, the export value of fish and fishery products from India amounted to over INR 579 billion (USD 7.01 billion). It was a significant increase from the previous year, in which the export value of fish and fishery products amounted to INR 441.76 billion (USD 5.35 billion). It favors the aqua feed sector since high-quality fish and feed will help aquatic animals grow without acquiring diseases.
As aquatic products hold a specific position in the market, India is predicted to experience a rise in demand for cultured seafood products that are chemical-free and nutritious. Because of this, there will be a high need for aquaculture feed for farming, driven by population increase, growing incomes, and rapid urbanization. Thus, demand for aqua product exports from India is expected to rise faster during the forecast period.
