The global aquafeed market has witnessed substantial growth over the past few years owing to the rising demand for fish and seafood worldwide. Aquafeed refers to dietary food given to farmed fish and other aquatic animals. It contains essential nutrients required for the proper growth and development of aquatic animals. The key ingredients used in aquafeed include fishmeal, fish oil, soybean, corn, wheat and other grains, aquaculture by-products, vitamins, minerals, and other additives. Aquafeed is available in dry, wet, and moist forms and is given to aquatic animals through automated belt feeders or fed manually. Fish and seafood farming has picked up significantly worldwide as aquaculture offers a viable solution to meet the increasing demand from a burgeoning global population.

The Global Aquafeed Market is estimated to be valued at US$ 71.2 Bn in 2024 and is expected to exhibit a CAGR of 15% over the forecast period 2024 to 2030.

Key Takeaways

Key players operating in the aquafeed market are Oracle Corporation, Microsoft Corporation, Google LLC, IBM Corporation, Salesforce.com Inc. These companies are leveraging technological advancements and adopting organic and inorganic growth strategies like partnerships, mergers, acquisitions, new product launches to consolidate their market position.

The demand for aquafeed is growing significantly owing to the rising consumption of fish and other seafood. As wild-catch fisheries are nearing their maximum yields, aquaculture production is filling the supply-demand gap and contributing about 50% of the world's fish and seafood. Rapid urbanization, increasing disposable incomes, changing lifestyles and dietary patterns are propelling the demand for aquaculture products, which is driving the growth of the aquafeed market.

The aquafeed market is expanding globally with key market players focusing on establishing manufacturing facilities in emerging markets of Asia Pacific, South America, and Africa. Countries like China, India, Vietnam, Brazil, and various African nations offer huge untapped market potential owing to the large aquatic animal feed requirements and supportive government policies promoting aquaculture.

Market Drivers

The key driver fueling the growth of the global aquafeed market is the rising demand for fish and other seafood for human consumption. With overpopulation and depleting wild fisheries, aquaculture has emerged as a sustainable means to meet the growingseafood demand from a rising global population. As per the United Nations, the world population is expected to reach 9.7 billion by 2050 putting immense pressure on global food production. Aquatic animals fed with aquafeed are crucial in augmenting seafood supply. The increased spending on R&D activities by major aquafeed manufacturers to develop feeds with enhanced nutritional content to boost aquaculture productivity is also driving the market growth.

The current geopolitical situation is impacting the growth of the aquafeed market. Russia's invasion of Ukraine has severely disrupted global supply chains and increased commodity prices. Ukraine and Russia are both major exporters of grains like wheat and corn. The ongoing conflict has reduced exports from the Black Sea region, driving up prices of key aquafeed ingredients globally. Rising costs of raw materials like soybean meal, wheat, and corn are squeezing the margins of aquafeed manufacturers. Many companies have been forced to pass on increased costs to farmers, putting pressure on aquaculture production. Economic sanctions on Russia have also disrupted trade routes in the region. This volatility in commodity prices and supply disruptions poses challenges for the sustained growth of the aquafeed market in the forecast period from 2024 to 2030. To ensure long term growth, aquafeed producers will need to formulate strategies to reduce dependence on key Black Sea exporting nations. Investing in alternative sourcing routes, developing innovative feed formulations using alternative ingredients, and absorbing some input cost increases in the short term can help mitigate geopolitical risks for the aquafeed industry.

The highest concentration of value in the aquafeed market is currently in Asia Pacific region. Countries like China, India, Vietnam, Indonesia and Thailand are among the largest producers and consumers of aquaculture products globally. The Asia Pacific region accounts for over 60% of global aquaculture production led by China, which produces over 60% of the world's farmed fish. Rapid urbanization, rising incomes and growing demand for protein rich seafood have fueled strong growth in aquaculture in Asia. Large scale production facilitates bulk purchase of aquafeed, concentrating market value in the Asia Pacific region. Europe and North America are other major regions, though production and consumption volumes are lower compared to Asia Pacific.

Latin America has emerged as the fastest growing region for the aquafeed market in recent years. Countries like Brazil, Chile, Ecuador and Colombia have seen annual aquaculture production growth rates exceeding 5% over the last decade. Favorable coastlines, investment friendly policies and free trade agreements supporting exports have boosted the development of aquaculture clusters across Latin America. Rising middle class, urban population and growing demand for salmon and shrimp especially in Brazil and Mexico are major drivers propelling the double digit expansion of the aquafeed industry in Latin America between 2024-2030.

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