Aquafeed Market Size & Forecast

The Aquafeed Market is expected to reach $122.54 billion by 2031, at a CAGR of 6.4% from 2024 to 2031. The growth of this market can be attributed to several factors, including the increasing consumption of fish, growth in the aquaculture industry, and rising demand for high-quality feed. Moreover, the increasing support from governments for aquaculture and the development of alternative feed ingredients are expected to offer growth opportunities for the players operating in this market. Additionally, growing demand for organic fish production and increasing adoption of functional feeds are major trends in the aquafeed market.

However, fluctuating raw material prices and stringent regulations on feed safety and quality are expected to hinder market growth to some extent. Furthermore, environmental and human health concerns pose a challenge to market expansion.

Aquafeed Market Growth Drivers

Increasing Consumption of Fish Boosts Demand for Aquafeed

Over the past few years, the global consumption of fish has witnessed a significant surge due to the increasing population and demand for protein, rising disposable income, advancements in aquaculture, increasing seafood trade, and increasing health consciousness. Aquafeed is a vital component in the aquaculture industry as it provides the essential nutrients for the growth and health of fish and other aquatic animals. As the global population continues to grow and the demand for seafood increases, the aquafeed market is expected to continue to expand. According to the Population Reference Bureau (PRB), the global human population is expected to grow by 75 million annually (1.1% per year). By 2050, the world population is expected to reach 9.9 billion, increasing by 25.3% compared to ~7.9 billion in 2021. This growing population will contribute to an increased demand for seafood. According to the OECD-FAO, it estimates that 90% of fish production will be consumed as food in 2032, compared to 88% in 2020-22. Additionally, per capita fish consumption is projected to reach 21.2 kg by 2032, an increase from an average of 20.4 kg in 2020-22. As a result, the population growth and increased per capita seafood consumption are expected to significantly drive the growth of the aquaculture industry and therefore, the aquafeed market in the coming years.

Growth in the Aquaculture Industry Drives the Growth of the Aquafeed Market

Aquaculture refers to the farming of aquatic organisms such as fish, crustaceans, mollusks, and aquatic plants in controlled environments. With the increasing demand for seafood, aquaculture has become an essential source of food production, leading to the expansion of the industry. In the period 1990–2020, the total global aquaculture industry annual output grew by 609%, with an average growth rate of 6.7% (source: FAO). Furthermore, aquaculture production is projected to reach 111 MT by 2032, a substantial increase from the average output of ~91 MT in 2020-2022 and compared to the previous decade's growth of 33 million tons. As aquaculture production increases, the demand for high-quality aquafeed also rises to support the growth and health of farmed species. This drives the demand for aquafeed, spurring innovations in feed formulation, production processes, and the use of alternative ingredients to meet the specific nutritional requirements of various aquatic species. Thus, the growth in the aquaculture industry is closely associated with the expansion of the aquafeed market.

Aquafeed Market Growth Trends

Increasing Adoption of Functional Feed Supports the Growth of Aquafeed Market

Functional feeds are specialized aquafeeds designed to provide additional health benefits and improve the functioning of aquatic animals beyond basic nutrition. These innovative feeds contribute to enhancing aquaculture production, sustainability, and profitability. Functional feeds often contain specific ingredients, such as prebiotics, probiotics, proteins, and immunostimulants, to enhance the overall health and growth of aquatic animals. This trend is driven by the growing awareness among aquaculture farmers about the importance of maintaining aquatic animal health and the need to improve the efficiency and sustainability of aquaculture operations. In October 2022, Archer-Daniels-Midland Company (U.S.) launched AquaTrax, a functional feed additive that helps reduce the spread and impact of health challenges in aqua species while improving production performance. As the aquaculture industry continues to expand, the demand for functional feeds is expected to increase, contributing to the growth of the aquafeed market.

Growing Demand for Organic Fish Production

The growing preference for organic and sustainable aquaculture production is positively influencing the growth of the aquafeed market. This shift towards organic practices is driven by increasing consumer awareness and preference for healthier, more sustainable seafood options. Furthermore, the consumer inclination towards organic fish due to increased food-borne illnesses caused by pathogens such as salmonella and calicivirus found in conventionally cultured fish has increased product demand. Also, there has been a significant shift from high-calorie foods to protein-rich diets due to increased awareness of their health benefits. The transition to organic fish production and the development of organic aquafeeds are expected to contribute positively to the aquafeed market's growth. With the increasing focus on sustainability and consumer preference for eco-friendly seafood options, the demand for organic aquafeed is expected to remain strong in the coming years.

Aquafeed Market Growth Opportunity

Development of Alternative Feed Ingredients

As sustainable aquaculture practices grow, the need for innovative and eco-friendly feed solutions increases. Alternative protein sources, such as plant-based proteins, insect-based proteins, algae, seaweed, and single-cell proteins, offer promising substitutes for traditional feed ingredients. These alternatives reduce reliance on marine resources, provide balanced nutrition, and offer environmental benefits like lower carbon footprints and efficient resource use. According to the Food and Agriculture Organization of the United Nations (FAO), the global demand for fish and shellfish is expected to reach almost 181 million tons in 2030. However, dried and powdered fish feed, such as anchovy used for aquaculture feed, is becoming insufficient. According to the FAO, 1.2 to 1.6 million tons of raw materials for fish feed will be required in 2025 as an alternative to fish meal. Companies that invest in research, development, and production of alternative feed ingredients can capitalize on the rising demand for sustainable aquafeeds. Sustainable aquafeeds play a crucial role in achieving these goals by optimizing feed conversion ratios, reducing waste, and incorporating alternative protein sources. As the aquaculture industry seeks sustainable solutions, these factors are expected to support the growth of this market.

Aquafeed Market Analysis: Key Findings

By Ingredient: In 2024, the Plant-based Segment to Dominate the Aquafeed Market

Based on ingredients, the aquafeed market is segmented into plant-based, animal-based, additives, algae, and insect. In 2024, the plant-based segment is expected to account for the largest share of the aquafeed market. The large market share of this segment can be attributed to the increasing demand for soybean feed ingredients, being an alternative to animal-based ingredients, and environmental concerns. Furthermore, the growing demand for alternative feed ingredients, such as canola, is expected to support the growth of this market. Furthermore, the plant-based segment is segmented into soybean, corn, and others. The soybean segment is expected to account for the largest share of the plant-based aquafeed market in 2024. Soybean ingredients are rich in proteins, amino acids, and other essential nutrients, an alternative to fishmeal in aquafeeds, and cost-effective to fish meal.

However, the insect segment is projected to witness the highest growth rate during the forecast period of 2024–2031. This growth is driven by the growing adoption of black soldier flies and mealworms as aquaculture feed, government approval for the use of insects as a feed ingredient, and growing demand for alternative sources for aquafeed.

By Form: In 2024, the Dry Form Segment to Dominate the Aquafeed Market

Based on the form, the aquafeed market is segmented into dry, moist, and wet. In 2024, the dry segment is expected to account for the largest share of 63.3% of the aquafeed market. The large market share of this segment is mainly attributed to its convenience for handling, storage & transport, longer shelf life, cost-effectiveness, nutrient stability, higher nutritional density, and bulk purchase. Moreover, this segment is also expected to register the highest CAGR of 6.7% during the forecast period of 2024–2031. The rapid growth of this market is mainly attributed to the increasing awareness among farmers about the benefits of dry aquafeed, such as improved feed conversion rates, reduced waste, and higher profitability.

By Species Type: In 2024, the Fish Segment to Dominate the Aquafeed Market

Based on species type, the aquafeed market is segmented into fish, crustaceans, mollusks, and other aqua-cultured species types. In 2024, the fish segment is expected to account for the largest share of 56.7% of the aquafeed market. The large market share of this segment can be attributed to the growing demand for organic fish, increasing demand for fish protein, depletion of wild fish supplies, increase in export value of fish, and growth of aquaculture.

However, the crustaceans segment is projected to witness the highest growth rate of 7.1% during the forecast period of 2024–2031. This growth is driven by the growing demand for seafood and the increasing focus on sustainable and functional feeds. Furthermore, the rising consumer awareness of the health benefits of crustaceans, such as their high protein content and omega-3 fatty acids, further supports the growth of the crustacean feed market.

By Lifecycle: In 2024, the Grower Feed Segment to Dominate the Aquafeed Market

Based on lifecycle, the aquafeed market is segmented into starter feed, grower feed, finisher feed, and brooder feed. In 2024, the grower feed segment is expected to account for the largest share of the aquafeed market. Grower feed is formulated to meet the increased nutritional demands of the grower stage, with a focus on proteins, amino acids, and other essential nutrients to promote rapid growth. Furthermore, it supports maximum production and growth at every life stage of the fish.

Geographical Analysis

In 2024, the Asia-Pacific is Expected to Dominate the Aquafeed Market

Based on geography, the aquafeed market is divided into five major regions: North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa. In 2024, Asia-Pacific is expected to account for the largest share of 55.9% of the aquafeed market, followed by Europe, North America, Latin America, and the Middle East & Africa. The large share of this region is mainly attributed to the rise in fish consumption, government support for aquaculture, increasing population, and growing urbanization. Also, the resource availability, low-cost labor, and suitable environmental conditions are supporting the growth of this market. Moreover, this region is projected to register the highest CAGR of 7.3% during the forecast period. Furthermore, China and India account for more than 50% share of the aquafeed market in this region.

Aquafeed Market: Key Companies

The report offers a competitive analysis based on an extensive assessment of the leading players’ product portfolios, geographic presence, and key growth strategies adopted in the last 3–4 years. Some of the key players operating in the aquafeed market are Cargill, Incorporated (U.S.), Ridley Corporation Limited (Australia), Charoen Pokphand Foods PCL (Thailand), Nutreco N.V. (Netherlands), BENEO GmbH (Germany), Archer-Daniels-Midland Company (U.S.), Alltech Inc. (U.S.), BioMar Group (Denmark), Purina Animal Nutrition LLC (U.S.), Aller Aqua A/S (Denmark), Biostadt India Limited (India), Kemin Industries, Inc. (U.S.), INVE Aquaculture, Inc. (U.S.), and De Heus Voeders B.V. (Netherlands).

Aquafeed Industry Overview: Latest Developments from Key Industry Players

• In February 2024, InnovaFeed SAS (France) launched a new brand, Hilucia, with two new products–Protein for Monogastrics and Oil for Aqua.
• In July 2023, Phode Laboratories (France) launched three new products, Olpheel Zen, Olpheel Anti-Ox, and Olpheel Eat, to support animal welfare and performance in aquaculture.
• In April 2023, MiAlgae Ltd (U.K.) launched a novel omega-3 product, NaturAlgae, for aquafeed. NaturAlgae is a dry powder with a high concentration of DHA and other oils that can be added to aquafeed.
• In February 2023, Netherlands-based company Nutreco N.V.’s global aquafeed division, Skretting, opened a shrimp and fish feed production facility in India. The facility was built with an investment of USD 20.02 million and has three production lines with a capacity of 50,000 metric tonnes per annum. Moreover, in March 2021, the company invested USD 6.1 million in constructing a new shrimp research facility in Ecuador.

Aquafeed Market Research Summary

Key questions answered in the aquafeed market report: