The
aquafeed market consists of a wide variety of aquatic animal feeds that are
produced using different ingredients and formulations. Feed constitutes around
60% of the total variable cost of fish and shrimp production and contributes
around 60% to 70% of the total input cost. The quality and consistency of
aquafeed have a direct impact on fish health, growth, and yield. Rising demand
for nutrient-rich aquafeed to improve aquaculture yields along with growing
adoption of advanced extrusion technologies and inclusion of additional
micronutrients have aided the growth of the industry.
The global Aquafeed Market is estimated to be valued at US$ 71.2 Bn in 2023 and
is expected to exhibit a CAGR of 15% over the forecast period 2024 to 2031, as
highlighted in a new report published by Coherent Market Insights.
Market key trends:
The aquafeed market is witnessing rising demand for natural growth promotants.
Fishmeal and fish oil are rich sources of essential fatty acids, proteins,
vitamins, and minerals that are essential for fish growth. However, overfishing
and limited supply have led to increased incorporation of plant-derived
ingredients like soybean meal, corn gluten meal, and wheat bran in aquafeed
formulations. Advancements in biotechnology have enabled production of various
natural growth promotants obtained from microorganisms, yeast, fungi, and algae
that promote fish growth performance. These natural growth solutions aid in
maintaining fish gut health while reducing feed costs and environmental
impacts. Such innovations in natural growth promotants are amongst the major
trends expected to drive the aquafeed market expansion over the forecast
period.
Porter’s
Analysis
Threat of new entrants: The threat of new entrants in the aquafeed market is
low as there are high costs involved in setting up facilities, distribution
channels, and establishing brands.
Bargaining power of buyers: The bargaining power of buyers in the aquafeed
market is high. Buyers can negotiate on price and switch between brands easily
as there are many established players.
Bargaining power of suppliers: The bargaining power of suppliers is moderate as
feed ingredients are commoditized and there are many suppliers. However,
suppliers of specific/ premium ingredients may exert some control over price.
Threat of new substitutes: The threat of substitutes is low as no direct
substitutes exist for aquafeed.
Competitive rivalry: The aquafeed market is fragmented with major players
competing on price and product differentiation.
Key Takeaways
Regional
analysis: Asia Pacific region accounts for the lion's share of the global
aquafeed market and is expected to maintain its dominance over the forecast
period. This can be attributed to the presence of major fish producing
countries like China, India, Indonesia, Bangladesh, and Vietnam. China
dominates the APAC market accounting for over 30% of the global production.
Key
players operating in the aquafeed market are Oracle Corporation, Microsoft
Corporation, Google LLC, IBM Corporation, and Salesforce.com Inc. Oracle
Corporation and Microsoft Corporation are focusing on developing innovative
aquafeed products and solutions to strengthen their position in the market.
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