Abhishek Dhar
TEAM LEAD – FOOD, BEVERAGE, AND AGRICULTURE MARKETSANDMARKETS RESEARCH PVT. LTD.
Rising seafood demand, sustainability pressures and rapid advances in feed technology are reshaping the global aquafeed industry. From functional additives and insect protein to AI-supported feeding systems and precision nutrition, the sector is evolving beyond conventional nutrition strategies as aquaculture production and international fish trade continue to expand worldwide.
Aquafeed comprises one or more artificial and/or natural feedstuffs in the form of pellets or extruded bits for fish, crustaceans, and mollusks. The report focuses only on commercial aquafeed, while farm-made aquafeed has been excluded from the study scope. The global demand for seafood continues to rise, driven by population growth, increasing disposable incomes, and changing dietary preferences. Consequently, aquaculture, including the farming of fish and other aquatic species or organisms is expanding to meet the rising demand for seafood. Aquafeed plays a vital role in supporting the development and growth of farmed fish, as it provides essential nutrients and promotes optimal health. The growing demand for seafood, therefore, fuels the demand for aquafeed.
A MARKET ON THE RISE
Fish is the primary consumer of aquafeed ingredients compared to other species. This is due to its affordability and high level of digestibility, particularly in coastal regions. However, overfishing and pollution have significantly decreased the availability of fish in natural waters. As a result, various methods are being employed to boost production. One such method involves improving aquaculture management through digitalization. During the last two decades, aquaculture in Africa has moved away from subsistence fish farming to commercial production and profit-oriented aquaculture. This transition requires technical support and real-time provision of information, inputs, and services. To meet these needs, Rhodes University in South Africa has developed Buna Africa, an online platform designed to support the development and management of the aquaculture sector in Africa. Through the platform, farmers can submit production data to the government, informing policy and aiding in the formulation of management and development plans. Additionally, the FAO is supporting the implementation of Buna Africa in Rwanda and Uganda, offering farmers technical support and services to increase production and efficiency. Buna Africa also serves as an entry point for service providers in the aquaculture sector to connect with fish farmers and government services, tracking production data to inform policy and management decisions.
According to MarketsandMarkets The aquafeed market is estimated at USD 67.71 billion in 2026 and is projected to reach USD 97.12 billion by 2031, at a CAGR of 7.5% from 2026 to 2031.The growth of the aqua-feed market is attributed to a growing demand for processed seafood products, further resulting in the growth of the seafood trade.
The thriving aquaculture industry has gradually paved the way for the increase in organized production of seafood products, which is, in turn, boosting the aquaculture industry. According to FAO, the world aquaculture production reached a record 130.9 million tons in 2022, an 8.1-million-ton increase from 2020. With a farm-gate value of USD 312.8 billion, up by USD 34.2 billion, this surge highlights the growing demand for aquafeed, driven by expanded aquaculture operations and increased market value, presenting significant growth opportunities in the aquafeed sector. This included various aquatic animals, such as finfish, crustaceans, and mollusks, as well as aquatic plants like algae. Notably, in 2022, inland aquaculture produced 59.1 million tonnes of aquatic animals, with finfish (89.7%) and crustaceans (8.7%) representing 62.6% of global aquaculture production.
According to the same source, in 2022, the top 10 aquaculture-producing countries accounted for 87.9% of global production, with China leading at 57.8%. India (7.1%), Indonesia (6.9%), and Vietnam (5.2%) followed, contributing significantly to global output. Bangladesh (3.4%), Egypt (2.1%), Norway (1.5%), Chile (1.4%), Myanmar (1.3%), and the Philippines (1.2%) also made notable contributions. These nations dominate the global aquaculture industry, reflecting their critical role in meeting the rising demand for aquatic products.
This rise in aquaculture output can be attributed to several factors. Firstly, the growing global demand for seafood has put pressure on traditional fishing practices, leading to the exploration of alternative means to meet consumer needs. Aquaculture has emerged as a viable solution to supplement wild-caught fish and shellfish, ensuring a sustainable supply of seafood. Furthermore, technological advancements have played a crucial role in boosting aquaculture production. Innovations in fish feed formulations, water quality management systems, and disease prevention strategies have led to improved efficiency and increased yields. Moreover, the Activ development of genetically improved fish breeds has enhanced growth rates and disease resistance, further contributing to the expansion Go to of the industry.
GLOBAL TRADE AND EXPORT OUTLOOK
The trade of fish and aquaculture products plays an integral role in boosting fish consumption and achieving a global market for aquaculture products by connecting various international suppliers and manufacturers. Fish and fishery products are a part of one of the most traded sectors of the global food sector. The trade of these products has increased significantly in recent years, driven by the rise in fishery production and high demand, with the fisheries growing due to a progressively globalized environment. The significant growth in fisheries and aquaculture production has resulted in the increased consumption of diversified as well as nutritious food.
According to the OECD-FAO Agricultural Outlook 2021-2030, aquaculture will play a significant role in the growth of the international fish trade, particularly with high-value species like salmon, seabass, seabream, shrimp, prawns, as well as lower-value species such as tilapia, catfish, and carps. By 2030, world exports of food fish are expected to reach 44 million metric tons (live weight equivalent), excluding intra-EU trade, representing a rise of 5.3% over the next decade.
Asian countries, which are key players in fishery production, will account for 47% of global food fish exports by 2030. While Asia will still contribute to export growth, the major increase is expected to come particularly from countries such as Russia and Chile, with projected growth rates of 33% and 40%, respectively. China, despite experiencing slower growth in food and fish exports, will remain the leading global exporter, representing 18% of world trade by 2030. Vietnam is anticipated to have the largest growth in fish exports, accounting for 47% of the additional export volume. However, lower exports from India and Indonesia may offset this growth.
According to the OECD-FAO Agricultural Outlook 2021-2030, considering other fishery products, exports of fish meal are expected to increase by 8.6% by 2030, with developing countries being the main exporters and importers. Peru will remain the leading exporter of fish meal, followed by the EU, the US, and Thailand. China will continue to be the largest fish meal importer with 51% share of world fish meal imports by 2030, satisfying the needs of its aquaculture and pig industries. Fish oil exports are projected to increase by 5.2% between 2020 and 2030, with Peru and the EU as the main exporters and Norway and the EU as the main importers. Fish oil is primarily utilized as ivat supplementary feed in the salmon industry and as a food supplement for human consumption.
Advancements in seafood processing and transportation technologies have improved the efficiency of the seafood supply chain. Modern processing techniques, such as flash freezing and vacuum packaging, have extended the shelf life of seafood products, ensuring that they retain their freshness, flavor, and nutritional value during transit. These methods reduce spoilage and waste, allowing for a greater volume of seafood to reach markets without degradation in quality. Additionally, the development of specialized cold chain logistics has played a crucial role in maintaining the optimal temperature conditions required for seafood during transportation.
Thus, the aquaculture market is expected to play a crucial role in driving the growth of the global fish and fish products trade, with both high-value and lower-value species contributing to international trade. While Asia will maintain its prominence in fishery production and exports, countries such as Russia and Chile are projected to experience substantial export growth. Developed economies will continue to rely heavily on fish imports, while developing countries, influenced by Asia, will have a relatively lower share of food fish imports.
INCREASE IN CONSUMPTION OF FISH
In recent years, there has been a significant increase in fish consumption worldwide. As people become more health conscious and aware of the nutritional benefits of fish, it has become a popular choice for many individuals and families. One of the main reasons for the rise in fish consumption is the recognition of fish as a rich source of high-quality protein, omega-3 fatty acids, vitamins, and minerals. These nutrients are essential for maintaining a balanced diet and promoting overall well-being. Moreover, fish is often considered a healthier alternative to red meat due to its lower saturated fat content.
Another contributing factor to the increased demand for fish is the growing awareness of the environmental impact of meat production. As concerns about climate change and sustainability rise, more people are opting for fish as an environmentally friendly protein source. Compared to land-based livestock farming, fish farming generally has a lower carbon footprint and requires fewer resources such as land and water. Additionally, advancements in technology and transportation have made fish more accessible to a wider range of consumers. Improved cold chain logistics and efficient global trade networks enable the availability of various fish species throughout the year, regardless of geographical location. This accessibility has opened up new culinary experiences and expanded the choices for seafood lovers.
According to the OECD-FAO Agricultural Outlook 2021-2030, by 2030, it is estimated that 90% of fish production will be consumed as food, while 8% will be reduced into fish meal and fish oil, and the remaining 2% will be utilized for other non-food purposes. Fish will continue to be a crucial source of protein, fatty acids, and micronutrients, playing a vital role in global diets and food security, particularly for coastal and inland communities heavily reliant on fish as a dietary staple. Apart from food consumption, fish also find applications in various non-food sectors such as ornamental fish trade, culturing, bait, pharmaceutical inputs, and as direct feed for aquaculture, livestock, and other animals. At a global level, food fish consumption is projected to rise by 14.8%, equivalent to an additional 23 million tons, reaching a total of 181 million tons by 2030. This growth will be observed across all continents, although significant variations exist between and within countries regarding the quantity and types of fish consumed per capita. These differences can be attributed to factors such as price, accessibility, income levels, and consumer preferences.
FUNCTIONAL ADDITIVES AND FEED INNOVATION
The usage of functional additives will create a significant impact in the aquafeed industry, as this is expected to overcome critical challenges related to fish health, sustainability, and feed efficiency. Various challenges related to aquatic animal health, such as disease outbreaks and poor immunity, are common in the aquaculture segment, which leads to significant economic losses. Functional additives such as prebiotics, probiotics, immunostimulants, and yeast extracts are being used to enhance the immune response and boost the gut health of the aquatic species. For instance, beta-glucan and yeast extracts are used to stimulate disease resistance and reduce the intake of antibiotics. Furthermore, there is a significant challenge in inefficient feed utilization which leads to higher feed cost and causes environmental wastage. Thus, the usage of additives such as enzymes and amino acids helps in the breakdown of complex feed components, improves nutrient digestibility and bioavailability, and optimizes energy utilization. This will result in a reduction in feed conversion ratios, lowering feed production costs and minimizing nutrient wastage.
Additionally, stress is one of the key factors that affect fish health and productivity due to changes in environment and transportation & handling. Thus, antioxidants such as vitamins and anti-stress compounds are used as functional additives to reduce oxidative stress in aquatic animals. It also helps in reducing mortality rates and enhances animal welfare and productivity.
POLICY AND GOVERNMENT SUPPORT
The aquaculture industry is growing due to the various initiatives taken by the governments of the respective countries globally. In India, the Ministry of Agriculture is responsible for the planning, monitoring, and funding of centrally sponsored developmental schemes related to fisheries and aquaculture in all Indian states. It provides an opportunity for the aquaculture industry of India to focus on enhancing the aquaculture sector in the country.
Governments promote aquaculture through education and capacity-building initiatives. They offer training programs and workshops to enhance the skills and knowledge of aquaculture farmers, enabling them to adopt best practices and improve productivity. Governments also facilitate the exchange of information and knowledge sharing among industry stakeholders, promoting innovation and collaboration. For instance, The European Union (EU) and the Food and Agriculture Organization (FAO) have been providing support to the Georgian government in the development of the National Aquaculture Development Strategy. The workshop aimed to initiate discussions among various stakeholders involved in aquaculture in Georgia, focusing on extensive aquaculture, mariculture, and fish farming. The objective was to support the formulation of the National Aquaculture Development Strategy of Georgia.
The European Commission has taken significant steps to promote the sustainable and competitive development of the aquaculture sector within the European Union (EU) through its strategic guidelines for the period 2021-2030. These guidelines provide a common vision for EU countries, the aquaculture sector, and other stakeholders, aligning with the European Green Deal and the Farm to Fork Strategy. EU countries have reviewed their national strategic plans for aquaculture to ensure they are in line with the shared vision outlined by the Commission. This collaborative approach ensures that the sector’s development contributes directly to the broader environmental and sustainability objectives of the EU. To support the sustainable growth of the aquaculture sector, the European Maritime, Fisheries and Aquaculture Fund (EMFAF) provide specific financial support. Each EU country has the autonomy to allocate the funds according to its own national strategic plan as long as it aligns with the overarching goals of sustainable aquaculture development. By integrating strategic Tivat guidelines, financial support, and research initiatives, the EU aims to foster the sustainable development of the aquaculture sector, ensuring that it aligns with the EU’s broader environmental and sustainability objectives.
ALTERNATIVE PROTEINS AND TECHNOLOGY INTEGRATION
According to the International Fish meal and Fish Oil Organization (IFFO), the growing usage of fish meal and fish oil results in increased fishing pressure on wild feed fish stocks. Thus, there is a growing need to develop alternative ingredients as a source of protein. Also, with the growing consumer preference for food that has minimal impact on the environment, many companies are investing in developing novel products. For instance, BioMar (Denmark) conducted a test to see the effect of insect meal in aquafeed and obtained promising results. Thus, insect meals would have a future as an alternative source of protein in aquaculture feed.
In June 2022, dsm-firmenich (Switzerland) acquired Brazil’s leading animal nutrition technology company, significantly advancing the development of innovative protein sources by enhancing precision nutrition and technological integration in animal farming, Prodap’s advanced digital solutions and expertise in real-time data collection and tailored nutritional strategies will bolster DSM’s existing precision nutrition systems. This integration supports DSM’s goal to advance sustainable practices in aquaculture by providing more precise and personalized feed solutions, ultimately contributing to better growth rates and feed conversion ratios in aquaculture species.
Integration of technology in feed formulation is expected to create a significant opportunity in the aquafeed industry. Sensors and IoT devices are used for predictive analytics, which collects real-time data on fish and shrimp feeding habits, water quality, and environmental conditions. It also ensures that feed is formulated to align with species’ consumption patterns and health needs. This helps the manufacturers to design the feed that adjusts the level of nutrient content in the feed formulation based on seasonal or environmental changes, and hence, enhances farms’ profitability. Additionally, the usage of artificial intelligence (AI) helps in the identification of behavioral changes in fish during feeding. This is used to observe the fish’s movement and analyze the behavior and helps to decide when to stop feeding or change the feeding rates according to the fish’s appetites, ensuring optimum utilization of feed.
Moreover, advanced coating techniques are used in aquafeed to protect sensitive nutrients such as vitamins, probiotics, and enzymes. This helps in creating a premium quality feed that minimizes nutrient leaching, reduces environmental impact, and improves aquatic health. For instance, environment-friendly pellet binders are formulated especially for the aquafeed industry to replace synthetic binders like PMC/urea formaldehyde without compromising on water stability. The major challenge for shrimp feed producers is to reach the desired conditioning temperature, which is essential to fully utilize the binding properties of the natural components. Thus, the usage of environmentally friendly pellet binder benefits in optimizing water stability, helps in producing pellets at higher temperatures, a low inclusion rate, cost-effective, and sustainable alternative to PMC/synthetic binders.