by The global Aquafeed Market is estimated to be valued at US$46.8 billion in 2023 and is expected to exhibit a CAGR of 6.8% over the forecast period 2023-2033, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Aquafeed refers to the feed specifically formulated for aquatic animals such as fish, shrimp, and others. It typically includes a combination of proteins, carbohydrates, fats, vitamins, and minerals to provide the necessary nutrition for optimal growth and health of aquatic species. The increasing demand for seafood, driven by shifting consumer preferences and dietary habits, is boosting the growth of the aquaculture industry, thereby propelling the demand for aquafeed. Additionally, the advantages of aquafeed such as improved feed conversion rates, enhanced growth, and disease prevention contribute to its popularity among aquaculture farmers.
Market Key Trends:
A key trend in the Aquafeed Market Size is the growing focus on sustainable and eco-friendly aquafeed production. With increasing concerns about the environmental impact of aquaculture, there is a rising demand for feed formulations that reduce the carbon footprint and minimize the use of finite resources. This trend is driving the development of alternative protein sources, such as plant-based proteins, insects, and single-cell proteins, to replace traditional fishmeal. Manufacturers are also exploring innovative feed additives and supplements to improve feed efficiency, enhance immune function, and optimize growth performance in aquatic species. By adopting sustainable aquafeed solutions, companies can effectively meet the growing demand for seafood while minimizing the environmental impact of aquaculture practices.
Porter’s Analysis
Threat of New Entrants: The threat of new entrants in the Aquafeed market is expected to be moderate. While there are lower barriers to entry in terms of capital investment, new entrants would need to establish strong distribution networks and build relationships with suppliers. Additionally, existing key players have established brand loyalty and economies of scale, making it difficult for new players to compete on pricing.
Bargaining Power of Buyers: The bargaining power of buyers in the Aquafeed market is relatively high. Buyers have the ability to choose from multiple suppliers and have access to abundant information about products and prices. This leads to price sensitivity and increased competition among suppliers. Buyers also have the option to switch suppliers if they are not satisfied with the quality or price of the products.
Bargaining Power of Suppliers: The bargaining power of suppliers in the Aquafeed market is moderate. While there are numerous suppliers in the market, the availability of certain raw materials, such as fishmeal and fish oil, can be limited. This gives suppliers some leverage in negotiating prices and terms of supply agreements. However, the market is characterized by the presence of multiple suppliers, reducing the overall bargaining power of individual suppliers.
Threat of New Substitutes: The threat of new substitutes in the Aquafeed market is low. Aquafeed is specifically formulated to meet the nutritional needs of aquatic animals, and there are limited alternatives available that offer the same level of nutrition and performance. Additionally, the high costs associated with developing and producing substitutes make it unattractive for new entrants to enter the market.
Competitive Rivalry: The competitive rivalry in the Aquafeed market is intense. Key players in the market are continuously investing in research and development to develop innovative formulations and improve product quality. The market is also characterized by frequent partnerships, mergers, and acquisitions to gain a larger market share. This intense competition drives product innovation and benefits consumers by offering a wide variety of high-quality Aquafeed products.
Key Takeaways
The global Aquafeed market is expected to witness high growth, exhibiting a CAGR of 6.8% over the forecast period of 2023-2033. This growth is primarily driven by the increasing demand for seafood products, as well as the growth of aquaculture industry globally. Aquafeed plays a crucial role in ensuring the nutritional requirements of aquatic animals, leading to improved growth, disease resistance, and overall performance.
In terms of regional analysis, Asia Pacific is expected to be the fastest-growing and dominating region in the Aquafeed market. The region has a large and growing population, increasing disposable income, and a strong seafood consumption culture. Moreover, countries like China, India, and Vietnam have witnessed significant growth in aquaculture production, driving the demand for Aquafeed in the region.
Key players operating in the Aquafeed market include Archer-Daniels-Midland Company, Land O’Lakes, Inc., Nutreco N.V., Cargill, Incorporated, De Heus Animal Nutrition BV, Biomin Holding GmbH, Alltech Inc., Sonac Burgum B.V., Zeigler Bros., Inc. (ZBI), BENEO GmbH, Koninklijke DSM N.V., and Nutriad International NV. These companies are actively engaged in product development, expanding their distribution networks, and adopting strategies such as mergers and acquisitions to strengthen their market presence.
Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
