Rising demand for protein-rich seafood has led to substantial increase in aquaculture activities worldwide. This has augmented demand for aquafeed products as the quality and balance of nutrients provided through these feeds directly impact the health and sustainability of fish farms. Adoption of compound aquafeed helps standardize the diet, avoids deficiencies, optimizes feed conversion and improves yields.
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 2031, as highlighted in a new report published by Coherent Market Insights.
Market Opportunity:
Reducing production costs presents a major market opportunity. Inclusion of alternative protein sources like insects, algae and plant-based feed ingredients in aquafeed formulation can help lower costs substantially. These novel ingredients are more sustainable and provide essential nutrients for aquatic animals. Their utilization at scale can drive down aquafeed prices, making operations profitable even at lower sales volumes. This encourages expansion of aquaculture into new geographies and species. It also promotes the adoption of commercial feed over homemade formulations. Stable supply of competitively priced aquafeed will accelerate the growth of the global market over the forecast period.
Porter’s Analysis
Threat of new entrants: The aquafeed market requires high capital investment for infrastructure facilities and equipment. Also, established players have strong distribution networks. These factors deter new players from entering the market easily.
Bargaining power of buyers: Buyers have moderate bargaining power as there are numerous regional and global players offering varied aquafeed products. However, buyers don’t have substitutes for aquafeed.
Bargaining power of suppliers: Raw material suppliers have moderate bargaining power due to availability of substitutes and less differentiation in materials.
Threat of new substitutes: There are limited substitutes for aquafeed as it is crucial for livestock animals.
Competitive rivalry: Intense due to presence of many regional and global established players. Companies compete on the basis of quality, pricing, product innovation and expansion to new regions.
SWOT Analysis
Strength: High demand for aquaculture products and aquafeed. Large networks established players.
Weakness: Vulnerable to fluctuations in raw material prices. Require high capital investments.
Opportunity: Emerging markets like Asia Pacific and Latin America yet to be tapped fully. Product innovation to provide customized solutions.
Threats: Stringent regulations pertaining to aquafeed quality and animal welfare. Climate change impacting aquaculture.
Key Takeaways
The Global Aquafeed Market Size is expected to witness high growth during the forecast period of 2024 to 2031. The market size for 2024 is US$ 71.2 Bn. Fast growing Asian countries like China, India, Vietnam are dominating the market currently due to large consumer base and growth of aquaculture industry.
Regional analysis indicates Asia Pacific to remain the largest as well as fastest growing region during the forecast period. China alone contributes to over 50% of global aquafeed production currently. Other emerging markets in SEA and Latin America are expected to augment further market growth in coming years.
Key players operating in the Aquafeed Market are Oracle Corporation, Microsoft Corporation, Google LLC, IBM Corporation, Salesforce.com Inc. These companies are focusing on expanding into high potential emerging markets through acquisitions and strategic collaborations with regional players. They are also investing in R&D for product innovation and customized solutions.
Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
