SINKING FISH FEED MARKET ANALYSIS

Global sinking fish feed market is expected to be valued at US$ 10.76 Bn in 2023, and is expected to reach US$ 14.65Bn by 2030, exhibiting a compound annual growth rate (CAGR) of 4.5% from 2023 to 2030.

Global sinking fish feed market has experienced significant growth in recent years due to expansion of the aquaculture industry. As global demand for seafood increases, aquaculture has become an increasingly important source of fish and other aquatic products. Sinking fish feed plays a crucial role in the development and growth of farmed fish, and provides necessary nutrients for optimal health and productivity.

Several factors contribute to growth of the global sinking fish feed market. Increasing population and rising incomes leads to higher consumption of fish and seafood products, and thus, boosting demand for aquaculture. Advancements in aquaculture technology and research have led to improved feed formulations, enhancing the nutritional value and performance of sinking fish feeds. 

Global Sinking Fish Feed Market- Regional Insights

• Asia Pacific: Asia Pacific region is the largest market for sinking fish feed, accounted for 40% of the market share in 2022. The Asia Pacific region dominates the sinking fish feed market due to significant aquaculture production in countries like China, India, Vietnam, and Indonesia. These countries have substantial fish farming industries and a high demand for sinking fish feed due to their large populations and growing seafood consumption. The region's strong aquaculture infrastructure, favorable climatic conditions, and government support for the sector contribute to its market leadership.
• Europe: The European market for sinking fish feed is the third largest, accounted for over 19% of the global market. Europe is another important market for sinking fish feed. Countries like Norway, the U.K., Spain, and Greece have thriving aquaculture industries, and a high demand for fish feed. The European market emphasizes sustainability and environmentally responsible practices, leading to a growing interest in alternative protein sources and reducing the reliance on fishmeal and fish oil in feed formulations.
• North America: North America market for sinking fish feed is the second largest, accounted for over 24% of the global market. In North America, the sinking fish feed market is primarily driven by the U.S. and Canada. The region has a well-established aquaculture sector, particularly for species like catfish, trout, and salmon. Increasing consumer awareness about health benefits associated with seafood consumption, as well as the need for sustainable food production contribute to demand for high-quality sinking fish feed.

Figure 1. Global Sinking Fish Feed Market Share (%), By Region, 2022

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Global Sinking Fish Feed Market- Drivers

• Increasing global demand for seafood: Rising global population and growing awareness about the nutritional benefits of seafood had led to increase in seafood consumption. As a result, there is growing demand for aquaculture products, and this boosts the need for sinking fish feed to support the growth and development of farmed fish. For instance, in June 2021, according to the World Bank, fish consumption in developing countries like India, China, South Africa etc. was increased by 57%, from 62.7 metric tons in 1997 to 98.6 metric tons in 2020.
• Expansion of the aquaculture industry: Aquaculture has become an essential source of fish and seafood to meet the increasing demand. The aquaculture industry has been expanding rapidly due to factors such as declining wild fish stocks, favorable government policies, advancements in aquaculture technology, and improved farming practices. This expansion fuels demand for sinking fish feed as a critical input for fish farming operations. For instance, in November 2022, according to India Brand Equity Foundation (IBEF), during 2021-22, India exported marine products of quantity 1.36 million MT.
• Technological advancements in feed formulations: Ongoing research and development efforts have led to advancements in feed formulations, resulting in improved sinking fish feed products. Manufacturers are incorporating a wide range of ingredients to enhance the nutritional composition of the feed and improve fish health, growth rates, and feed conversion efficiency. These technological advancements drive the market growth by providing farmers with high-quality feed options.
• Environmental sustainability: Environmental concerns are increasingly important in the aquaculture industry. To address sustainability issues, feed manufacturers are focusing on developing eco-friendly feed alternatives. This includes reducing the reliance on fishmeal and fish oil derived from wild-caught fish by incorporating alternative protein sources such as plant-based proteins, insects, and microbial proteins. Sustainable feed practices not only help to protect the marine ecosystem but also improve the overall image and marketability of farmed fish products.

Global Sinking Fish Feed Market- Opportunities

• Emerging markets: There are emerging economies with significant potential for aquaculture and the sinking fish feed market. Countries in Africa, Asia Pacific, and Latin America, with their large populations and growing middle-class segments, offer opportunities for market expansion. As these regions experience economic growth, the demand for fish and seafood products increases, creating opportunities for feed manufacturers to cater to the growing aquaculture industries in these markets. For instance, on 13th October 2023, according to International Monetary Fund, stated growth in Asia Pacific to accelerate from 3.9% in 2022 to 4.6% in 2023.
• Customized feed solutions: Developing specialized and customized sinking fish feed formulations for specific fish species presents an opportunity for feed manufacturers. Different species have varying nutritional requirements at different stages of growth. By providing tailored feed solutions, manufacturers can optimize fish health, growth rates, and feed conversion efficiency. This customization can lead to increased customer satisfaction and loyalty. Moreover, in November 2021, Ridley, an animal feed company in Australia, launched the world’s first fish-free feed for shrimps under the Ridley Propel Range of shrimp diets.
• Sustainable and alternative feed ingredients: The growing emphasis on sustainability in the aquaculture industry presents an opportunity to explore alternative feed ingredients. Manufacturers can focus on incorporating sustainable protein sources such as plant-based proteins, algae, and insect-based proteins as substitutes for fishmeal and fish oil. Research and innovation in feed formulations can help to reduce the environmental impact of aquaculture while maintaining fish health and performance.
• Nutraceutical and functional feeds: The rising consumer demand for healthy and functional foods presents an opportunity to develop sinking fish feeds with added nutritional and health benefits. Nutraceutical feeds can contain ingredients that enhance fish immunity, promote growth, and improve product quality. Functional feeds can be formulated to address specific health issues or improve fish performance under challenging environmental conditions. Expanding into the nutraceutical and functional feed segment can differentiate manufacturers and capture niche markets.

Global Sinking Fish Feed Market- Trends

• Increasing demand for alternative protein sources: There is a growing focus on reducing the reliance on fishmeal and fish oil in sinking fish feed formulations due to sustainability concerns, as the production of fishmeal and fish oil often involves wild-caught fish, contributing to overfishing and ecosystem disruption. Feed manufacturers are exploring alternative protein sources such as plant-based proteins, insect proteins, single-cell proteins, and microbial-based proteins. These alternative protein sources offer nutritional value while reducing the environmental impact of feed production. In August 2020, Milkfish Aquafeeds Research, Development, and Extension Project (RDEP) were introduced in Guiuan, Philippines. The REDP project was launched to develop new substitutes for ingredients of fish aquafeed.
• Sustainable feed formulations: Environmental sustainability is a significant trend in the sinking fish feed market. Feed manufacturers are adopting sustainable practices by optimizing feed conversion ratios, minimizing waste, and reducing the carbon footprint of feed production. This includes sourcing ingredients from responsibly managed fisheries and using byproducts from other industries, such as agricultural and food processing, to reduce waste. Sustainable feed formulations not only address environmental concerns but also meet the demand from consumers and retailers for sustainable seafood products.
• Health-focused feed formulations: Consumer awareness about health benefits associated with seafood consumption is increasing, and leads to demand for healthier and more nutritious fish products. Feed manufacturers are developing sinking fish feeds that incorporate functional ingredients and additives to enhance fish health, immunity, and product quality. These feeds may contain probiotics, prebiotics, antioxidants, and specific nutrients that promote disease resistance, growth, and product attributes such as color and texture.
• Precision feeding and monitoring: Precision feeding technologies are gaining traction in the aquaculture industry, including the sinking fish feed segment. These technologies involve real-time monitoring of fish behavior, appetite, and growth parameters to optimize feed delivery and minimize waste. Automated feeding systems, sensors, and data analytics enable farmers to provide the right amount of feed at the right time, improving feed efficiency and reducing environmental impact.

Global Sinking Fish Feed Market- Restraints

• Volatility of raw material prices: The sinking fish feed market is influenced by the availability and prices of raw materials used in feed production such as fishmeal, fish oil, grains, and other protein sources. Fluctuations in the prices of these raw materials can impact the cost of feed production and profitability for manufacturers. Price volatility can be caused by factors such as weather conditions, global supply and demand dynamics, and geopolitical events, making it challenging for feed manufacturers to maintain stable pricing and margins. For instance, in 2022, according to the Food and Agriculture Organization, global fishmeal trade reached 3.67 million tons in 2021, an increase of 384,000 metric tons in 2020.
• Environmental regulations and restrictions: The aquaculture industry, including the sinking fish feed market, is subject to various environmental regulations aimed at reducing its ecological impact. These regulations may include restrictions on the use of certain ingredients, such as fishmeal and fish oil derived from wild-caught fish, to ensure sustainable sourcing practices. Compliance with environmental regulations can increase production costs and require feed manufacturers to develop alternative feed formulations, which may affect product availability and pricing.
• Limited availability of alternative protein sources: While there is a growing interest in alternative protein sources for sinking fish feed, their availability and scalability can be a challenge. Developing and sourcing alternative protein ingredients at a large scale to meet the demand of the aquaculture industry can be complex and costly. Scaling up production of alternative protein sources, such as insect or microbial proteins, may require significant investment in infrastructure and technology.
• Counterbalance: Key players should develop new and innovative fish feed products that cater to the specific needs of different fish species. This could include feeds with different nutritional profiles, organic feeds, or feeds designed to enhance the growth and health of specific fish species.

Global Sinking Fish Feed Market – COVID-19 Impact

The COVID-19 pandemic has had a negative impact on the sinking fish feed market, leading to a downturn in the industry. The pandemic has caused disruptions in the supply chain of fish feed ingredients. Restrictions on transportation and labor shortages have made it difficult for manufacturers to source the necessary ingredients, leading to a decrease in production. With lockdowns and social distancing measures in place, many restaurants and hotels have been closed or operating at reduced capacity. This led to decrease in demand for fish, and consequently, a decrease in demand for fish feed.

Global Sinking Fish Feed Market- Analyst Viewpoint

• Global sinking fish feed market is experiencing difficult times globally as rising input costs are squeezing profit margins of feed producers. Grain prices has increased sharply due to geopolitical issues and supply chain disruptions post-pandemic. Corn and soybean meal, which form the bulk of raw materials in fish feed production have seen their prices increase by over 20% year-on-year. This has reduced the demand for fish feed as customers look for cheaper cost.
• Another challenge is gaining popularity of alternative protein sources. Products containing insects are becoming a viable replacement for fishmeal in certain feed formulations and have lower price points. Regions like Asia Pacific and South America have embraced such innovations more readily. Sustainability regulations in the EU are also driving a shift towards plant-based and insect-based options as compared to conventional fishmeal-heavy diets.
• While North America and Europe grapple with input cost pressures, growth remains resilient in Southeast Asia supported by initiatives to boost aquaculture. Countries like Vietnam and Indonesia are prioritizing development of fisheries and fish farming infrastructure to bolster local production and exports. Favorable policies and cheaper labor in these nations relatively insulate feed producers from global commodity volatility.

Global Sinking Fish Feed Market - Recent Developments

New product launches

• In 2020, Aller Aqua A/S, a feed manufacturer in Denmark, developed a new line of aquafeed with functional properties that include crucial ingredients which enhance survival and promote growth of a range of species of fish
• In October 2022, ADM, a leader in global nutrition, launched AquaTrax, a new in-fee product for aquaculture species. ADM leverages novel yeast feed additive to support better outcomes in aquaculture.
• In October 2020, BluGlacier, a sustainable salmon producer, launched its first direct-to-customer brand, OSHÄ’N that offer premium fresh and frozen Chilean salmon in eco-friendly packaging to customers across the U.S.

Acquisition and partnerships

• In January 2022, Nutreco, a leading animal nutrition company, partnered with Unga Group PLC, a Kenya-based holding company, to form two joint ventures in East Africa to provide high-quality protein in the region. Both ventures are named Tunga Nutrition, and are aimed at growing aquaculture and animal markets.
• In August 2021, Skretting Australia, a manufacturer and supplier of aquaculture feeds, completed the acquisition of a Ridley’s, family-owned chain of grocery stores, extrusion facility in Westbury, Tasmania. This acquisition will help Nutreco’s aquaculture division- Skretting to expand its production capacity in the southern island state of Australia.
• In December 2020, Nutreco, a leading animal nutrition company, partnered with Nordic Aqua Partners, a Denmark-based Atlantic salmon farming company, through an investment of over US$ 60 million to build the first large-scale RAS (Recirculating Aquaculture System) facility in China. The collaboration will allow Nutreco to further integrate farming and feed solutions toward optimal fish performance and will help further develop this highly sustainable form of aquaculture.

Figure 2. Global Sinking Fish Feed Market Share (%), By Nutrient Content, 2023

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Top companies in Global Sinking Fish Feed Market

• Cargill Aqua Nutrition
• Skretting (Nutreco)
• Biomar
• Alltech
• Ridley Corporation Limited
• CP Group
• Charoen Pokphand Foods (CPF)
• Nutriad International
• BioMar Group
• Nutra Blend LLC
• Guangdong Haid Group Co., Ltd.
• Tongwei Group
• Avanti Feeds Limited
• Nutrivet
• BRF S.A.

*Definition: Sinking fish feed refers to a specialized type of feed designed to sink in water and cater to the nutritional needs of fish species that primarily feed near the bottom of the water column. It provides essential nutrients for the growth, health, and development of farmed fish, supporting the aquaculture industry's goal of producing sustainable and high-quality seafood products.