Functional Aquafeeds Market

Functional Aquafeeds Market Outlook (2024 to 2034)

The global functional aquafeeds market will be valued at US$ 52.1 billion by 2024 end and has been forecasted to expand at a noteworthy CAGR of 6.8 % to end up at US$ 100.6 billion by 2034. Crustacean Species will be worth around US$ 20.6 billion in 2024 and account for a 39.6% share of the global market.

The market for functional aquafeeds has developed into an important constituent of the aquaculture segment due in large part to the increasing consumption of fish and fishery products worldwide. Asymmetric aquaculture feeds are meant to facilitate the well-being, growth, and general performance of aquatic organisms, well above the mere provision of nutrients. Functional aquafeeds have the addition of different bioactive probiotics, prebiotics, essential oils, and immunostimulants, which among other advantages help improve feed conversion, disease prevention, and product quality.

The increasing use of functional aquafeeds is attributed to several causes, including the growth of intensive aquaculture, increased awareness of fish health and welfare, and the need to provide solutions for aquaculture sustainability.

Given that true fisheries have been over-harvested, aquaculture continues to be the only hope in satisfying the ever-increasing need for seafood thereby raising the need for better and faster feeding mechanisms. The changing tastes of consumers towards high-quality and value-added seafood products have also propelled the use of functional aquafeeds.

Report Attributes	Details
Functional Aquafeeds Market Size (2023A)	US$ 48.8 Billion
Estimated Market Value (2024E)	US$ 52.1 Billion
Forecasted Market Value (2034F)	US$ 100.6 Billion
Global Market Growth Rate (2024-2034)	6.8% CAGR
East Asia Market Share (2024)	23.1%
United States Market Growth Rate (2024-2034)	7.2% CAGR
Key Companies Profiled	Cargill; Charoen Pokphand Foods PCL; BioMar Group; Ridley Corporation Limited; Aller Aqua; Biostadt India Limited; BENEO; Alltech; INVE Aquaculture; AKER BIO MARINE; Skretting; Purina Animal Nutrition LLC; Dibaq Aquaculture; Avanti Feeds Limited; The Waterbase Limited; Other Prominent Players

Sales Analysis of Functional Aquafeeds (2019 to 2023) vs. Market Forecasts (2024 to 2034)

The value of the functional aquafeeds market was US$ 36.8 billion in 2019 and it will increase to US$ 48.8 billion by 2023, expanding at a CAGR of 5.8%

• Short Term (2024 to 2028): Between the years 2024 and 2028, the functional aquafeeds market, especially, is expected to grow remarkably owing to the increasing demand for specialized nutritional products for various species. With the increase in aquaculture, the farmers are turning toward feeds that support the health and yield of specific fishes and crustaceans. This situation is likely to lead to the development of functional feeds that are very specific to different aquatic animals at various stages of growth. Additionally, the market may also benefit from an increased number of countries that enclose innovations directed at improving feed conversion efficiency as well as diseases resistant products in salmon, shrimp, and sea bass that are high earning industries.
• Medium Term (2028 to 2030): Between the years 2028 and 2030, the market for functional aquafeeds may see a rise in demand at this time for aquafeeds that boost the nutritional content of fish raised for human consumption. It is anticipated that as customers become more aware of the health advantages of omega-3 fatty acids and other nutrients found in fish, there will be a greater focus on functional feeds that can increase these beneficial components in aquacultured fish. As a result, this could lead to the development of novel feed ingredients and formulations that aim to produce fish with better nutritional quality to raise the aquaculture products' market value.
• Long Term (2030 to 2034): During the period from 2030 to 2034, A shift in the application of bioactive chemicals to exploitable marine resources can be used to assess functional feed trends in aquaculture systems. The market should shift to other sources of functional ingredients as fishmeal and fish oil supplies become more scarce. This could entail using feed that has components from fish waste, seaweed, and sea animals as well as bioactive peptides and polysaccharides. The improved immune response, enhanced digestion, or enhanced stress adaptations in aquacultured organisms are only a few possible uses for these novel compounds.

On the back of the aforementioned facts, the functional aquafeeds market is anticipated to grow at a CAGR of 6.8% during the forecast period from 2024-2034, according to the Fact.MR, a market research and competitive intelligence provider.

Market Dynamics

What are the factors propelling global sales of functional aquafeeds?

“Increase in Demand for Premium Products Propelling Functional Aqua feed Market”

The functional aquafeed market is experiencing positive growth due to the increasing preference of consumers towards high-end products. For instance, there is an increased concern about health among the people, and they are ready to pay more for seafood products with higher nutritional content and quality.

This trend, in turn, has an impact on the aquaculture value chain, where even fish farmers are looking for functional aquafeeds that can enhance the protein, quality, and even the look of the fish and shellfish. These high-end feeds tend to include other additives such as various proteins, omega 3 and 6 fatty acids, vitamins, and minerals that help to improve growth rate, strengthen immunity to diseases, and maintain good health of aquatic organisms.

Furthermore, this also leads to a change in the food consumption trends towards organic and sustainably sourced seafood, thus increasing the need for functional aquafeeds that comply with strict organic certification. Hence, aquafeed producers are putting more resources into research and development to come up with advanced products to meet the demands of this high-end aquaculture sector. Notably, this strategy of targeting aquafeed investors with functional premium feeds is not only going to farmers increase margins but also meet consumer demand for healthier and environmentally friendly aquaculture products.

“Growing consumer preference for minimally processed, additive-free products.”

The market for functional aquafeed has grown significantly over the past few years, driven by consumers' growing need for simple packaging. Aquafeed products are now packaged and used differently, both for commercial and recreational purposes. As a result of the trends, producers are now producing easily handled packs that ensure the quality of the aquafeed packed for an extended period and ease of dosing.

Single-serve cups, frozen pouches, and containers with integrated measurement devices, for instance, are becoming more popular. Not only have these management innovations simplified feed management for aquaculture experts, but they have also attracted home aquarium owners who favor simple feeding aids.

Automated feeding systems exhibit the greatest degree of ease since uniformly packaged meals facilitate uniform distribution. Additionally, product development and customer happiness are enhanced by packaging designs that include QR codes that offer feeding instructions and nutritional content information, respectively. Convenience packaging is not just about marketing; it also serves the demands of different consumer groups, such as self-serve fish tank operators and industrial fish farmers, which promotes the use of functional aquafeeds.

What are the challenges encountered by making functional aquafeeds?

“Addressing species-specific nutritional requirements while maintaining cost-effectiveness in feed formulations for diverse aquaculture”

The global market for more advanced and high-quality functional aquafeeds is steadily escalating due to the growing inclination towards aquaculture with enhanced nutritional value. However, while addressing species-specific nutritional aspects of fish health, growth, and immunity is vital, it is quite difficult to do so in a cost-effective manner in the feed formulations. This is in the sense that every species of fish has its own specific nutrient requirements, hence the need for accurate protein, lipid, and micro-nutrient formulation.

These compositions, however, need to be tailored in a precise manner that does not compromise on the cost, in order for them to be oriented for business purposes. The addition of functional antibiotics like probiotics, prebiotics, and enzymes has made aquafeeds more interesting since they have improved the digestion and disease resistance of the fish. Feed is the other element in enhancing aquaculture production as it has been researched that new feed development enhances the sustainability of aquaculture by making sure that all species farmed are given the right amount of nutrition at the lowest possible cost.

Country-wise Insights

How is the North America functional Aqua feed Market Shaping?

“United States aquafeeds increasingly target parasite control, particularly for salmon farming”

The market in the United States is estimated at US$ 5.5 billion in 2024 and is projected to expand at a CAGR of 7.2% through 2034. This market is projected to generate a US$ 11.1 billion absolute opportunity from 2024 to 2034.

The United States functional aquafeed market is focusing on parasite management as a result of parasites being a major problem in salmon production. For example, fish health and so fish farming productivity would be impacted by sea lice. In this context, parasite-specific aquafeeds which include non-traditional antibiotics like garlic, algae, essential oils, and the like have become more popular.

These feeds also strengthen fish immune systems. Additionally, these feeds lessen the requirement for chemical application, which is in line with sustainable aquaculture principles. Furthermore, it is projected that demand for these functional meals would rise in tandem with salmon aquaculture, particularly in Alaska and Washington.

Therefore, the inclusion of parasite reductive elements in aquafeeds improves the welfare of the fish but also the overall returns and profits of the fish farmers.

What is the Asia Pacific Outlook of the functional Aqua feed Market?

“The growth of salmon farming in countries like Japan and China fuels functional aqua feed demand”

The increasing adoption of salmon farming in Japan, china, and other countries is a major factor prompting the need for functional aquafeeds. Since salmon is a high-value fish, these two countries are optimistic about aquaculture advancements considering the insatiable market craving for high-quality seafood products. Thus, functional aquafeeds consider probiotics, immune system boosters as well as parasite management which will aid in fish farming by boosting growth rates and high-quality produce as well as fish health.

As the scale of salmon farming activities increases, these specialized feeds are also being adopted by the producers to enhance fish welfare as well as control disease and its effects on the environment. The other conclusion is that the shift towards green and sustainable feeds will necessitate the need for such sophisticated feeds even more. This trend will probably go on with functional aquafeeds being very important in making the salmon farming business more profitable and efficient in the Asia Pacific region.

Category-wise Insights

How does Amino Acid Dominate the Segment in the Functional Aquafeed Market?

“Amino acids enhance feed digestibility, improving nutrient absorption in aquaculture species”

Amino acids serve an important function in promoting the digestibility of functional aquafeeds which in turn improves the absorption of nutrients in aquaculture species. The need for such strategies can be explained by the fact that one of the roles of amino acids is to assist fish in the digestion of food by breaking down proteins so that it becomes easier for fish to consume nutrients present within food. This leads to increased growth efficiency, a healthier population, and a higher feed conversion rate which is crucial to farmer who seeks cost-effectiveness in production.

Better nutrient assimilation means reduced feed and hence less waste enters the aquatic system helping to mitigate adverse effects of such operations on the environment by curtailing excess nutrient inflow into water bodies. In addition, the addition of amino acids in the diet helps to alleviate the effects of imbalance which ensures that the dietary requirements of the fish species are met without failure. Hence the essential economic and ecological advantages of incorporation of amino acids in functional aqua-feed compositions make it indispensable in current fish culture.

“Rising demand for health supplements, protein, and omega-3 fatty acids.”

As distinct fish species have varying needs in terms of growth and health, unique functional feeds are needed. No matter the species tilapia, carp, or salmon each has different needs that go beyond the fish's size and age.

For example, different environments have different requirements for freshwater and saltwater. Feeds that contain an additive or additives, such as protein, vitamins, and minerals, with the intention of meeting the specific requirements of the fish in the target population are recognized as custom functional feeds. Such actions are recognized for strengthening patient health, reducing illness, and raising aquaculture productivity in addition to boosting the quality of fish feeding.

Additionally, by improving the minerals' bioavailability and digestibility, these feeds can lessen waste production and their negative effects on the environment. Thus, the demand for functional feeds tailored to species will grow as commercial fish farming expands across borders at a faster pace. This highlights the necessity for creative feed formulation in sustainable aquaculture to adjust to the shifting dynamics and capture the many fish species and their distinctive characteristics.

What is driving the increased demand for functional aquafeed powder form in the global nutraceuticals market?

“The rapid expansion of aquaculture operations worldwide necessitates the use of functional aquafeeds”

The global rise of aquaculture practices has been a major factor propelling the use of functional aquafeeds, which are designed to improve the growth and health of aquatic species. In other words, growing consumption of seafood requires that aquaculture systems be effective in providing the supply.

Functional aquafeeds equip the farmed fish cost regime, which is advanced in nature and comprises added advantages like probiotics, prebiotics, and immunostimulants among others that help in proper and faster growth, better feed conversion efficiency and enhance the fish and shells grown resistance to diseases. Also, better feed formulations are also called for by the changing aquaculture practices and the desire for more sustainable practices.

Most importantly, the availability of non-fish protein such as processing plant and pond insects for fish and shrimp feed, and substitutional fishing ingredients for a fish meal helps prevent overfishing and resource exhaustion. In the process of development of the aquaculture business, the refined science of feed activation for separate nutrient components for all species is introduced. That not only improves the performance of aquaculture farms but also corresponds to the customers` demand for responsibly caught fish.

Competitive Landscape & Market Developments

Market players in the functional aquafeeds market are Cargill., Charoen Pokphand Foods PCL, Bio Mar Group, Ridley Corporation Limited, Aller Aqua, Biostadt India Limited, BENEO, Alltech, INVE Aquaculture., AKER BIO MARINE, Purina Animal Nutrition LLC, Dibaq Aquaculture, Avanti Feeds Limited, The Waterbase Limited and other market players.

• Cargill: In Jan 2023, Cargill divulged that the capacities of its aquafeed production facilities in Southeast Asia will be increased, taking into consideration the environmental sustainability and innovative strategies to meet the market demands.
• Charoen Pokphand Foods PCL: In Feb 2023, Charoen Pokphand Foods PCL introduced a new range of functional aquafeeds designed to boost the health and growth of shrimps, reinforcing their dedication to providing sustainable solutions in aquaculture.
• BENEO: By Aug 2023, BENEO is introducing a new relationship with several top aquaculture companies focusing on the development of cutting-edge feed components with the goal of improving sustainability and aquafeed nutrition.

Fact.MR has provided detailed information about the price points of key manufacturers of functional aquafeeds positioned across regions, sales growth, production capacity, and speculative technological expansion, in the recently published report.

Segmentation of Functional Aquafeeds Market Research

• By Species :

  • Crustaceans
  • Fish
  • Others

• By Form :

  • Extruded
  • Powder
  • Liquid
  • Pellets

• By Application :

  • Health
  • Digestion
  • Palatability
  • Special Nutrition

• By Ingredients :

  • Marine
  • Land Animal
  • Veg/Grain
  • Carotenoid
  • Nutrients
  • Others

• By Sales Channel :

  • Direct Sales
  • Indirect Sales
  • Hypermarket
  • Supermarket
  • Wholesalers
  • Specialty Stores
  • Online
  • Other Retail Formats

• By Region :

  • North America
  • Latin America
  • Western Europe
  • Eastern Europe
  • East Asia
  • South Asia & Pacific
  • Middle East & Africa