Global Aquaculture Additives Market - 2024-2031

Overview

Global Aquaculture Additives Market reached US$ 10.89 billion in 2023 and is expected to reach US$ 16.10 billion by 2031, growing with a CAGR of 4.94% during the forecast period 2024-2031.

The market for aquaculture additives comprises a wide variety of substances and compounds that are utilized to improve the well-being, development, and yield of farmed shrimp, fish, and other aquatic animals. Through their ability to optimize feed formulations, improve water quality, enhance disease resistance, and advance overall animal welfare, these additives are essential to modern aquaculture operations.

The aquaculture additives market has experienced notable expansion and innovation in tandem with the global aquaculture industry's ongoing expansion to cater to the increasing demand for seafood. In September 2023, based in the UK, BioKind is revolutionizing aquaculture feed additive production with sustainable proteins created through natural fermentation of agricultural waste. This eco-friendly process reduces over-fishing, minimizes carbon emissions, and eliminates toxins.

The salmon segment in aquaculture additives market accounts over 25.54% share. Similarly, North America dominates the aquaculture additives market, capturing the largest market share of over 1/3rd. North American feed and aquaculture companies maintain significant investments in research and development (R&D) projects to create novel technologies and additives for the industry that are suited to the demands of local markets.

Dynamics

Technological Advancements in Aquaculture Additive Formulations and Delivery Systems

Significant growth and innovation are being driven by technological developments in aquaculture additive formulations and delivery technologies in the global aquaculture additives market. To maximize the effectiveness, safety, and sustainability of aquaculture additives, a variety of developments have been made, such as new ingredient compositions, better delivery systems, and improved production techniques.

The aquaculture additives market is experiencing a revolutionary impact from technology, as seen by recent figures from government organizations and industry studies. This impact is propelling market expansion and driving industry competition. As industry stakeholders continue to invest in research and development, collaboration, and knowledge exchange, the pace of technological innovation is expected to accelerate, unlocking new opportunities for growth and addressing emerging challenges in aquaculture production.

In January 2023, Nutreco and BiomEdit announced a partnership to develop new feed additives called Biome-actives that use microbiome technology to address fish farming health and sustainability challenges. The partnership is the first in the industry to focus on discovery, development, and commercialization of these additives. The additives will be developed using BiomEdit's microbiome science and bioinformatics platform.

Increasing Demand for Seafood Products and Growing Global Population.

According to Wiley research paper, per capita consumption will increase in all continents except Africa, the region with the fastest growing population (OECD/FAO, 2022). By 2030, aquaculture is projected to produce substantially more than capture fisheries (by around 6 million tonnes). In terms of total production, aquaculture will surpass capture fisheries in 2023 and by 2030 aquaculture will represent 52% of all aquatic animal production (i.e., excluding aquatic plants).

The increasing demand for seafood products and the growing global population are significant drivers propelling the growth of the global aquaculture additives market. As the world's population continues to expand, particularly in regions with rising income levels and changing dietary preferences, the demand for seafood has experienced a substantial surge.

The trend is driven by various factors, including the nutritional benefits of seafood, the shift towards healthier diets, and the increasing awareness of the environmental impact of other protein sources such as meat. According to recent data from the Food and Agriculture Organization (FAO), global seafood consumption has been steadily increasing over the years, with aquaculture contributing significantly to meeting this demand.

In 2023, global aquaculture production reached a record high of over 96 million metric tons, accounting for more than half of the total seafood supply for human consumption. This upward trend is expected to continue, driven by the growing preference for aquaculture products due to their consistent quality, availability, and sustainability compared to wild-caught seafood.

Stringent Regulatory Requirements and Certification Processes, Leading to Increased Compliance Costs for Manufacturers.

The market for aquaculture additives is severely challenged by strict regulations and certification procedures, which raises the price of compliance for producers. In response to concerns about consumer health, environmental protection, and food safety, regulatory organizations from all over the world impose stringent standards to guarantee the safety, effectiveness, and environmental sustainability of aquaculture additives.

Although the goals of these laws are to protect the environment and public health, they can also make it more difficult for suppliers and manufacturers in the aquaculture sector to enter new markets, promote innovation, and keep costs of operations high. Moreover, the complexity and variability of regulatory standards across different jurisdictions further compound compliance challenges for aquaculture additives manufacturers operating in multiple markets.

Segment Analysis

The global aquaculture additives market is segmented based on additive type, species, functionality, distribution channel, form and region.

The Surging Demand for Salmon Species

The salmon species, which is widely used in aquaculture production worldwide, has a major impact on the need for aquaculture additives in the global market. The loss of wild fish stocks and rising consumer demand for premium seafood have led to an exponential increase in salmon aquaculture in recent decades. Because of this, there is a growing need for aquaculture additives that are specifically designed to meet the nutritional and health needs of salmon species, which has changed the dynamics of the worldwide aquaculture additives market.

According to FAO, salmon aquaculture production has grown rapidly in the past 10-15 years, with more than 2.8 million tons of farmed salmon produced in 2022. In 2023, 96 million metric tons of fish were bred, raised, and farmed, while 90.6 million were captured. Around 70% of salmon worldwide is farmed, with the majority of that being Atlantic salmon. Farmed salmon makes up over 90% of the farmed salmon market and more than 50% of the total global salmon market. The major markets for farmed Atlantic salmon are Japan, the European Union, and North America.

Moreover, the market for aquaculture additives specifically for salmon is distinguished by continuous research and development endeavors aimed at creating inventive remedies to tackle novel obstacles and market requirements. To lessen reliance on feed materials derived from the sea and to support the sustainability of salmon aquaculture, for example, research is being done on substitute ingredients, such as insect meal, proteins produced from algae, and single-cell proteins.

Geographical Penetration

Increasing Trend of Seafood among North Americans

North America's booming aquaculture industry, rising consumer demand for fish products, and legislative actions supporting sustainable aquaculture methods are some of the factors driving the market for aquaculture additives in the region. North America's aquaculture additives market has grown significantly in recent years, which is not surprising given the region's growing aquaculture industry and rising demand for fish products.

The Alaska Department of Fish and Game (ADF&G) reported that 230.2 million salmon were harvested in 2023, a 43% increase from 2022. In 2020, the combined production of farmed seafood in the United States, Canada, and Mexico exceeded 3.5 million metric tons. Notable contributors to this total were freshwater species including salmon, trout, catfish, and tilapia, as well as marine species like shrimp and shellfish.

In North America, feed additives for aquaculture, such as vitamins, minerals, amino acids, and enzymes, are frequently utilized to improve feed formulations, maximize nutrient use, and support animal health and growth. The consumption of aquafeed additives in North America exceeded 300,000 metric tons in 2020. Surveys and consumer studies indicate a growing preference for sustainably sourced and responsibly farmed seafood products in North America.

COVID-19 Impact Analysis

The aquaculture additives market has been impacted by the COVID-19 epidemic in a number of ways. Aquaculture additive production and distribution were first impacted by shortages of raw materials and delayed shipments caused by disruptions in global supply chains and logistics networks. Movement limitations and lockdown procedures made it more difficult for aquaculture farms and processing facilities to function, which reduced the need for chemicals.

The need for aquaculture additives, particularly those targeted at improving growth, disease control, and feed efficiency, has been fueled by this shift in consumer preferences. Furthermore, the aquaculture sector has responded to the pandemic's concerns by deploying digital technologies, remote monitoring technologies, and biosecurity measures to ensure the continuity of operations and mitigate the risk of disease outbreaks.

Russia-Ukraine War Impact Analysis

Significant uncertainty and disruptions have been brought about by the conflict between Russia and Ukraine, especially in the aquaculture additives industry. Geopolitical tensions have increased as a result of the conflict, causing swings in currency values, disruptions in commerce, and volatility in commodity prices.

The conflict has affected agricultural production and exports in Ukraine, a significant producer of feed components and additives, which has affected the cost and availability of essential raw materials for aquaculture additives. Furthermore, the crisis has prompted aquaculture firms to investigate alternate sourcing techniques and diversify their supply chains because to worries regarding geopolitical risks and supply chain security.

Increased geopolitical tensions may also result in changes to regulatory frameworks and trade patterns, which could have an effect on market access and investment choices in the aquaculture additives industry. In general, the conflict between Russia and Ukraine has introduced uncertainties and challenges for the aquaculture additives market, necessitating proactive risk management and contingency planning by industry stakeholders.

By Additive Type

• Antibiotics
• Vitamins
• Amino Acids
• Minerals
• Enzymes
• Probiotics and Prebiotics
• Binders
• Others

By Species

• Salmon
• Tilapia
• Carp
• Catfish
• Trout
• Shrimp
• Others

By Functionality

• Disease Prevention and Control
• Growth Promotion
• Feed Efficiency Improvement
• Water Quality Management
• Others

By Distribution Channel

• Supermarkets/Hypermarkets
• Online Retail
• Specialty Stores
• Others

By Form

• Liquid
• Dry
• Powder
• Granules
• Others

By Region

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Russia
  • Rest of Europe
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Asia-Pacific
  • China
  • India
  • Japan
  • Australia
  • Rest of Asia-Pacific
• Middle East and Africa

Key Developments

• In July 2023, Nor-Feed that creates, manufactures, and distributes plant- and plant-extract based natural feed additives for animals. introduced Norponin Opti and Norponin Aqua, two new aqua feed additives that lower ammonia, a frequent aquaculture waste.
• In December 2023, Aquaculture feed manufacturer Skretting has announced the new generation of hatchery feed, Nutra Terra. Nutra Terra offers better resource utilization and lower emissions.
• In April 2023, Kemin AquaScience announced the launch of Pathorol for farmed shrimp health in multiple Asian countries. Phytogenic-based feed additive reduces the impact of parasitic infection and promotes hepatopancreatic health in shrimp.

Competitive Landscape

The major global players in the market include Archer Daniels Midland Company, Alltech, BASF SE, Skretting, Cargill, Incorporated, Koninklijke DSM N.V., Nutreco N.V., Novus International, Inc., Evonik Industries AG and Kemin Industries, Inc.

Why Purchase the Report?

• To visualize the global aquaculture additives market segmentation based on additive type, species, functionality, distribution channel, form and region as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of aquaculture additives market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as Excel consisting of key products of all the major players.

The global aquaculture additives market report would provide approximately 78 tables, 88 figures, and 229 Pages.

Target Audience 2024

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies