Market Trends of Asia Pacific Aqua Feed Industry
This section covers the major market trends shaping the APAC Aqua Feed Market according to our research experts:
Increased Fish Demand
Fisheries and aquaculture are not only the primary sources of protein, but they are also becoming crucial to foreign exchange, livelihoods, and the well-being of the population in the Asia-Pacific region. With increasing incomes and urbanization, consumption is increasing at a faster pace. Fish and fish products are vital to the food and nutritional security of rural, urban, and coastal inhabitants across the Asia-Pacific region. Foraging or farming aquatic resources is an important part of rural livelihoods in many countries, and it provides a significant supply of protein, particularly for vulnerable communities.
Essentially, Asian countries' rising fish consumption has been driven by a mix of a large and growing urban population, rising incomes, and a substantial increase in fish production (especially from aquaculture). It has also been aided by the expansion of international fish trade routes. Moreover, the most beneficial and healthy aspect of consuming seafood is linked to omega-3 fatty acids. Fatty fish is an excellent source of two important omega-3 fatty acids: eicosapentaenoic acid (EPA) and docosahexaenoic acid (DHA). Compared to other meats (like beef, mutton, pork, and chicken), fish has less fat and a high protein value. Owing to these health benefits of seafood, its consumption is increasing.
According to the OECD in 2021, fish consumption in Asia was estimated at 72% of the food consumption in the region. By 2030, aquaculture is expected to provide 57% of the fish for human consumption, compared to the 53% in the base period. This creates an increasing need to raise fish production to cater to the growing consumer demand in the region. This is possible with a proper diet and the addition of feed. According to FAO in 2020, Asian countries were the main producers, accounting for 70% of the total fisheries and production of aquatic animals; about 33% of the aquatic animals were produced in inland waters in Asia, followed by 22% in the Pacific Northwest, and 10% in the Western Central Pacific.
Litopenaeus vannamei dominates the Indian Aqua Feed Market
Litopenaeus vannamei accounts for the largest share in the Indian aqua feed market. Indian companies are producing 1.25 million ton of aqua feed per year on average. Shrimp is one of the most important cultured species globally, especially in Asia, due to its high economic value and export. The Litopenaeus vannamei (whiteleg shrimp) species, which was introduced to many coastal states of India, account for the majority of the country's total shrimp culture. According to the Marine Products Export Development Authority (MPEDA), in 2020, the total area under cultivation of white leg shrimp in the country was estimated at 108,526.3 hectares, with an approximate production of 815,745 metric ton in 2020. Moreover, the area under production of white-leg shrimp in Andhra Pradesh accounted for 71,921 hectares, with an approximate production of 634,672 metric ton.
Further, the estimated brackish water area suitable for undertaking white leg shrimp cultivation in India is around 1.2 million ha spread over ten states and union territories, namely West Bengal, Orissa, Andhra Pradesh, Tamil Nadu, Pondicherry, Kerala, Karnataka, Goa, Maharashtra, and Gujarat. There are many feed manufacturers capable of manufacturing and supplying a wide range of nutritionally high-quality vannamei feed, which are enriched with digestible contents that assist in enhancing the standards of used feeds. Currently, the country holds nearly 38 feed companies offering shrimp feed. With the rising export demand for Litopenaeus vannamei from the international market, this segment is expected to witness growth during the forecast period.
