Market Trends of Europe Aqua Feed Industry
Rise in Export-Oriented Aquaculture
Seafood consumption is steadily increasing across the region, driven by factors such as population growth, urbanization, demographic changes, rising incomes, price fluctuations, and heightened environmental and health concerns. These influences not only shape the types of seafood being consumed but also bolster demand in the aqua feed market.
Seafood is lauded for its nutritional benefits, providing essential nutrients vital for health and wellness at every age. Rich in vitamins, proteins, minerals, and essential fatty acids, seafood's nutrients, especially omega-3s from fish and shellfish, are crucial for strong bones, brain development, and a healthy heart and immune system. As awareness of these benefits grows, so does regional seafood consumption, driving up production. Data from the Russian aquaculture association (Rosrybkhoz) highlights a notable 8.3% surge in aquaculture production in 2021, reaching 253,200 metric tons. Trout led the market with a 45% share, followed by carp at 18%, sturgeon at 7%, and a variety of other species, including oysters, mussels, and catfish, rounding out the remainder.
Europe emerges as a dominant player in both the production and consumption of aquaculture fish, with tuna, salmon, and cod topping the demand list. Recent statistics highlight Europe's robust potential, not just to maintain its current pace but to further expand. As per capita consumption of aquaculture products rises and the benefits of seafood become more recognized, commercial aqua production in Europe is set to grow, subsequently boosting the aquafeed market. Data from Germany's Federal Statistics Office indicates that in 2021, about 18,300 metric tons of fish were produced by roughly 2,200 aquaculture businesses. These businesses, cultivating fish and crustaceans in ponds, artificial basins, and raceways, are increasingly investing in closed recirculating systems technology, marking them as significant players in the aquafeed market. With a growing aquaculture population and ongoing research in aquafeed, the European aquafeed market is poised for expansion.
United Kingdom Dominates the Market
Fish lead aquaculture production in Europe. In 2022, fish production hit 15.6 million metric tons, up 1.8% from 2019. This rise in fish production positively influences the regional fish feed market. Fish accounted for a dominant 89.9% of the region's total aquaculture output. Moreover, fisheries play a crucial role in the region, serving as a primary protein source, a means for foreign exchange, and a foundation for livelihoods and overall well-being.
The UK's aquaculture industry is varied, producing finfish and shellfish for consumption, ornamental trade, and fisheries restocking. In 2021, salmon led the UK aquaculture in both volume and value. Data from Defra and the Office for National Statistics UK reveal that fish consumption rose from 148 grams per week in 2020 to 153 grams in 2021. This uptick in fish consumption is driving a heightened demand for aquatic feed.
There's an increasing demand for functional aquafeeds tailored to the nutritional needs of aquatic species. The UK has prohibited certain feed additives, including formaldehyde, ethoxyquin, and cassia gum, after they were re-evaluated and deemed non-compliant with modern data standards. These bans are in effect in both the UK and the European Union. Yet, companies like Ensus UK are undeterred, announcing a EUR 100 million (USD 10.9 million) investment in 2023, targeting high-protein ingredient products for the UK and European aquatic feed markets. This move is poised to spur market growth in the coming years.
Companies like Benchmark Holdings in the UK are pioneering sustainable fish feed ingredients, such as insect proteins, which are now substituting fishmeal and fish oil in aquafeed formulations. This shift not only curtails dependence on wild-caught fish but also champions sustainable agricultural practices. Given the rising fish consumption, bolstered investments, and ongoing innovations, the UK aqua feed market is set for growth in the coming years.
