Market Trends of India Aquafeed Industry
Increase in Fish Seed Production Driving the Market
The key driver behind the increasing demand for fish seed and aquaculture feed production is the increased demand for aqua food products. The availability of quality fish seed is crucial for the growth of fish farming. Currently, there is a strong demand for fish seed that remains unmet, and it is anticipated to increase, making it a lucrative business in the country.
Similarly, initiatives taken by many government agencies are increasing fish seed production and boosting the demand for aquafeed. For instance, according to Fisheries Statistics (2022) by the Indian Ministry of Fisheries, Animal Husbandry & Dairying, fish seed production increased in 2021, reaching 5,40,690 lakh fry from 4,81,974 lakh fry in 2019. Additionally, in August 2021, the Aquaculture Development Agency Kerala (ADAK) started stocking fish with seeds in three of Kerala's four reservoirs where cage fish culture is implemented. The agency asserted that introducing cage culture in reservoirs is a significant step toward enhancing fish production in light of declining wild catch. It stated that it was entering a new era of utilizing the vast area currently available for aquaculture in the state of Kerala.
Moreover, owing to the increase in health consciousness, people are consuming residue-free food, which is pressurizing exporters to grow seafood that is good for their health. It significantly affects the aquafeed industry as proper feed for aquatic animals will help breed animals without diseases. This factor creates many new opportunities in the industry for market players to launch many natural and new-generation products.
Increase in Export of Aquaculture Products Driving the Indian Fish Feed Industry
India has seen significant growth in the export of aquaculture products, driven by increasing demand and advancements in aquaculture practices. In recent years, the industry has become a crucial part of the country's economy, contributing substantially to export earnings. In the financial year 2022-2023, India exported approximately 1.74 million metric tons of seafood worth USD 8.09 billion. The latest data highlighted India's position as one of the leading exporters of shrimp. For instance, frozen shrimp remained India's major export item in quantity and value in 2021-2022, accounting for a share of 53% in terms of quantity and 75% of the total revenue, as per government data. The United States, China, and the European Union remained the top markets for Indian shrimp, with the United States alone accounting for nearly 50% of shrimp exports.
The government has also played a crucial role by implementing policies and schemes aimed at enhancing production and ensuring sustainability. Initiatives such as the Pradhan Mantri Matsya Sampada Yojana (PMMSY) have provided financial assistance, infrastructure development, and technological support to boost the industry’s growth. Moreover, people worldwide are increasingly consuming food free of residue due to rising health and hygiene awareness and increasing pressure on Indian exporters to produce healthy seafood. For instance, according to the Reserve Bank of India, in the fiscal year 2022, the export value of fish and fishery products from India amounted to over USD 7.01 billion. This was a significant increase from the USD 5.35 billion recorded in the previous year. Such developments boost the aquafeed industry since high-quality fish and feed will help aquatic animals grow without acquiring diseases.
Aquatic products occupy a unique niche in the market, and India is anticipated to see an increase in demand for cultured seafood that is free of chemicals and rich in nutrients. Consequently, there will be a significant demand for aquaculture feed due to the rising population, increasing incomes, and swift urbanization. Therefore, it is expected that India's exports of aqua products will accelerate during the forecast period.
