Market Trends of Salmon Industry
Farmed Salmon is the Largest Growing Segment
Farmed salmon is promoted as a sustainable and eco-friendly source of animal protein to meet the demands of the increasing global population. In 2022, more than 2.8 million metric tons of farmed salmonids were produced. In comparison, FAO estimated that only around 640,000 metric tons of wild salmonids were caught.
Chile's aquaculture sector performance gradually improving over the past few years. This has resulted in increased salmon culture, especially Atlantic salmon culture, which is garnering nearly 74% of the salmon production in the world. Farmed salmon is the country's second-largest export sector after copper mining, generating a total revenue of USD 6.5 billion in 2023, according to the Central Bank of Chile. The bulk of production increase is observed in Chile, at around 11% from 2019 to 2022, where a new regulatory regime produces results. Similarly, in Norway, the world's largest producing country, cold winter, and fish health issues translated into a modest 5% increase in salmon harvests.
Moreover, the supply growth is unable to satiate the salmon demand globally. As demand for salmon continues to strengthen globally, a combination of geographic and regulatory constraints on traditional open-net-pen farming has limited the ability of producers to keep pace. However, increasing investments in salmon production in the Chinese market, coupled with technological approaches such as land and off-shore-based culture and genetically engineered salmon, are some of the potential opportunities for pacing up the production further.
Besides, the salmon farming sector has faced challenges in addressing die-offs, resulting in significant financial losses annually. However, rather than focusing on reducing these losses, the industry has chosen to boost production, resulting in increased profitability. For instance, Norway's Mowi ASA, the largest salmon farming corporation globally, achieved unprecedented profits exceeding USD 1 billion in 2023 alongside record-high production levels.
Chile is the Largest Growing Market
The global supply growth of farmed salmon is led by Chile surpassing the constraints about the mass algal bloom mortalities, thereby maintaining its profitability. Chile accounts for 31% of the world salmon harvest and 22% of Chilean mussel production, according to FAO (Food and Agriculture Organization) figures for 2021. In 2022, 1,000.86 thousand metric tons of salmon were harvested in Chile, as per the Chilean trade body Salmon Chile. In addition, the Chilean Salmon Council, a trade group that includes AquaChile, Australis, Cermaq, Mowi, and Salmones Aysén, together represent more than half of Chilean salmon production by volume.
Salmon is the second most significant exported commodity from Chile after copper, with a large portion of its output being sent to the United States, Brazil, and Japan. The exports of salmon constitute 6.8% of Chile's total exports. In 2022, Chile exported 821,288 metric tons of salmon, amounting to USD 5.361 billion, as the ITC Trade Map reported. Furthermore, in 2024, eleven Chilean salmon producers launched a public-private initiative called "Project Yelcho" to speed up the implementation of vaccines and lower antibiotic usage in salmon farming, while also enhancing environmental conditions.
The Chilean salmon farming sector achieved very promising results. Production costs have fallen, and biological conditions at farms have reportedly improved, reflected in higher harvests that have even surpassed those of Norway. This is particularly driving the efforts to develop new approaches to farming, mainly focused on closed containment technologies, both on land and at sea. Also, new aquaculture operations are being set up in a variety of geographically dispersed countries, such as Iceland, the Russian Federation, and China, which is likely to spike up the salmon supply in the years to come.
