The
global aqua feed market is fragmented with the presence of a large
number of companies. A significant threat from new entrants owing to
the presence of low entry barriers is expected in the market. The
threat of substitutes is likely to be medium owing to the
availability of vegetable source alternatives, states a new report by
Transparency Market Research (TMR). The presence of large number of
suppliers, however, ensures that there is negligible threat of
forward integration from suppliers. The threat of backward
integration from buyers is also expected to be low, owing to the
presence of a large number of buyers, particularly in Asia Pacific.
Key players in the market include Alltech Inc., Aller Aqua A/S,
Avanti Feeds Ltd., Beneo GmbH, Cargill Incorporated, and Cermaq ASA.
View
exclusive Global strategic Business report
:http://www.transparencymarketresearch.com/sample/sample.php?flag=S&rep_id=1447
According
to the report, the global market opportunity in aqua feed is expected
to rise from US$79.56 bn in 2015 to US$122.59 bn by 2019. By end use,
the carp segment is expected to lead and account for 29.6% of the
market by 2019. Carp has high demand as seafood owing to the health
benefits it provides. Carps are rich in omega-3 fatty acids, offer
high protein, and are low in fat, thus encouraging people to consume
them. They are also used in rice paddies to feed on insects and other
organisms, thus furthering their demand. On the basis of geography,
Asia Pacific is expected to lead and account for 68.1% of the global
aqua feed market owing to the availability of favorable conditions
for aquaculture and cheap labor.
Growing
Aquaculture Industry and Increased Consumption of Fish to Fuel Demand
for Aqua Feed
The
aquaculture industry is expected to witness significant growth in the
coming few years owing to the decrease in the production of captured
fish. The global aquaculture production is expected to reach 79,150.0
kilo tons by 2019. This is expected to fuel the demand for aqua feed.
An increase in consumer awareness in preserving the natural oceanic
habitat is also expected to boost the aquaculture industry, states
TMR.
The
growing consumption of fish is another important factor driving the
global aqua feed market. Additionally, the rising global population
and awareness among people regarding benefits of fish consumption are
expected to lead to a higher demand for aqua feed.
Price
Volatility of Raw Materials Becoming Concern for Market Players
Aqua
feed is made from ingredients which are high on proteins and fats,
such as soybean, corn, fish oil, wheat, and fish meal. The prices of
these raw materials tend to fluctuate owing to the scarcity of fish,
which occurs due to high consumption of fish meal and use in
pharmaceutical industry. In some cases, the manufacturers may not be
able to pass on the extra cost to consumers, thereby reducing their
profit margins and hampering production. In other cases, the demand
for these feeds is affected if the extra price is passed on to the
consumers. Thus, fluctuation and increase in prices of fish meal,
fish oil, wheat, corn (maize) and soybean is expected to hamper the
growth of the market.
Growing
Demand for Conventional and Functional Aqua Feed from China to Create
Mammoth Opportunity in Market
Aquaculture
is widely spread in China. China alone accounted for 60.1% of the
global aquaculture production in 2012. There is a rise in awareness
among consumers about the benefits of commercial feed, which is
likely to trigger new opportunities of growth for the aqua
feed market in the coming years. The concept of functional feed
is also being adopted by several aquaculture farmers as they offer
much more than basic nutritional requirements. Functional feeds help
improve the health and reduce illnesses and disorders, resulting in
an increased life span of fishes, and therefore appealing aquaculture
farmers.
“Research
and development are helping in boosting particular aspects of
organisms such as color, length, and weight, which is further
expected to create a new scope for opportunities in the aqua feed
market,” states a TMR analyst. Moreover, the development of the
aquaculture market in Asia is likely to open up opportunities for
growth of the overall aqua feed market in the near future.
This
information is based on the findings of a report published by
Transparency Market Research titled “Aqua Feed Market - Global
Industry Analysis, Size, Share, Growth, Trends, and Forecast 2013 -
2019.”
The
global aqua feed market is segmented as follows:
End-use
- Crustaceans
- Mollusks
- Carp
- Salmon
- Catfish
- Tilapia
- Others (Trouts, eels, milkfish, etc.)
Regional
- North America
- Europe
- Asia Pacific
- RoW
