Growing Awareness about Benefits of Commercial Feed to Trigger New Opportunities for Aqua Feed, says TMR
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:
Others (Trouts, eels, milkfish, etc.)