Aquafeed Additives Market Trends

Growth Drivers

• Use of additives to mitigate mercury poisoning - A June 2024 study by the U.S. Food & Drug Administration (FDA) discusses the risks associated with the intake of contaminated seafood, particularly among Asian and Native American children. The Environmental Protection Agency (EPA) and the FDA issued a joint advisory on fish consumption as a part of the Closer to Zero campaign to foster awareness about mercury and other toxins. Several products are available in the market to improve seafood quality. For instance, Orffa has a lineup of products including phytogenic feed additives to improve aquaculture and fillet quality.  
• New product development - The aquafeed additives market is set to be driven by product innovation using sustainable bio-ingredients and would be well received by consumers. For example, TilaFeed provides circular nutrient management with bioeconomy-based approach for aquaponics.  Aquafeed additives that are more environmentally friendly are anticipated to increase customer demand and draw in new competitors. However, because current players enjoy economies of scale, newcomers will have to contend with fierce competition from them.
• High demand for protein-rich food - Aquafeed additives are an excellent source of proteins and omega-3 fatty acids. They boost the meal's nutritional content and provide several advantages, such as better protein digestion, faster development, higher feed conversion, less aquatic species die-off, and strengthened immune systems. Therefore, it is projected that growing awareness among aquafeed makers of the nutritional advantages of high-protein aquafeed additives would spur market expansion.

Challenges

• Fluctuating prices of raw materials - Aquafeed production relies heavily on additives like fishmeal and fish oil. The increased desire for plant-based meat in aquafeed is a consequence of changing fish meal costs caused by a shortage of caught fish. These changes are anticipated to affect the aquafeed additives industry because fishmeal is a necessary raw ingredient for making these additives.
• Growing adoption of a vegan lifestyle - The emergence of alternative protein and veganism advocate for quantifying the upstream impact on the environment and ethical concerns about cultured meat. Fishmeal and fish oil are the main raw materials for aquafeed additives, and the increasing popularity of veganism worldwide is hindering market growth. The shortage of fishmeal is leading to decreased production of additives. Moreover, as more people adopt a plant-based diet, the consumption of plant-based additives is on the rise, negatively affecting the demand for aquafeed additives and restricting market growth.