Aquafeed Market Dynamics: Ingredient Trends, Cost Analysis, and Supply Chain Stability

 The global aquafeed market is poised for remarkable growth, with its estimated valuation reaching USD 56.6 billion in 2025 and projected to hit USD 109.2 billion by 2035, reflecting a robust compound annual growth rate (CAGR) of 6.8%. This expansion underscores the rising importance of aquaculture as a critical source of high-quality protein and the growing demand for sustainable, efficient, and health-focused feed solutions worldwide. Driven by innovations in feed formulations, ingredient sourcing, and production technologies, the aquafeed sector is becoming an increasingly sophisticated and essential component of global animal nutrition.

Fish Segment Dominates Market Growth

By species, fish feed commands a commanding 69.4% of the market share in 2025. The dominance of fish feed reflects the extensive cultivation of high-volume species such as tilapia, salmon, carp, and catfish in regions including China, India, Norway, and Chile. These species require precise, species-specific nutritional inputs to optimize growth rates, improve feed conversion ratios, and ensure the overall health of farmed fish. Pelletized, floating, and sinking feeds remain the preferred formats, offering efficient nutrient dispersion and ease of handling in automated aquaculture operations. While crustaceans and other aquatic species are witnessing growth, fish remain the primary driver of commercial aquafeed demand.

Pelletized Feed Drives Operational Efficiency

Pelletized feed, capturing 62.7% of total market revenue in 2025, is central to aquaculture operational efficiency. Pellets provide durability, controlled nutrient release, and optimal feeding performance, which is critical in both freshwater and marine systems. Floating and sinking varieties allow targeted feeding strategies, minimizing waste and preserving water quality—a crucial factor in intensive fish and shrimp farming. Extruded and powdered feed forms cater to niche applications, including larval stages, but pellets remain the standard for large-scale commercial operations.

Health-Oriented Formulations Propel Functional Segment

The functional segment, emphasizing health-enhancing formulations, is projected to hold 41.8% of total revenue in 2025. The increasing prevalence of pathogens such as Vibrio and Streptococcus, coupled with parasitic infestations, has amplified the need for feeds enriched with immunostimulants, antioxidants, and functional proteins. Health-focused feed formulations are particularly crucial for high-value species like salmon, barramundi, and vannamei shrimp, where survival rates and yield stability are paramount. Producers are integrating these formulations with real-time water quality monitoring and diagnostics in recirculating aquaculture systems (RAS) and offshore cage operations, reducing reliance on antibiotics while improving sustainability.

Plant-Based Ingredients Lead Formulation Trends

Vegetable and grain-based inputs are projected to dominate aquafeed composition with a 46.3% share in 2025. Soybean meal, corn gluten, wheat, and rice bran are increasingly used to replace fishmeal partially or entirely, reflecting the industry’s shift toward cost-effective, scalable, and sustainable protein and energy sources. This transition reduces dependency on marine inputs, which are subject to quota restrictions and environmental concerns, while ensuring price stability and feed consistency. Advances in enzyme supplementation and amino acid fortification have enhanced the performance of plant-based feeds, enabling their wider adoption in tilapia, catfish, and carp farming.

Distribution Networks: Indirect Channels Remain Dominant

Indirect sales channels account for 52.8% of aquafeed revenue in 2025, highlighting the importance of distributor networks in fragmented aquaculture markets, particularly in Asia and Africa. These intermediaries facilitate product availability, technical support, and financing, making them essential partners for both established and emerging manufacturers. In countries such as India and Vietnam, over 60% of transactions are mediated through regional distributors, supporting small and mid-scale farmers in accessing high-quality feeds. Indirect channels also enable localized inventory management and pricing strategies, strengthening market penetration.

Regional Insights: Asia-Pacific Leads Global Expansion

The Asia-Pacific region is the fastest-growing aquafeed market, with India registering an 8.4% CAGR between 2025 and 2035. China, contributing over a third of global aquaculture output, follows closely with a 7.1% CAGR. The expansion in these regions is driven by intensive aquaculture practices, government subsidies, and rising seafood demand from domestic and international markets. ASEAN nations such as Vietnam and Thailand are also recording robust growth near 7.2%, propelled by shrimp and catfish exports and investments in pelletization and extrusion technology. Meanwhile, OECD countries, including Norway and Chile, exhibit slower growth due to regulatory limitations on fishmeal usage and environmental controls on aquaculture density.

Market Dynamics: Health, Sustainability, and Cost Rationalization

Aquafeed producers are increasingly focusing on health-oriented formulations to reduce antibiotic use and manage disease risks. Functional additives, such as beta-glucans, nucleotides, and organic acids, are being incorporated to enhance survival rates and shorten production cycles. At the same time, rising fishmeal and marine protein costs are driving a shift to plant-based feed inputs, which provide pricing stability and localized supply chain benefits. Strategic sourcing of soy, maize, and rice bran across India, China, and Brazil has allowed feed manufacturers to optimize costs and maintain margins, supporting market resilience in volatile global conditions.

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Leading Market Players Driving Innovation

The aquafeed industry is competitive, with a combination of global and regional players investing in feed formulation, localization, and vertical integration. Cargill, BioMar, and Skretting are focusing on enzyme-rich, health-enhancing formulations for high-value species such as salmon and vannamei shrimp. Charoen Pokphand Foods and Ridley Corporation leverage domestic ingredient networks to stabilize costs and ensure traceability for exports. Regional players such as Avanti Feeds, The Waterbase, and Biostadt India are addressing India’s rapidly growing shrimp sector with immune-boosting pellet formats and expanding dealership infrastructure. Specialist firms like INVE Aquaculture and Aller Aqua target larval and specialty segments, providing micro-diets and stage-specific nutrient solutions. Suppliers such as BENEO, Alltech, and AKER BIO MARINE provide functional additives including algae, prebiotics, and krill-based ingredients to enhance feed quality.

Recent Industry Developments

In March 2025, BioMar Group completed the acquisition of the remaining 66% stake in Norway’s LetSea aquaculture research center, expanding its R&D capacity to test innovative feed solutions under real-world conditions. Such investments highlight the increasing importance of research-driven product development, particularly in high-density and intensive aquaculture systems. Across the industry, manufacturers are prioritizing species-specific formulations, localized ingredient sourcing, and forward integration into hatcheries and grow-out systems to strengthen market positioning and capitalize on the growing global demand for sustainable aquaculture products.

Editor’s Note:

This release is based exclusively on verified and factual market content derived from industry analysis by Future Market Insights. No AI-generated statistics or speculative data have been introduced. This press release highlights significant shifts in the Market, which is experiencing a pivotal change driven by consumer demand for healthier, more transparent products.