Report Overview

China Aquafeed market is growing due to the progressing seafood consumption in China coupled with the growing consumer awareness about the seafood quality, further increasing the demand for Aquafeed in the country during the forecast period.

China Aquafeed Market- Industry Trends & Forecast Report 2027

China Aquafeed market was worth USD 12.42 Billion in 2020. The market further projected to reach the valuation of USD 22.80 Billion at a CAGR of 9.4% during the forecast period (2021-2027). Fishmeal production in the country is occasionally insufficient for local use. It must be re-imported and cannot be exported to other nations, hence increasing the domestic aquafeed market. Also fueling the market growth is the consumer preference towards a protein-rich diet, including seafood, as opposed to high-calorie foods. In addition to these factors, the Chinese government's efforts to strengthen the aquaculture industry to increase production capacity is likely to power the China aquafeed market over the forecast period.

Source: BlueWeave Consulting

China Aquafeed Market Overview

Aquafeed is a commercially produced feed for aquatic animals like fish, mollusks, crustaceans, and others. Plant bits, fish feed, fish oil, vegetable protein, grain products, etc. are commonly used for this purpose, depending on the requirements of the animal. They come in the form of granules, pellets, or extruded bits and are high in nutrients, such as vitamins, minerals, proteins, carbohydrates, lipids, fats, etc. Aquafeed promotes the growth, immunity, and reproduction of farmed species by providing nutrition in a controlled and concentrated manner.

China Aquafeed Market Trend

Growth Drivers

Strict Government Regulations for Sustainability is Likely to Strengthen the Market

To ensure the sustainability of its fish production and to preserve its natural fishing reserves, China has imposed strict government regulations on the aquaculture industry. It is now mandatory for aquafeed exporters in China to obtain import registration licenses before entering the country. The move is a result of the government's push to improve its supervision and quarantine process for imported feed additives. Under the Ministry of Agriculture regulations, the feed ingredients and additives such as compound, pre-mixture, concentrate, single feed ingredients, supplementary feed, and feed additives are subject to import registration licensing. Additionally, the labeling and traceability of aquaculture feed have also been made compulsory in China. Regulation of feed inputs for aquaculture is gaining importance among Chinese regulators as a result of a growing awareness of quality and traceability.

Impact of COVID-19

The coronavirus outbreak has had a negative impact on China’s aquafeed market. Distribution channels were obstructed, and the production was impossible to sustain due to the lockdown imposed by the Chinese government to prevent the spread of the virus. Moreover, consumers' concern for safety reduced the demand for marine fish products during the pandemic. China's aquatic enterprises and fish farmers actively resumed production after the pandemic to maintain their position on the market. During the pandemic, fish farmers sold marine fish via live online broadcasts to encourage the consumption and circulation of marine fish, thereby keeping the market afloat.

Moreover, China's aquatic products processing and marketing alliance quickly organized technical forces. Furthermore, China's aquatic products marketing and processing alliance quickly formed technical forces. A "national aquatic products production and marketing docking platform" was launched on We Chat to solve the problems of poor circulation information and blocked production and marketing connections. E-commerce has also grown as a result of the pandemic outbreak. New infrastructure construction is being boosted to close the digital divide between urban and rural areas. During the forecast period, the market is likely to be boosted by initiatives to reduce poverty in poor areas, monitor poverty, provide assistance, and prevent the emergence of new poverty due to digital gaps and modern technologies.

China Aquafeed Market: By Ingredient

Based on ingredients, the China aquafeed market is grouped into soybean, fishmeal, corn, fish oil, additives, and other ingredients. The soybean segment held the largest market share in 2020 and is likely to dominate during the forecast period. Soybean is among the non-fish sources of omega-3 fatty acids, proteins, and unsaturated fats. Soy protein is served to farm-reared fish and shellfish to promote their overall growth and development. Some commonly used soybean products for aquafeed are mechanically extracted soybean cake, heat-processed full-fat soybean, dehulled solvent-extracted soybean meal, and solvent-extracted soybean meal. Since soybean meal is cheaper than fishmeal, the consumption of soybean meal is comparatively high.

China Aquafeed Market: By Form

Based on forms, the China aquafeed market is fragmented as dry, wet, moist, additives, and others. The wet form of aquafeed is likely to be the fastest-growing segment in the market during the forecast period. The wet type of aquafeed contains high moisture ingredients, including trash feed, fishery waste, and slaughterhouse waste. It increases the palatability and high utilization rate, which are the major driving factors and are anticipated to positively influence the wet aquafeed segment's growth during the forecast period. It is typically fed to species like sea breams, sea bass, and eels.

Source: BlueWeave Consulting

China Aquafeed Market: By Lifecycle

Based on lifecycles, the China aquafeed market is fragmented into grower feed, finisher feed, starter feed, and brooder feed. The grower feed segment has accounted for the largest market share in 2020 and is likely to dominate the segment during the forecast period. In terms of protein deposition, the grower feed has a high capacity and higher feed conversion rates. Furthermore, such feed types offer a great deal of versatility in terms of formulation. Over the projection period, rising demand for other foods combined with a growing supply of grower fish is expected to drive category growth.

Competitive Landscape

Due to the limited number of leading players on the market, the aquafeed market in China is consolidated. Some key strategies adopted by these players are the new product development, partnerships, and expansions to enhance their brand image and increase their businesses. Some of the leading players in the country include Biomin, Cargill Inc., BioMarGropu, Alltech Inc., Archer Daniels Midland Co., Nutreco NV, Aller Aqua, Hanpel Tech Co. Ltd., BASF SE, Wellhope Agri-Tech Co. Ltd., and other Prominent Players.

Recent Development

• In February 2021, Cargill announced its plan to enter the USD 400 billion fish market. Cargill is investing in microbiotics, macrobiotics, and probiotics as part of its health and food innovations strategy. According to a statement from Evolve BioSystems, the company, along with investment firm Manna Tree, spearheaded a USD 55 Billion funding round for the California-based startup. The financial support will be utilized to help bring to market a probiotic that improves infant gut health.

• In November 2020, Danish feed manufacturer Nutreco finished its continuing investment in Nordic Aqua Partners (NAP), which is building a salmon farming facility in China using Recirculating Aquaculture Systems (RAS).Nordic Aqua Partners stated that it had completed a private issue of new shares, raising approximately EUR 55.1 Billion in total proceeds. Nordic Aqua Partners will build the first fully integrated and economically successful Recirculating Aquaculture System (RAS) facility in China. Nutreco's commitment to Feeding the Future with science-based technologies that enhance sustainability across the value chain is demonstrated by this relationship.

Scope of the Report

• By Form
  • • • Dry
      • Wet
      • Moist
      • Others
• By Ingredient
  • • • Soybean
        • Soybean Meal
        • Soy Oil
        • Soy Lecithin
      • Fish Meal
      • Corn
        • Corn Gluten Meal
        • Corn Gluten Feed
        • Corn Oil
      • Fish Oil
      • Additives
      • Other Ingredients
• By Additives
  • • • Amino Acids
      • Vitamins & Minerals
      • Prebiotics & Probiotics
      • Enzymes
      • Antibiotics
      • Antioxidants
      • Other Additives
• By Species
  • • • Fish
        • Tilapia
        • Salmon
        • Carp
        • Trout
        • Other Fish Species
      • Crustaceans
        • Shrimp
        • Crabs
        • Krill
        • Other Crustaceans
      • Mollusks
        • Oysters
        • Mussels
        • Other Mollusks
      • Other Species
• By Lifecycle
  • • • Grower Feed
      • Finisher Feed
      • Starter Feed
      • Brooder Feed