Dive into the Future: Emerging Trends in Aquaculture

Aquaculture involves the cultivation of aquatic life forms, including fish, mollusks, crustaceans, and aquatic plants. The Food and Agriculture Organization (FAO) defines “farming” as the intervention in the rearing process to improve production, including regular stocking, feeding, and protection from predators.

Over the past few decades, there has been a significant increase in global aquaculture production, providing a substantial amount of fish and seaweed for human and animal consumption. Aquaculture plays a crucial role in the economic development of many nations. It has garnered support from governments looking to improve their countries’ economic performance by implementing policies that support the industry.

Recently, the demand for seafood has surged, resulting in the expansion of the aquaculture market. This sector is experiencing significant changes, including a growing emphasis on producing high-quality products safe for consumption.

Aquaculture products refer to the necessary inputs for rearing and farming aquatic animals and plants, including equipment and raw materials. These products improve production by facilitating regular stocking, feeding, and protection from predators. The study considers a range of supplies, such as containment equipment, water management equipment, chemicals, and fertilizers.

Growing Demand for Seafood Creates Opportunities Globally

The global aquaculture products market has undergone significant advancements due to innovations in aquaculture technology and the introduction of new species. These advancements have affected various aspects of the market positively.

Introducing new species has been particularly beneficial, as it has directly contributed to the growth of aquaculture production. Additionally, it has provided valuable scientific and commercial information that supports the development of new technologies and products.

Source: Primary Interviews, Related Research Publications, Government Publications, Company Press Releases, and MarketsandMarkets Analysis

Technology Related To Aquaculture Products

The fishing industry has undergone significant changes in recent years, with automation playing a crucial role in its development. Factors such as a shortage of skilled labor, climate change, and changing eating habits have contributed to this transformation. In response, industry leaders have prioritized automating their production processes to improve energy efficiency and sustainability. By embracing technology, producers can more effectively address the challenges posed by automation, efficiency, and sustainability in the industry.

Smart Pumps

The aquaculture and fishing industry can leverage the advantages of the Internet of Things (IoT) and smart manufacturing to optimize their processes. Advanced analytics from smart machines provide valuable insights that improve efficiency and safety levels. The integration of sensors enables better communication between pumps and valves. Smart pumps reduce energy waste, resulting in significant cost savings for companies over time.

Oral Vaccine Delivery System

Administering vaccines to fish through hand injections can be a laborious and stressful process for the fish. However, new developments in oral delivery systems could make this process easier, more efficient, and less stressful for the fish. Micro-encapsulation or bio-encapsulation, where medicines are delivered in tiny particles or within living host organisms, offers new possibilities for better delivery methods. ViAqua Therapeutics is exploring micro-encapsulation techniques and has created an encapsulated RNAi particle that can be administered to fish through their feed, effectively treating viral diseases. This is a significant advancement in aquaculture vaccines to improve the administration process.

Key Drivers Impacting Growth

The aquaculture industry is expected to experience substantial growth due to various factors, such as the increasing production of aquaculture, higher seafood, and fish consumption, and technological advancements in aquaculture products. Constant innovations are being made to automate the process to meet the growing demand for the latest and energyefficient equipment.

Growth of the aquaculture industry: With the world’s population consistently increasing, fish demand is also rising. This trend is expected to continue as urbanization expands, the developing world’s population grows, and incomes rise. Additionally, due to the unsustainable nature of meat and poultry, and the health risks associated with the consumption of red meat, consumers are increasingly turning to fish as a healthier and sustainable alternative.

As per the International Trade Administration and the US Department of Commerce, the demand for seafood and the yearly decrease in the quantity of wild fish caught will lead to significant growth in aquaculture. This industry ensures global, regional, and local food security.

The Asia Pacific region is expected to experience the highest growth in this sector, as it is a vital component of the region’s domestic economy and will consequently drive overall market expansion.

Increase in health consciousness and environmental awareness: Recently, most countries have acknowledged lifestyle-related ailments as a significant concern. Consequently, there has been a surge in consumer awareness regarding healthy food options, leading to a rise in demand for seafood and its derivatives.

The growing elderly population, higher life expectancy rates, and a surge in chronic illnesses have contributed to the shift in dietary habits. More and more consumers are becoming aware of the potential dangers and commonalities of nutritional deficiencies. Additionally, as people gain a greater understanding of the benefits of supplementing their diet to address these deficiencies, there is likely to be a rise in the consumption of seafood, which could boost the market.

Aquaculture Products: Restraints and Challenges

Resource exploitation due to overfishing: The problem of overfishing has been rapidly deteriorating over the last six decades, especially in tropical oceans, as the mass of captured fish has increased fourfold. Global trends show that fish populations are on an unsustainable path, with per capita fish consumption rising faster than human population growth.

In 2020, people consumed around 178 million tons of fish, which means an average of 20.2 kg (44.5 pounds) per person, with an additional 22 million tons used for fishmeal and fish oil products. The Indo-Pacific region accounted for approximately 70 percent of the total fish caught. Fish is a crucial source of animal protein for nearly half of the world’s population. However, overfishing poses a significant risk to the sudden collapse of fish populations, such as the case with cod on the Grand Banks of the North Atlantic.

While aquaculture helps alleviate the demand for wild-caught fish, it is essential to have proper national and regional fisheries management to implement and enforce sustainable policies to prevent overfishing. The global community needs to monitor fish stocks to ensure food security due to the world’s dependence on fish as a vital protein source. Unfortunately, from 1974 to 2017, fish stocks within biologically sustainable limits dropped from 90 percent to 65.8 percent.

Meanwhile, the world’s human population has increased, adding more pressure to already stressed fish stocks. Fishing, particularly deepsea bottom trawling, can negatively affect fish populations and the environment. This destructive practice harms fragile habitats that house unique biodiversity, including millenary deep-sea corals. Though aquaculture is helping to meet the demand for fish, it’s crucial to have proper national and regional fisheries management to ensure sustainable policies are enforced and prevent overfishing. This approach will protect the environment and ensure healthy fish populations for future generations.

Increase in consumer appetite for vegan diets: As people become more conscious of climate change and animal welfare, they are increasingly choosing eco-friendlier options. Many also realize the health benefits of a vegetarian or vegan diet, leading to a surge in demand for plant-based foods.

The Good Food Institute reports that plantbased food sales grew three times faster than overall food sales in 2021. In response to the rise in vegan and vegetarian consumers, manufacturers are developing new sources of plant proteins. However, this trend may pose a long-term challenge to the seafood industry.

Value Chain Analysis

Understanding the distribution of aquaculture products to end-users and stakeholders is crucial, and the value chain analysis provides a comprehensive framework for this purpose. Identifying the most valuable activities helps gain insights into the aquaculture products market.

Furthermore, it sheds light on the interdependencies between stakeholders and their participation in the market. The value chain in this market is highly integrated.

It includes several activities, such as R&D, sourcing of raw materials, manufacturing, distribution, and post-sales service of the product, each of which is elaborated as follows:

Research and Product Development: In the equipment industry, research and development are crucial in introducing new technologies and equipment that align with customers’ energy efficiency and sustainability needs. The aquaculture sector can also benefit from the Internet of Things (IoT) and smart manufacturing to improve efficiency and safety. Smart machines can enhance the overall performance and safety of the industry.

Raw Material Sourcing: The sourcing of raw materials is vital to the aquaculture products industry. This market utilizes various materials, such as aluminum and stainless steel. In addition, nonmanufacturing materials such as software, consulting services, and hardware are also utilized. The procurement process considers multiple factors.

Manufacturing: The second most crucial step in the aquaculture products market adds the most value to the value chain.

Among the key manufacturers in this industry are Pentair PLC (US), AKVA Group (Norway), Xylem Inc. (US), Aquaculture Equipment Ltd (UK), and Aquaculture System Technologies, LLC (US).

The manufacturing industry is increasingly moving towards sustainable practices, with Pentair aiming to reduce its greenhouse gas emissions by 50 percent from a 2019 baseline by 2030 and become carbon neutral by 2050.

Distribution: Effective distribution channels are essential for marketing any product as they serve as a vital link between producers and consumers. Aquaculture products are in high demand among commercial fishing and aquaculture industries. These products can be distributed through various channels, including online and offline methods.

End Users: The commercial fishing and aquaculture industries rely on end users to drive demand. The aquaculture sector is always innovating to meet the needs of consumers and sustainability standards. However, the industry faces numerous challenges, such as fierce

competition, economic impacts, and the issue of overfishing.

Post-sales Services: Providing after-sales service is essential to every company’s marketing strategy. Exceptional customer service plays a vital role in boosting customer satisfaction and loyalty. The service industry has undergone significant transformations, especially with digitization, and the pandemic has further accelerated this trend.

By leveraging remote technology to manage routine tasks, service providers can devote more time to building stronger customer relationships during on-site visits. This shift towards digital services has also increased productivity for

Aquaculture Products: Ecosystem Mapping

Source: Secondary Research, Primary Interviews, Industry Journals, Related Research Publications, Press Releases, and MarketsandMarkets Analysis

Key Segments

During the forecast period, the aquaculture products market is expected to be dominated by aquatic animals. This is due to government support for fish farmers in the Asia Pacific and Africa, where aquaculture provides significant employment opportunities in coastal areas. Consequently, many aquaculture product manufacturers have invested in these regions, leading to industrialization in the aquaculture sector.

Freshwater is expected to be the leading segment in the aquaculture products market during the forecast period. It plays a crucial role in the local economies of the Asia Pacific, particularly in supporting the livelihoods of rural communities. Freshwater sources are also significant in supplying domestic fish consumption in the region. Therefore, freshwater’s dominance in the market is facilitated by these factors.

Based on product type, small-scale farms are anticipated to continue to hold their leading position in the aquaculture products market. These farms are known to achieve high efficiency in aquaculture production and are typically better equipped to handle fluctuations in equipment and supply costs than large-scale production. During the forecast period, the aquaculture products market is expected to be dominated by equipment classified by product type. Marine culture has a high demand for equipment, with various methods such as sea ranching, intensive aquaculture, and rack & line farming.

The equipment segment has seen significant technological improvements, enhancing the efficiency and productivity of aquaculture operations and addressing environmental concerns. These developments include reducing resource usage, better waste management, and minimizing the impact on surrounding ecosystems.

As a result, the demand for equipment-based aquaculture products is increasing. The Asia Pacific region is anticipated to have the biggest market share.

This is because Asia has the highest production of aquatic plants and animals globally, accounting for around 101.5 billion tonnes (111.88 billion tons) of aquaculture products, 92.1 percent of the global production.

The region’s inland and marine & coastal areas are diverse and produce a variety of species. Technology adoption and automation are major focuses for players in the aqua farming sector, making it a crucial industry in the region.

Way Forward

There’s anticipation that the aquaculture products market will experience a notable growth rate in the coming years. This market has been expanding rapidly for the past five decades, helping to bridge the gap between the rising demand and supply of food worldwide.

Aquatic creatures are a crucial source of topquality protein and are loaded with essential vitamins and minerals. Aquaculture products have the potential to produce large amounts of these creatures at lower costs.

Similarly, aquatic plants and seaweed are abundant in protein and have diverse applications, such as personal care, ornamental, pharmaceutical, and food, as they are organic.

Furthermore, due to growing concerns about food safety, fish farming is being promoted to provide relatively higher levels of food security, which is expected to further boost the demand for the aquaculture products market.

Disclaimer: The following market trends report is intended for informational purposes only. The information provided in this report is based on extensive research and analysis, but it should not be considered professional financial or investment advice. Readers are advised to conduct their own research and consult with relevant experts or professionals before making any business or investment decisions.

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