Technavio report: Global aquaculture market’s growth accelerating through 2022

Published on
July 20, 2018

The global aquaculture market is experiencing robust growth, which is likely to accelerate through the year 2022, according to a report from the market research firm Technavio.

The report, “Global Aquaculture Market 2018-2022,” presents an analysis of the global aquaculture market based on end-users (commercial and residential); by product (freshwater fish, crustacean, mollusks, diadromous fish, and others); by environment (freshwater, marine water, and brackish water); by culture (net pen culture, floating-cage culture, pond culture, and rice field culture); by geography (the Americas, APAC, and EMEA); and by market, organized by distribution channel.

The report attributes aquaculture’s rising success to the world’s growing human population, its hunger for seafood, and the decline of the captured fish industry. 

“Globalization, which has led to improved logistics systems and trade facilities, provides a favorable environment for the growth of the aquaculture market,” the report said. “The growth of the retail sector also drives the market.”

The report predicts a compound annual growth rate for the global aquaculture industry of 4.46 percent for the five-year period between 2018 and 2022. In 2018, the report predicts a CAGR of 3.72; a CAGR of 4.12 percent in 2019; 4.50 percent in 2020; 4.83 percent in 2021; and 5.15 percent in 2022.

Other key factors identified by the report in the industry’s promising future include improvements in aquaculture systems, sustainable practices, and diversification of species. By focusing on polyculture and intensification of aquaculture, the market – currently valued at USD 180.2 billion (EUR 154.8 billion) – is anticipated to reach USD 224.2 billion (EUR 192.6 billion) by 2022.

Currently, total seafood production aquaculture of 74.81 million tons is lower than captured fisheries. But the report details how aquaculture will likely overtake wild-caught fisheries within the next five years.

“This is expected to change as the increase in demand for seafood will drive production and aquaculture will overpower the captured fish market,” the report said. 

At present, the global aquaculture market is dominated by China, which accounts for nearly three-fourths of the market in terms of both volume and value, according to the report. China’s CAGR from 2017-2022 is predicted to be 3.99 percent. The second-largest market share for aquaculture products is India, followed by Indonesia, Chile, Norway, Japan, South Korea, the United States, and the United Kingdom. Of those countries, Indonesia will see the highest CAGR through 2022 at 17.24 percent; South Korea will experience the second-highest growth rate at 14.77 percent; and the remaining countries will see compound annual growth rates of between four and nine percent, the report predicted. The aquaculture sector in the United States is estimated to have a CAGR of 4.10 percent.

The report names the biggest impediments to even greater growth for the sector as climatic conditions and prevalence of diseases. Diseases such as white spot disease in shrimp and infectious salmon anemia (ISA) in salmon have caused major losses affecting global markets.

However, the aquaculture industry has seen the benefits of its efforts to improve management in the sector, according to the report.

“For instance, the governments of Vietnam and other [Asia-Pacific] countries have started monitoring policies to check the causes of diseases and rectify them before they spread. These changes are expected to drive the growth of the market during the forecast period,” the report said.

Furthermore, the aquaculture sector is an important part of the economic development of many countries, and has received positive treatment by governments seeking to boost their countries’ economic performance, including the introduction of policies in support of the sector. 

Moreover, the market is witnessing a change in consumption preferences that favor aquaculture products. Demand is growing for good-quality and safe products, and consumers are increasingly trusting aquaculture to provide products that meet those demands.

“Several new products are being introduced in the market to increase consumer base and ensure food security,” the report said. 

The aquaculture industry is also branching into the farming of new species as a way to expand its market share. New aquaculture species mentioned in the report include finfish species like meagre (Argyrosomus regius), greater amberjack (Seriola dumerili), and Atlantic wreckfish (Polyprion americanus); yellowfin tuna (Thunnus albacares); redbelly tilapia (Tilapia zillii); and Napoleon wrasse (Cheilinus undulat).

“[The industry] is developing a diverse range of new species with economic and biological potential,” the report said. “Innovations in the aquaculture technology and the introduction of new species play a major role in the evolution of the global aquaculture market, which has witnessed huge advances in diverse aspects. The introduction of new species in the market directly focuses on the development of aquaculture and provides core scientific and commercially useful information to support the growth in aquaculture production and in the advancement of new technological tools.”

In delving into the characteristics of the market, the Technavio report predicts the already somewhat fragmented market structure will become even more so by 2022, though it does expect the sector to move more from growth mode into maturity. It predicts continuing high levels of innovation, low to medium levels of mergers and acquisition activity, and much higher levels of disruption threats by 2022.

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