Aquafeed Market Evolves with Sustainable Innovations in 2024-2025

The Aquafeed Market is undergoing a transformative phase, driven by innovations in sustainable protein sources and circular economy principles. As global aquaculture production surges, the demand for cost-effective, eco-friendly feed ingredients is reshaping the industry, with new players and established companies alike pushing boundaries to meet environmental and economic goals.

Aquafeed Market: Key Developments in 2024-2025

The aquafeed market is seeing significant advancements, particularly in sustainable ingredient development. Seaqure Labs, a Swedish start-up founded in 2023, is pioneering a fungi-based protein ingredient using mycelium to reduce reliance on fishmeal and soy. Their solid-state fermentation process transforms agricultural side streams, such as lettuce and cereal residues, into high-protein feed with added health benefits like beta-glucans and antioxidants. Recent pre-commercial trials in Portugal with rainbow trout showed performance comparable to traditional fishmeal and soy diets, signaling scalability potential.

Additionally, a 2024 study by IFFO emphasizes circularity and life cycle assessment (LCA) as critical drivers for sustainable aquafeed formulation. The study highlights a shift to plant-based materials, reducing marine ingredient use from 25% to 9% over the past two decades. However, this shift increases the carbon footprint and biodiversity impacts due to agriculture’s environmental toll. Over 40% of marine ingredients now come from fish by-products, leveraging waste streams to enhance circularity.

The upcoming World Seafood Congress (WSC) 2026 in Chennai, India, underscores the industry’s focus on sustainability and innovation. The event will address challenges in the circular economy for aquafeed, fostering collaboration across the seafood value chain.

Applications Across Industries

Aquafeed serves as a critical input for aquaculture, supporting the production of species like salmon, shrimp, seabream, seabass, and tilapia. Its applications extend beyond food production to include:

• Nutrition and Health: Ingredients like Seaqure Labs’ mycelium-based feed provide high protein content and functional compounds (e.g., beta-glucans) that enhance fish health, improving growth rates and disease resistance.

• Sustainability: Circular feed ingredients, such as fish by-products and agricultural residues, reduce waste and environmental impact, aligning with global sustainability goals.

• Economic Efficiency: Cost-competitive alternatives to fishmeal and soy, like Seaqure’s fungi-based protein, address price sensitivity in the aquafeed market.

These applications support aquaculture’s role in global food security, with the industry producing 18.40 million tons of fish in India alone in 2023-24.

Dominating and Fastest-Growing Regions

Dominating Region: Asia-Pacific

Asia-Pacific leads the aquafeed market due to its massive aquaculture output. India is a standout, producing 18.40 million tons of fish in 2023-24 and exporting 1.78 million tons of marine products worth USD 7.38 billion, with shrimp comprising 70%. India’s hosting of WSC 2026 in Chennai highlights its growing influence in global seafood trade and aquafeed innovation. China, the world’s largest aquaculture producer, drives demand for cost-effective and sustainable feeds, leveraging its scale to dominate ingredient sourcing and production.

Fastest-Growing Region: Europe

Europe is the fastest-growing region, driven by sustainability-focused innovations. Norway, a leader in salmonid production, is a key market for novel aquafeed ingredients, with companies like Seaqure Labs targeting its salmon farms for trials. Sweden is emerging as an innovation hub, with Seaqure Labs’ mycelium-based feed gaining traction through a €470,000 investment to scale production. The region’s emphasis on circularity and LCA, as highlighted by IFFO’s study, positions Europe for rapid growth.

Key Players and Recent Strategies

• Seaqure Labs: This Swedish start-up is leveraging solid-state fermentation to produce cost-competitive, fungi-based protein with health benefits. Their €470,000 investment will fund a pilot plant, aiming for large-scale supply to European feed producers.

• IFFO: As a leading industry body, IFFO’s 2024 study advocates for circular feed ingredients with consistent supply (minimum 10,000 tons) and robust nutritional profiles, influencing global formulation standards.

• Indian Marine Ingredients Association (IMIA): IMIA is driving sustainability in India’s aquafeed sector by supporting WSC 2026, fostering innovation and trade collaboration.

Other notable players in the aquafeed industry includes Cargill Incorporated, Alltech, Aller Aqua, Avanti Feeds Limited, BioMar Group A/S, Nutreco, Charoen Pokphand Foods PCL, Archer-Daniels-Midland Company, Growel, Inve Aquaculture, and more.

Impact on the Aquafeed Market - Next Move Strategy Consulting's Views

These developments signal a pivotal shift in the aquafeed market. Seaqure Labs’ mycelium-based ingredient introduces a scalable, low-carbon alternative to fishmeal and soy, addressing both cost and sustainability concerns. IFFO’s focus on circularity and LCA provides a framework for evaluating environmental impacts, encouraging producers to adopt greener practices. 

The WSC 2026 in India will amplify these trends, fostering global collaboration and showcasing innovations that could redefine feed formulation. For procurement professionals, these advancements offer opportunities to source sustainable ingredients with proven performance, while industrial buyers benefit from cost-competitive options that align with environmental regulations.

Future Prospects and Examples

The aquafeed market is poised for growth, driven by:

• Scalable Alternatives: Seaqure Labs’ goal of ton-scale production by 2026 could set a precedent for other start-ups, reducing dependency on traditional ingredients.

• Circular Economy Integration: Increased use of by-products (e.g., 40% of marine ingredients from fish waste) will lower environmental impact and enhance resource efficiency.

• Global Collaboration: Events like WSC 2026 will accelerate knowledge exchange, driving innovation in feed ingredients and processing technologies.

Examples:

• Rainbow Trout Trials: Seaqure Labs’ Portugal trials demonstrate that mycelium-based feeds can match traditional diets, paving the way for broader adoption.

• Marine Bioactives: IFFO’s research on bio-active peptides and fish silage highlights potential for value-added ingredients that boost feed performance.

The aquafeed market’s future lies in balancing cost, nutrition, and sustainability, with innovations like mycelium and circular principles leading the charge.

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