Global Aquafeed Industry and Aquaculture Market Insights

According to recent developments in global aquaculture, nations across the globe are ramping up efforts to secure sustainable seafood production and reduce dependence on traditional feed sources. The Aquafeed Sector—an essential pillar of modern aquaculture—plays a pivotal role in this transformation. While countries like China, Canada, and Afghanistan are advancing their aquaculture infrastructure with groundbreaking initiatives and investments, others like the United States are witnessing setbacks in innovative feed technologies due to shifting financial landscapes. From deep-sea aquaculture vessels to microbial protein feed alternatives, the latest trends underscore the urgency to address environmental concerns, enhance food security, and build resilient blue economies.

Latest Developments in the Aquafeed Market (2024–2025)

• China State Shipbuilding Corporation (CSSC) has successfully delivered the world’s first 80,000-ton ocean-going aquaculture vessel, representing a significant advancement in large-scale, deep-sea aquaculture technology. Functioning as a mobile deep-sea ranch, the Sennhai Pioneer can navigate between northern and southern waters to steer clear of typhoons and red tides. Designed with compartmentalized farming systems and the ability to adapt to diverse marine environments, the vessel is projected to yield between 2,280 and 2,800 tons of premium fish annually across regions from the Yellow Sea to the East China Sea. This milestone delivery signifies a major step forward in China’s marine aquaculture infrastructure and paves the way for expanded offshore seafood production.

• In contrast, NovoNutrients, a California-based gas fermentation startup once seen as a game-changer in sustainable microbial protein for aquafeed, has initiated an asset sale through an Assignment for the Benefit of Creditors (ABC)—a structured wind-down process used as an alternative to bankruptcy. This decision follows the successful pilot-phase validation of its technology but reflects the broader challenges posed by a changing investment landscape that has affected many alternative protein and industrial biotech startups.

• At the H20 Conference in Halifax, Canada’s Ocean Supercluster announced five new ocean innovation initiatives totaling over $18 million, including the $7.2 million Microbial Protein for Sustainable Aquaculture Project led by DeNova. This groundbreaking initiative focuses on developing a novel microbial protein as a sustainable alternative to traditional aquafeed ingredients such as fishmeal and soy, which significantly impact the environmental footprint of aquaculture. The project is spearheaded by DeNova, in collaboration with The Verschuren Centre in Sydney, NS, and Neptune Properties in Dartmouth, with additional partners including Onda and Cooke Aquaculture.

Rising Demand and Environmental Concerns in Aquafeed Ingredients

Aquaculture feed (aquafeeds) currently consumes about 70% of the world’s fishmeal and fish oil, which are sourced from small ocean fishlike anchovies, sardines, herring, menhaden, and mackerel—species that play a vital role at the base of the marine food chain. Analysts warn that by 2040, global demand for fishmeal and fish oil is expected to outpace available supply. Additionally, aquafeeds rely heavily on soy and corn from industrial agriculture, raising environmental issues due to fertilizer use and the risk of runoff into nearby water bodies. Moreover, since fish cannot fully digest soy and corn, these feeds may contribute to nutrient pollution in aquaculture wastewater.

Afghanistan Approves National Plan to Expand Fish Farming and Boost Employment

The Economic Commission of Afghanistan has approved a major initiative to expand the country’s fish farming industry, with plans to establish 7,700 new fish farms across the nation. The decision was finalized during a regular meeting of the Technical Committee held Monday at Marmarin Palace, according to government sources.

The newly endorsed Fish Farming Sector Development Plan is expected to substantially increase domestic fish production—potentially fulfilling up to 90% of the country’s demand for fish meat—and create approximately 300,000 jobs through both direct and indirect employment opportunities.

In addition to approving the fish farming plan, the committee also reviewed the Agriculture and Livestock Sector Development Policy. While the aquaculture strategy received full endorsement following consultations with the Ministry of Water and Energy, officials requested that the Ministry of Agriculture, Irrigation and Livestock revise the broader agriculture and livestock policy based on additional feedback before submitting it for final approval.

Regional Insights: Emerging Aquaculture Hubs and Initiatives

China:

China continues to lead global innovation in deep-sea aquaculture with the recent launch of the Sennhai Pioneer, the world’s first 80,000-ton ocean-going aquaculture vessel. Developed by the China State Shipbuilding Corporation (CSSC), the vessel functions as a mobile deep-sea ranch, cruising between the Yellow Sea and East China Sea to avoid adverse conditions like typhoons and red tides. This initiative marks a strategic advancement in offshore seafood production and reflects China’s growing focus on marine aquaculture infrastructure.

Canada:

Canada is making significant strides in sustainable aquaculture through its Ocean Supercluster. At the 2024 H2O Conference in Halifax, the cluster announced five new ocean innovation projects worth over $18 million, including the Microbial Protein for Sustainable Aquaculture Project. Led by DeNova, the $7.2 million initiative aims to reduce aquaculture’s environmental footprint by developing novel microbial protein as an alternative to traditional feed ingredients like fishmeal and soy. The project is backed by notable partners including The Verschuren Centre, Neptune Properties, Onda, and Cooke Aquaculture.

Afghanistan:

Afghanistan is set to significantly boost its domestic fish production following the approval of the Fish Farming Sector Development Plan by the Economic Commission. The plan involves the creation of 7,700 new fish farms across the country and is expected to meet up to 90% of national fish meat demand. Moreover, it aims to create roughly 300,000 new jobs through both direct and indirect employment. The initiative reflects the government's growing focus on food security, rural development, and economic diversification through aquaculture.

United States:

In contrast to these expansion efforts, the United States has seen setbacks in alternative aquafeed innovation. NovoNutrients, a California-based startup focused on gas fermentation for microbial protein, has entered an asset sale through an Assignment for the Benefit of Creditors (ABC), a formal alternative to bankruptcy. Despite completing successful pilot-phase technology validation, the company’s downfall underscores the challenges posed by tightening investment conditions in the alt-protein and industrial biotech sectors.

Regional Aquaculture Insights (2024–2025)

Conclusion

The global aquafeed and aquaculture landscape is undergoing a pivotal shift, driven by technological innovation, environmental consciousness, and strategic policy-making. China’s large-scale offshore aquaculture vessel marks a leap forward in production efficiency, while Canada’s Ocean Supercluster is setting a benchmark for sustainable feed development. Afghanistan’s ambitious expansion in inland fish farming reflects a strong push for rural employment and food self-reliance. In contrast, the United States' challenges in scaling up microbial protein innovation through startups like NovoNutrients highlight the vulnerabilities of alternative protein ventures in tough financial climates. As countries invest in different approaches, the future of aquaculture will likely hinge on scalable sustainability, inter-regional collaboration, and innovative feed technologies that can withstand both ecological and economic pressures.

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