Since the development of the aquaculture industry, the aquafeed market is gaining traction in Africa. Aquaculture is one of the world’s fastest-growing sector in the livestock industry and rapidly growing forms of food production. With the constant growth in aquaculture, it has influenced the seafood production companies to invest in the aquafeed market. The demand for aquatech has boosted investment opportunities in sector that are geared towards resolving challenges in the food and beverage industry. In 2016, Nutreco, the Dutch producer of fish feed, and African Century Foods (ACF) entered into a joint venture in Zambia, for sale, production, and distribution of tilapia feed. This joint venture is expected to reduce the dependency on imported fish and produce its high-quality fish feed. Similarly, other companies are innovating their products to disrupt the Africa aquafeed market growth.
As of 2018, the Africa aquafeed market size was evaluated to be $9.1 billion, and the demand for feeds is poised to grow at a CAGR of 10.3%, during the forecast period 2019-2025.
According to the United Nations, Africa’s estimated population will be 2.4 billion by the end of 2050. Owing to an increase in population of Africa, the aquaculture sector is very essential to fulfill the growing demand for food. Coastal part of the region has huge demand for live fish food, fish food pellets, and fish diet. The Africa aquaculture industry could witness production increase from 2.9 million metric tonnes to 19 million metric tons a year, as per the CGIAR Research Program on Fish Agri-Food Systems (FISH). Aquaculture is growing continuously in Africa, around 10% of the African population is engaged in fisheries that generated huge employment for them in 2016. Also, in the same year, the annual growth rate of aquafeed production in terms of volume was around 15%, as per the Food and Agriculture Organization. Thus, the Africa aquafeed market is witnessing a significant growth owing to an increase in the aquaculture sector.
WorldFish Promoting Growth of the Africa Aquafeed Market
In Africa, WorldFish is an international, non-profit organization that works to enhance the fish farming and aquaculture production in developing countries. Some of the supporting facts to explain the recent initiatives taken by WorldFish in 2018 to increase the Africa aquafeed market revenue are:
Fisheries Creating Opportunities for Aquaculture in Kenya
Kenya has a huge potential for development of the commercial aquaculture industry by producing a huge volume of fish. The country has tremendous scope for coastal tourism and has fast-growing fish species. The population of Kenya is habituated to consume fish and has developed quality assurance laboratories along with fish processing sector, which in turn is boosting the demand for aquafeed in the country. Development in Kenya’s aquaculture is expected to reduce chronic malnutrition, food insecurity, and rural poverty. Approximately 35,000 rural population is expected to avail the benefits related to better income source in the coming years, due to a new financial agreement that was signed between the International Fund for Agriculture Development (IFAD) and the Republic of Kenya in 2018, that will support the aquaculture sector of the country.
These developments and financial support benefit the Fish segment of the market, resultantly, Fish is the largest growing segment of the Africa aquafeed market, which is incrementing at a CAGR of 11.2%, during the forecast period.
Plant-Based Aquafeed Gaining Momentum in the Africa Aquafeed Market
The aquafeed industry in South Africa is nascent in terms of production of feeds. Despite South Africa being a small country, the growth in the aquaculture sector has been significant over the decades. The country deals in several species productions including Trout which is the maximum, followed by prawn, abalone, crabs, tilapia, crayfish, catfish, and crocodiles. Owing to this, there is a huge demand for aquafeed in the country to feed these species. With the further developments and emergence of plant-based aquafeed in other parts of the world, the demand for same is increasing in South Africa. These plant-based feeds contain easily digestible protein and essential nutrients such as Omega-3 fatty acid, as they are made with soy products such as soybean protein concentrate (SPC) and fermented soy. Shrimps and salmon are high-value seafood species that are majorly fed plant-based feeds. Enterprises such as Midwest AG has witnessed positive results of replacing the entire fish meals with advanced soy proteins in shrimp’s diet. As a result, there is a rapid growth in the Africa aquafeed market growth.
Algae Aquafeed Being Replaced with Aquatic Species
Algae is a potential natural substitute of fish meal. Algae such as spirulina and seaweed are source of amino acid and omega-6 and omega-3 fatty acids. With the inclusion of these algae in aquaculture, there has been a significant improvement in terms of growth rates, improved color, overall health, and disease resistance in various species. Additionally, for juvenile fish and crustaceans, algae feeds are the best.
Major Players in the Africa Aquafeed Market
Some of the key companies in the Africa Aquafeed Market are Skretting and Olam International, Cargill, Inc., Charoen Pokphand Foods Public Company Ltd., Nutreco N.V., AllerAqua A/S, Alltech Inc., and Biomar A/S. These major companies are utilizing resources on developmental and innovational activities to deliver essential products and solutions to global customers, hence strengthening their brand image and setting new trends for the global market.
Talk to one of our sales representative about the full report by providing your details in the link below:
IndustryARC primarily focuses on Cutting Edge Technologies and Newer Applications market research. Our Custom Research Services are designed to provide insights on the constant flux in the global supply-demand gap of markets. Our strong team of analysts enables us to meet the client research needs at a rapid speed, with a variety of options for your business. Any other custom requirements can be discussed with our team, drop an e-mail to firstname.lastname@example.org to discuss more about our consulting services.