The Fish Oil Market is estimated to be valued at USD 12.1 billion in 2022. It is projected to reach USD 15.4 billion by 2027, with a CAGR of 4.9%, in terms of value between 2022 and 2027.
The reasons that are driving the growth of the fishmeal & fish oil market are rising focus on the health and nutrition of livestock animals, especially in Asia Pacific region and improved productivity and environmental performance of aquaculture, coupled with rising ageing population which poses an attractive market for fishmeal & fish oil owing to their health benefits. Fishmeal & fish oil enhance the nutritional profile and offers a range of health benefits in terms of supporting the immunity and gut health of livestock animals, along with enhancing the feed efficiency, due to which they are in significant demand across the livestock and pharma industries.
Drivers: Increasing awareness about livestock and pet health and nutrition
In Indonesia, Australia, Vietnam, Taiwan, and Korea, awareness regarding the health and nutrition of pets and livestock have increased significantly in recent years. In July 2019, scientists from Australia and Vietnam discovered that supplementing animal feed with fish oil enhances milk yield and is also an effective way to enhance long-chain fatty acids (n-3 LC-PUFA) in dairy products. Increasing consumer awareness regarding potential health benefits offered by fish oil and fishmeal products in animal feed is driving demand in Asia Pacific region. The poultry and cattle population is increasing significantly in Asia Pacific, which presents significant business opportunities for fishmeal and fish oil industry manufacturers.
The rise in pet humanization trends in Asia Pacific has increased the demand for premium pet food ingredients and products, which deliver multifunctional health benefits. The spending on health-focused pet food ingredients is rising, with the increasing awareness and disposable income among pet owners. Fish oil products are increasingly being used in pet food products to supplement the health, growth, development, and nutrition of pets. An official representative of Fable (US), a premium pet brand, stated in December 2020 that the company witnessed unprecedented growth owing to increased pet adoption and spending on pet nutrition and welfare. As pet ownership increases in the region and the focus on pet health and nutrition continues to gain traction, the Asia Pacific pet food industry will continue to present significant business opportunities for fishmeal and fish oil manufacturers.
Restraints: Rampant and unsustainable fishing practices by fishmeal and fish oil manufacturers threatening marine resources
Fishmeal and fish oil companies operating in the Asia Pacific region pose a serious threat to marine resources as tons of fish caught through unsustainable fishing practices are emptying the fish reserves in the region. These fish are majorly being used to produce fishmeal and fish oil products. As the income from fishmeal and fish oil products has risen steadily, unsustainable fishing practices, such as juvenile fishing, have increased significantly, especially in India, which have posed a serious threat to fish stocks in recent years.
Opportunities: Growing pharmaceutical industry
In recent years, the pharmaceutical industry in Asia Pacific has grown significantly. Countries, such as China, India, and other key markets are presenting significant business opportunities in the fishmeal & fish oil market to manufacturers of fishmeal and fish oil products. Due to the rising awareness in Asia Pacific about personal health and nutrition, there has been a significant rise in demand for organic pharmaceutical products. The demand for fishmeal and fish oil products has surged, as a result, which offers a host of health benefits with regards to heart, eyes, cognition and immunity.
Challenges: Rise in environmental and social challenges to sourcing raw materials for fishmeal and fish oil production
The rise in demand for fishmeal and fish oil from various industries has put a lot of stress on fishing practices around the world. Fishing practices have increased, and so have juvenile fishing practices. Asia Pacific, being one of the major producers and suppliers of fishmeal and fish oil products and raw materials, has witnessed a significant increase in these unsustainable fishing practices, which have posed many environmental and social challenges in recent years. The International Fishmeal and Fish Oil Organization (IFFO) partnered with Global Aquaculture Alliance (GAA) in 2018 to enhance the understanding of fisheries in Asia and identify improvements that can be made to encourage responsible supplies of fishmeal that will reduce the alarming rate of increase in environmental and social challenges in the region.
Top fishmeal & fish oil companies include FKS Multi Agro (Indonesia), Mukka Proteins Limited (India), Arbee (India), Sandakan Fishmeal Sdn Bhd (Malaysia), Wudi Deda Agriculture Co., Ltd. (China), Raj Fishmeal and Oil Company (India), Asia Fish Oil Corporation (Vietnam), Dai Dai Thanh Seafoods (Vietnam), Pattani Fish Meal (1988) Co., Ltd. (Thailand) and Austevoll Seafood ASA (Norway).
