India Aquafeed Market Outlook to 2030

India Aquafeed Market Overview

• The India Aquafeed market is valued at USD 3.8 billion, based on a five-year historical analysis. This market is driven by the increasing demand for aquaculture, as India remains one of the largest fish-producing countries globally. The government's initiatives like the Pradhan Mantri Matsya Sampada Yojana (PMMSY) and Blue Revolution have bolstered fish farming, thereby raising the demand for high-quality aquafeed. Additionally, innovations in feed formulation and sustainable farming practices have contributed to the market's expansion.
• Southern India, particularly the coastal regions of Andhra Pradesh, Tamil Nadu, and Kerala, dominate the Indian Aquafeed market. These areas are known for their large-scale fish farming activities, particularly shrimp farming, which thrives in these regions due to favourable climatic conditions and proximity to export markets. Additionally, the presence of leading aquafeed manufacturers and strong government support has led to the dominance of these states in aquaculture.
• The Bureau of Indian Standards (BIS) has implemented guidelines to standardize the quality of aquafeed produced in India. In 2022, BIS introduced new regulations that mandate specific nutritional and safety standards for all aquafeed manufacturers. The adherence to these standards ensures that feed products meet national safety requirements, improving the overall quality of farmed fish. While enforcement remains a challenge, these regulatory frameworks are crucial for maintaining product consistency and promoting sustainable aquaculture practices. By 2023, the Indian government had increased inspections and testing of feed products, aiming to raise compliance across the industry.

India Aquafeed Market Segmentation

• By Species: India's aquafeed market is segmented by species into shrimp, carp, catfish, tilapia, and others. Shrimp feed accounts for the largest share, owing to the robust shrimp farming industry in India, particularly in Andhra Pradesh, Tamil Nadu, and Odisha. The increasing export demand for Indian shrimp, especially from Europe and the U.S., has bolstered shrimp farming, leading to a surge in demand for specialized shrimp feed that promotes faster growth and higher yields.

• By Ingredient Type: Aquafeed in India is classified by ingredient type into fishmeal, soybean meal, corn gluten meal, wheat, and amino acids & supplements. Fishmeal continues to dominate the market share due to its high protein content and essential amino acids, which are critical for the growth and health of aquaculture species. However, with sustainability concerns and fluctuating fishmeal prices, alternative plant-based protein sources such as soybean meal are gaining traction in the market.

India Aquafeed Market Competitive Landscape

The India Aquafeed market is consolidated with a few major players holding a market share. Local manufacturers, along with global companies, have a dominant presence. The market is characterized by a combination of well-established players and new entrants investing in R&D and production facilities to meet the growing demand for aquafeed.

India Aquafeed Market Analysis

India Aquafeed Market Growth Drivers

• Rising Aquaculture Production: India's aquaculture production has seen growth, making it one of the largest producers of fish globally, with production crossing 14 million metric tons in 2023, according to FAO reports. This increased output is driving demand for sustainable aquafeed to support fish farming practices that minimize environmental impact. Given that aquaculture contributes to over 50% of Indias total fish production, the need for nutritionally balanced and eco-friendly feed is critical. Sustainable aquafeed addresses concerns about over-reliance on fishmeal, improving feed efficiency while maintaining ecosystem balance. The Indian government supports this through various initiatives aimed at boosting aquaculture sustainably.
• Technological Advancements in Feed Formulation: Technological advancements are transforming feed formulation by enhancing the nutritional content of aquafeed. As of 2023, innovations such as bioactive compounds, enzyme additives, and microalgae inclusion in aquafeed are gaining traction in India. The Indian Institute of Science has partnered with feed companies to develop advanced formulations that optimize fish growth and health while reducing feed conversion ratios (FCR). The shift toward precision feed, containing better protein and essential amino acids, supports healthier fish growth with less environmental waste, responding to global concerns about marine sustainability. This is crucial in maintaining India's standing as a top aquaculture producer.
• Increasing Protein Demand: With India's population expected to reach 1.4 billion by 2024, there is increasing demand for protein-rich diets. Aquaculture, contributing to 1.2 million metric tons of India's fish exports in 2023, has become a vital alternative protein source. As meat consumption faces challenges due to environmental concerns, fish-based protein is seen as a sustainable option to meet the nutritional needs of India's growing population. The Food and Agriculture Organization (FAO) reports that aquaculture now accounts for over 45% of India's total fish supply, showcasing its role in fulfilling domestic protein requirements, while also tapping into global export markets.

India Aquafeed Market Challenges

• High Production Costs: The cost of producing aquafeed is heavily influenced by the fluctuating prices of raw materials like fishmeal, soy protein, and essential oils. According to the Ministry of Commerce, India experienced a 15% rise in the price of soy protein in 2023, driven by global supply chain disruptions and climate conditions affecting crop yields. This instability in the raw material market has pushed production costs higher, creating challenges for feed manufacturers. High operational costs limit the affordability of quality feed for small and medium-scale aquaculture farms, affecting the overall productivity and competitiveness of the sector.
• Lack of Standardization: India's aquafeed industry faces a lack of standardized regulations, resulting in inconsistent feed quality across regions. While the Bureau of Indian Standards (BIS) has set guidelines, enforcement remains weak. A 2023 report by India's Marine Products Export Development Authority (MPEDA) highlighted that more than 30% of aquafeed samples did not meet quality standards, affecting fish health and productivity. This variability in feed quality results in uneven fish growth, impacting both domestic production and export quality. The lack of strict regulation leads to issues in maintaining feed consistency, directly affecting the sustainability and efficiency of aquaculture practices.

India Aquafeed Market Future Outlook

The India Aquafeed market is expected to continue its upward trajectory over the next five years. The market growth will be driven by increasing aquaculture activities, continued government support, and innovations in feed formulation. The development of functional feeds that enhance disease resistance and promote faster growth is anticipated to play a significant role in the future expansion of the market. Moreover, the rising demand for plant-based aquafeed as a sustainable alternative to fishmeal is expected to impact market dynamics positively.

India Aquafeed Market Opportunities

Growth in Aquaculture Exports: Indias seafood exports have continued to grow, with over 1.4 million metric tons of seafood exported in 2023, generating $7 billion in revenue, according to the Marine Products Export Development Authority (MPEDA). This expanding export market presents opportunities for aquafeed producers, as international demand for high-quality seafood rises. The export growth, particularly to markets in the United States, China, and Europe, drives the need for premium, export-quality feed. The Indian governments focus on improving supply chains and feed quality to meet international standards further boosts the opportunity for aquafeed manufacturers.

Integration of Functional Feed: Functional feeds, including immuno-stimulants and probiotics, have gained traction in Indian aquaculture to boost fish health and resistance to diseases. In 2023, studies from the Indian Council of Agricultural Research (ICAR) showed that integrating probiotics into aquafeed reduced mortality rates by up to 18% in shrimp farming. This reduction in disease-related losses presents an opportunity for aquafeed companies to invest in functional feed formulations. The adoption of these advanced feeds not only enhances fish health but also improves overall yield, helping farmers reduce the economic risks associated with diseases and environmental stressors.