Middle East And Africa Aquafeed Market Outlook to 2030

Middle East And Africa Aquafeed Market Overview

• The Middle East And Africa Aquafeed Market is valued at USD 11 billion, based on a five-year historical analysis. The market is driven by the rapid expansion of aquaculture across the region, particularly in countries like Egypt and Saudi Arabia. Increasing demand for fish and seafood, driven by population growth and the rising preference for protein-rich diets, has boosted aquafeed consumption. Technological advancements in feed composition and feed efficiency are also contributing to market growth.
• Egypt and Saudi Arabia dominate the MEA aquafeed market due to their large-scale aquaculture operations. Egypt, with its vast Nile Delta and agricultural base, has become a major player in the fish farming industry. Saudi Arabia, on the other hand, has seen government support and investments in aquaculture as part of its Vision 2030 initiative, aimed at diversifying the economy. Both countries benefit from favorable environmental conditions and growing domestic demand for seafood products.
• Marine protection policies aimed at conserving natural fish stocks are shaping the aquaculture industry in the MEA region. South Africa's 2023 "Marine Biodiversity Conservation" initiative, for example, imposes stricter regulations on fishing and encourages the development of sustainable aquaculture to alleviate pressure on wild fish stocks. These policies are creating opportunities for aquafeed manufacturers to innovate and provide more sustainable feed solutions that align with environmental conservation goals while supporting the growth of the aquaculture sector.

Middle East And Africa Aquafeed Market Segmentation

The Middle East and Africa Aquafeed Market is segmented by ingredient type, species, form, application, and geographical region.

By Ingredient Type: The MEA aquafeed market is segmented by ingredient type into plant-based ingredients, animal-based ingredients, marine-derived ingredients, and functional additives. Plant-based ingredients currently dominate the market due to their lower cost and availability, especially in regions with strong agricultural sectors like Egypt and Tunisia. These ingredients provide essential nutrients at a reduced cost, which is crucial for keeping aquafeed prices competitive. Additionally, plant-based feeds contribute to sustainability efforts by reducing the reliance on animal-based proteins, which have faced scrutiny for their environmental impact.

By Species: The MEA aquafeed market is also segmented by species into tilapia, salmon, shrimp, catfish, and carp. Tilapia holds the largest market share, driven by its adaptability to different water conditions and its popularity among consumers for being an affordable, protein-rich fish. The ease of breeding and fast growth rates also contributes to its dominance in the aquafeed market. Shrimp is another key segment, especially in countries like Saudi Arabia and Egypt, where government support for shrimp farming has been strong.

Middle East and Africa Aquafeed Market Competitive Landscape

The MEA aquafeed market is dominated by a mix of international and regional players. These companies have established strong supply chains and partnerships with local aquaculture farms to strengthen their market presence. The consolidation in the industry highlights the influence of these key companies.

Middle East And Africa Aquafeed Market Analysis

Middle East And Africa Aquafeed Market Growth Drivers:

• Increase in Aquaculture Production: Aquaculture production in the MEA region has seen growth, with Egypt leading the sector at over 1.5 million metric tons annually by 2023, according to the Food and Agriculture Organization (FAO). This increase is driven by government support and increasing demand for fish-based proteins. The total fish production in Africa exceeded 12 million tons in 2022, a substantial portion of which came from aquaculture. Key regions such as Morocco, Nigeria, and Kenya are also witnessing rapid expansion in this sector, directly contributing to the rising demand for aquafeed.
• Rising Demand for Fish-Based Protein: In 2023, the per capita fish consumption in the MEA region was estimated at 8.2 kg, with projections indicating an increase due to a growing middle class and population growth, particularly in Egypt and Nigeria. FAO data shows that nearly 35% of animal protein intake in parts of the MEA comes from fish, positioning fish as a staple in the regional diet. With the demand for high-quality, nutrient-rich food products rising, aquafeed production is essential for maintaining the supply of fish.
• Government Support and Subsidies: Governments across the MEA region, especially in Egypt and South Africa, have introduced subsidies for aquaculture operations and feed production. Egypt allocated $40 million in 2023 for aquaculture growth initiatives, focusing on improving infrastructure and feed quality to support small-scale fish farmers. Moreover, countries such as Morocco have set targets to boost aquaculture by 2030 under national strategic plans, indirectly increasing aquafeed demand. These policies are aimed at meeting the region's protein needs and alleviating food security concerns.

Middle East And Africa Aquafeed Market Challenges:

• High Feed Costs: One of the most substantial challenges in the MEA aquafeed market is the rising cost of raw materials used in feed production, particularly fishmeal and soybeans. According to FAO reports, the average price of fishmeal rose by 10% in 2023 due to increased demand and supply chain disruptions. With feed accounting for over 60% of aquaculture operational costs, price volatility directly impacts farmers' profitability. Alternative feed ingredients like insects are gaining traction, but the cost remains a limiting factor for widespread adoption.
• Volatile Raw Material Prices: Raw material price fluctuations continue to challenge the aquafeed industry, particularly due to geopolitical issues affecting the availability of fishmeal and soybean. In 2023, global soybean prices increased by 12%, driven by poor harvests in key producing regions. These rising input costs are a significant concern for MEA countries that rely heavily on imports for feed production. In Egypt, over 70% of aquafeed ingredients are imported, making local markets highly sensitive to global price changes, thus impacting overall feed production and availability.

Middle East And Africa Aquafeed Future Market Outlook

Over the next five years, the MEA aquafeed market is expected to experience growth, driven by continuous government support, increasing demand for seafood, and technological advancements in feed production. Expansion of sustainable and organic aquafeed options will also be a major growth area, as consumers and producers alike show greater interest in environmental impact. Furthermore, with growing investments in aquaculture infrastructure and operations, especially in Egypt and Saudi Arabia, the region is poised to increase its output of high-quality fish products, further driving demand for advanced aquafeed solutions.

Middle East And Africa Aquafeed Market Opportunities:

• Expansion of Sustainable and Organic Aquafeed: The global shift towards sustainability is creating opportunities for the growth of organic and eco-friendly aquafeed products in the MEA region. As of 2023, around 15% of aquafeed used in the region is sourced from sustainable ingredients, such as plant-based proteins and insect meals. With international markets increasingly demanding sustainably farmed fish, countries like South Africa and Egypt are working on expanding the use of certified sustainable feeds. This shift is expected to provide opportunities for new players and investments in the sustainable aquafeed market.
• Rise in Functional Ingredients Demand: Functional ingredients, such as probiotics, prebiotics, and amino acids, are becoming integral to aquafeed formulations in the MEA region, particularly to boost fish immunity and growth rates. By 2024, it is expected that nearly 20% of the aquafeed in Egypt will incorporate such functional ingredients, reflecting a rising demand for specialized, value-added feed. These additives help improve nutrient absorption and disease resistance in farmed fish, reducing mortality rates and enhancing overall productivity. This trend aligns with the region's need to optimize aquaculture operations amid rising feed costs.