Market Trends of Feed Carotenoids Industry
This section covers the major market trends shaping the Feed Carotenoids Market according to our research experts:
Increasing Usage in Aquaculture Feed
The various biological properties of carotenoids have led to their increased usage as an additive in aquaculture feed. Carotenoids are extensively used in the feed for salmon, trout and red porgy, and shellfish, like shrimp and lobster. Carotenoids are essential at the larval stage of aquaculture species, and fish larvae dramatically increase their survival rate when reared on live feeds containing carotenoids. It has been estimated that by the end of 2021, almost 20% of the global fish and other aquaculture consumption will be from cultured aquaculture, as opposed to the wild collection.
The growth in global aquaculture production has led to the increased demand for feed, thereby promoting the growth of the carotenoids market. Aquaculture feed reportedly grew by 4% in 2019(2020 Alltech Global Feed Survey). The Asia-Pacific market grew the most per metric ton, producing an additional 1.5 million metric ton over the previous year, and reached nearly 30 million metric ton. In 2019, China, Bangladesh, Vietnam, India, and Indonesia were the major producers of aquafeed in the region. China alone contributed 16.5 million metric ton to the global aquafeed production. This presents a growing opportunity for the development of the aquaculture feed carotenoids market. The increasing awareness of aquaculture farmers about the requirement for optimum nutrition in their farms is expected to further provide a fillip to the growth of the aquaculture segment of the feed carotenoids market.
Asia-Pacific Leads the Global Market
Asia-Pacific is the largest consumer of carotenoids as feed additives, as it is the largest market for aquaculture across the world, dominated by China. Vietnam, Indonesia, and India are the key markets expected to witness significant growth in the future due to the adoption of new scientific methods for farming and the increasing consumption of fish and other livestock products. The aim to increase the export potential in the Asian countries is also fuelling the feed demand, hence boosting the growth of the carotenoids market. In Indonesia, the government plans to have a network of dozens of villages with aquaculture farms by the end of 2022 to boost its aquaculture exports.
At present, some of its top export species include Asian tiger shrimp (Penaeus monodon) and whiteleg shrimp (Litopenaeus vannamei). Additionally, the animal rearers in the region are becoming aware of the importance of natural additives in the feed. Synthetic carotenoids are being replaced with natural ones in feed additives, addressing the issue of health impact on humans and animals, as well as the environment. Synthetic carotenoids sell for USD 250-2,000/kg, whereas natural carotenoids sell for between USD 350-7,500/kg. Hence, the investment in natural carotenoids is expected to boost the market in the region during the forecast period.
