The global fishmeal and fish oil market is poised for steady expansion, driven by increasing demand from the aquafeed industry, rising awareness of omega-3 fatty acids in human and animal diets, and a shift toward sustainable feed ingredients. With aquaculture emerging as the fastest-growing sector in animal protein production, fishmeal and fish oil are seeing renewed interest for their nutritional and functional benefits.

According to the research report, the global fishmeal & fish oil market was valued at USD 13.87 billion in 2023 and is expected to reach USD 20.42 billion by 2032, to grow at a CAGR of 4.60% during the forecast period.

Market Overview

Fishmeal and fish oil are critical by-products derived from the processing of whole fish, fish trimmings, and other marine by-products. These products are rich in essential nutrients like proteins, lipids, and omega-3 fatty acids—making them indispensable in aquafeeds, livestock diets, and even nutraceuticals.

• Fishmeal is prized for its high-quality protein content, digestibility, and amino acid profile, which supports rapid growth in farmed fish and animals.

• Fish oil is valued for its concentrated omega-3 fatty acids, particularly EPA and DHA, which are essential for cardiovascular, brain, and immune health.

Despite facing sustainability challenges, fishmeal and fish oil remain dominant in aquafeed and livestock applications, while new technological advancements are helping address ecological concerns.

Key Market Growth Drivers

1. Booming Aquaculture Industry

The aquafeed industry accounts for the largest share of fishmeal and fish oil consumption. The growing global appetite for seafood—coupled with stagnating wild fisheries—has pushed aquaculture to become the world's fastest-growing food production sector. Fishmeal and fish oil are vital for the healthy development of species like salmon, trout, shrimp, and tilapia.

• Countries like China, Norway, India, and Vietnam are expanding aquaculture operations, directly driving demand for high-quality feed ingredients.

2. Demand for Functional Animal Nutrition

Farmers and feed producers are increasingly prioritizing animal nutrition that promotes health, disease resistance, and improved productivity. Fishmeal, with its excellent digestibility and nutrient density, is a key component in formulating premium feeds for pigs, poultry, and pets.

Fish oil is also being included in animal diets to improve reproductive performance, growth rates, and immune response, especially in breeding stock.

3. Rising Health Awareness Among Consumers

Awareness of the health benefits of omega-3 fatty acids—particularly in reducing the risk of cardiovascular disease, enhancing cognitive function, and lowering inflammation—has elevated fish oil’s role in functional foods and dietary supplements.

• The nutraceuticals sector is seeing sustained growth in demand for concentrated fish oil capsules and fortified food products.

4. Circular Economy and Sustainable Practices

The trend toward sustainability has led producers to invest in methods that convert fish trimmings and other marine by-products into valuable resources, reducing reliance on wild-caught whole fish. This not only supports marine ecosystem conservation but also improves cost efficiency and traceability.

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Market Challenges

1. Raw Material Shortage and Seasonal Supply

Fishmeal and fish oil production are often subject to fluctuations due to fishing quotas, weather disruptions, and seasonal variability. Reduced fish landings during poor harvest years (e.g., El Niño effects in Peru) can significantly impact supply and pricing.

2. Sustainability and Overfishing Concerns

Environmental concerns related to overfishing and biodiversity loss have brought increased scrutiny to the fishmeal and fish oil sectors. Regulatory frameworks and third-party certifications (e.g., MSC, IFFO RS) are essential but add cost and compliance burdens.

3. Competition from Alternatives

Alternative protein sources such as soy protein concentrate, insect meal, algae-based oils, and single-cell proteins are being developed to reduce dependency on marine-sourced ingredients. These could limit the growth of traditional fishmeal and fish oil if they prove cost-effective and scalable.

4. Price Volatility

The prices of fishmeal and fish oil are influenced by geopolitical factors, demand surges, and raw material availability. This volatility makes long-term procurement and feed cost forecasting difficult for end users in aquaculture and livestock farming.

Regional Analysis

Asia-Pacific – The Leading Consumer and Producer

Asia-Pacific dominates the global fishmeal and fish oil market, both in terms of consumption and production. Countries like China, Vietnam, India, and Thailand have vast aquaculture sectors driving demand. China alone accounts for over 50% of global aquaculture output and imports significant volumes of fishmeal from Peru and Chile.

• India's fish oil consumption is growing in the nutraceutical space, particularly for omega-3 supplements.

• Southeast Asian countries are increasingly utilizing marine by-products from fish processing industries to support local fishmeal production.

South America – Key Production Hub

South America, particularly Peru and Chile, is a major producer of high-quality fishmeal and fish oil, primarily from anchovy fisheries. These countries account for over one-third of global production. Export-oriented supply chains link South American producers with markets in Europe and Asia.

• Peru’s anchovy harvests directly impact global supply levels, and sustainability certifications are crucial for export viability.

Europe – Sustainability-Focused Market

Europe is a mature market with stringent regulatory controls and a strong focus on sustainable sourcing. Countries like Norway and Denmark are leading consumers, especially in salmon farming. European feed companies are investing in R&D to improve feed efficiency while minimizing ecological impacts.

• The EU is also encouraging circular use of fish processing waste to create marine by-products, reducing pressure on wild stocks.

• Demand for human-grade fish oil supplements remains strong in Western Europe.

North America – Balanced Growth

North America shows balanced demand from both the aquaculture and dietary supplement segments. The United States and Canada are witnessing moderate growth in aquaculture, especially in high-value species like salmon and trout. Meanwhile, fish oil supplements enjoy wide consumer acceptance, fueled by rising awareness of cardiovascular health.

• Consumers prefer concentrated, purified omega-3 fatty acids derived from sustainable sources.

• Research institutions and startups are exploring algae-based alternatives to reduce marine dependency.

Middle East & Africa – Emerging Potential

MEA is an emerging region in the global market, with countries like Egypt, Nigeria, and South Africa increasing investments in aquaculture to improve food security. Fishmeal is in high demand as aquaculture feed ingredients are imported in large volumes due to limited local processing capacity.

• Infrastructure development and government support are fostering growth.

• Domestic fishmeal production using local catch and by-products is gaining