COVID-19 impact on feed market size is estimated to grow from USD 282.8 billion in 2020 and projected to reach USD 325.7 billion by 2025, recording a CAGR of 2.9%. The major factors driving the growth of the feed industry include the rising awareness regarding animal health and biosecurity.
On the other hand, factors such as disruptions in feed production and supply chain and the impact on demand for meat, dairy, and animal products are projected to inhibit the growth of the feed market.
As of September 2018, according to the World Economic Forum, aquaculture was the world’s fastest-growing food industry. It accounts for over 50% of the total global seafood supply in the same year. The damage to China’s aquaculture sector caused by COVID-19 is far-reaching, as it caters to the increasing demand of customers from the US and other parts of the world. China holds a major share in the aquaculture industry. The closing of international borders due to the pandemic has disrupted imports and exports. Due to this, the seafood industry is witnessing piling up of stock, which is causing a further dip in China’s aquafeed market growth. For example, India’s seafood exports have witnessed a drop in sales due to the significant reduction in shipments across countries, such as China and Italy.
Speak to Analyst:
To support the increasing demand for fish as food products, aquaculture producers are increasingly using feed additives, such as probiotics, vitamins, carotenoids, and minerals, to support the growth and development of aquatic animals. COVID-19 is causing uncertainties in the global aquaculture and the aquafeed markets. For Instance, several countries have imposed strict actions, including trade restrictions and lockdowns in several areas for preventing the spread of COVID-19 that are projected to impact the aquaculture and aquafeed markets.
The grains, oilseeds, and feed value chain partners of the EU, including FEFAC, COCERAL, and FEDIOL, state that the situation is critical with the increasing number of restrictions, the risk of manufacturing, production, and distribution of animal and aqua feed and food products, which is likely to persist. Thus, challenging the region’s population to access regular supplies of human food and livestock feed.
A similar situation can be witnessed in the US, as the American Feed Industry Association (AFIA), along with 23 states and regional feed and grain associations, requested the government state officials around the country to maintain access to businesses, such as providing food products and feed. The plea was made after some states released their response plans that excluded feed manufacturing facilities, transportation, and agricultural and non-agricultural retail establishments from their lists of “essential businesses.” The association also stated that these businesses should be reclassified since it would hinder the supply chain of the feed industry to feed the livestock population in North America.
The rising concerns and the fear of consumers to consume poultry products or other livestock products are projected to impact its demand and create opportunities for the consumption of seafood and marine animals as an alternative. In addition, seafood manufacturers are facing issues due to restrictions on trade and logistics, which has led to piling up of stock in the seafood industry. As aquaculture products are perishable in nature, domestic manufacturers are focusing on capitalizing on opportunities to sell their products at a lower price within the national boundaries.