Canada's aquatic feed market is expected to grow at a compound annual growth rate of 2.04% over the forecast period to reach US$85.112 million by 2027, from US$73.894 million in 2020. Aquatic food typically refers to food prepared specifically for aquatic animals. They are prepared with a wide array of ingredients to provide the animal with a sufficient supply of nutrients and proteins necessary to perform normal physiological and biological functions. Some of the most commonly used aquatic feeds are fishmeal, fish oil, soy protein, wheat, peas, and wheat gluten. Aquaculture - one of the fastest-growing food sectors in the world – accounts for nearly 50% of the total fish production globally. A rising population, increasing health awareness, and improving economic growth of consumers across the globe are creating a positive trend for aquaculture and all the related fields in the projected period. Canada’s aquaculture industry is a dominant employer and economic driver in many rural, coastal, and Aboriginal communities. The abundant agricultural lands in the country also make acquiring the resources to prepare feed easier, thereby reducing the price and expanding the market size.
MARKET TRENDS
Canada's wide coastal geography, adequate climatic conditions, ample clean and cold water, rich fishing customs, fine climate, and well-developed trade routes across the globe to the USA, Asia, and Europe are promising features, alluring the investors and companies. To make the most of the country's appealing opportunities and develop further, the country has decided to optimize its aquaculture regulatory system. According to the CAIA, Canada generates about $5.2 billion in economic activity and gives employment to about 21,300 people. Furthermore, the increasing government initiatives and schemes are expected to propel Canadian aquaculture and related markets even higher. For instance, on November 9th, 2021, NFACC (National Farm Animal Care Council) and CAIA (Canadian Aquaculture Industry Alliance) announced and released the Canadian Code of Practice for the care and handling of farmer salmonids for the first time ever in the country to further support the aquaculture sector's sustainability. This code was expected to improve practices and inspire innovations for better aquaculture. Furthermore, the FCC and CAIA have also created Canada's Blue Economy Strategy 2040, an action plan to take the country to one of the top three leading positions globally by 2040 as the best producer of sustainable seafood. Also, in May 2021, Ocean Supercluster declared four new projects, with a budget estimated at around $11 million, including an aquaculture project, 'Sustainable Protein for Aquaculture'. This project, based in Nova Scotia, has brought together academia, the private sector, and the government to innovate, develop, and commercialise two breakthrough technologies to produce an eco-friendly, sustainable, and low-cost protein for the aquaculture field while reducing oil and gas emissions. The project is a never-before-seen game-changer and represents advancements in science and technology. This project will use greenhouse gas emissions from upstream oil and gas fields and convert them into high-value protein that could be used to feed fish. According to CAIA, exports of seafood from Canada proportionally increased in 2021, with a growth of 18.6% compared to the previous year. Such developments are expected to increase the size of the market in the projected period.
For instance, in December 2019, Northeast Nutrition Inc. expanded its fish feed mill in Truro Business Park situated in Nova Scotia, Canada. Several technologies and machinery upgrades were made as a part of this five-year investment plan worth 20.3 million Canadian dollars to enhance the quality of end products. Due to such a major transformation, the company's production count increased up to 100,000 tonnes of fish feed per year. And in March 2021, Alltech, a global animal nutrition giant, secured a partnership with Canada-based aquatic feed nutrition company Corey Nutrition. The two companies are committed to bringing innovative and quality products across the aquaculture market and generating superior results. The Conservation Fund's Freshwater Institute, which focuses on aquaculture systems research and development, has collaborated with an animal field giant, Cargill, to provide the best possible nutrition for the aquatic fishes. The two companies had begun their partnership in 2018, and with this new agreement, their collaboration has solidified until 2023 and beyond.
Covid-19 Insights
The impact of COVID-19 on Canada was moderate. According to 2021 Global Altech Feed Survey there was 2% growth factor in North America amidst the global pandemic. Despite the panic and disruption globally, the rise in e-commerce was observed during the period and has offset the decline in sales due to the closure of public outlets. About 77% of the countries participating in the survey remarked that a significant or moderate rise in e-commerce during the pandemic. About 65% of the survey’s respondents remarked the steady development of RAS was ongoing within their countries.
Key Market Segments