Asia Aquaculture Future

Blue Ambition: Asia Aquaculture Moves into the Future

  • Asia aquaculture will keep expanding in the future with annual growth of more than five percent predicted
  • The region accounts for 90 percent of worldwide aquaculture production with an output of nearly 120 million tonnes in 2022
  • Some of the opportunities that exist include formulated fish feed production, the development of high-value species farming capabilities, and disease detection

Across Asia, there is an urgent focus on aquaculture to increase domestic food security and meet growing consumer demand. As countries scale up production, the need for improved sustainability and expanding existing capabilities has become a priority for several countries. Asian Insiders Managing Partner Jari Hietala offers insights on Asia aquaculture investment opportunities as the industry prepares for a seemingly bright future.

A notable milestone was reached in 2022 when aquaculture surpassed capture fisheries as the main producer of aquatic animals for the first time. Interestingly, Asia was a key reason for this achievement.

According to research from the Food and Agriculture Organization of the United Nations (FAO), the region accounted for nearly 120 million tonnes of worldwide aquaculture production, more than 90 percent of the global total. This includes both aquatic animals and plants.

Unsurprisingly, the highest-producing aquaculture countries are found in Asia. China, Indonesia, India, Vietnam, Bangladesh, the Philippines, and the Republic of Korea are the top seven nations in terms of output.

The aquaculture market in Asia is predicted to expand by more than five percent annually from 2025 to 2030, making it the world’s fastest growing.

Currently, freshwater aquaculture generates the most revenue, but marine and brackish water aquaculture production is expected to be an area of emphasis for many countries since these products tend to be more lucrative.

What opportunities exist?

Opportunities in Asian aquaculture are varied. The most widespread need is for sustainability tools and innovation that improve efficiency and safety while lessening environmental burdens. There is also a desire in some corners to enhance existing capabilities.

Fish feed

As countries introduce food safety regulations and aquaculture producers aim to reduce disease, formulated fish feed, and in particular extruded feed, is increasing in demand. Recently, Skretting invested USD 24 million to build a state-of-the-art fish feed manufacturing plant in Vietnam.

Development of high-value species aquaculture

For many markets, the goal is to develop aquaculture capabilities that will allow them to produce higher-value species. To accomplish this goal, countries require advanced technologies and knowledge, which may not be readily available domestically.

Disease detection and control technologies

Innovations with the ability to rapidly and accurately detect diseases, as well as those capable of controlling, preventing, and treating issues, are highly sought after.

Downstream processing

Building up downstream processing capabilities that can create value-added food products is a priority in certain markets. An interesting example can be found in Indonesia. The country is the world’s second-largest seaweed producer but is banning exports. Dr. Tb. Haeru Rahayu, Director General of Aquaculture at the Ministry of Marine Affairs and Fisheries of Indonesia, said this is being done to encourage foreign investment in downstream seaweed activities.

Fertilised eggs, seed, fry, fingerlings, and hatcheries

Some countries in Asia import fingerlings and fertilised eggs while others export them. Elsewhere, other nations have focused on building domestic hatcheries to reduce their dependence on imports. Many opportunities are available here, although it varies from country to country.

Logistics

Firms boasting expertise in cold storage and shipping are playing an increasingly important role in Asia. With fresh and chilled fish fetching higher prices, aquaculture producers are keenly aware of the need to reach consumers faster.

Where to invest

Asian countries each have different needs in regard to aquaculture since development has been uneven. Countries that already have a robust foundation in place, such as China, require advanced solutions. Other nations, including those in Southeast Asia, are still focused on building up sector infrastructure.

As the world’s largest aquaculture market, China is targeting innovation capable of improving the sector further, as well as the creation of facilities capable of producing higher-value products. An example of the latter is the Nordic Aqua RAS farm in Ningbo operated by Norwegian-based Nordic Aqua Partners. Once completed, the facility will be able to produce up to 16,000 tonnes of Atlantic salmon sustainably.

The situation is similar in South Korea where the primary investment opportunities are related to smart aquaculture advancements and the local production of higher-value seafood, such as salmon.

In India, the Ministry of Fisheries, Animal Husbandry & Dairying has actively pursued foreign investment into the aquaculture sector as the country looks to ramp up capabilities while improving sustainability.

Malaysia has made it a priority to develop more onshore aquaculture farms as it looks to step up domestic seafood output. Technology and knowledge are in demand, and the country has created favourable conditions for foreign investors.

Similarly, Indonesia has made it easier for foreign firms to enter the aquaculture sector where increasing production is seen as a way to improve food security. As mentioned previously, the country is also encouraging overseas investment in downstream seaweed activities.

Vietnam is prioritising aquaculture with the government estimating that exports will reach USD 1 billion this year. By 2045, the sector’s export value is expected to exceed USD 4 billion.

The Philippine Department of Agriculture is courting investors to build large-scale aquaculture production facilities as it looks to support the Comprehensive National Fisheries Industry Development Plan.

Final thoughts on Asia aquaculture in the future

Asia is without question the global leader in aquaculture production, and the future of the sector is bright. In order to reach the industry’s full potential, countries are searching for various technologies and expertise that will improve sustainability and food security while potentially unlocking the capacity to farm more lucrative products.      

For overseas firms, there is a wide array of opportunities available. Additionally, several countries are actively recruiting foreign investment into aquaculture. Yet, it is essential not to rush market entry as obstacles still exist.

Each country has different needs as well as different requirements for foreign companies. Not knowing these ahead of time can derail your ambitions. Having a market entry partner like Asian Insiders is invaluable when embarking on this journey.

Our team of experts has successfully guided numerous international aquaculture firms through the entry process. As a trusted consultant, Asian Insiders will ensure you’re ready for success.

To learn more about Asia aquaculture investment opportunities, schedule a no-obligation call with Jari Hietala, Managing Partner: jari.Hietala (at)asianinsiders.com

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