India Shrimp Feed Market- Trend Analysis & Forecast to 2030

India shrimp feed market valued at USD ** million and domestic production reached 1.56 million tonnes in 2023. In the Union Budget 2023-24, the Indian Government announced a decrease in customs duty on essential inputs for domestically manufacturing shrimp feed. This move aims to encourage exports, strengthen domestic production, and promote increased value addition within the country.

India’s Significance in the Global Shrimp Feed Supply

The India shrimp feed market has witnessed significant growth in recent years owing to the increasing demand for shrimp both domestically and internationally. Shrimp farming has become a lucrative business in India due to favorable climatic conditions and abundant coastal resources. The market comprises various players engaged in the production, distribution, and marketing of shrimp feed to cater to the growing needs of shrimp farmers across the country.

India plays a crucial role in the global shrimp supply chain, being one of the largest producers and exporters of shrimp. The production of high-quality shrimp feed in India is essential to support the thriving shrimp farming industry, ensuring consistent supply and meeting international quality standards. India's contribution to the global shrimp market helps maintain stability and meet the increasing demand from consumers worldwide.

In FY 2023, India exported shrimp feed valued at US$ 27.42 million, marking a significant increase of 161% compared to the US$ 10.52 million exported in 2022. In terms of volume, India exported 25.10 thousand tonnes of shrimp feed in 2023.

Market Growth Factors & Opportunities

The India shrimp feed market is experiencing growth primarily due to the escalating demand for shrimp both domestically and internationally. Shrimp is favored for its taste, nutritional benefits, and culinary versatility, making it a popular choice in various cuisines worldwide. As economies develop and consumer preferences evolve, there's a noticeable trend towards increased consumption of seafood, with shrimp being a significant component of this demand.

The expansion of shrimp farming operations, both along coastal regions and in inland areas, contributes significantly to the demand for shrimp feed. Entrepreneurs and investors are increasingly drawn to the shrimp farming business due to its profitability and relatively low entry barriers. This leads to the establishment of new shrimp farms and the expansion of existing ones, driving the overall demand for feed products.

Government support and initiatives play a crucial role in fostering the growth of the shrimp farming industry. Various schemes, subsidies, and financial assistance programs are implemented to encourage farmers to adopt modern farming practices, invest in quality feed, and expand their operations. Additionally, government-led infrastructure development projects, such as the establishment of aquaculture parks and processing facilities, further facilitate the growth of the shrimp farming sector. In the Union Budget 2023-24, the Indian Government unveiled a reduction in customs duty on crucial inputs for the domestic production of shrimp feed. This initiative is intended to stimulate exports, bolster domestic manufacturing, and foster greater value addition within the country.

As disposable incomes rise and urbanization accelerates, there's a corresponding increase in the consumption of premium seafood products like shrimp. Consumers are willing to spend more on high-quality, nutritious food items, reflecting changing dietary preferences towards healthier and more diverse options. This shift in consumer behavior, particularly among the younger demographic, fuels the demand for shrimp and drives market growth.

Market Restraints

Fluctuating Prices of Raw Materials
The India shrimp feed industry is significantly influenced by the prices of key raw materials such as fishmeal, soybean meal, and other protein sources. Fluctuations in the prices of these ingredients can impact the overall production cost of shrimp feed, leading to margin pressures for feed manufacturers. Factors such as changes in global supply and demand dynamics, weather-related disruptions in fishing or agriculture, and currency fluctuations can contribute to price volatility, making it challenging for feed producers to maintain stable pricing and profitability.

The availability and price volatility of key ingredients like fishmeal, soybean meal, and other protein sources pose significant challenges for shrimp feed manufacturers. Dependence on imports for certain ingredients exposes the industry to supply chain disruptions, geopolitical factors, and price fluctuations in the global market. Securing a stable and cost-effective supply of raw materials is essential for maintaining product quality and profitability.

Competition from Alternative Protein Sources
Shrimp faces competition from other protein sources in the seafood market, such as fish, poultry, and plant-based alternatives. Consumer preferences, price sensitivity, and health considerations influence the demand for different protein options, posing challenges for the shrimp industry to maintain its market share. Additionally, the emergence of alternative protein sources, such as plant-based seafood substitutes, presents new competitive pressures for the traditional shrimp market, compelling stakeholders to innovate and differentiate their products to stay relevant.

India Shrimp Production Trend

India's shrimp production has seen a significant upward trend over the past decade, establishing the country as one of the world's leading shrimp producers and exporters. This growth has been largely driven by the expansion of shrimp farming, particularly in coastal states like Andhra Pradesh, Tamil Nadu, and Odisha. The adoption of advanced aquaculture practices, increased investment in infrastructure, and a shift towards high-value species like Vannamei shrimp have contributed to this trend. Additionally, the Indian government's support through subsidies, improved disease management, and export promotion policies has further fueled production growth. Despite occasional challenges such as disease outbreaks and fluctuating global prices, India's shrimp production is expected to continue its upward trajectory, supported by strong global demand and a focus on sustainability.

India Shrimp Feed Supply/ Value Chain Bottlenecks/ Challenges

India's shrimp feed supply chain faces several bottlenecks and challenges that impact its overall efficiency and sustainability. One of the primary issues is the high dependence on imported raw materials like fish meal and soybean, which makes the feed cost susceptible to global price fluctuations and currency exchange rates. This reliance on imports not only increases production costs but also affects the consistency in feed quality. Additionally, inadequate infrastructure for transportation and storage leads to delays and feed spoilage, reducing the profitability of shrimp farmers. The lack of advanced processing technology and expertise further limits the development of high-quality, nutritionally balanced feed tailored to specific shrimp requirements. Small-scale farmers often struggle with limited access to credit facilities, making it difficult for them to invest in better feed options or scale their operations.

Moreover, the supply chain is fragmented, with inadequate coordination among suppliers, manufacturers, and farmers, resulting in inefficiencies and supply disruptions. Regulatory challenges and inconsistent policies related to import tariffs and quality standards also create hurdles for feed producers and limit the industry's growth potential. Addressing these issues requires a holistic approach to enhance local raw material production, upgrade infrastructure, and streamline supply chain operations.

India Shrimp Feed Trade (Export & Import) Trend

India's shrimp feed trade is characterized by a growing dependence on imports for key raw materials and limited export activity in finished feed products. The country imports a significant portion of its shrimp feed ingredients, such as fish meal, soybean meal, and other protein sources, primarily from countries like the United States, South America, and Southeast Asia. This dependence on imports makes the feed production vulnerable to global market dynamics, including price volatility and supply chain disruptions. On the export front, while India is a major player in the global shrimp market, its role in the export of finished shrimp feed remains relatively minor. Domestic feed manufacturers are primarily focused on catering to the local market due to the increasing demand from India's expanding aquaculture sector. However, there is a growing interest in exploring international markets for value-added feed products as Indian producers strive to improve feed formulations and technology. Despite these efforts, the competitive landscape of global feed production and the high costs of logistics pose challenges to India's ability to scale its shrimp feed exports in the near future.

In 2023, India imported shrimp feeds valued at USD 28.31 million. In the current year (April to Aug 2024), India imported US$ 11.95 million valued shrimp feed. Major import origins for India shrimp feed include Vietnam, Thailand, Malaysia, USA, and Belgium.

India Shrimp Feed Market Competitive Analysis

The India shrimp feed market is characterized by the presence of both domestic and international players competing on factors such as product quality, innovation, distribution network, and customer service. Collaboration, innovation, and sustainability will be key drivers of competitive advantage in the evolving aquaculture industry.

Avanti Feeds Limited and CP Aquaculture (India) Pvt. Ltd. are among the market leaders in India's shrimp feed industry. They have a strong presence in the market with well-established brands, extensive distribution networks, and a wide range of product offerings. Godrej Agrovet Limited, Waterbase Limited, and Growel Feeds Pvt. Ltd. are well-established players in the shrimp feed market. They have a significant market presence and offer quality feed products catering to the diverse needs of shrimp farmers.

■ Avanti Feeds Limited
■ Godrej Agrovet Limited
■ The Waterbase Limited
■ Growel Feeds Pvt. Ltd.
■ CP Aquaculture (India) Pvt. Ltd.
■ Cargill India Pvt. Ltd.
■ Nutriad India Pvt. Ltd.
■ Biostadt India Limited
■ Thai Union Group PCL
■ BioMar India Pvt. Ltd.
■ BMR Group
■ Anmol Feeds Pvt. Ltd.

Future Outlook

The future outlook for the India shrimp feed market appears promising, driven by the growing demand for shrimp in both domestic and international markets. Increasing shrimp farming activities, supported by government initiatives and technological advancements in aquaculture, are expected to propel the demand for shrimp feed. The market is likely to witness significant growth due to the rising adoption of high-quality, nutritionally balanced feed that enhances shrimp health and productivity. Additionally, the expanding export opportunities and the increasing focus on sustainable and environmentally friendly feed practices will further boost the market, with projections indicating steady growth through 2030.