Fishmeal and Fish Oil Market

Market Introduction Fishmeal and Fish Oil Market

The fishmeal and fish oil market comprises two closely linked marine-derived ingredients produced from whole small pelagic fish or processing by-products. Fishmeal is a high-protein ingredient widely used in aquafeed and livestock feed, while fish oil is a valuable source of omega-3 long-chain polyunsaturated fatty acids (EPA and DHA) used in aquaculture diets, animal feeds, nutraceuticals, and some pharmaceutical and food applications. The industry’s scope spans catch-based production (forage fisheries), reduction processing plants, by-product recovery from fish and seafood processing, and rendering/refining operations that produce standardized meals and oils. Demand is primarily driven by aquaculture growth (salmon, shrimp, tilapia), which requires fishmeal/fish oil for feed performance and omega-3 enrichment, together with human nutrition markets that value fish oil for heart and cognitive health supplements. Key supply dynamics are influenced by wild fish stock availability, catch quotas and regulations, seasonality, processing yields, and the evolving role of alternative ingredients (plant proteins, insect meal, single-cell oils). The market is characterised by cyclical price moves, regional production hubs (notably Peru, Chile, Norway, and parts of Asia), and growing pressure for sustainable sourcing and traceability across the value chain.

Market Growth Drivers

• Rapid Expansion of Global Aquaculture Production
  Aquaculture’s continued growth is the primary driver for fishmeal and fish oil demand. Farmed fish production increases the need for high-quality proteins and long-chain omega-3s to achieve optimal fish health, growth, and flesh quality. As aquaculture intensifies and shifts to higher-value species, feed volumes rise, directly expanding consumption of fishmeal and fish oil across feed segments worldwide.

• Rising Demand for Omega-3 Nutraceuticals and Fortified Foods
  Growing consumer awareness of the health benefits of EPA and DHA — cardiovascular, cognitive, and prenatal health — propels demand for purified fish oils and omega-3 concentrates in supplements and fortified foods. This nutritional demand increases pressure on refining capacity and creates higher-value product streams, positively impacting overall market revenue and investment in extraction and refining technologies.

Market Trends and Opportunities

The market is undergoing structural change driven by sustainability concerns, feed-formulation shifts, and technological innovation. A dominant trend is supply-side consolidation and certification: buyers increasingly prefer fishmeal and fish oil certified by sustainability schemes (e.g., MarinTrust/ASC/IFFO RS), and suppliers are investing in traceability, responsible sourcing, and improved reduction-process efficiencies to meet buyer requirements. This creates opportunities for processors that can demonstrate chain-of-custody and low environmental impact.

Another trend is ingredient substitution and feed optimization. Nutritionists are reformulating feeds to reduce inclusion rates of marine ingredients through the use of plant proteins, single-cell proteins, insect meals, and algal oils. While this reduces volume demand for fishmeal/fish oil per tonne of feed, it increases demand for higher-quality fish oil concentrates (EPA/DHA) as nutritional balancing shifts toward targeted omega-3 supplementation rather than bulk inclusion. Processors and refiners that can supply concentrated omega-3 oils capture higher margins.

Technological innovations present further opportunities: advanced extraction and refining (e.g., molecular distillation, fractionation), microencapsulation for stable omega-3 delivery, and by-product recovery from seafood processing improve yields and product range. There is also growing investment in alternative omega-3 production — algal and microbial oils — which while competitive, also open partnership and co-marketing opportunities with conventional producers.

Commercially, vertical integration between fishing fleets, reduction plants, and feed manufacturers helps stabilize supply and margins. Regions with strong raw material access and cost advantages (e.g., Peruvian anchovy fisheries) remain strategic. Finally, rising consumer demand for sustainably sourced seafood and omega-3 supplements provides a route for premiumization (organic, certified) and value-added products, benefiting suppliers who align with sustainability and food-safety standards.

Market Regional Outlook

Latin America (Peru) is the largest traditional supplier of fishmeal and fish oil globally, owing to abundant South American anchovy stocks and highly developed reduction industries; Peru’s output is pivotal to global supply and price dynamics. Europe (Norway, Iceland) is important for high-quality fish oils and salmon feed markets, while Chile supplies both raw materials and feed for regional aquaculture. Asia (China, Vietnam, Thailand) represents both growing production and the world’s largest consumption centers due to massive aquafeed industries and expanding domestic aquaculture. North America is a significant demand market for nutraceuticals and high-purity omega-3 products.

Looking forward, Asia-Pacific shows the strongest growth potential on the demand side, driven by aquaculture expansion and rising per-capita seafood consumption in China and Southeast Asia. Latin America and West Africa remain vital on the supply side but face regulatory and sustainability constraints that could tighten supply and redirect investment toward by-product utilization and processing modernization. Europe and North America will increasingly prioritize certified, traceable supply chains and higher-value omega-3 concentrates, while alternative oils (algal) may capture niche markets or co-exist alongside marine oils for human nutrition.

Market Segmentation

By Product Type

• Fishmeal (Standard/High-Protein)
• Fish Oil (Crude, Refined, Concentrated EPA/DHA)
• Fish Solubles and Hydrolysates
• Fish Protein Concentrates (FPC)
• Anchovy/Forage Fish Derived Products
• By-product-based Meal & Oil (processing trimmings)

By Application

• Aquaculture Feed (salmon, shrimp, trout, tilapia)
• Livestock & Poultry Feed
• Pet Food and Aquafeed Supplements
• Human Nutraceuticals (capsules, concentrates)
• Functional Foods & Fortified Products
• Pharmaceuticals (omega-3 formulations)
• Industrial Uses (lubricants, biodiesel feedstock in limited cases)

By End User / Industry Vertical

• Commercial Aquafeed Manufacturers
• Livestock Feed Producers
• Nutraceutical and Supplement Companies
• Food & Beverage Manufacturers (fortified foods)
• Seafood Processors and Reduction Plants
• Research & Biotechnology Firms (alternative oils)
• Importers, Traders, and Distributors

Regions Covered

• North America
• Europe
• Asia Pacific
• Middle East & Africa
• Latin America

Countries Covered

• U.S.
• Canada
• Germany
• U.K.
• France
• Italy
• Spain
• The Netherlands
• China
• India
• Japan
• Australia
• South Korea
• ASEAN
• Brazil
• Mexico
• Argentina
• GCC Countries
• South Africa

Key Players in the Fishmeal and Fish Oil Market

• Cargill, Incorporated
• Omega Protein Corporation (Cooke Inc.)
• Nippon Suisan Kaisha, Ltd. (NISSUI)
• Copeinca S.A.
• TASA (Tecnológica de Alimentos S.A.)
• GC Rieber Oils / GC Rieber
• Other Prominent Players