Showing posts with label Leading Seafood Manufacturers. Show all posts
Showing posts with label Leading Seafood Manufacturers. Show all posts

Monday, August 21, 2023

5 Major Investment in KSA Seafood and Fish Feed Market: Ken Research

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Story Outline

  • Government funds fuel KSA's seafood market growth with Vision 2030's 600,000-ton seafood production target.
  • Foreign investments surge, like Marine Harvest's USD 120M fish farming project and Skretting's USD 200M fish feed factory.
  • Private sector actively invests in KSA's seafood industry, with NAQUA and Saudi Fisheries leading the way.
  • Investment funds, including SALIC, boost seafood projects for food security and domestic production.
  • VC firms like Impact46 back innovative seafood startups, like "Fish Farm," advancing aquaculture and fish feed solutions.
  • According to Ken Research, The KSA Seafood and Fish Feed Market is expected to reach $900 Mn by 2027, currently the market is growing at a CAGR of ~11% in 2022.

The Kingdom of Saudi Arabia (KSA) has been an attractive investment destination for decades, thanks to its abundant natural resources, growing economy, and favorable business environment.  Recently, the seafood and fish feed market in the Kingdom has emerged as a potential magnet for both local and foreign investments.

This rising trend is fueled by various factors such as a burgeoning population, increasing per capita income, government-led initiatives, and a growing preference for healthier diets. To fully grasp the potential and depth of this market, it is crucial to understand the investment landscape. This comprehensive analysis uncovers the major investments in the KSA seafood and fish feed market and the entities driving them.

1.Government Investments towards Self-Sufficiency

KSA Seafood and Fish Feed Market

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The Saudi government has been a leading investor in the country's seafood and fish feed market. As part of its Vision 2030, the government aims to produce 600,000 tons of seafood annually by 2030 to achieve significant self-sufficiency. This ambitious plan has attracted significant government investments in the aquaculture sector. The National Industrial Development and Logistics Program (NIDLP), under Vision 2030, has allocated a staggering SAR 5.3 billion (~ USD 1.41 billion) to the fisheries sector, including aquaculture and fish feed production. This initiative is expected to create 100,000 direct and indirect jobs in the sector, further demonstrating the government's commitment to developing a robust seafood and fish feed market.

2.Increasing Foreign Direct Investment in Seafood Sector

KSA Seafood and Fish Feed Market

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The KSA seafood and fish feed market's potential hasn't gone unnoticed by foreign investors. In 2018, the Norwegian seafood company, Marine Harvest, announced an investment of USD 120 million to set up a fish farming operation in Saudi Arabia.  The investment includes a hatchery, fish farms, and a processing plant to cater to the rising demand for seafood in KSA and the broader Middle East.

Furthermore, in 2021, Skretting, a leading fish feed manufacturer from Norway, announced plans to invest USD 200 million in constructing a state-of-the-art fish feed factory in the Kingdom. Skretting's entry into the Saudi market is a strong testament to the lucrative prospects of the fish feed market, which is closely tied to the seafood industry's growth.

According to Ken Research, The KSA Seafood and Fish Feed Market is expected to reach $900 Mn by 2027, currently the market is growing at a CAGR of ~11% in 2022 owning to influx of major investment, government vision 2030 and change in consumers preferences.

3.Private Sector Participation in KSA Seafood Sector

The private sector in Saudi Arabia has also recognized the growth potential in the seafood and fish feed market. Several private companies have invested heavily in various segments of this market, contributing to its rapid development.

For instance, the Jazan-based National Aquaculture Group (NAQUA), one of the largest aquaculture companies in KSA, has invested extensively in creating an integrated aquaculture system. This includes hatcheries, fish farms, and a feed mill with an annual production capacity of 50,000 metric tons of fish feed.

Moreover, the Saudi Fisheries Company, a public company listed on Tadawul (the Saudi Stock Exchange), has also invested significantly in expanding its seafood processing capacity and developing a high-quality fish feed portfolio.

 4.Investment Funds eyeing on KSA Fish Feed Industry\

KSA Seafood and Fish Feed Market

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Investment funds are playing a significant role in shaping the KSA seafood and fish feed market. In 2020, the Saudi Agricultural and Livestock Investment Company (SALIC), a subsidiary of the Public Investment Fund (PIF), invested USD 100 million in an offshore shrimp farming project in the Red Sea. This investment is part of a larger strategy to enhance domestic seafood production and promote food security in the Kingdom.

Furthermore, in 2021, the Saudi Investment Bank (SAIB) and the Arab Investment Company (TAIC) jointly launched a USD 400 million fund dedicated to investments in the food and agriculture sector, including the seafood and fish feed market. This initiative further underscores the significant investment potential of the market.

5.Venture Capitalists are backing Innovative Seafood Startups in KSA

Venture capital (VC) has emerged as a vital source of investment in the KSA seafood and fish feed market. Several startups in this sector have caught the attention of VC firms with their innovative solutions. One such example is Jeddah-based startup “Fish Farm,” which secured USD 1.5 million in seed funding in 2022 from the Riyadh-based VC firm, Impact46.

Fish Farm leverages advanced aquaculture technologies to produce high-quality seafood and has plans to develop a proprietary line of fish feed.

Conclusion

The Kingdom of Saudi Arabia's seafood and fish feed market is witnessing a surge of investments from various sources, reflecting the sector's lucrative potential. Government initiatives, foreign direct investments, private sector participation, investment funds, and venture capital have all contributed significantly to this growth narrative. This infusion of capital has not only helped the market evolve but also positioned it for sustained future growth.

For More Insights On Market Intelligence, Refer to the Link Below: –

KSA Seafood and Fish Feed Market Outlook to 2027

Related Reports by Ken Research: –

India Aquaculture Feed Market Outlook to 2027

Thursday, August 10, 2023

KSA Seafood and Fish Feed Market Expected to Reach $900 Mn by 2027: Ken Research

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Story Outline

  • Population growth fuels the demand for seafood, boosting the fish feed market in KSA.
  • Economic prosperity drives preference for nutritious seafood, fueling fish feed market growth.
  • Governments Vision 2030 promote aquaculture and sustainable practices, propelling fish feed market growth.
  • Health consciousness increases demand for nutritious seafood, driving fish feed market growth.
  • Technological advancements improve fish farming efficiency, stimulating the fish feed market in KSA.

The Kingdom of Saudi Arabia (KSA), renowned for its oil wealth and sacred Islamic sites, is emerging as a significant player in the seafood and fish feed market. This transformation is intriguing, given that the desert nation has historically relied on seafood imports to meet its demand.

Several factors contribute to this positive shift, including population growth, a rise in income levels, supportive government initiatives, enhanced health awareness, and industry-specific technological advancements.

According to Ken Research, The KSA Seafood and Fish Feed Market is expected to reach $900 Mn by 2027, currently the market is growing at a CAGR of ~11% in 2022.

5 Major Reason for the Growth of the KSA Seafood and Fish Feed Market are:

1.The Rising Population Tide

KSA Seafood and Fish Feed Market

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Saudi Arabia's population has been on a steady rise, reaching approximately 35 million in 2021, with an annual growth rate of about 1.59%.

This demographic trend invariably propels a surging demand for food. Given the protein-rich nature of seafood, it's particularly sought after, more so due to the global shift towards healthier dietary habits.

The World Health Organization's dietary guidelines recommend a weekly intake of 280-560 grams of fish.

Applying this guideline to Saudi Arabia's current and projected population, the demand for seafood and, consequently, fish feed, is anticipated to escalate. This population-driven demand creates a robust market for the seafood industry, and by extension, the fish feed market.

In aquaculture, the significance of quality feed is paramount. Efficient growth, health, and productivity of fish heavily rely on their diet.

As the population fuels the demand for seafood, the requirement for high-quality fish feed is set to rise proportionately, paving the way for a thriving fish feed market in KSA.

2.The Impact of Economic Growth on Dietary Preferences

KSA Seafood and Fish Feed Market

As Saudi Arabia rides the wave of economic prosperity, its GDP per capita has been on an upward trajectory, from $20,813 in 2016 to an estimated $23,566 in 2021. This rising affluence is not just elevating living standards but also transforming dietary preferences.

With higher disposable income, the Saudi populace is exhibiting a growing inclination towards diverse and nutritious dietary choices.

Seafood, rich in essential nutrients like Omega-3 fatty acids and proteins, is progressively becoming a favored choice. This trend has catalyzed the seafood industry's growth and has created a ripple effect on the fish feed market.

The quality and type of fish feed significantly influence the nutritional value and taste of the seafood.

As consumers demand healthier and tastier seafood options, the fish feed market needs to innovate and provide feed solutions that help produce such desired seafood qualities.

Hence, economic prosperity indirectly nudges the fish feed market towards growth and innovation.

3.Major Government Initiatives and Policies

KSA Seafood and Fish Feed Market

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The Saudi government has been instrumental in facilitating the growth of the seafood and fish feed market.

As part of its ambitious Vision 2030 strategy, the government aims to achieve substantial self-sufficiency in seafood production. The goal is to produce 600,000 tons of seafood by 2030, thereby reducing the nation's dependence on imports.

This target is a catalyst for investments in the aquaculture industry and allied sectors, including fish feed.

Initiatives like these drive the demand for quality fish feed, necessary to enhance the productivity and efficiency of fish farms, thereby fueling the fish feed market's growth.

Furthermore, the Saudi government's commitment to sustainable practices translates into regulations and policies that promote responsible aquaculture.

These policies mandate the use of quality fish feed that ensures optimal fish health and growth while minimizing environmental impact.

The regulatory push for sustainable practices provides a significant impetus to the fish feed market, reinforcing its growth prospects.

4.Increasing Health Consciousness and Its Impact

KSA Seafood and Fish Feed Market

The global wellness wave is making substantial inroads into Saudi Arabia, and an increasing number of Saudis are becoming conscious about their health and wellness.

They're increasingly seeking nutritious and healthy dietary options, with seafood emerging as a top choice due to its beneficial nutrient profile.

Studies reveal a steady rise in fish consumption in KSA, from 9 kg per person per year in 2012 to 14 kg in 2018. As more people lean towards consuming heart-friendly and nutrient-rich seafood, the demand for healthy and high-quality seafood is intensifying.

This escalating demand indirectly impacts the fish feed market. Fish farmers require high-quality feed to rear healthy fish that meet consumer demands.

Hence, the growing health consciousness and the consequent demand for nutritious seafood promise a strong market for fish feed manufacturers who can deliver on these expectations.

5.Modern Techniques and Fish Feed Innovations

KSA Seafood and Fish Feed Market

Funds Raised Startups Sea Food Sector KSA

The role of technology in the seafood and fish feed market is pivotal.

Technological advancements, especially in fish farming and fish feed formulation, have improved the industry's efficiency and productivity.

For instance, the use of Recirculating Aquaculture Systems (RAS) enables fish farming in controlled environments, ensuring optimal growth conditions and minimizing disease risks.

The application of AI in monitoring fish health and growth has also enhanced farming efficiency. These modern farming techniques have helped increase seafood production, indirectly escalating the demand for fish feed.

Simultaneously, there's a revolutionary change in fish feed formulation.

Research and development in this sector are leading to new feed formulations that enhance fish growth, health, and yield while maintaining sustainability.

As these technological breakthroughs continue to permeate the industry, the seafood and fish feed market in KSA is poised for significant growth.

Conclusion:

The growth narrative of the KSA seafood and fish feed market is a fascinating blend of demographic, economic, policy-driven, health-conscious, and technology-enabled factors. These drivers are working synergistically to shape a vibrant future for the seafood industry and the closely linked fish feed market.