In 2000, global aquafeed production was around 15-16 million metric tons. By 2023, this figure had surpassed 51 million metric tons, reported Enrico Bachis, Market Research Director at IFFO, during the North Atlantic Seafood Forum (NASF). The aquafeed sector remained the largest consumer of fishmeal and fish oil in 2023, accounting for over 90% of fishmeal and more than 60% of fish oil consumption.

Focusing on fish oil, salmon aquaculture is one of its main consumers, competing with the human nutrition and pharmaceutical industries. Demand for fish oil has historically grown by 2-4% annually, requiring an additional 20,000-30,000 metric tons each year, noted Novel Sharma, an analyst at Rabobank.

In this context, the recent fisheries crisis has underscored the need for alternative omega-3 sources that wild-caught fisheries are not able to supply. Veramaris has been supplying the market with natural marine algae-based Omega-3 EPA & DHA in recent years and played a crucial role in maintaining the supply of these essential nutrients for aquafeeds during the fish oil crisis. During that period, the company operated at full capacity and sold its entire stock. However, as fish oil production returned to normal, demand for algal oil softened, Ian Carr, Global Business Development Director at Veramaris, told Aquafeed.com during NASF.

“With fish oil supply recovering after the last El Niño, those not specifically requiring algal oil are reverting to fish oil due to cost differences. The key distinction lies between farmers who value specific attributes and those who seek omega-3 from any source,” Carr explained.

Veramaris continues to operate efficiently at its current capacity but warns that during the next supply crisis, unless more farmers specify algal oil in their feed there will be no additional capacity to meet demand, leading to even worse price spikes. “We would like to double our production capacity at our existing site. We can do it, but we need market assurance to support it. We are working with feed manufacturers and farmers to establish long-term supply agreements that will justify expansion,” Carr said. “We have proven the viability and reliability of our product. Now, the responsibility lies with the value chain to commit, ensuring we don’t face the same shortages during the next fish oil crisis.”

Market trends

Over 80% of Veramaris’ total production goes into aquafeeds, with the remaining 20% split evenly between pet food and human nutrition. Salmon remains the primary aquafeed market, but demand from the shrimp sector, particularly in Ecuador, is growing. “In some regions, the shrimp industry is following a sustainability trend similar to what we saw in salmon aquaculture two to three years ago,” Carr noted.

While Europe is still the main market, Veramaris has begun supplying algal oil to shrimp feed mills in Asia. However, market penetration in Asia presents challenges. “The shrimp industry in Asian countries is highly fragmented, making it difficult to get a clear picture of the value chain. We can see the feed millers at the beginning—companies like De Heus and Cargill— and the retailers at the end, but the middle segments remain opaque,” Robert Redman, Business Development Manager for Veramaris in the Asia-Pacific region, told Aquafeed.com at VIV Asia.

Countries such as Thailand offer more transparency with integrated companies like Thai Union and CP, but Indonesia remains highly fragmented, with feed producers, farmers, processors, and exporters not well connected in terms of the value chain and trackability.

Nonetheless, Redman sees opportunities. “Second- and third-generation shrimp farmers recognize the need for integration. They may not focus on feed, but they are investing in processing and branding their products.”

Sustainability, however, is not yet a priority in the Asian shrimp sector. “Companies like CP, Thai Union, and Minh Phu have been developing value-added shrimp products, but the sector in general is not yet ready for sustainability discussions in the same way that the salmon sector is,” Redman observed.

High-value marine fish, such as barramundi, are also a promising market, but scalability remains an issue. Meanwhile, salmon farms in Tasmania and New Zealand are beginning to adopt algal oil as a feed ingredient.

Product development

Veramaris has been enhancing its products and applications.

“There’s an opportunity to manipulate fatty acid profiles in our oil. Currently, our product has a DHA-to-EPA ratio favoring DHA. We are working on an oil that reverses this, with a ratio that is more consistent with Peruvian anchovy oil but with double the potency,” Carr said.

Ester Santigosa, global innovation lead for aquaculture at dsm-firmenich, said at NASF that “EPA plays crucial physiological roles, and we are testing whether increasing EPA levels in our oil will deliver health benefits. However, the challenge is that the market formulates based on total EPA and DHA rather than on individual fatty acids, unlike how proteins and amino acids are treated. This practice stems from the historical reliance on fish oil and nutritionists not needing to do this exercise. We believe it’s time to create awareness and provide documentation supporting the benefits of each individual fatty acid to support a more precise formulation approach.”

Veramaris is also exploring how its product can solve aquaculture challenges, such as wound healing in salmon, and add value. “When we started Veramaris ten years ago, nutritional requirements for EPA and DHA were unclear, which seems unbelievable today. We’ve invested heavily in research to address this gap,” Santigosa said. “There’s still much we don’t understand. For example, in one trial, Veramaris oil reduced sea lice counts, but we don’t yet fully understand why. Fatty acid metabolism remains complex, and we’re committed to uncovering more of its benefits.”

Market demand and competition

As alternative omega-3 sources emerge, Carr acknowledges that multiple solutions can coexist. “With rising omega-3 demand across aquafeeds, human nutrition, and pet food, the additional 20,000-30,000 tons of fish oil required annually are simply not available. We aim to position ourselves as the best option in this competitive landscape. Our product is proven, widely accepted, and the only ASC-certified omega-3 ingredient available for ASC-certified farmers.”

“It is now time for leaders in the seafood value chain to make a decision: Are we ready to create the market for ingredient companies like Veramaris to expand into or are we happy with the level of volatility and risk that we have in our current supply chain? I hope the industry is ready to support innovation, ensuring the security needed for investment and expansion,” Carr concluded.