Next-Generation Aquaculture/Fish Farming Market in Japan: Key Research Findings 2019
Yano Research Institute (the President, Takashi Mizukoshi) has conducted a survey on the domestic next-generation aquaculture and fish farming market, and has found out the market size, the trends of market players, and the future outlook.
Decrease in and aging of workers have been accelerated in the domestic fishing industry, shown by the statistics in the Ministry of Agriculture, Forestry and Fisheries. The statistics indicate that the catch by sea fishery has decreased by more than 30% from two decades ago, whereas the catch by sea culture has also declined by about 20%. The influence of fewer and aging fishermen may not only reduce the fishery productivity but may also impede the activities by the fishery industry that has long contributed to support monitoring of local resources and managing of aquatic resources.
In addition, progressive global warming has significantly affected aquatic resources. While feed for fish occupies the majority of production cost in aquaculture or fish farming, almost all the domestic fishmeal feed, the main ingredient of feed for fish, is dependent on import. Against the background of expanding global seafood demand, the price of fishmeal feed has soared during the past several years.
In order to solve the challenges at the domestic aquaculture businesses, smart aquaculture (aquaculture using ICT technologies), land-based aquaculture (artificial aquaculture built on land), low fishmeal feed (feed with lower percentage of fishmeal) and insect-protein-used fishmeal feed (feed using insects as the main materials) have attracted attention as next-generation aquaculture. The domestic market size of next generation aquaculture or fish farming for FY2018, based on the sales at businesses, was estimated as 15,165 million yen. The details were as follows: The market of low fishmeal feed achieved 9,984 million yen, the land-based aquaculture market reached at 5,088 million yen. Smart aquaculture with the market just launched was 80 million yen, and insect-protein-used fishmeal feed with its commercial production just begun reached at 13 million yen.
The Fisheries System Reforms Act in Effect
In December 2018, Japan’s legislature enforced the fisheries system reforms act, the most significant reform in 70 years. Ever expanding consumption of seafood throughout the world, together with more vigorous management of resources such as catch quotas in progress, no increase of catch by fishing boats can be expected anymore for the future. While the fishery industry has been on the decline due to depletion of resources and etc., the act aims to shift the fishery to growing industry by domestically strengthening management of fishery resources and by encouraging private companies to enter the industry of aquaculture or fish farming.
When compared with agriculture, the entry by private companies into the fishery industry has been lagging. The future recovery of Japanese fishery seems to be dependent on whether the technologies and operation knowhow by private companies can extend aquaculture or not.
The domestic market size of next generation aquaculture or fish farming for FY2023, based on the sales at businesses, is projected to attain 23,789 million yen. The details are as follows: The market of low fishmeal feed is expected to reach 11,693 million yen, the land-based aquaculture market to attain 8,760 million yen, smart aquaculture 2,311 million yen, and insect-protein-used fishmeal feed 1,025 million yen.
For the future, smart aquaculture is considered to be the most growth-anticipated market, as ICT technologies increase efficiency and save labor, and as a data platform with the fishery value chains integrated is to be built and developed throughout the country. On the other hand, land-based aquaculture systems are likely to be expanded the scale by the existing aquaculture businesses, in a situation where more companies are expected to newly enter the market. As for Low fishmeal feed, in addition to conventional vegetable or animal based materials, insect-based protein, single-cell protein, and microalgae are projected to be developed as the next-generation raw materials, which may contribute to market expansion.
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