- China’s aquaculture producers are turning to premium species as margins tighten.
- Shrimp farmers are investing in precision technology to improve efficiency.
- Aquaculture accounted for 97.2% of China’s fishmeal consumption.
Speaking during IFFO’s annual conference in October, Xu highlighted the intense competition in China’s aquafeed sector.
“Competition in the aquafeed markets is expected to be white-hot,” Xu said.
As margins come under strain, aquaculture producers are being forced to rethink farm management strategies and seek new ways to improve efficiency and returns, she said.
“This will drive changes in farm management, a more diversified landscape with increased focus on high value-added species.”
The challenging operating environment is expected to accelerate structural changes across the industry.
Xu has observed a broader shift towards higher-value species that can offer stronger economic returns.
Additionally, there is an increased focus on the use of technology to manage the current challenges.
Xu said this was particularly evident in China’s shrimp sector, where farmers are adopting precision farming practices and investing more heavily in technology to optimise production.
These investments are aimed at improving efficiency and helping producers manage costs more effectively amid increasingly competitive market conditions.
China aquaculture update
Despite the changing production landscape, aquaculture remains by far the largest consumer of fishmeal in China, accounting for 97.2% of total fishmeal consumption.
However, Xu said this share is expected to decline in 2026.
Fish oil demand remains more diversified. Aquaculture accounted for 61.4% of fish oil consumption, followed by direct human consumption at 30.5% and pet food at 8.2%.
Meanwhile, fishmeal demand from China’s pig feed sector is expected to weaken further.
Xu attributed the decline to persistently low pig prices, which have dampened demand for piglets and reduced feed requirements in the livestock sector.
Looking ahead, Xu suggested that efficiency gains, technology adoption and a stronger focus on premium species are likely to become increasingly important as producers navigate ongoing cost pressures.
Global trends
According to IFFO market estimates, aquaculture consumed 92% of global fishmeal and 72% of global fish oil in 2025, accounting for almost all of the increase in consumption.
Aquaculture also accounted for 96% of the increase in fishmeal consumption during the year, underscoring the sector’s growing importance as fishmeal use in pig and poultry feed has declined.
China accounted for 47% of global fishmeal use in aquafeed and 47% of global fishmeal imports, according to IFFO market research director Enrico Bachis.
Global trade in marine ingredients also expanded in 2025, with fishmeal exports rising.
“Both fishmeal and fish oil are gravitating where the value is, with fishmeal exports soaring by +11% and fish oil by +19% in 2025, led by Peru (+29% and +53%). There was huge growth in exports from emerging origins such as India and Oman, showing how globalised this industry is becoming.”
President’s call for collaboration
Opening the conference, IFFO President Adriana Giudice highlighted the global importance of the marine ingredients industry and the need to maximise the value of every fish by improving operational and infrastructure efficiency.
“In challenging times, as our industry faces the consequences of El Niño and the instability of ocean conditions, we must value science more than ever. Science guides the management decisions that local authorities make to safeguard fish stocks and ensure their long-term sustainability.”
Giudice also called for closer industry collaboration and greater use of data and technology to help the sector adapt to changing ocean conditions.
“We must continue to collaborate and contribute with industry data, supported by advanced technologies that enable us to monitor biomass and better understand the marine environment. By combining science-based management, innovation and operational discipline, we can strengthen our industry’s resilience and improve our ability to anticipate and adapt to changing conditions.”
