South America Aqua Feed Market Outlook, 2031

The aqua feed market in South America has advanced significantly with the rapid expansion of salmon farming in Chile, the growth of shrimp farming across Brazil and Ecuador (though Ecuador is not always included in all South America definitions), the intensification of tilapia production in Brazil and Colombia, and the increasing adoption of commercial formulated feeds replacing farm-made and traditional feeds. Initially, aquaculture in South America relied on imported feeds and simple formulations, but as the region has developed world-leading salmon farming technology in Chile and expanded freshwater fish production in Brazil, aqua feed has now evolved into scientifically formulated, species-specific compound feeds from major manufacturers with domestic production facilities. The main purpose and domain of this market involve providing optimal nutrition for farmed species including Atlantic salmon (Chile), rainbow trout (Chile, Argentina, Brazil), Pacific white shrimp (Brazil, Ecuador, Colombia, Peru), tilapia (Brazil, Colombia, Peru), and native South American species like pacu and tambaqui across various production systems including open-net pens in southern Chile, pond culture in Brazil, and intensive tank systems. From a technical viewpoint, aqua feed solutions comprise feed formulation software, ingredient sourcing and quality control systems, extrusion and pelleting equipment, coating and drying systems, and packaging solutions. These solutions are commonly utilized by commercial feed mills, integrated aquaculture companies, and contract feed manufacturers across Chile, Brazil, Colombia, Peru, and Argentina. Their success is based on precise nutrient specification, consistent physical feed quality, water stability, palatability, digestibility, and cost-effective utilization of locally available ingredients including soybean meal from Brazil and Argentina, corn, and fishmeal from Peruvian fisheries.

According to the research report "South America Aqua Feed Market Outlook, 2031", the South America Aqua Feed market is anticipated to grow at 6.02% CAGR from 2026 to 2031. This expansion is driven by Chile's position as the world's second-largest salmon producer after Norway, the expansion of shrimp farming in Brazil and other coastal countries, increasing domestic seafood consumption across South America, the intensification of tilapia production in Brazil, and growing adoption of sustainable feed formulations with reduced marine ingredients. Recent trends across different markets reveal a rise in demand for low fishmeal salmon feeds using soybean meal, corn protein concentrate, and emerging alternative proteins, increased adoption of functional feeds with probiotics and immunostimulants for disease management in shrimp and fish, greater specification of extruded floating feeds for improved feed conversion and water quality management, and integration of digital feed management with farm automation systems. Businesses across Chile, Brazil, Colombia, Peru, and Argentina are progressively incorporating precision feeding solutions that report feed intake, growth performance, water quality parameters, and feed conversion efficiency. The move toward sustainable aquaculture has heightened the need for precise feed formulation to ensure that farmed seafood meets certification standards including Best Aquaculture Practices (BAP), Aquaculture Stewardship Council (ASC), and Global G.A.P. Leading companies in the market, including Skretting Chile, Biomar Chile, Cargill, Salmofood (part of Nutreco), and Guabi (Brazil), are at the forefront of progress by providing fully integrated aqua feed solutions, species-specific formulations, and digital feeding technologies tailored to South American production systems and environmental conditions.

Market Drivers

Chile's Position as World's Second-Largest Salmon Producer: Chile produces over 800,000 metric tons of Atlantic salmon and trout annually, representing the second-largest salmon aquaculture sector globally after Norway. Chilean salmon farming requires high-energy, nutritionally precise feeds formulated for cold-water conditions in the southern fjords of the Los Lagos, Aysén, and Magallanes regions. This sector drives the majority of aqua feed volume in South America, with specialized feed mills located near farming areas.

Expansion of Shrimp Farming Along Brazil's Northeast Coast: Shrimp farming has expanded significantly along Brazil's northeast coast, particularly in the states of Rio Grande do Norte, Ceará, Bahia, and Piauí, with producers of Pacific white shrimp (Litopenaeus vannamei) using intensive pond systems. Brazilian shrimp farming requires high-protein, nutritionally complete feeds formulated for tropical conditions, supporting export markets in Europe, the United States, and Japan.

Market Challenges

Infectious Salmon Anemia (ISA) and Other Disease Challenges in Chile: Chilean salmon farming has faced recurring disease outbreaks including Infectious Salmon Anemia (ISA), Piscirickettsiosis (SRS), and Sea Lice (Caligus). These disease challenges require careful feed management and functional feed additives, increasing production costs and affecting feed formulation strategies for Chilean salmon producers.

Infrastructure and Logistics Constraints in Amazon Region Aquaculture: Aquaculture development in Brazil's Amazon region faces significant infrastructure and logistics challenges, including limited road networks, high transportation costs, and lack of reliable electricity for feed storage. These constraints limit the adoption of commercial formulated feeds by smallholder farmers in remote areas.

Market Trends

Low Fishmeal Salmon Feeds Using Soybean and Corn Proteins: Chilean feed manufacturers are leading adoption of low fishmeal diets for Atlantic salmon, using soybean meal from Brazil and Argentina, corn protein concentrate, and other plant proteins. Research at Chilean institutions (IFOP, Universities of Concepción and Austral) has demonstrated that fishmeal inclusion can be reduced below 15% in commercial salmon feeds without compromising growth or health.

Functional Feeds for Disease Prevention in Shrimp and Salmon: Disease outbreaks are a major constraint on production across both salmon (Chile) and shrimp (Brazil) sectors. Functional feeds incorporating probiotics, prebiotics, immunostimulants, and phytogenics are being adopted to enhance disease resistance, reduce the need for antibiotics and chemical treatments, and support consumer demand for responsibly farmed seafood.

Other species including shrimp, mollusks, ornamental fish, and cobia represent the fastest-growing segment in the South America aqua feed market because shrimp farming has expanded dramatically along Brazil's northeast coast, Ecuador has become a global shrimp powerhouse, and marine finfish farming is emerging in Brazil and other coastal countries.

The other species segment is the fastest-growing in South America because shrimp farming in Brazil has expanded significantly along the northeast coast (Rio Grande do Norte, Ceará, Bahia, Piauí, Maranhão, Pará), with Brazilian shrimp producers of Pacific white shrimp (Litopenaeus vannamei) using intensive pond systems that require high-protein, nutritionally complete shrimp feeds with specialized formulations. Brazilian shrimp feeds require specific attractants and feeding stimulants (including squid meal, fish solubles, and krill meal) and pellets with exceptional water stability because shrimp feed slowly and require feeds that remain intact for hours in warm tropical pond conditions. Ecuador, though often considered separately in regional breakdowns, is a global shrimp powerhouse producing over 800,000 metric tons annually, requiring massive volumes of commercial shrimp feed manufactured by local and international companies. Colombia has also developed significant shrimp farming along its Pacific and Caribbean coasts, with companies investing in modern feed mills and hatchery technology to support export-oriented production to the United States and European markets. Mollusk farming including oysters, scallops, mussels, and clams is significant in Chile (southern fjords), Brazil (Santa Catarina coast), and Peru, with hatchery-produced seed requiring specialized micro-algae and formulated larval feeds for nursery phases before transfer to ocean grow-out areas. Ornamental fish production in Brazil (Amazon region), Colombia, and Peru supplies tropical species to the global aquarium trade, requiring color-enhancing feeds with specialty pigments including spirulina, astaxanthin, and other natural carotenoids. Marine finfish farming including cobia, sea bass, and amberjack is emerging in Brazil (northeast coast) with feed manufacturers developing species-specific formulations for these high-value species.

Feed additives including vitamins, minerals, amino acids, enzymes, probiotics, prebiotics, carotenoid pigments for salmon flesh coloration (astaxanthin), and preservatives represent the fastest-growing ingredient category in the South America aqua feed market .

The additives segment is the fastest-growing in South America because disease management is a top priority for both Chilean salmon farmers (facing Infectious Salmon Anemia (ISA), Piscirickettsiosis (SRS), and Sea Lice) and Brazilian shrimp farmers (facing Early Mortality Syndrome (EMS), White Spot Syndrome Virus (WSSV), and other pathogens), with functional additives offering a non-antibiotic approach to disease prevention that aligns with export market requirements in Europe, the United States, and Japan. Astaxanthin (synthetic and natural sources) is a critical additive for Chilean salmon feeds, providing the pink-red flesh coloration that consumers expect in farmed Atlantic salmon; without proper pigmentation, salmon cannot achieve premium pricing in export markets. Methionine and lysine are the most widely supplemented amino acids in South American aqua feeds because plant proteins (soybean meal, corn gluten meal) are deficient in these essential amino acids, and precise supplementation enables higher fishmeal replacement without compromising growth performance in salmon, trout, tilapia, and shrimp feeds. Phytase enzymes are increasingly incorporated to improve phosphorus availability from plant-based ingredients, reducing phosphorus discharge into receiving waters (fjords in Chile, rivers and coastal areas in Brazil) and supporting compliance with increasingly stringent environmental regulations and certification requirements. Probiotics (Bacillus species, Lactobacillus species) and prebiotics (mannan-oligosaccharides, fructo-oligosaccharides) are gaining adoption for gut health management across salmon, trout, tilapia, and shrimp production, enhancing nutrient absorption and immune function while reducing the need for therapeutic antibiotic interventions. Immunostimulants including beta-glucans (from yeast cell walls), nucleotides, and plant extracts (Echinacea, garlic, astragalus) are incorporated into feeds during high-risk periods such as temperature stress (summer in Brazil), handling (transport, grading), and disease outbreaks, supporting disease resistance without pharmaceutical residues.

Dry feed is both the largest and fastest-growing form segment in the South America aqua feed market because virtually all commercial aquaculture operations across Chile, Brazil, Colombia, and Peru use extruded floating or slow-sinking pellets that offer superior water stability, shelf life, nutrient retention, feed conversion efficiency, and environmental performance compared to moist feeds.

Dry feed dominates the South American aqua feed market and is simultaneously growing the fastest because extruded floating feeds have become standard for salmon (Chile), tilapia (Brazil, Colombia), and trout operations due to superior water stability that prevents nutrient leaching and reduces water quality degradation in net pens, ponds, and flow-through systems. Extrusion technology cooks and gelatinizes starches under high temperature (typically 120-150°C) and pressure, improving pellet binding and water stability while also destroying anti-nutritional factors present in some plant ingredients (trypsin inhibitors, lectins) that would otherwise affect digestibility and growth. The high-temperature, high-pressure extrusion process improves the digestibility of proteins and starches for all major farmed species, meaning that fish and shrimp extract more nutrition from each kilogram of feed, reducing feed conversion ratios (FCR) and production costs while reducing nutrient waste. Floating feeds enable farmers to observe feeding activity and adjust feeding rates based on visible consumption, reducing waste and improving profitability for both large commercial operations (Chilean salmon farms) and smallholder farmers (Brazilian tilapia and Colombian fish farmers). Slow-sinking pellets are preferred for shrimp and bottom-feeding fish species when floating pellets are not optimal, with controlled sinking rates ensuring that pellets reach the target species before dissolving or being consumed by non-target organisms. Shelf life of dry feeds (typically 3-6 months under proper storage conditions) supports distribution from manufacturing centers to remote farming areas across South America's varied geography, including the southern fjords of Chile, the northeast coast of Brazil, and the Amazon region, without requiring cold chain logistics or specialized transportation. Dry feeds are more economical to transport and store than moist feeds, which contain 20-40% water, making them impractical for large-scale commercial aquaculture operations that require consistent feed quality delivered over long distances by truck, ship, and sometimes rail.

Starter feed is the fastest-growing feed stage segment in the South America aqua feed market because hatchery and nursery production have intensified as South American farmers seek greater control over early survival rates.

The starter feed segment is the fastest-growing in South America because hatchery production for Atlantic salmon in Chile (producing millions of smolts annually), shrimp in Brazil and Colombia (producing billions of post-larvae annually), and tilapia in Brazil and Colombia (producing millions of fingerlings annually) has expanded significantly as farmers seek greater control over early survival rates and consistent supply of high-quality seedstock. Starter feeds have the highest nutritional specifications of any feed stage, with protein levels typically exceeding 50% for salmonids, high lipid content (15-20%) for energy, and inclusion of specialty ingredients including marine proteins (fishmeal, squid meal, krill meal) and probiotics that are too expensive for mass incorporation into grower feeds. Micro-encapsulated and micro-particulate starter feeds have been developed for species with very small larvae including shrimp (Artemia replacement diets) and native South American fish species (pacu, tambaqui), ensuring that feed particles are the appropriate size for ingestion by newly hatched larvae with undeveloped digestive systems. For salmon, starter feeds are used from first feeding (absorbed yolk sac) through the freshwater hatchery and early grow-out phases before smoltification and transfer to seawater net pens, a period of 10-18 months during which feed quality directly affects smolt quality and subsequent marine survival. For shrimp, starter feeds (microencapsulated diets) are increasingly used to replace or supplement live feeds (Artemia) in hatcheries, improving biosecurity and reducing dependence on live feed production infrastructure. The starter feed segment has higher profit margins than grower feeds due to specialized formulations, smaller production volumes (batch production rather than continuous), and higher per-unit prices (often 2-3 times grower feed prices), making it attractive for feed manufacturers seeking to differentiate their product portfolios and build customer loyalty.

Brazil dominates the South America aqua feed market when salmon-focused Chile is excluded from the comparison, due to Brazil's position as the world's fourth-largest aquaculture producer with tilapia as the dominant species.

Brazil holds the top position in the South American aqua feed market (excluding Chile's salmon-dominated sector) because Brazilian aquaculture production exceeds the combined total of all other South American countries except Chile, with tilapia representing the largest volume sector, followed by shrimp, native species (pacu, tambaqui, pirarucu), and catfish. Brazil is the world's largest soybean producer and exporter, ensuring consistent, cost-effective local supply of soybean meal for feed manufacturing, unlike other South American countries that rely on imports. The country's extensive reservoir network, including the São Francisco River basin (the "river of national integration"), the Itaipu Reservoir on the Paraná River (the second-largest hydroelectric dam in the world), and the Tucuruí Reservoir in Pará, provides ideal conditions for cage culture, which requires floating feeds and has driven significant feed demand. The Brazilian feed manufacturing industry includes major national and international players including Guabi (Brazilian-owned), Cargill Brasil, Socil (Nutreco), Supra, Presun, and Alinz, operating feed mills across major aquaculture-producing states. Research institutions including EMBRAPA (with specialized fisheries and aquaculture research centers), UNESP, UFSC, UEM, and state fisheries institutes conduct cutting-edge research on species-specific nutrition, feed ingredients, functional additives, and feeding strategies tailored to Brazilian conditions. The Brazilian government's support for aquaculture through the Ministry of Fisheries and Aquiculture (MPA) and EMBRAPA's technical extension services includes feed quality standards, smallholder farmer training, and research funding that accelerates adoption of commercial formulated feeds. Brazil's shrimp farming along the northeast coast from Rio Grande do Norte to Pará has made it one of the largest shrimp producers in South America, with dedicated feed mills serving this sector.

Considered in this report

• Historic Year: 2020
• Base year: 2025
• Estimated year: 2026
• Forecast year: 2031

Aspects covered in this report

• Aqua Feed Market with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Species

• Fish
• Crustaceans
• Other

By Ingredient

• Soybean
• Fish Meal
• Corn
• Fish Oil
• Additives
• Other Ingredients

By Form

• Dry
• Wet
• Moist

By Feed Stage

• Grower Feed
• Finisher Feed
• Starter Feed
• Brooder Feed