Fishery By-products Market Summary
The Fishery By-products market is a vital and expanding segment within the global seafood and agricultural industries, focusing on the value-added utilization of materials derived from fish processing, such as heads, bones, skin, offal, and scales. These by-products, once considered waste, are now transformed into high-value products including protein derivatives, fish oil, and bioactive compounds, serving diverse applications in food and beverage, animal feed, and agriculture. The market is characterized by its role in promoting sustainability, reducing waste in the seafood supply chain, and meeting the growing demand for nutrient-rich, eco-friendly products. Fishery by-products are rich in proteins, omega-3 fatty acids, and bioactive peptides, making them essential for functional foods, nutraceuticals, and sustainable agricultural inputs. The industry is driven by increasing global fish consumption, heightened awareness of circular economy principles, and advancements in processing technologies that enhance yield and quality. The global Fishery By-products market is estimated to reach a valuation of approximately USD 20–30 billion in 2025, with a compound annual growth rate (CAGR) projected in the range of 5.0%–10.0% through 2030. Growth is propelled by rising demand for sustainable ingredients, regulatory support for waste reduction, and expanding applications in high-value sectors, particularly in developed and seafood-reliant regions.
Application Analysis and Market Segmentation
The Fishery By-products market is segmented by application into Food & Beverage, Animal Feed, and Agriculture, each addressing distinct end-use needs and market dynamics.
Food & Beverage: This segment involves the use of fishery by-products in functional foods, nutraceuticals, and food additives, such as fish protein hydrolysates and omega-3 supplements. It is expected to grow at 5.5%–10.5% annually, driven by increasing consumer demand for health-focused products and clean-label ingredients. Trends include the development of fish-derived collagen for functional beverages and dietary supplements, as well as the incorporation of bioactive peptides in sports nutrition, reflecting a shift toward premium, health-oriented food products.
Animal Feed: Fishery by-products, particularly fishmeal and fish oil, are widely used in aquaculture, poultry, and pet feed for their high protein and omega-3 content. This segment is projected to grow at 5.0%–10.0% annually, fueled by the global expansion of aquaculture and the need for sustainable feed alternatives. The trend toward replacing plant-based proteins with fish-derived ingredients to enhance feed efficiency and animal health is significant, especially in regions with large aquaculture industries.
Agriculture: In agriculture, fishery by-products are used as biofertilizers, soil conditioners, and biostimulants, leveraging their nutrient-rich properties to enhance crop yields. This segment is anticipated to grow at 4.5%–9.5% annually, driven by the rising adoption of sustainable farming practices. Trends include the use of fish hydrolysates in organic farming and precision agriculture, where bioactives improve soil health and plant resilience, aligning with global sustainability goals.
By Type: Protein & Protein Derivative, Fish Oil, Bioactives & Specialty Compound
The market is further segmented by type into Protein & Protein Derivative, Fish Oil, and Bioactives & Specialty Compound, each offering unique functionalities.
Protein & Protein Derivative: This type includes fishmeal, protein hydrolysates, and collagen, used in food, feed, and industrial applications. It is expected to grow at 5.5%–10.5% annually, driven by demand for high-quality protein sources in aquaculture and nutraceuticals. Trends include the development of enzymatic hydrolysis techniques to produce high-value peptides for functional foods and pet nutrition, enhancing digestibility and nutritional benefits.
Fish Oil: Fish oil, rich in omega-3 fatty acids, is used in dietary supplements, animal feed, and pharmaceuticals. This segment is projected to grow at 5.0%–10.0% annually, fueled by the growing popularity of omega-3 supplements and sustainable aquaculture feed. The trend toward refined, high-purity fish oils for premium health products and eco-friendly feed formulations is gaining traction.
Bioactives & Specialty Compound: This category includes bioactive peptides, gelatin, and other compounds used in nutraceuticals, cosmetics, and agriculture. It is anticipated to grow at 5.0%–9.5% annually, driven by innovation in high-value applications like anti-aging cosmetics and functional food ingredients. Trends include the use of advanced extraction technologies to isolate bioactive compounds for targeted health benefits, such as cardiovascular and immune support.
Regional Market Distribution and Geographic Trends
The Fishery By-products market exhibits varied growth patterns across regions, influenced by seafood production, processing infrastructure, and sustainability initiatives.
Asia-Pacific: The Asia-Pacific region is expected to grow at 6.0%–11.0% annually, led by China, Japan, and Thailand. China dominates due to its massive seafood processing industry and growing aquaculture sector, driving demand for fishmeal and fish oil. Japan focuses on high-value bioactive compounds for nutraceuticals, while Thailand supports fish oil and protein exports. The trend toward sustainable processing and circular economy practices is significant, supported by government policies promoting waste utilization.
North America: North America is projected to grow at 4.5%–9.5% annually, with the United States and Canada as key markets. The U.S. drives demand through its focus on sustainable aquaculture and nutraceuticals, while Canada leverages its fishery resources for fish oil and protein derivatives. The trend toward eco-friendly feed and organic fertilizers is boosting market growth.
Europe: Europe is anticipated to grow at 4.0%–9.0% annually, with Norway, Denmark, and Spain as major contributors. Norway’s leadership in fish oil and fishmeal production supports aquaculture, while Denmark and Spain focus on value-added products like collagen and bioactives. The EU’s circular economy initiatives and strict sustainability regulations drive demand for by-product utilization.
Latin America: Latin America is projected to grow at 5.0%–10.0% annually, with Peru and Chile leading due to their large fishmeal and fish oil industries. The region’s focus on aquaculture exports and sustainable agriculture fuels demand for by-products. The trend toward biofertilizers and organic farming inputs is gaining momentum.
Middle East & Africa: The Middle East & Africa region is expected to grow at 4.5%–9.5% annually, with South Africa and the UAE as key markets. South Africa’s aquaculture and agriculture sectors drive demand for fishmeal and biofertilizers, while the UAE focuses on premium nutraceuticals. The trend toward sustainable seafood processing in the region supports market expansion.
Key Market Players and Competitive Landscape
The Fishery By-products market is competitive, with a mix of global testing and certification firms, seafood processors, and specialized by-product manufacturers. Key players include:

Austevoll Seafood ASA: A leading Norwegian seafood company, Austevoll specializes in fishmeal and fish oil production, with a focus on sustainable aquaculture feed.
Pelagia AS: A major player in fishmeal and fish oil, Pelagia leverages advanced processing to supply high-quality by-products for feed and nutraceuticals, with a strong European presence.
Eurofins Scientific: Provides testing and certification services for fishery by-products, ensuring quality and compliance for food and feed applications.
SGS Group: Offers comprehensive testing and sustainability certifications for by-products, supporting regulatory compliance in global markets.
KD Pharma Group: Specializes in high-purity fish oil and omega-3 products for nutraceuticals, focusing on pharmaceutical-grade applications.

These companies compete on product quality, sustainability credentials, and global supply chain capabilities. Partnerships with aquaculture firms and regulatory bodies enhance their market position.
Industry Value Chain Analysis
The Fishery By-products value chain is intricate, spanning raw material collection, processing, distribution, and application integration, with value concentrated in transforming waste into high-value products.
Raw Material Collection and Upstream Supply: The value chain begins with the collection of by-products from seafood processing plants, including heads, bones, and offal. Suppliers, such as fishing fleets and processors, ensure a steady supply of raw materials, with sustainability practices like traceability adding value at this stage.
Processing and Refinement: By-products are processed into fishmeal, fish oil, and bioactives using techniques like enzymatic hydrolysis and centrifugation. Companies like Pelagia and Austevoll invest in advanced processing to maximize yield and quality, ensuring compliance with food and feed standards. This stage adds significant value through purification and customization for specific applications.
Distribution and Logistics: Processed by-products are distributed through global supply chains to food, feed, and agriculture industries. Specialized logistics ensure product integrity, with companies like SGS providing certification for quality and sustainability. Export activities from regions like Latin America to Asia-Pacific and Europe are critical, with just-in-time delivery supporting market efficiency.
Application Integration: Downstream, by-products are integrated into end-use products. In food and beverage, fish protein and omega-3s are incorporated into supplements and functional foods. In animal feed, fishmeal and fish oil enhance aquaculture and poultry nutrition. In agriculture, biofertilizers improve soil health. This stage transforms by-products into high-margin products, adding value through innovation and compliance.
End-User Industries: Food and beverage companies, aquaculture producers, and agricultural firms capture the highest value by leveraging by-products for sustainable, high-quality products. These industries benefit from enhanced product differentiation, regulatory compliance, and alignment with consumer demand for eco-friendly solutions.
Market Opportunities and Challenges
Opportunities: The Fishery By-products market offers substantial growth potential, driven by the global rise in seafood consumption and the push for sustainable, circular economy practices. The expansion of aquaculture in Asia-Pacific and Latin America creates opportunities for fishmeal and fish oil suppliers. Innovations in bioactive compounds, such as collagen and peptides for nutraceuticals, open high-value markets in food and cosmetics. Regulatory support for waste reduction, particularly in Europe, encourages investment in by-product processing. Partnerships between seafood processors and technology providers enhance efficiency and product diversification, while the growing demand for organic fertilizers in agriculture supports market expansion.
Challenges: The market faces challenges such as fluctuating raw material availability due to seasonal fishing patterns and overfishing concerns, which impact supply stability. High processing costs for advanced by-products, like bioactive peptides, can limit adoption in price-sensitive markets. Regulatory variations across regions, particularly for food and feed safety, increase compliance costs. Competition from plant-based and synthetic alternatives in feed and fertilizers pressures market share. Additionally, supply chain disruptions, such as those affecting global seafood trade, pose risks to production and distribution.