Bio-Animal Protein: A perfect substitute for fishmeal

Over-reliance on fishmeal becomes a major bottleneck

According to Precedenceresearch, the global fishmeal market size is valued at $10.91 billion in 2025 and is projected to reach approximately $20.59 billion by 2034, growing at a CAGR of 7.31% during the 2025-2034 period.

The fishmeal market is witnessing significant growth driven by the rising demand for high-quality aquaculture feed. As a vital nutritional source in agriculture, fishmeal is widely used for various species, including tilapia, salmon, carp, marine shrimp, and freshwater crustaceans.

For years, fishmeal has been considered an essential protein source in aquaculture feed formulations. However, according to Ms. Tran Dao Hong Ngoc, Sales Director of Vietnam Food Joint Stock Company (VNF), current realities show that over-reliance on fishmeal is becoming a severe bottleneck in three key aspects.

The first is cost. Fishmeal production relies primarily on raw materials from wild-capture fisheries and imports. As catch yields decline, logistics costs rise, and exchange rates fluctuate, fishmeal prices have become increasingly volatile, exerting immense pressure on feed manufacturers and farmers alike.

A prime recent example is the sharp drop in fishmeal production from Peru. Natural conditions have resulted in fish sizes falling below harvest standards, while surging demand from China has sent prices skyrocketing. Peruvian fishmeal (65% protein) has climbed to nearly $1,800 per ton, while domestic fishmeal (60% protein) is hovering around 35,000 VND/kg, with no signs of cooling down.

The second aspect is sustainability. Exploiting fisheries for fishmeal production is placing additional pressure on natural resources, running counter to the trends of green development, the circular economy, and increasingly stringent international standards such as ASC, BAP, and Environmental, Social, and Governance (ESG) requirements.

The third is raw material security. Despite being a major aquaculture nation, Viet Nam remains significantly dependent on imported protein sources. Currently, about 60% of the raw materials used in the aquaculture feed industry are imported, leaving the entire value chain vulnerable to global market fluctuations.

Viet Nam needs to build a "By-product industry"

According to Ms. Ngoc, one of the most promising directions for Viet Nam is the development of a dedicated by-product industry, aimed at leveraging domestic raw materials for the agriculture and fisheries sectors.

In this context, VNF has developed a domestic biological animal protein solution - specifically designed to replace fishmeal and imported protein in livestock and aquaculture feed.

VNF’s input materials are sourced from domestic by-products, particularly fishery by-products such as shrimp heads and shells. These sources are rich in protein but have long remained undervalued and underutilized.

On this foundation, VNF applies biotechnology following a zero-waste orientation. The core process involves: maximizing protein extraction from by-products; biological cleavage using enzymes to convert raw protein into short-chain peptides and free amino acids; and purifying and stabilizing bioactivity.

Unlike traditional fishmeal, which primarily provides "crude protein," bio-animal protein boasts high biological activity, allowing livestock to easily absorb nutrients through the intestinal wall. This enables more efficient protein utilization, reduces nitrogen emissions into the environment, and offers additional biological functions such as stimulating appetite while supporting immunity and gut health.

Three distinct values

From a production standpoint, replacing fishmeal with bio-protein delivers three distinct values. First is cost reduction in formulations. Thanks to its high digestibility and bioactivity, VNF’s shrimp protein allows for a lower fishmeal inclusion rate or significant partial replacement while maintaining growth performance and the Feed Conversion Ratio (FCR).

Second is supply stability. Produced from domestic by-products, the product helps businesses reduce reliance on imports, mitigating risks of supply chain disruptions and exchange rate fluctuations.

Third is operational and inventory optimization. With a diverse product portfolio (powder, liquid, and paste), VNF provides customers with formulation flexibility, reducing inventory burdens and enhancing production efficiency.

Ms. Ngoc believes that bio-protein contributes to solving the sustainability puzzle across the entire value chain. Replacing fishmeal lessens the demand for wild-caught fish, thereby easing pressure on marine ecosystems. Simultaneously, it transforms by-products - traditionally viewed as waste - into high-value ingredients, embodying the spirit of a circular, low-emission economy. Every ton of repurposed by-product represents a step toward reducing emissions and the environmental footprint.

To scale up bio-protein solutions and establish them as a mainstream trend in the livestock and aquaculture feed industries, Ms. Ngoc emphasizes that several key conditions must converge.

First, continued investment is essential to master and refine advanced biotechnologies for processing and transforming animal by-products. Technology must be sophisticated enough to create products that not only meet the nutritional requirements for fishmeal replacement but also deliver superior biological efficiency, improving animal health, boosting absorption, and enhancing feed conversion.

Furthermore, state-level guidance and support are vital. This includes mechanisms to incentivize by-product upcycling, promote the circular economy, reduce emissions, and optimize the use of biological resources. Policies supporting R&D, product standardization, and investment incentives for by-product processing technology will be crucial drivers in scaling models like VNF’s.

Finally, long-term collaboration among stakeholders is key, spanning from raw material suppliers and by-product processors to feed mills and farmers. When all parties share a vision for sustainability and domestic resource optimization, fishmeal alternatives will evolve from a temporary trend into a strategic foundation for the industry.

From "waste" by-products to high-value protein sources, this direction reveals the potential for a new raw material industry - one that is more autonomous, efficient, and environmentally friendly.

$ 1 = VND 26.283 - Source: Vietcombank.