17 Mar 2022
EY report reveals the latest aquaculture and fishing industry trends

EY report reveals the latest aquaculture and fishing industry trends

Authors
Eirik Moe

Nordic Family Enterprise leader and Marine and Aquaculture Sector Leader

Partner with broad experience from the professional services and corporate advisory industry. Dedicated to skiing and arctic cod fishing during winter and boating in summer.

Merete Skage

EY Nordics Strategy and Transactions Partner

Dedicated transaction partner who cares about making a positive difference. Focus on aquaculture. Enjoys the hectic transaction cycle. Thinks best while on a mountain top.

Maria B. Helsengreen

Nordic Sustainability Consulting Lead, Partner/Principal, Consulting, EY Norway

Partner and leader of EY’s consulting services in Bergen. Leisure time is best spent hiking mountains and chasing horizons. Both Jotunheimen and the west coast of Norway are favorites in our family.

17 Mar 2022

The sixth edition of the EY Aquaculture Analysis report is here – this year with insights for Norway, Chile and Iceland.

In brief: 
  • The Norwegian Aquaculture Analysis 2021 identifies the latest trends shaping the future of the aquaculture industry.
  • The report presents how the growth trend for the industry will continue, with a look at potential pitfalls and success factors.

Inspired by the positive feedback received on the earlier annual editions of the EY Aquaculture Analysis, EY presents yet another edition featuring the latest development in this prominent segment.

The sixth edition of the benchmark report leverages the unique and extensive EY seafood company database (EY-SCD), which has been expanded with key data for 1,247 companies within various segments of the aquaculture value chain. This year, we have also widened our scope to include an overview of the aquaculture sector in Iceland and Chile - two growing and important harvest clusters different from Norway in both markets and upstream qualities.

The Norwegian Aquaculture Analysis 2021 highlights the challenges that lie ahead for the aquaculture industry. As always, the report focuses on topics of special interest and relevance to the industry. The report covers updates on land-based fish production and development licenses, the potential future impact of climate on the global industry and opportunities within seaweed farming.

The salmon industry continues to grow steadily

The salmonoid industry is still going strong, and the fact that it managed to grow despite COVID-19 is a clear indicator of an underlying growth trend. We expect this trend to continue in 2022, supported by very strong global demand drivers.

The year 2021 was a record year for the salmon industry in terms of harvest volumes. The harvest volumes as of October 2021 were also, 12% higher than that at the same the year before.

Salmon and trout constitute a marginal volume of global seafood production. Hence small shifts or changes in underlying drives of consumption will form a solid basis for both demand and price of the produce.

Land-based fish farming increases in relevance

An increasing number of large-scale land-based projects have managed to raise sufficient capital and start the construction phase. Despite the progress, there are still challenges that these first movers must overcome – the industry is experiencing that things take time, challenging investor confidence. We still believe that we will see increasing salmon production volumes from land-based facilities in the years to come, but it is still uncertain at what pace this will be.

Seaweed cultivation sees significant potential

Norwegian seaweed cultivation experienced rapid growth in 2020. Norwegian seaweed farmers are clear that volumes can quite easily be increased by utilizing more of the current licenses. 

However, the industry is still characterized by unstandardized production technologies and low volumes. Farmers are waiting for the market to demand more Norwegian seaweed, whereas the market is waiting for farmers to produce larger and more stable volumes. 

The impact of climate change becomes more pronounced

The rise in sea surface temperatures, oxygen depletion, ocean acidification, coral bleaching and rising sea levels are only a few of the factors influencing the aquaculture industry today. 

In earlier editions of our report, we have shared thoughts on sustainability within the aquaculture sector. In this year’s edition of the report, we take a look at the potential impact of climate on the global aquaculture industry.

We observe growing consciousness and awareness within the aquaculture value chain about sustainability and preventive health. This awareness affects the whole value chain and not just farming.

In addition to the trends, the untapped potential for fish farmers to adopt new technologies cannot be overlooked. Embracing digitalization will help them transition from experience-based to knowledge-based operations.

Can the Norwegian aquaculture industry keep ahead of the competition in 2022 and beyond? It depends on how well the industry keeps up with latest trends explored in the sixth edition of the EY report. 

Download the Norwegian Aquaculture Analysis 2021 and learn about the potential success factors – and the potential pitfalls ahead.

Summary

As a multidisciplinary provider of professional services to the industry, the EY team possesses in-depth knowledge about the characteristics of each segment of the aquaculture value chain. 

Learnings from the aquaculture industry in 2021 show that there is a need to strengthen innovation and address the hurdles strategically, in order to sustainably develop the industry.

About this article

Authors
Eirik Moe

Nordic Family Enterprise leader and Marine and Aquaculture Sector Leader

Partner with broad experience from the professional services and corporate advisory industry. Dedicated to skiing and arctic cod fishing during winter and boating in summer.

Merete Skage

EY Nordics Strategy and Transactions Partner

Dedicated transaction partner who cares about making a positive difference. Focus on aquaculture. Enjoys the hectic transaction cycle. Thinks best while on a mountain top.

Maria B. Helsengreen

Nordic Sustainability Consulting Lead, Partner/Principal, Consulting, EY Norway

Partner and leader of EY’s consulting services in Bergen. Leisure time is best spent hiking mountains and chasing horizons. Both Jotunheimen and the west coast of Norway are favorites in our family.