Technology will determine the future of aquaculture growth

“The Norwegian aquaculture analysis” from EY is a thorough analysis of the industry. The report concludes that the Norwegian aquaculture sector achieved record‑high revenues for the second consecutive year, boosted by exceptionally strong salmon prices and a favourable EUR/NOK exchange rate that significantly increased export earnings. However, despite top‑line growth, the industry saw declining EBITDA margins in the production segment, caused by lower harvest volumes and increased production costs per kilogram.

You can download the report here.

Increasing costs is driving a structural change

Over the past decade, the costs have doubled. With the introduction of the resource rent tax in 2023 and customer driven demands for sustainability. Nothing suggests this development will change. The EY analysis highlights a strong need for investments in innovation, including closed‑containment sea systems.

One explanation is government incentives for farmers who improve fish health and reduce environmental impact.  EY’s findings suggest that regulatory incentives targeting sustainability will play an increasingly important role in determining future growth. This could speed up adoption of such technologies and drive essential restructuring.

The EY analysis highlights a strong need for investments in innovation, including closed‑containment sea systems, which can improve fish health and reduce environmental impact. A great expamle is Eide Fjordbruk’s Watermoon technology. Photo: Charlotte Hartvigsen Lem.  

Technology and closed systems have already triggered structural adjustments, prompting companies to revisit investment strategies and operations. This is visible in increased investor interest in technical solution providers, with notable deal activity in 2023–2024. Transaction volumes have been particularly high within technology‑driven segments, while biotechnology companies have experienced substantial growth due to rising demand for vaccines, improved feed, and advanced fish‑health solutions

Digitalization remains in its early stages, with many operations still largely manual. EY identifies artificial intelligence and advanced operational technologies as the next major drivers for efficiency, sustainability, and improved fish welfare.

Opportunities in Vestland

The industry challenges are also an opportunity: Despite the challenges, EY concludes that the Norwegian aquaculture industry still holds significant untapped potential. The potential is best in regions prepared to invest in innovation. The report underscores that producers along the coast could substantially increase production volumes through a collective push toward new technologies, including AI and closed‑system farming.

For Vestland these assumptions indicate both robust economic momentum and an urgent need for innovation to secure long‑term growth. As one of Norway’s most aquaculture‑intensive regions, this pressure underscores the importance of accelerating modernization across the entire value chain.

- The aquaculture is facing a structural challenge. We think the industry must adopt new technologies to maintain competitiveness and enable sustainable growth. This presents a clear opportunity for Vestland’s rapidly expanding technology and aquaculture‑tech ecosystem. Our region has robust research institutions and industrial innovation clusters position the region to capture a significant share of this emerging value creation, says Investment Manager in Invest in Vestland, Tone Hartvedt. 

National policy discussions are moving toward more environmentally oriented regulation, aimed at incentivizing producers who take active steps to reduce environmental impacts such as sea‑lice emissions. Can your business solve any of the challenges? Don’t hesitate to get in contact if you woild like to learn more about the aquaculture industry in Vestland. Photo: MOWI.