Shrimp Market Thrives With Burgeoning Seafood Restaurants
According to the Food and Agriculture Organization (FAO), total aquaculture production exceeded nearly more than 120 million tons in 2018. This also reflected on shrimp sales as this popular shellfish made its way across continents on commercial and household menus. The commercial use of shrimp started in early 1960’s and presently is one of the most traded seafood items in terms of value, representing 15% of the worldwide seafood business.
Shrimp, known for its high nutritional value, boasts high quality protein, minerals, essential amino acids, and contains low fat. It is a rich source of calcium, iron, zinc, iodine, and vitamins such as A, D, and E, offering various health benefits to the consumers. These reasons have garnered the seafood remarkable attention from health-conscious consumers trying to make every meal healthy. Nice seafood restaurants have been at the forefront of the driving the sales in the shrimp market.
Shrimp Market Finds New Revue Opportunities With Increased Home Cooking due to Lockdowns
Unfortunately, the COVID-19 pandemic that led to lockdowns severely impacted the food industry, resulting in declining sales. As consumers across the globe continue to adhere to no social gathering, the restaurant and hospitality industry have taken a hit. It has also led to out-of-home sales of shrimp to decline. The supply of shrimps has also witnessed a negative effect of this lockdown as in November 2020, shrimp farming countries such as India, Vietnam, and Thailand reported lower production.
Major shrimp consuming countries such as China, the U.S., Japan, and European countries have attained a deeper demand disruption and a flat growth during the period. Due to this the ex-farm price of shrimp bottomed out. However, the market is expected to be on track by next season as the logistics and supply chain is to represent a speedy recovery.
On the flipside, the pandemic has led to growing number of people taking a keen interest in home cooking, trying out new recipes, excelling cooking standards, and eating healthy meals, which has resulted in a higher demand.
White Leg Shrimp is Key to Export in Global Shrimp Market
The global shrimp market is segmented on the basis of species type, format, sales channel, and region. By species type, the market is segmented into farmed white leg shrimp, giant tiger shrimps, blue shrimp, gulf shrimps, banded coral shrimps, royal red shrimps, and ocean shrimps. The farmed white leg shrimp segment is estimated to account for substantial share in the global market in terms of value by the end of 2026. High volume production and export are expected to drive the segment growth in the near future. To cater the growing demand of white leg shrimps, India introduced the variety of vannamei shrimp into its coastal aquaculture systems in 2017.
Based on format the market is segmented into frozen, dried, fresh, and canned. The fresh shrimp segment is expected to attain a favourable growth during the forecast period. Expanding number of health-conscious consumers seeking healthier choices with right nutritional benefits are expected to drive the segment growth. As consumers are more aware about consequences of eating farmed shrimps that are bred with antibiotics, they are expected to push for fresh catch instead.
By sales channel, the shrimp market is segmented as business-to-business and business-to-consumer segments. The business-to-consumer segment is further sub-segmented into supermarket, specialty outlet, convenience stores, and online platforms. Initial studies indicate that consumers, especially in in urban areas, are switching to online platforms for its convenience. Due to COVID-19 lockdowns, e-commerce has gained tremendous popularity over traditional in-person purchases, pushing boundaries for online platforms. Shrimp market is expected to find growing number customers as eating out remains restrained due to COVID-19.
Rising Demand Leads Manufacturers to Expand Shrimp Processing Capacity
Globally, Asia Pacific region including counties such as India, China, Indonesia, Thailand are significant producers of shrimps across the globe. During the initial months of 2020, export of shrimp increased from Ecuador and Indonesia. However, India being one of the largest shrimp exporters for the U.S. lost its share due to lower production and strong competition from Ecuador both in terms of supply and prices. The export from other countries such as Vietnam, Thailand, China, and Argentina declined due to the pandemic. Few of the prime export destinations of Ecuador are China, the U.S., and European Union.
Europe has also been a significant consumer of shrimps. Tropical shrimp primarily penaeus monodon and penaeus vannamei ranks third most consumed shrimp amongst all aquaculture species. To meet the increased demand of shrimp, key producers such as Thailand, Vietnam, Indonesia, and India have planned for large-scale export farming.
For instance, in early 2021 Thuan Phuoc Seafoods & Trading commissioned a factory. The factory, which cost US$17.3 million and has a capacity of 50 metric tons per day. Along with the factory, the company also built a cold-storage facility with the annual capacity of 3,000 MT per year. Similarly. another company, Nha Trang Seafood, expanded its capacity by constructing a new shrimp processing facility that is expected to have 10,000 MT annual capacity.
Global Shrimp Market: Key Players
Some of the leading players operating in the global shrimp market are The Clover Leaf Seafoods Family, Nippon Suisan Kaisha, Ltd., Pescanova S.A., Omarsa S.A, Ristic GmbH, Dom International Limited, Marine Harvest ASA, Baton Rouge Shrimp Company, Inc., Charoen Pokphand Food PCL, and Gulf Shrimp Company.
Global Shrimp Market is Segmented as Follows:
By Distribution Channel
By End Use
Key Elements Included In The Study: Global Shrimp Market
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