Frozen Fish and Seafood Market - Forecasts from 2022 to 2027

The frozen fish and seafood market is expected to grow at a compound annual growth rate of 6.28% over the forecast period to reach a market size of US$96.771 billion in 2027 from US$63.181 billion in 2020.

Frozen fish and seafood products are preserved and stored in vacuum-tight compartments and at freezing temperatures to minimize the growth of unwanted microbes and ensure fresh, quality products are delivered to the end-user.

With the transition towards hygienic and safe food preferences, customers are inclined towards safe quality and certified frozen food. As per the U.S Department of Agriculture (USDA), fish and seafood meat is preferred over chicken and red meat (mutton/beef/pork/lamb) for relatively high levels of protein, omega-3, fatty acids, and vitamins D and B-12. Moreover, frozen fish and seafood are better than the fresh form as the freezing process of fish and seafood meat in modern industry is initiated to remain in its natural form so that the freshness is intact and does not provide time for bacterial growth. Also, the wastage can be minimized to a great extent with timely checks throughout the supply chain with easy handling making it less prone to seasonal changes.

The market has been segmented based on the type, primarily as fish, crustaceans, shellfish, and others. Based on distribution, offline (supermarkets/hypermarkets/convenience stores) and online (e-commerce driven store/ non-store). Based on the geography, into North America, South America, Europe, MENA, and Asia-pacific pacific regions, to cover the global market prospects.

As per the trade volumes, based on the data from the World Bank, Greenland (North America), Taiwan (Asia), and Russia (Europe and North Asia) are among the promising countries which have witnessed a boost in production and exports of fish and seafood. However, the United States (North America) and India (Asia) have lost a considerable share. Apart from the aforesaid countries, Chile (South America) has generated a high surplus from frozen fish trades, which also promotes the confidence in Chile to meet the demand.

During the COVID-19 pandemic, the fish, seafood, and meat industries suffered a great brunt due to the association of animal meat with the pandemic, which has created distrust among the masses. Eventually, such claims cannot be verified with substantial proof, and the industry has been on its way to recovery by unlocking market scenarios.

Convenience for busy and higher-income earning groups is leading the retail demand for frozen meat

Considering the demographics and behavior of the working-class people, certain preparatory time constraints and irregular presence at home lead them to go for ready-to-be-served or on-the-go food. The frozen fish and seafood market can cater to the segment by launching meat categories to be baked or fried depending on consumer preference which can be economical in terms of money, time and effort. The surge in the world's population to urban and developed areas with an increase in disposable income increases the dependency on instant or on-the-go food categories.

The trend for such consumer behaviour seems to be on the long side, and considering the frozen seafood market, it can be stated that there would be regular demand because of its inelastic nature.

Companies such as McCain’s Foods and its diverse product profile both in the vegetarian and non-vegetarian domain can serve as examples of meeting the demand for the food product without compromising on convenience.

Shortage of storage spaces at residences

As per the data provided by the World Bank, the families are shrinking in size and are now preferring to reside in small apartments requiring space for necessities to save on the maintenance of the property. It can lead to the demand for consumer products that can be accommodated in less space without hindering functionality or objectivity. If applied to the frozen fish and seafood market, there is a need for small portioned or customized packaging with a serving period of 2 days at most, as the consumers might not be willing to stack up.

The need for remote locations connectivity and the development of customer-oriented strategies stands as a challenge for the industry

With the global integration and the wide reach of technology, the customer base has expanded from cities and concentrated areas to distant and far-off residential areas such as counties or suburbs. To cater to such scattered target audiences worldwide calls for an effective and efficient supply chain. In the context of the frozen fish and seafood market, any technical mishap can result in the collapse of cold storage, which can result in mass wastage of the products.

Along with the abovesaid technical challenges, the delivery process needs to be minimal and must adhere to ergonomics to ensure that the process is customer friendly. The advancements in retailing of cold food markets for longer product shelf life, increase in demand for ready-to-cook food, increase in working population, and preference for healthy and hygienic food habits globally are expected to augment the growth of frozen fish and seafood during the forecast period.

Regional Analysis

Asia Pacific region has a considerable share in the market, followed by Europe and North America. The Asia Pacific and Europe have a considerable share in exports. Countries like Russia (North Asia) and China will register significant growth because of the rising urbanization. Countries such as the USA, Brazil, and some other European Countries will register moderate growth because the market has reached a saturation point in these countries. Furthermore, these already have a substantial rate of urbanization and a stable economy. There is a need for innovation in the supply chain management of the frozen fish and seafood industry without affecting the taste. Innovation will help control wastage and increase the availability and affordability of fish and seafood meat.

Key Developments in the Market

• In November 2021, Costa Rica introduced Pura Vida, which translates to Pure Life in English, a sustainable and responsible seafood label. The collective mark is designed to aid customers in selecting sustainable and responsible fishery and seafood products that promote community development. The Costa Rican Ministry of Foreign Trade, the National Chamber of Fishery Product Companies (CANEPP), and the Costa Rican Institute of Fisheries and Aquaculture (INCOPESCA) jointly promoted the mark in the country. The goal of developing this collective brand was to set a standard for Costa Rican fishery and aquaculture product production as superior-quality products with unique characteristics.
• In September 2021, JBS Foods made its first foray into aquaculture with its latest acquisition. JBS SA announced its acquisition plans of Huon Aquaculture, Australia's second-largest salmon producer, in order to expand its presence in the animal protein market. JBS's acquisition of Huon would be the company's second in Australia this year. In April, the corporation acquired Rivalea, a pig production leader.
• In January 2022, Sea Harvest Group, based in Cape Town, South Africa, signed a business purchase agreement to acquire Western Australia-based MG Kailis Holdings Proprietary Limited and its subsidiaries, one of Australia's vertically-integrated prawn and fish trawling and seafood trading firms. The acquisition was worth AUD 70 million (USD 51 million, EUR 44.6 million) - excluding transaction costs.
• In March 2022, The Sustainable Fisheries Partnership (SFP) entered into a partnership with the third-largest global leading seafood firm, Thai Union Group, which owns global brands such as Chicken of the Sea and Red Lobster. Thai Union is committed to improving the sustainability of its seafood supply chain by actively propelling transformation and mandating suppliers to participate in fishery improvement projects (FIPs) and Supply Chain Roundtables (SRs).

Segmentation

By Product type

• Fish
• Crustaceans
• Shellfish

By Distribution

• Offline
• Supermarkets
• Hypermarkets
• Online

By End-user

• Retail
• Hotels and restaurants

By geography

• North America
• United States
• Canada
• Mexico
• South America
• Brazil
• Argentina
• Europe
• Germany
• Italy
• Spain
• United Kingdom
• Middle East and Africa
• Egypt
• Saudi Arabia
• South Africa
• Asia Pacific
• Australia
• China
• Japan
• India
• Indonesia
• Thailand