Shrimp Market - Growth, Trends, and Forecasts (2023-2028)

Key Highlights

• The shrimp market is primarily driven by rising disposable income, the introduction of longer shelf-life products, increasing impulse purchasing, and huge demand for frozen food products due to the lack of time. A few other factors like growing health awareness, the rising purchasing power of the consumers, expanding Food and Beverage industry, adoption of a variety of shrimp and convenience food products, rising environment-friendly production techniques, as well as increasing consumption of various frozen shrimp food products across the globe are supporting the growth of the market.
• Owing to the growing demand, many countries are also increasing their production volumes. For instance, according to the Ministry of Agriculture of China, in 2021, the production volume of cultured shrimp, prawns, and crabs in China amounted to approximately 6.44 million metric tons, up from about 6.03 million metric tons in 2020.
• Moreover, the trend of adopting pescatarians and a flexitarian lifestyle aided the growth of the market. In flexitarian, consumers adopt a vegan diet, but they include sustainably sourced seafood for extra protein. Seagans benefit from high-quality Omega 3 fatty acids in shrimps that are hard to source from the traditional vegan diet.
• For instance, according to a recent survey conducted by YouGov, United Kingdom, in Great Britain, women are more likely to follow a flexitarian diet, with almost 17% of the responding women following a flexitarian diet and only occasionally supplementing their vegetarian diet with meat or fish products. However, the complexity of maintaining the natural taste of the shrimp after the frozen process techniques is hindering the market growth.

Shrimp Market Trends

Increase in demand for frozen shrimps

• Demand for frozen shrimps is majorly driven by the convenience factor as it requires minimum time to prepare as most of the frozen shrimps are packed with required spices and other ingredients and also with longer shelf life. With technological innovations in the food industry, the range of convenience food has expanded from chilled, frozen, portion-controlled, microwave-able, shelf-stable, prepared mixes, and others.
• Majorly frozen shrimp sales are boosted by millennials, who prioritize four factors in their nutrition, namely convenience, affordability, healthfulness, and sustainability. Along with this, according to the Ministry of Agriculture, Food and Environment in Spain, the per capita consumption of Frozen shrimps and lobsters is high compared to other frozen seafood. This shows an increase in the demand for frozen shrimp.
• Frozen shrimps hold a huge share in this segment. As more women enter the workforce and lifestyles change, the global demand for frozen shrimp is growing. For instance, according to FAO, Vietnam is among the leading shrimp exporting countries globally. In 2021, Vietnam exported approximately USD 2 billion worth of frozen shrimp, an increase from USD 1.3 billion in 2020.
• Moreover, owing to their demand and the opportunity in the market, many players are keen on launching new products to grab the market share. For instance, in 2022, Seapak launched southern style jumbo shrimp which it claims is a jumbo butterfly shrimp in a pickle brined breading with a sweet mustard barbecue sauce, and it requires very less preparation time. Such developments are expected to drive the frozen shrimp market at a fast pace during the forecast period.

Asia-Pacific dominates the market

• Asia Pacific is the largest market for shrimps. With the increase in disposable income and health consciousness among consumers in the region, there has been a spike in the adoption of high-protein seafood like shrimps with omega-3 fatty acids, selenium, and protein with exotic, premium taste.
• For instance, according to Japan Fisheries Association, in Japan, 19.6% of respondents in a survey that was conducted in March 2022 stated that they ate seafood once a month when dining out. Asia-Pacific dominates the shrimp market, with a 41% higher market share than North America and a 41.5% higher market share than Europe. This is mainly due to its population, as around 59% of the global population lives in Asia.
• Moreover, it has more countries producing shrimp, such as India, Thailand, China, and others, which account for around 58% of global production, and 49% of the shrimp produced is consumed locally. The rest is exported to other countries like the United States for premium prices.
• India remains a competitive supplier of value-added shrimp to the world due to its low cost of labor and the scale of economy it has managed to achieve by becoming one of the largest global producers of farmed shrimp. The established capacity of hatcheries, feed mills, and processing plants will support future expansion. This is supported by rapid urbanization, changing lifestyles, hectic work schedules, and the increasing working women population.

Shrimp Market Competitor Analysis

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