Shrimp Market Is Estimated to Witness High Growth Owing To Rising Demand From Food Industry & Abundance Of Shrimp Production
The Shrimp Market is estimated to be valued at USD 75.99 billion in 2024 and with CAGR of 5.4% over the forecast period 2024-2031. Rising health awareness among consumers and increasing demand for protein-rich food products are expected to drive the growth of the shrimp market. Furthermore, large shrimp farming and processing facilities in countries like India, China, Thailand are helping to meet the growing demand.
The shrimp market is projected to grow at a steady rate over the forecast period. One of the key drivers for this market is the rising demand from the food industry. Shrimp is one of the most popular types of seafood consumed globally and there is high demand from restaurants, cafeterias and food product manufacturers. Furthermore, the abundance in shrimp production has made it easily available in large quantities for the food industry. Countries like India, China, Thailand and Indonesia have been witnessing high production of various shrimp variants through aquaculture in recent years. This surplus production is helping manufacturers and processors to meet the growing demand at competitive prices. Additionally, ease of transportation and logistics further supports suppliers to transport shrimp from production locations to processing and consumption hubs worldwide. The market is expected to continue growing steadily, fueled by growing demand and stable supply chain.
Increase in Consumer Demand for Seafood is Driving the Shrimp Market
The global demand for seafood has been steadily increasing over the past few decades. Consumers are becoming increasingly health-conscious and seafood like shrimp is seen as a healthy source of protein. Shrimp is low in saturated fat and cholesterol but high in vitamins and minerals. It is also versatile and can be prepared and consumed in many different ways. This growing consumer demand for seafood products has resulted in the shrimp market seeing significant growth. Producing enough shrimp to meet rising global demand has become a major focus of the industry.
Growth of the Food Service Industry is Boosting Shrimp Consumption
Another key driver for the shrimp market is the expansion of the global food service industry. As consumer lifestyles get busier, people are opting to dine out or order takeout and delivery more frequently. Restaurants need a constant supply of high-quality ingredients and shrimp is a popular seafood item on menus. Whether served fried, grilled or in pasta/rice dishes, shrimp appeals to worldwide tastes. The food service sector now accounts for a major portion of shrimp sales. As populations increase, urbanize and restaurants proliferate around the world, the food industry will continue fueling demand in the shrimp market.
Disease Outbreaks Among Shrimp Farms is a Restraint
Disease outbreaks among farmed shrimp populations present a significant restraint to the steady growth of the shrimp market. Issues like early mortality syndrome (EMS), white spot syndrome virus (WSSV) and monodon baculovirus penaeid (MBPV) can decimate shrimp stocks and disrupt production cycles. Diseases are difficult to contain and prevention/treatment is an ongoing challenge. When outbreaks occur, it leads to reduced supply and higher prices in the short term which negatively impacts the industry. Concerted global efforts are underway to develop disease-resistant breeds and improve shrimp farming practices to minimize the threat.
Environmental Concerns Regarding Shrimp Farming
Another major market restraint is the various environmental concerns linked to intensive shrimp farming practices. Issues like habitat destruction from pond construction, pollution from feed and waste runoff, overuse of antibiotics and other chemicals have become hot topics. Coastal ecosystems near shrimp farms have suffered degradation while nearby communities have raised health and livability problems. Regulatory crackdowns and consumer pushback due to environmental damage could obstruct industry expansion plans. The shrimp sector is under pressure to adopt more sustainable farming models that respect ecological limits and balance production needs.
Demand for Organic and Sustainably Farmed Shrimp Presents an Opportunity
Environmentally conscious consumers are willing to pay premium prices for seafood products certified as organic or from sustainable sources. This rising niche market segment presents an opportunity for shrimp farmers and exporters. By implementing organic aquaculture practices like limiting chemical/antibiotic usage and improving waste management, farmers can cater to this demand. Switching to closed recirculating systems that reuse water and growing shrimp only in properly zoned, regulated areas also appeals to health and eco-minded buyers. Such product differentiation allows sustainable shrimp operators to charge higher margins.
Growth in Emerging Economies Widens the Consumer Base
Developing regions like Asia Pacific, Latin America, the Middle East and parts of Africa represent a major opportunity in the shrimp industry. Their growing middle classes and increasing rates of urbanization mirror trends that boosted seafood demand globally over past decades. As disposable incomes rise across these emerging markets, people can afford to include more shrimp and other high-value foods in their diets. Foreign and domestic firms that establish reliable supply chains to service these new markets will be well positioned for the future. Overall, long-term consumption growth potential remains bright, especially when factoring in projected population increases worldwide.
Link - https://www.coherentmarketinsights.com/market-insight/shrimp-market-1232
Key Developments
- In August 2022, Thai Union Group PCL, a leading producer of seafood-based food products, announced a strategic alliance with The ISH Food Company, a manufacturer of sustainable and healthy plant-based foods. As a result of this partnership, the two companies launched a new plant-based shrimp product called 'Shrimpish'.
- In January 2022, Thai Union Group PCL, a leading producer of seafood-based food products, announced a joint venture with R&B Food Supply and Srinivasa Cystine Private Limited. The purpose of this partnership is to launch a new company focused on providing high-quality food ingredients to the Indian market.
- In March 2021, BioMar, a global leader in sustainable aquaculture feeds, announced the acquisition of a major share in Viet-Uc, a leading player in the Vietnamese aquaculture industry. This strategic move was aimed at expanding BioMar's presence in the fish hatcheries, shrimp hatcheries, and shrimp farming sectors.
- In March 2020, Sykes Seafood, a provider of a wide range of frozen fish and seafood products, announced the acquisition of Klaas Paul, a shrimp processor based in Europe. This strategic move was aimed at offering a broader range of frozen seafood products to consumers through both food service and retail channels.
Key Players
Morubel N.V., Maruha Nichiro Corporation, Pacific Seafood, Thai Union Group PCL, Clearwater Seafoods, Avanti Feeds Limited, High Liner Foods, Surapon Foods Public Company Limited, Mazzetta Company, LLC, Aqua Star, Nordic Seafood A/S, The Waterbase Limited, and Wild Ocean Direct
