Navigating the Global Shrimp Market: Trends, Challenges, and Opportunities in 2023

The global shrimp market size is a dynamic and thriving sector within the broader realm of Food and Beverages and Seafood. In recent years, it has witnessed remarkable growth driven by various factors such as changing consumer preferences, rising demand for seafood, and evolving industry dynamics. This article provides an in-depth exploration of the key developments, driving factors, COVID-19 impact, restraining factors, market segmentation, trends, regional insights, major players, opportunities, challenges, scope, and the sub-category of shrimp within the Food and Beverages and Seafood industries.

Market Overview

The global shrimp market has seen steady growth, with a volume of 7.60 million tons recorded in 2023. This growth has been primarily fueled by the increasing demand for shrimp, which is considered a delicacy in many cuisines around the world. The market is poised to continue its expansion, with a projected compound annual growth rate (CAGR) of 6.30% from 2024 to 2032, reaching a volume of 13.16 million tons by 2032. This growth underscores the enduring popularity of shrimp as a seafood choice.

Key Benefits of the Shrimp Market

1. Versatile Culinary Ingredient: Shrimp’s versatility in various cuisines and dishes makes it a valuable ingredient for both home cooks and professional chefs.
2. Nutritional Value: Shrimp is a rich source of protein, vitamins, and minerals, making it a healthy choice for consumers.
3. Global Appeal: Shrimp dishes are enjoyed worldwide, contributing to its consistent demand and market stability.
4. Sustainability: Efforts to promote sustainable shrimp farming practices ensure a long-term supply of this seafood staple.
5. Economic Impact: The shrimp industry provides livelihoods for millions of people, particularly in regions where shrimp farming is a significant economic activity.

Key Industry Developments

1. Sustainable Practices: The shrimp industry is increasingly focusing on sustainable aquaculture practices to mitigate environmental impact and meet consumer demands for responsibly sourced seafood.
2. Technological Advancements: Innovations in shrimp farming techniques, including biofloc and recirculating aquaculture systems, have improved production efficiency.
3. Value Addition: Processed and value-added shrimp products, such as shrimp cocktails and ready-to-cook shrimp, have gained popularity in the market.

Driving Factors

Several factors are driving the growth of the global shrimp market:

1. Increasing Seafood Consumption: Growing awareness of the health benefits associated with seafood consumption has led to higher demand for shrimp.
2. Export Opportunities: Shrimp is a major export commodity for many countries, creating opportunities for expansion and economic growth.
3. Global Supply Chain: Improved logistics and distribution networks facilitate the movement of shrimp from production regions to consumers worldwide.
4. Emerging Markets: Rising income levels in emerging markets have increased the affordability of shrimp products.

COVID-19 Impact

The COVID-19 pandemic had a significant impact on the global shrimp market:

1. Supply Chain Disruptions: Lockdowns and restrictions disrupted the supply chain, causing delays in shrimp exports and processing.
2. Demand Fluctuations: The closure of restaurants and reduced consumer spending affected the demand for shrimp, particularly in the foodservice sector.
3. Labor Shortages: The shrimp industry experienced labor shortages due to pandemic-related restrictions, impacting shrimp harvesting and processing.
4. Price Volatility: The market witnessed price fluctuations as a result of supply chain disruptions and changes in demand patterns.

Restraint Factors

While the global shrimp market shows promise, it faces certain challenges:

1. Disease Outbreaks: Shrimp farms are susceptible to diseases that can lead to mass mortalities and financial losses.
2. Environmental Concerns: Unsustainable shrimp farming practices can harm coastal ecosystems and communities.
3. Quality Control: Ensuring consistent product quality and safety remains a challenge in the shrimp industry.

Market Segmentation

The global shrimp market can be segmented based on various factors:

1. Type:

1. • Whiteleg Shrimp
   • Black Tiger Shrimp
   • Others

1. Product:

1. • Fresh
   • Frozen
   • Processed

1. End-Use:

1. • Retail
   • Foodservice

Market Outlook

The outlook for the global shrimp market is positive, with several factors contributing to its growth:

1. Sustainable Practices: Increasing adoption of sustainable shrimp farming practices enhances the long-term viability of the industry.
2. Health Consciousness: Rising consumer awareness of the health benefits of seafood consumption drives demand for shrimp.
3. Premiumization: The market is witnessing a trend toward premium and value-added shrimp products, offering higher margins.

Trends

1. Online Sales: The e-commerce channel is gaining prominence as consumers seek convenient ways to purchase shrimp products.
2. Clean Label: Consumers are looking for shrimp products with transparent and clean labels, focusing on natural and sustainable attributes.
3. Alternative Protein: The emergence of plant-based and alternative seafood products is an evolving trend in the seafood industry.

Industry Segmentation: Shrimp within Food and Beverages and Seafood

Within the broader sectors of Food and Beverages and Seafood, shrimp holds a significant place as a popular and versatile seafood choice. Shrimp contributes to the global seafood market’s growth, and its value extends beyond culinary applications.

Major Key Players

The global shrimp market features several major players and key stakeholders involved in various aspects of the shrimp supply chain. Some of the prominent players in the industry include:

1. Thai Union Group: A leading global seafood company with a strong presence in the shrimp market.
2. CP Foods: A major player in the aquaculture industry, involved in shrimp production and processing.
3. Charoen Pokphand Foods PCL: A global conglomerate with a significant presence in shrimp farming and processing.
4. Nippon Suisan Kaisha, Ltd.: Known as Nissui, it is a Japanese seafood company involved in shrimp processing and distribution.
5. High Liner Foods: A North American seafood company offering a range of shrimp products to the retail and foodservice sectors.

Opportunities and Challenges

Opportunities:

1. Sustainability: The adoption of sustainable practices in shrimp farming presents opportunities for market expansion and meeting consumer demand for responsible sourcing.
2. Value Addition: The production of value-added shrimp products, such as marinated or seasoned shrimp, can enhance profit margins.
3. Emerging Markets: Exploring and expanding into emerging markets with rising income levels can lead to increased sales.

Challenges:

1. Disease Management: The shrimp industry faces challenges related to disease outbreaks, requiring effective management strategies.
2. Environmental Concerns: Ensuring sustainable practices and minimizing environmental impact are ongoing challenges.
3. Competition: The competitive nature of the shrimp market necessitates innovation and differentiation to maintain market share.

Scope and Conclusion

The global shrimp market offers substantial growth potential, driven by rising seafood consumption, sustainability initiatives, and evolving consumer preferences. Despite challenges related to disease management and environmental concerns, the market is expected to flourish. As consumers seek healthier and more sustainable food choices, the shrimp industry can tap into opportunities by embracing sustainability, value addition, and expansion into emerging markets.