Seafood Market

Market Overview

The global seafood market size was valued at USD 169,063.06 million in 2022. It is estimated to reach USD 202,046.01 million by 2031, growing at a CAGR of 2.12% during the forecast period (2023–2031). Manufacturers and food service providers are increasingly collaborating. Increases in disposable income, eating out, and the number of fast-food restaurants that serve seafood are all factors contributing to the expansion of the seafood market in the Asia-Pacific region.

Seafood is a form of meal that includes various sea creatures. It is often considered healthy, as it is an essential source of important fatty acids and macro and micronutrients. The boom of the global market is majorly driven by an increase in awareness about the health benefits associated with seafood. For instance, seafood is a rich source of proteins, vitamins, and minerals. Moreover, seafood contains omega-3 fatty acids, which help reduce cardiovascular disease risk.

As disposal income and urbanization increases, more people are moving to cities where they have access to a wider variety of seafood. Additionally, rising disposable incomes are allowing people to spend more on seafood.

Market Dynamics

Seafood Market Drivers

Changing Lifestyle and Consumer Preference

Non-vegetarian consumers are gradually changing their lifestyles and significantly following pescetarianism. Pescetarianism refers to the consumption of vegetarian food along with seafood. However, the diet does not include meat such as beef, pork, and poultry. This shift is observed due to consumers' preference for a healthy diet. In addition, consuming meat and meat products leads to high cholesterol, an increase in the risk of cancer, and a rise in the prevalence of obesity and associated diseases. Therefore, consumers seek other healthy alternatives, which significantly contribute to the growth of the global market.

Furthermore, an increase in awareness among consumers about the questionable living conditions of the cattle in cattle farms, along with an increase in the use of steroids to improve feed efficiency and promote rapid cattle growth, has encouraged meat eaters to turn pescetarians. Such factors drive the global market.

Rising Disposable Income

Economic improvement and disposable income surge are the key factors that propel market growth. The world economy witnessed a standstill after the 2009 economic crisis in Europe and China. However, a strong recovery from the crisis resulted in positive economic growth, especially in developing economies, and has increased disposable income among the middle-income groups. Additionally, as medium- and high-income consumers in urban areas change their eating habits from essential to premium goods and services, the rising disposable income of people in North America and Asia-Pacific has increased, acting as a major market driver. This trend favors seafood suppliers and institutions to enhance their product and service lines in the seafood segment.

Seafood Market Restraint

Depletion of Wild Fish Stock

According to a European Commission's Joint Research Centre (JRC) study, more than 90% of the fish stocks have been overexploited. In addition, angel sharks, cardinalfish, and salmon have been listed as endangered species. Moreover, the depletion of sea fishes due to the rise in instances of dumping industrial waste in water bodies has led to the loss of several sea species. This study on the alarming depletion of sea species has drawn the attention of numerous organizations, like People for the Ethical Treatment of Animals (Peta) and the Worldwide Fund for Nature (WWF), to limit the consumption of certain species. Additionally, to meet the growing demand for fish worldwide, more emphasis has been placed on aquaculture and new treaties, such as the Convention on Fishing and Conservation of Living Resources of the High Seas, which restrict fishing levels. Such factors hinder market growth over the forecast period.

Seafood Market Opportunities

Rising Collaborations between Manufacturers and Food Service Providers

The loss of sea species has slowed the growth of the market, but safe fishing could increase the quantity of seafood to meet the growing demand. Fishermen and fish farmers will work with processors, shippers, stores, restaurants, and food service providers to solve environmental problems and make the market more environmentally, economically, and socially sustainable. Numerous seafood restaurants have focused on offering merely sustainable seafood options, such as Miya's in the U.S. and Fisheries Innovation in Scotland. These restaurants and seafood service providers focus on sustainable seafood options such as catfish and tilapia. Therefore, all these factors collectively contribute to the growth of the global market.

Regional Analysis

Based on region, the global market is bifurcated into North America, Europe, Asia-Pacific, and LAMEA.

Asia-Pacific Dominates the Global Market

Asia-Pacific is the most significant global market shareholder and is expected to exhibit a CAGR of 2.2% over the forecast period. Asia-Pacific is an emerging region and is one of the largest consumers of seafood across the world. The growth of the Asia-Pacific seafood market is attributed to the surge in disposable income, an increase in the trend of dining out, and a surge in the number of fast-food restaurants that serve seafood. The expanding aquaculture industry in the area is what fuels the local seafood market. In addition, China has made significant investments in the fish and shrimp farming industries and is heavily dependent on these industries. In 2022, two state-owned enterprises in China hoped to complete construction on an offshore aquaculture system with a 100,000-ton platform docked in the Yellow Sea.

Additionally, several nations in the Asia-Pacific region experienced a decline in shrimp consumption during the study period, primarily due to shrimp prices skyrocketing due to the region's low shrimp supply brought on by the Early Mortality Syndrome (EMS) crisis. China, Japan, Vietnam, Thailand, Indonesia, Malaysia, and other Southeast Asian nations are impacted. Japan and Indonesia experienced significant declines in consumption due to their reliance on shrimp imports from other Asian nations, with declining CAGRs of 4.38% and 1.59%, respectively, from 2016 to 2021.

North America is one of the major harvesters of wild-caught seafood worldwide and is the key market for seafood due to the many local market players in the region. Some of the major fishing states include Alaska, California, and Washington. North America is a mature market with a developed supply chain and a highly informed consumer base. This region's growth is due to high disposable income and the increasing popularity of fish and seafood among the fitness community. This is because seafood offers numerous health benefits, such as reduced risk of cardiac diseases, obesity, and hypertension. Moreover, including several fish-based fast foods in fast food chains and quick service restaurants augments the market growth.

Europe is expected to expand steadily over the forecast period. Spain and Italy, two of Europe's largest countries, have particularly high demands for seafood. The presence of a large population base coupled with their high per capita fish and surge in seafood consumption among the European population significantly contribute toward the market's growth. Similarly, the market growth for seafood in the region is attributed to high consumption of fish and fish products. The market is also growing because many people know the health benefits of consuming fish and other types of seafood.

Segmental Analysis

The global Seafood Industry is bifurcated into type and application.

Based on seafood type, the market is segmented into fish, crustaceans, Mollusca, and others.

The fish segment dominates the global market and is projected to exhibit a CAGR of 2.2% over the forecast period. Large fish species, such as primitive sharks, skates, rays, sawfish, sturgeons, and lampreys, are considered safe and healthy for human consumption. Fishes are often caught in oceans, seas, rivers, and lakes, bred indoors in aquaculture, and sold worldwide, majorly for consumption. One of the most popular fish that people eat is fish without shells. In addition, the popularity of fish has increased as more people become aware of its beneficial macronutrients and micronutrients. This is among the important reasons why the world market is rising. The demand for fish is also supplemented by a surge in the number of meat eaters and a rise in awareness about the health benefits of eating fish.

Mollusks include whelks, oysters, scallops, bivalves, clams, and mussels. They possess high economic value due to their ability to produce pearls used as ornaments. Some of the leading exporters of mollusks are Peru, Japan, and Canada. China is among the leading importers of mollusks, and this segment holds a major share of China's market. Furthermore, significant demand has been witnessed for edible mollusks such as oysters, abalones, clams, scallops, and mussels, a key driver of the global market. Moreover, the supply of new and effectively produced products, such as triploid oyster seed, is expected to increase due to the global escalation in demand for these high-value products.

Based on application, the global market is bifurcated into retail, institutions, and food service.

The retail sector owns the highest market share and is predicted to exhibit a CAGR of 1.8% over the forecast period. A rise in the sale of seafood through retail channels worldwide is expected to cause it to expand at a moderate rate over the forecast period. In addition, physical retail stores serve as a convenient way to purchase fish, encouraging the growth of the retail format. The growth of the retail segment is driven by improvement in the infrastructure of supply channels and an increase in the affordability of seafood products through various retail channels, including both online and offline. Furthermore, one-stop solutions provided by large retail stores and discounts offered by these stores increase their popularity among the populace.

Several public and private organizations, including many Intuitions, rely on seafood as a primary source of protein. Seafood is largely supplied in office canteens for consumption and in research institutes such as Fishery Research Institute Malaysia for nutritional and research purposes. The rise in the number of offices and research institutes is a major driver contributing to the growth of the institution's segment in the global market.

Recent Developments

• June 2023- Seafood Exporters’ Association of India President Jagdish Fofandi called to improve aquaculture infrastructure nationwide and expand shrimp aquaculture into Kerala state. Fofandi, who was recently named the vice president of India’s Marine Products Export Development Authority (MPEDA), told ‘The Hindu’ that his country needs to improve its support for its aquaculture sector and make more land available for shrimp farming.