Shrimp Market

Market Overview

The global shrimp market size was valued at USD 38 billion in 2021. It is estimated to reach USD 85 billion by 2030, growing at a CAGR of 9.5% during the forecast period (2022–2030). 

Shrimp are small marine crustaceans that live in oceans (both shallow and deep) as well as in lakes and streams with fresh water. It has a lot of commercial value in the global market. Shrimp has a lot of protein and vitamin D in it. Also, three-ounce servings have less than 1 gram of carbohydrate, which is very low when considering a healthy diet.

Most of the growth of the shrimp market is due to people who care about their health. This is because shrimp is high in vitamins and minerals, low in fat, has no carbohydrates, and is low in calories. So, the many health benefits of eating shrimp encourage people to add it to their diet.

In the U.S., Thailand, and other countries where industrial shrimp aquaculture is done competitively, a new method is being used that is more sustainable, which is known as a closed production system. This production method recycles the pond water and removes harmful substances in the water that are bad for shrimp aquaculture. So, the market’s growth is likely to be helped by a rise in the use of new production methods that are better for the environment.

Market Dynamics

Drivers: Increased Shrimp Production due to its Health Benefits

Regarding nutrition, shrimp is high in protein and low in saturated fats, carbs, and calories. It tastes slightly salty and is full of nutrients. Also, the antioxidants in shrimp protect your body cells against damage. Shrimp are a natural addition to salads, pasta, curry, soups, and stir-fried dishes because of these qualities. 

Shrimp also has an antioxidant called astaxanthin, which helps prevent wrinkles and lessens sun damage. It also has a lot of selenium, which reduces the chances of some types of cancer. Shrimp also has calcium, iron, magnesium, potassium, zinc, and choline. These health benefits are why the government is trying to improve shrimp production, which will help the shrimp market grow.

Drivers: Growing Contract Farming Initiatives by Exporters

Usually, shrimp farmers deal with processing firms to give them products at a certain time, known as contract farming. These contracts often include agreements between processing firms and farmers, establishing production and marketing conditions. 

Contract farming is improving the shrimp market trends because big export companies give farmers the seeds, feed, and tools they need to grow crops through contract farming. In many developed countries, policies to get an easy loan. These plans will likely grow the market during the forecast period.

Drivers: Increase in Research Activities 

A lot of the research that has been done in the past about shrimp fishing has been biological research on shrimp to help with stock assessment. Overall, this has been a success, and scientists have learned a lot about the life cycle of shrimp and other parts of their biology. So, putting shrimp-based products will contribute to global market growth.

Drivers: Launch of New Products

Shrimp products are doing well in the market because more people are learning about how good shrimp is for their health. As a result, many companies are coming out with new products to meet the growing demand. So, releasing new products with shrimp would help increase consumer demand for shrimp.

Restraints: Environmental Degradation and Seed Problems

Shrimp farming is terrible for the ecosystem because it causes salinity, destruction of mangroves, pollution, sedimentation, erosion of land, extinction of marine species, and loss of biodiversity. In general, shrimp aquaculture needs a comprehensive, reliable, and cheap source of seeds. Without such a source of seeds, the output would not be possible. 

Farmers also face high seed prices, low quality, mixing of seeds, and less hatching. These factors will likely slow the market's growth over the next few years.

Restraints: Limited Availability of Aqua-feed Ingredients

Aqua-feed is a food made for sale that aquatic animals like fish, prawns, and shrimp can eat. In the aquaculture industry, the aquafeed is used a lot. Shrimp feed is made to meet the nutritional needs of shrimps raised on farms. It helps keep essential amino acids, vitamins, minerals, fatty acids, and other vital nutrients at the proper levels. Aqua-feeds have a short shelf life and must be handled a certain way. 

Proper storage and handling are needed to get these feeds' total economic and nutritional value. If aquafeeds are not kept at the right temperature and in the right way, the quality can go down. Many shrimp farmers cannot get shrimp aqua-feed ingredients because their yield is low, and many people want to buy shrimp aqua-feed ingredients. This means aqua-feed will not be available, hurting the market’s growth.

Opportunities: The Surge in Demand for Ready-To-Eat Food Items

Ready-to-eat foods are prepared or cooked in advance, with no further cooking or preparation required before being eaten. People's lifestyles are slowly changing as they eat more packaged or ready-to-eat foods. So, the growth of the global market is likely to be driven by a rise in the demand for frozen shrimp and canned shrimp. This is expected to be a good thing for the global market, which is expected to grow.

People have noticed that shrimp farmers cannot determine the actual shrimp count in their ponds to feed them properly. So, the government should help install software on farms to raise shrimp production. It includes a shrimp feeder and an underwater acoustic device that work together to measure the right amount of feed at the right time.

Opportunities: Government Initiatives Regarding Technological Upgradation

Shrimp farmers are slowly starting to use technology to help manage production and ensure the shrimp are safe from disease. Technology, like closed recirculating systems, is helping farmers increase their incomes, increase crop yields, and predict diseases. Thus increase in government programs is likely to lead to growth opportunities for the shrimp market during the forecast period.

Regional Analysis

The global shrimp market share is primarily classified into three regions, namely Asia-Pacific, Europe, and North America. 

Asia-Pacific is the largest shareholder in the global shrimp market and is expected to grow at a CAGR of 10.6% during the forecast period. China, Japan, India, South Korea, Australia, and the rest of Asia-Pacific all study the market in the Asia-Pacific region. China's demand for shrimp has grown quickly in the past ten years, which is mainly due to the availability of different kinds of shrimp in the country. Over the next few years, the market is expected to grow at a high compound annual growth rate. The Asia-Pacific region, excluding Japan, is likely to lead the market. 

Europe is expected to grow at a CAGR of 8.1%, generating USD 16.7 billion during the forecast period. The UK, Italy, Spain, France, the Netherlands, Germany, and Turkey are a part of the Europe market. The UK is a substantial market for shrimp, among other parts. Thus, the rising amount of seafood eaten by each person in Europe is driving the UK market.

The United States, Canada, and Mexico are all included in the North American market. Due to a rise in demand for shrimps, the North American market is likely to grow in the coming years. Shrimp are becoming more popular in this area because they are high in protein and vitamins, low in fat, and do not have any cholesterol.

Segmental Analysis

The shrimp market share is segmented by source and form. Based on the source, the shrimp market is classified into cold water and hot water.

The cold water segment is dominating and is expected to grow at a CAGR of 9.8% during the forecast period. These shrimps live in the cold waters of the Atlantic ocean called deep water shrimp. It lives on soft, muddy bottoms between 10 and 500 meters deep. Even though they are smaller and wild, cold-water shrimp are an excellent choice to eat because they are low in fats and high in proteins, among other things.

People eat cold-water shrimp because it has a firm texture, is healthy, and stays fresh. The Arctic and North Atlantic Oceans are where most of them come from. 

The tropical waters in the south of the world are where hot water shrimp live. A 3-ounce (85-gram) serving of these shrimp has only 84 calories and no carbs. About 90% of the calories in shrimp come from protein, while the other 10% come from fat. Also, the same size serving gives you more than 20 different vitamins and minerals, including 50 percent of your daily selenium needs. 

Selenium is a mineral that can help reduce inflammation and keep your heart healthy. So, the fact that hot water shrimp are healthy makes them more popular worldwide. 

Based on form, the shrimp market Analysis is segmented into Frozen and Canned.

The frozen segment owns the highest market share and estimates to grow at a CAGR of 10% during the forecast period. Most shrimp are sold frozen and are marketed based on their look, grade, color, and uniformity. Most of the time, shrimp are sold whole, but sometimes only the meat is sold.

Frozen shrimp are processed and stored in large quantities. Frozen shrimp can stay good for about four to five days. The countries that export shrimp are Japan, the United States, the United Kingdom, China, Thailand, Italy, Spain, France, and Germany.

Small shrimps are cleaned and de-shelled before being packed in cans. Canned shrimps can be enjoyed with salad, fish stew, and a simple cocktail sauce.

There will be a lot more demand for canned shrimp because ready-to-eat foods are becoming more popular because of better distribution infrastructure. Demand for the product is likely to increase as more people buy it and producers use more environmentally friendly ways to farm shrimp.

Recent Developments

• June 2022- Aqua Star Corp launched its new seafood category called Grill Shrimp Seafood.
• April 2022- Clearwater Seafoods Inc. and Mi’kmaq Collaborated together to provide predictability to the arctic surf clam fishery.
• January 2022- Avanti Feeds Ltd announced its business expansion over various regions across the Asia-Pacific region.