Global market analysis on Shrimp Products | Foodresearchlab

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Global Market Analysis on Shrimp Products
An Academic presentation by Dr. Nancy Agnes,
Head, Technical Operations, FoodResearchLab
Group www.foodresearchlab.com Email
info_at_foodresearchlab.com
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Today's Discussion
Introduction By-products from shrimp and
fortification Shrimp demand has increased
globally Supply International commerce
Exports Imports Summary
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INTRODUCTION
Shrimp is a common seafood species that belongs
to the Malacostraca, the largest class of
crustaceans. Shrimp is high in omega-3 fatty
acids, which help people lose weight, lower
blood pressure, boost bone and brain health,
alleviate eye weakness, and decrease the risk of
cardiovascular disease. It also has high protein
content and low-fat content. Contd...
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With an annual valuation of over 57 billion,
crustacean farming is one of the most important
global aquacultures, accounting for roughly 23
of the entire global aquaculture industry (UN
FAO Fisheries and Aquaculture Department,
2018). The Global Shrimp Market is forecast to
reach US 24.1 billion by 2026, according to the
report. Many governments are promoting shrimp
cultivation by providing financial incentives
and tax breaks to producers. Apart from China
and Vietnam, Ecuador is the world's largest
exporter of shrimp. Contd...
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The United States is the main Shrimp producer
among consuming countries. In 2020, the global
shrimp industry will hit 8.12 million
tons. Because of rising demand, the industry is
expected to expand at a CAGR of 4.5 from 2021
to 2026, reaching a capacity of 10.7 million
tons by 2026.
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BY-PRODUCTS FROM SHRIMP AND FORTIFICATION
Various traditional and novel techniques have
been used to remove shrimp oil from the
cephalothorax and hepatopancreas. The bread was
fortified with microencapsulated shrimp oil
(MSO). When applied up to 3, MSO fortification
resulted in increased loaf volume and
appropriate sensory content. Contd...
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MSO was fortified in biscuits with sodium syrup
caseinate, fish gelatin, and glucose
(114, w/w/w) as wall materials and stored for
12 days. When MSO was applied up to 6, the
nutritional content of the biscuit was increased
without a detrimental effect on sensory
quality There are organizations that provides
appropriate strategies for successful new
product development, which aids in development
and formulation of innovative food products.
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SHRIMP DEMAND HAS INCREASED GLOBALLY
In 2020, the pandemic of COVID-19 decreased
total shrimp consumption. Although retail sales
of shrimp were high in both the foreign and
domestic markets, the foodservice industry
suffered significant losses. Contd...
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Recently, the mid-autumn festival in October has s
parked a significant increase in China's
catering industry. This could lead to more
restaurant openings in China in the coming
months.
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SUPPLY
Due to the COVID-19 outbreak, the shrimp
aquaculture season in Asia has been postponed
until 2020. Pond stockings were delayed in most
producing countries after the early season panic
harvests in April, resulting in a reduction in
real farming days during the lockdown
time. Shrimp farmers also introduced Medium-
density aquaculture due to low ex-farm costs,
which lasted until August 2020.. Contd...
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Following sharp contractions in global demand
from the foodservice market, raw materials were
short-supplied in India from April to August
2020, though ex-farm prices stayed at record low
levels. The supply situation in Vietnam and
Indonesia was stronger. In reaction to shifts
in consumer demand, export processors in those
countries concentrated on value-added goods and
retail packaging. In 2020, Thailand's output was
lower than in 2019, impacting raw material
supplies for export manufacturing. Contd...
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Farmers in Thailand have been discouraged by low
ex-farm prices and falling tourism. Domestic
production in China also fell in 2020 as a result
of shrimp disease and bad weather.
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INTERNATIONAL COMMERCE
In the international market, the industry tends
to follow the shifting demand trend. During
April-June 2020, the industry held some
equilibrium as supply decreased, with high retail
demand but large demand losses in the catering
trade (70-80). While the foodservice industry
in North America and Europe improved during the
summer months, most restaurants were forced to
run at just 25 to 30 capacity due to the
required social distancing steps. Contd...
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Owing to the ongoing flight bans worldwide,
demand for air travel has also suffered and has
yet to rebound. Despite these constraints, the
global shrimp trade remained relatively stable
in April-August 2020, despite reduced supplies,
especially from Asia. Nonetheless, imports rose
in China's and the United States' two biggest
economies, where retail prices hit new highs
from April to September 2020. Food Research Lab
helps understand food safety challenges for
manufacturers and streamlines the product
development process. Contd...
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EXPORTS
During the first half of 2020, supplies improved
from the top two exporters, Ecuador and
Indonesia. Ecuador benefited from record low
export prices and expanded shipments to the
United States of America, while Indonesia's
processed shrimp exports increased during the
review period. Other countries' exports of
processed shrimp rose as well, but not from
Thailand or China. Compared to the same
timeframe in 2019, cooked frozen shrimp exports
increased by 35 in India and Indonesia during
the study period. Contd...
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During the first half of 2020, supplies improved
from the top two exporters, Ecuador and
Indonesia. Ecuador benefited from record low
export prices and expanded shipments to the
United States of America, while Indonesia's
processed shrimp exports increased during the
review period. Other countries' exports of
processed shrimp rose as well, but not from
Thailand or China.
Contd...
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Compared to the same timeframe in 2019, cooked
frozen shrimp exports increased by 35 in India
and Indonesia during the study
period. Argentina's sea-caught shrimp exports
fell by 16 to 45,000 tons due to lower catches
during the study period.
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IMPORTS
During the period January-June 2020, China
overtook the United States as the leading shrimp
importer. Imports rose slightly in the United
States but fell in the European Union, Japan,
Canada, and many other developing markets
worldwide. During this time, US imports were
characterized by increased demand for processed
shrimp, while raw head-on and headless shell-on
shrimp remained the dominant products in China's
imports. Contd...
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Imports into Vietnam (for re-exports) fell to a
historic low of 22,000 tons, or 75 less than in
January-June 2019. This drop was caused by the
Chinese government's continued control over
unreported imports from this region.
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SUMMARY
Due to the late seeding of wetlands in 2020,
supplies will be limited until the end of the
year, particularly in areas not impacted by
winter (Indonesia, Malaysia, southern Thailand,
Andhra and Tamil Nadu states in India). On the
other hand, China, eastern India, Viet Nam,
Thailand, Myanmar, and Bangladesh will
experience a low season from November to
February. Contd...
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The yield of farmed shrimp in Asia is expected to
fall 15 to 20 in 2020 compared to 2019. The
Chinese mid-autumn festival and the October
National Day holiday raised shrimp demand
significantly, as outdoor eating increased
sharply. Since COVID-19 is still raging in the
United States and Europe, many Chinese customers
have chosen to fly within their own
country. China's frozen shrimp inventories have
decreased, indicating that imports will increase
in the coming months. Contd...
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Imports from the United States increased in the
third quarter of the year, allowing for ample
stocks for year-end use. Meanwhile, restaurant
sales are expected to decline during the winter
months. In Europe and Japan, the consumption
pattern will
with some increase in demand during the Christma
s/New Year
be close, anticipated season.
Ex-farm prices for Asian and Ecuadorian shrimp
peaked in September 2020. Contd...
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Price rises are forecast due to seasonal
shortages in Asia and strong demand from China
before the Lunar New Year in 2021. China's
imports of Ecuadorian shrimp are expected to
increase in the coming months after the
country's bans were lifted. Meanwhile, shrimp
e-commerce and home delivery have generated new
marketing and sales opportunities in importing
and manufacturing countries. On a long-term
basis, this pattern will persist.
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