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June 2021 Market Intelligence Team 2021 Industry Report: Shrimp June 2021 Written By Market Intelligence Team 2 Executive Summary Consumption One Of the largest cOnsumers Of shrimp in the wOrld is the United States. Within the US, it is the mOst pOpular seafOOd, representing Over 25 percent Of the natiOnal annual per capita seafOOd cOnsumptiOn, translating tO 4 pOunds Of shrimp per year per the average cOnsumer. China, anOther One Of the largest prOducers and cOnsumers Of shrimp in the wOrld, had a fOrecast tO increase by 350K MT, Or 21%, Over 2016 levels by 2020, with a 5% annual grOwth rate, a trend thOught tO be caused by the grOwing middle-class pOpulatiOn within China. This increase wOuld push their cOnsumptiOn levels past the US and EU cOmbined. Production In 2020, the tOtal value Of the glObal shrimp market reached USD 18.3 billiOn, and is prOjected tO expand dramatically fOr the next 5 years, reaching USD 23.4 billiOn in 2026. Due tO the COvid-19 lOckdOwn measurement, glObal shrimp prOductiOn during the first half Of 2020 decreased cOmpared tO the previOus seasOn. Shrimp prOductiOn can be separated intO twO different categOries: shrimp that is farmed, and shrimp that is fished. As Of 2020, farms cOmprise 55% Of the tOtal shrimp prOduced glObally and are cOntinuing tO take a greater share Of tOtal shrimp prOductiOn cOmpared tO shrimp fisheries. TOtal prOductiOn Of shrimp via farming has been, On average, increasing significantly since 2010. In 2010, apprOximately 3.75 milliOn MT Of shrimp were prOduced via farming wOrldwide; in 2019, this number reached arOund 4.75 milliOn MT, a 26% increase. COVID-19 and its Vietnam’s shrimp expOrts tO the EU have recOvered since the beginning Of the Lasting Effects third quarter Of 2020 due tO sOlid grOwth demand in the EurOpean market after the pandemic. AccOrding tO VASEP, shrimp expOrts tO the EU in January 2021 increased by 16% frOm the previOus year tO reach USD 30 milliOn. This same mOnth’s tOtal expOrts fOr the Vietnamese shrimp were USD 124 milliOn, a 22% increase frOm the previOus year. Strict trade restrictiOns due tO the pandemic, particularly in China, have stalled majOr shrimp suppliers frOm cOuntries such as India and EcuadOr. In additiOn, the spread Of several shrimp diseases have been lOwering supply yield acrOss SOutheast Asia since 2017. The cOmbinatiOn Of bOth the dramatic drOp in demand and supply has caused uncertainty fOr bOth impOrters and expOrters cOncerning future years. EcuadOr, the secOnd-largest expOrter Of shrimp in the wOrld, has been affected by COVID-19 wOrse than Others. Prices fOr EcuadOrian shrimp are at an all-time lOw, with sOme impOrters wOrried that it cOuld be sO lOw that it crashes a significant part Of the wOrldwide shrimp industry. Read more industry reports by Tridge https://www.tridge.cOm/market-repOrts 3 Executive Summary Shrimp: Aquaculture’s Most Prized Product Global Shrimp Total Worldwide Export Value of Non-Coldwater Shrimps & Prawns by Year in USD Billions (HS Code: 030617) Exports Graph 1. Source: ITC Trade Map (HS: 030617) Total Worldwide Export Value of Coldwater Shrimps & Prawns by Year in USD Billions (HS Code: 030616) Graph 2. Source: ITC Trade Map (HS: 030617) Read more industry reports by Tridge https://www.tridge.com/market-reports Contents Part I - Product Information 1.1 Major Varieties and Sources 6 1.2 Grade Classifications 7 1.3 Main Trade Regulations 8 1.4 Supply Chain 9 Part II - Global Market Dynamics 2.1 Consumption 10 2.2 Productions & Exports Ecuador 13 India 14 Vietnam 16 Thailand 17 2.3 Imports United States 21 China 22 Europe 23 Part III - Sources Read more industry reports by Tridge https://www.tridge.com/market-reports Part I Product Information 1.1 Major Varieties and Sources 1.2 Grade Classifications 1.3 Main Trade Regulations 1.4 Supply Chain Part I 6 Product Information Although they belong to different subcategories of the order Decapoda, due to their similar appearance and qualities, shrimp and prawn as terms are almost always used interchangeably in commercial farming and fishing. The food itself is an extremely popular and important seafood as it is consumed in almost all countries in the world. However, they are also common food allergens, and certain cultures, such as the Jewish laws of Kashrut and the Hanafi school of Islam, forbid the consumption of shrimp. Frozen shrimp and prawns can be further separated into specific popular varieties, Pandalus spp. (cold-water prawn sources) and Crangon crangon (brown shrimp varieties), which are defined by the HS Code 030616, whereas most other varieties (which will be the primary focus of this report) are defined by HS Code 030617. Details specifically on Pandalus spp. and Crangon crangon shrimp HS Code: 030616) will be clarified separately where applicable. Sources for Shrimp Regions/Conditions Major Varieties and Description Varieties of Harvest/Farming Sources Cold-Water Shrimp Harvested in ocean Smaller varieties known as Pandalid shrimp. A (Pandalus spp.) waters in the popular species is the pink colored Pandalus borealis northwest and commonly used in salads, soups or chowders. northeast regions of Coldwater shrimp are only available previously the United States, cooked and peeled (shell removed). Europe and Canada Warm-Water Shrimp Harvested and farmed Includes Penaeusand Litopenaneus species that are in tropical and more commonly sold by reference to basic shell sub-tropical regions colors (white, brown, and pink shrimp). Additional around the world names can include tiger, banana and hopper shrimp. Buyer preferences are usually directed by taste, texture, size and costs which will vary from one species to another Wild Shrimp Harvested from Refers to either cold water or warm water varieties coastal ocean waters obtained through the aforementioned harvest with traditional method. They are often preferred in traditional vessels dishes and recipes. The harvesting of wild shrimp is regulated by management programs that set annual production limits. Farmed Shrimp Grown in open and Refers to warm water varieties obtained through the closed pond systems aforementioned farming method. Shrimp diets and supplemented with pond waters can be controlled to influence formulated feeds production rates and sensory attributes of the shrimp. Over 90 percent of the shrimp eaten in the Table 1. List of Major Sources for United States come from farmed sources grown in other countries around the world. Shrimp Varieties Read more industry reports by Tridge https://www.tridge.com/market-reports 7 Part I Product Information Name of Variety Description White Shrimp This variety has a sweeter taste but tends to taste nuttier than pink shrimp. There are also Chinese white shrimp and Mexican white shrimp which are farmed species and not wild-caught (usually less sustainable). Pink Shrimp (Pandalus A common, well-known variety, typically seen behind the average seafood spp.) counter. They are pink when raw, hence the name. Rock Shrimp While they start out in hard shells, this variety is typically deshelled before it is sold. They are often compared to lobster because of their firm texture, and they can be substituted for lobster as a more affordable protein. Brown Shrimp This variety has a more mineral flavor than white and pink shrimp, and they can (Crangon crangon) contain more iodine. They turn pink once they’re cooked and are commonly used in dishes like gumbo. According to the United Arab Emirates seafood trading company the KGT Group, the Grade standard USA trading grades are as follows: Classifications Counts per kilo and per pound that are customarily used for both headless and peeled shrimp. These ranges are the ones normally used in international trade. Counts expressed per pound are the most used. Most sales of shell-on shrimp are U-10 (under-10 per pound) through 100 /120 per pound. Shell-on smaller than 100/120 is rare and very unusual. Peeled shrimp may be graded as fin­ished count, where the number it says on the label is the strict total number of shrimp, or as peeled-from count, where the label shows the size of the shell-on tail from which the shrimp was peeled. The actual count, in this case, is about one or two sizes smaller. Examples: Number of shrimp per pound (used for Headless shrimp) U-10 , 10—15, 16—20 Number of shrimp per kilogram (used for Head-on shrimp) U-10, U–12, U–15 Number of shrimp per kilogram (used for Peeled shrimp) U-21, 22—33, 34—44 USA grading sYstem: Product types: Chilled, fresh (not previously frozen) / Unfrozen, thawed (previously frozen) / Frozen individually (IQF), glazed or unglazed / Frozen Solid pack, glazed or unglazed For the U.S.A. Grade Standards, the count of shell-on shrimp is deter­mined by dividing the number of shrimp in the package by the net weight of the package in pounds. Therefore a 5-pound pack of 11/15 count shrimp must contain 55 to 75 shrimp. Detailed grades can be described as below: (a) U.S Grade A Shrimp shall: 1. Possess good flavor and odor characteristics of the species beingevaluated in accordance with Grade Determination of this subpart and 2. comply with the limits for defects for U.S. Grade A quality in accordance with Grade Determination. Read more industry reports by Tridge https://www.tridge.com/market-reports 8 Part I Product Information (b) U.S Grade B Shrimp shall: 1. Possess reasonably good flavor and odor characteristics of the species beingevaluated in accordance with Grade Determination of this subpart and 2. comply with the limits for defects for U.S. Grade B quality inaccordance with Grade Determination below. The Codex standard for size grading suggests similar size grades and offers an alternative method, expressing the average count as a single figure rather than as a range.
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