Market Trends of China Shrimp Industry
Surging Shrimp Demand Fuels Import Growth
According to the USDA, the per capita consumption of seafood products in China has increased over the past few years. For instance, the per capita consumption of seafood products in 2020 was 16.6 kilograms, and it increased to 16.7 kilograms in 2021. Therefore, the spike in the consumption of seafood products is driving the consumption and import of shrimp products in China.
China’s seafood including shrimp imports expanded in 2023, mainly due to increased domestic consumption and the gradual recovery of overseas demand for processed seafood. Furthermore, over the past decade, as per FAOSTAT, China has become the largest importer of Ecuadorian shrimp, absorbing 50 percent of the supplies. Ecuador accounted for 697,357 metric tons of China’s 987,601 metric tons of shrimp imports in 2023, accounting for a 71 percent market share. followed by India (12.5 percent), Vietnam (6 percent), Canada (3.6 percent), and Greenland (3 percent). According to the ITC trade map, China’s imports of prepared shrimp were USD 991 thousand in 2022, which increased USD 2,400 million in 2023.
The frozen and processed shrimp food consumption is likely to increase steadily due to improvements in China’s processing, distribution, and cold chain systems. There is a significant growth in the sales of seafood products through the e-commerce platform. According to the China Seafood Product E-Commerce Report (2019), issued by the China Aquatic Products Processing and Marketing Association and the National Academy of Economic Strategy reports that fresh and frozen shrimp products are highly sold among seafood products through E-commerce. Therefore, these factors are influencing the import of Shrimp in the country.
Increasing Shrimp Production in the Country
Since 1970, shrimp farming has experienced remarkable growth globally. Asia dominates the shrimp farming landscape, contributing nearly 80% to the world's shrimp culture production. China has held its position as one of the top shrimp producers since 1988. Despite facing challenges like disease outbreaks and environmental concerns, China's shrimp farming industry has recently witnessed swift expansion. According to USDA, shrimp continues to be the leading aquaculture product. In 2021, China produced 2.0 million metric tons of shrimp, and this figure rose to 2.1 million metric tons in 2022. The provinces of Guangdong and Fujian led China's shrimp production in 2022, owing to their prime coastal locations, plentiful freshwater resources, and established production facilities.
In China, shrimp production generally begins at the end of the calendar year. During this period, farmers make simple repairs to culture ponds by removing accumulated sediment, taking advantage of the sun and cold in winter to clean the pond completely which increases the shrimp population in the pond. China has witnessed evident shifts in shrimp farms and production has been created which is generating employment for locals and also yielding considerable economic value for the people involved in shrimp farming.
Chinese consume both frozen and live shrimp from shrimp dumplings (including steamed dumplings in the north and boiled wonton dumplings in the south). A wide range of shrimps available differentiated geographically makes the consumption higher. The current application of artificial fertilizer by farmers is different from the traditional mode of shrimp farming. Fertilizers supply inorganic nutrients to support beneficial algae and other natural foods for shrimp; simultaneously, farmers add probiotics that have a good reputation in the industry for consumption.
