Market Trends of north america shrimp Industry
Innovations in methods and initiatives from government bodies are boosting the production
- The United States is the major producer in the region. The shrimp market in the United States is expected to register a growth of 1.32% by value during the forecast period (2023-2029). The US shrimp farming industry is struggling to compete with low-cost shrimp imported from major manufacturers, including India, Indonesia, and Ecuador. However, with the growing shrimp consumption in the country, new shrimp-farming projects of all shapes and sizes are cropping up across the country, from small and large recirculating aquaculture systems (RAS) in California and Florida to traditional pond aquaculture in Texas. In Canada, with the growing need for local shrimp production, in January 2022, Fisheries and Oceans Canada (DFO) released the draft 2022-23 Prawn and Shrimp by Trap Integrated Fisheries Management Plan (IFMP) for a 30-day consultation period. The plan continues the government's ongoing commitment to enhance the abundance of the Pacific prawn fishery for future generations.
- In 2022, Mexico was the world’s second-largest producer of shrimp. The total production consists of 22% caught in bays and 78% aquaculture-farmed shrimps. Sinaloa is the leading state in farm shrimp production, with a historic figure of 95,000 tons produced in 2021, followed by the states of Sonora and Nayarit. The biggest innovation in the region's shrimp aquaculture in 2022 was Atarraya, a start-up tech company based in Mexico City, Mexico, known for developing the Shrimpbox. It has converted a shipping container into a small commercial shrimp farm, the Shrimpbox, which requires minimal water exchange and contains an automated feeding system and bio floc waste-removal system, minimizing the work involved in farming shrimp in the unit while eliminating the need for using antibiotics and chemicals.
Understand The Key Trends Shaping This Market
Download PDF
Growing demand and rising production costs are leading to price hikes
- During 2017-2022, the shrimp segment registered a price growth rate of 7.74% in North America. Shrimp is the highest-sold species of seafood in the region. The region has a prominent shrimp production base, with the majority of local shrimp produced by aquaculture. The cost of aquaculture inputs (feed, fuel, and transportation) increased considerably in 2022, causing hardship for shrimp farmers worldwide. However, the region still depends on imports from major producing Asian countries to fulfill the increasing demand. In 2022, the US imported frozen shrimp worth USD 5 billion. Thus, imports account for a significant share of consumption, resulting in price growth.
- The demand and prices of shrimp in the major markets were relatively stable from January to August of 2022. From September, shrimp prices in the international trade started to weaken, reaching low levels in October. High freight rates, the rising cost of marine fuels, and logistical disruptions, including bottlenecks at seaports and shortages of truck drivers in the United States, are expected to boost wholesale prices. The increasing global demand for crustaceans is a major factor in the increasing prices. Shrimp is among the top seafood species sold on offers, with 39% of shrimp sales happening under promotions in 2021. In the United States of America, Hurricane Ian severely affected the Southwest coast of Florida, destroying shrimp vessels and port facilities.
- During 2017-2022, shrimp prices registered a growth rate of 23.48% in Canada. The majority of the population lives away from the coasts, and the live shrimps available in Canada are mostly saltwater shrimp. Live shrimp are flown from the coast to the fish market. It is also very expensive to fly shrimp.
Understand The Key Trends Shaping This Market
Download PDF
