According with the Fact.MR report on Frozen Shrimp Market, it will grow at a compound annual growth rate (CAGR) of 8.4% during 2021-2031 period. Sales of frozen shrimp are expected to reach a value of USD 48.8 billion by 2031, surging at a CAGR of around 8.4% over the decade. The United States (US) is estimated to account for more than 81% of the North American market in 2021, while China is projected to account for 71.5% of the East Asian market share in 2021.
Customers are gravitating toward safe quality and certified frozen food as they make the move to hygienic and safe food preferences.
Fish and seafood meat such as shrimp is recommended above chicken and red meat (mutton/ pork/beef/ lamb) for comparatively high quantities of protein, fatty acids, omega-3, and vitamins such as D and B-12, according to the United States Department of Agriculture (USDA).
Furthermore, frozen shrimp is superior to fresh shrimp because the freezing process of fish and seafood in the modern industry begins as soon as it is collected in its natural state, preserving freshness and preventing bacterial growth, thereby, boosting frozen shrimp sales across regions.
While the US is estimated to account for more than 81% of the North American market in 2021, supported by rising demand for convenience foods, China is estimated to account for 71.5% of the East Asian market share in 2021.
In the other hand, Thailand is one of the prominent countries in the South Asian market with a market share of 27.2%.
Moreover, conventional frozen shrimp reflects approximately 89% market share, but the organic type is expected to witness a high CAGR 9.7% over the forecast period due to rising environmental concerns. “The market is being driven by convenience, upgraded storage qualities, ease of use, and longer shelf-life properties of frozen shrimp,” said a lead analyst at Fact.MR.
US Market for Frozen Shrimp
The market in the US is set to rise at a CAGR of 9.8% and close in on a value of US$ 9.6 Bn by 2031. Increased demand for fast foods such as ready-to-eat (RTE) and ready-to-cook (RTC) foods, as well as rising consumer awareness about health, are driving the U.S. frozen shrimp industry.
In February 2021, the US Food and Drug Administration (FDA) began the second phase of its Artificial Intelligence (AI) Imported Seafood Pilot program. The goal of the pilot is to improve the agency’s ability to promptly and accurately detect imported seafood products that could be harmful to people’s health.
As a result, customer confidence in shrimp products is growing, benefiting the U.S. market for frozen shrimp.
Strategic partnerships with regional distributors
The Fact.MR report also highlight that manufacturers are entering into strategic partnerships with regional distributors and end users to catch up with the growing needs of a huge client base.
GBC, the owner of Morubel NV in Belgium, and Peter Ristic, the owner of Ristic AG in Oberferrieden, Germany, have reached an agreement for GBC to buy all of Ristic’s outstanding shares as well as the Costa Rican entities.
Morubel and Ristic are anticipated to become leading players in the European frozen shrimp industry, with a distinctive sustainability proposition, as a result of the deal.
Rethinking the strategy
Global disruptions caused by COVID-19 prompted many market leaders to evaluate their portfolios and rethink their strategy in 2020 and 2021.
Companies producing frozen shrimp have redirected their management efforts and capital into those parts of the organization with the biggest development potential and have a clear competitive advantage as a result of these assessments, which have resulted in both, strategic acquisitions and divestitures.
This has resulted in a tendency of companies indulging in mergers and acquisitions to acquire talent that is not already in order to enhance and reinforce their competitive advantage.
For example, AquaStar, based in Seattle, Washington, a leading frozen seafood supplier in North America, in 2018 engaged into a joint venture to purchase an equity position in Indian shrimp producer Sagar Grandhi Exports.
Some of the leading companies offering frozen shrimp are SeaPak Shrimp Company, Seafood, Aqua Star, Clearwater Seafood, Aqua Chile, Toyo Suisan Kaisha, High Liner Foods, Surapon Foods, Nordic Seafood A/S, and Thai Union Group,.
In its new offering, Fact.MR provides an unbiased analysis of the frozen shrimp market, presenting historical demand data (2016-2020) and forecast statistics for the period (2021-2031).
The study divulges compelling insights on the frozen shrimp based on species (gulf shrimp, farmed white leg shrimp, banded coral shrimp, royal red shrimp, giant tiger shrimp, blue shrimp, and ocean shrimp), source (organic and conventional), application (food, pharmaceuticals, cosmetics, industrial, and biotechnology), and sales channel (direct sales and indirect sales), across seven major regions of the world.