China purchased a record 80,000 metric tons (MT) of fresh Norwegian farmed salmon in 2023, as trade between the two countries got fully back on track following Covid-19, according to Norwegian Seafood Council (NSC) China Director Andreas Thorud.
Speaking at the 2024 North Atlantic Seafood Forum (NASF), which took place in Bergen, Norway, from 5 to 7 March, Thorud said the Covid years were very challenging in China from both a demand and supply perspective.
“But, that’s all behind us now," he said. "We’re also seeing some interesting trends in terms of increasing sales in both retail and e-commerce channels, and I think those will be important drivers for us moving forward."
Not only has China's seafood trading gotten back on track, it has actually improved, according to Thorud, pointing to the value of last year’s salmon exports rising 54 percent over the pre-pandemic year of 2019. The growth is due to rising consumption beyond the main cities of Beijing, Shanghai, Shenzhen, and Guangzhou, Thorud said. And China's massive consumer base and its potential future consumption rates make Thorud even more bullish.
“We are seeing relatively smaller cities with consumers who are also willing to try new things, as well as consumers who are curious about what salmon is and want that experience,” he said. “That’s the vision going forward; we think the Chinese salmon market will be very dynamic and has significant growth potential.”
As the Chinese market progresses, demand for a more diverse array of products will increase, according to Thorud.
“This is connected to the consumer’s need for convenience, and also curiosity,” he said. “I think we may see consumers in bigger cities who are used to eating raw sashimi salmon increase their frequency and also enjoy [cooked] salmon.”
A “crucial factor” to unlocking the true potential of salmon consumption in China will be the further development of distribution channels, Thorud said.
“The main channels are HoReCa [hotel, restaurant, and catering] and Japanese restaurants. We have estimated that last year, these had 85 percent of the market, with the rest accounted for by retail and e-commerce,” he said. “But, [retail and e-commerce] are going to be crucial channels for growing the consumer base and getting a higher home consumption.”
Importantly, these channels will also establish much greater availability of products in the market, he said.
Through these key factors, NSC believes China “is one of the most exciting growth channels in the world,” he said.
Also speaking at NASF, Kontali Chief Analyst Ragnar Nystøyl agreed that China will be important to the future to the salmon industry. The Chinese and Hong Kong markets were “the shining light” on the market side in 2023, he said.
“In terms of premiums, China is demanding larger salmon, and that means better prices,” he added.
