Plant-based seafood analogs and other shrimp alternatives are starting to gain popularity. But what does the aquaculture industry think about their rise in notoriety? Shrimptails talked to several industry players about how the alternative seafood industry can likely impact the aquaculture sector.
The quest for the next big food innovation has triggered the rise of the alternative shrimp industry. Twenty years ago, the hunt for cheaper protein helped propel the demand for surimi shrimp in Europe. Recently, concerns about sustainability, food security, climate change and health have also paved the way for plant-based and cell-based shrimp to disrupt the market.
“Alternative shrimp, such as plant-based shrimp, are part of a larger trend,” Steven Hedlund of the Global Aquaculture Alliance explained. “People are more conscious of their diets and they are watching what they eat. Some of it is consumer-driven with health being the main factor. The second key factor behind the growth of alternative shrimp is the investment community. Investors are riding the trend and buying this product.”
While these are interesting developments that are welcomed in the food sector, shrimp industry players also acknowledge several risks attached to these new products, especially when a smear campaign against aquaculture products is involved.
Some start-up companies producing alternative shrimp bank on the problems of the aquaculture sector in order to push their products forward in the market. For example, cell-based shrimp producers market their product as “clean shrimp” – devoid of some of the unethical and unsustainable practices of the seafood industry. As published in Forbes, for its “clean shrimp,” Shiok Meats does not make use of antibiotics or slave labor, and eliminates any potential diseases that natural shrimp can be exposed to.
While it is undeniable that the aquaculture industry is not without its problems, Hedlund said he believes that it is important to portray the aquaculture sector fairly.
“If they’re citing scare tactics and misinformation about the shrimp industry to build the image of their businesses, part of our responsibility is to ensure that aquaculture is portrayed accurately,” Hedlund says. In the U.S., the plant-based meat analog movement, with companies like Impossible Foods or Beyond Meat, has become strong and successful. Health is the main reason why U.S. consumers are motivated to eat less meat, while animal welfare and animal agriculture impacting the environment are also important drivers.
Comparing the damage of aquaculture to livestock farming would be unfair, according to Hedlund.
“Aquaculture is by far the most efficient means of producing animal protein for human consumption," he said. "If you look at it through that lens, aquaculture is more sustainable. Over time, shrimp production has become more efficient and we continue to make significant improvements in shrimp farming systems. Aquaculture plays a key role in future human consumption and sustainability.”
Hedlund said he believes that plant-based and cell-based shrimp are a welcome food trend.
“There is room for everyone, but we have to ensure that there is no misinformation," he said.
Beyhan de Jong, Senior Seafood Specialist at Rabobank, says that mudslinging the seafood sector may not be the best strategy for alternative shrimp companies looking into entering the market.
“Seafood companies are looking into expanding their portfolio through new products catering to the need of every consumer. If they want to enter into business with these companies, it is not the best long-term strategy to start with negative perspectives,” she explained.
Is “vegan shrimp” shrimp?
Other factors to consider are monitoring labelling requirements and keeping a close eye on how these products are labelled and marketed. Gavin Gibbons of the National Fisheries Institutesaidt accurate labelling is needed amid the rise of alternative seafood.
In the U.S. market, currently there isn’t a standalone law that prescribes how plant-based seafood should be labeled. However, the Food Drug and Cosmetic Act requires that food be properly labeled, or else it is considered misbranded. The statement of identity on the package is supposed to tell consumers what is in the package, as opposed to what’s not in the package.
“A label that says ‘Vegan Shrimp’ but doesn’t include any shrimp is simply wrong,” Gibbons said. “Vegan is, assumedly, designed to tell consumers that there is not any animal protein in the package. That’s not how labeling works. The law says you have to tell them what is, in fact, in the package – that you need to accurately describe the nature of the product.”
Opportunities amid risks
So far, rules and laws in alternative seafood labelling are in a grey area, with these new proteins still in their infancy. However, the aquaculture industry can use this trend as an opportunity to push sustainable aquaculture forward.
The drivers that triggered the growth of alternative seafood, can also help drive the demand for real shrimp.
“If seafood companies play their cards right, they can really make an opportunity out of this trend. Main drivers such as sustainability, novelty, and convenience are all areas that the aquaculture industry should focus on,” De Jong said.
Seafood is already a well-known substitute for meat. Not only is it perceived as healthier than meat, it is also seen as more sustainable than livestock farming. In the Netherlands, for example, retail sales of fresh meat since 2015 have dropped by 2.9 percent. However, there is a growing trend of consumption of fresh fish, up 2.2 percent, and vegetarian meat substitutes, which have increased by 15.8 percent.
Looking at this trend, there is definitely an opportunity for the seafood sector to replace the market share of fresh meat. The share of seafood alternatives is small, but it is growing. For De Jong, it is important to remember that it does not have to be a competition, and if the seafood sector realizes that there are opportunities in this development, the demand for shrimp can really take off.
Communicating and practicing sustainable aquaculture are key to attracting consumers.
“The aquaculture industry can learn from the marketing strategies of alternative shrimp. The seafood sector must communicate with their consumers better, tell a compelling story, create innovative packaging and report transparency,” De Jong said.
Aqua-Spark Dealflow Manager Isaac Fraynd said he completely agrees.
“We think our industry should not be threatened by alternative shrimp,” Fraynd said. “Rather, the industry should embrace this movement as it can help attract new consumers to sustainable seafood and help complement our greater mission of feeding a growing population.”
The seafood industry is at a crossroads with the introduction and development of new products such as plant-based shrimp and cell-based shrimp. It is true that there are risks in embracing these innovations, but the advantages are also undeniable. There is nothing wrong with pursuing new and inventive ways to feed the growing population of the world. Many investors and consumers have jumped on the bandwagon of alternative proteins. The question is, will the aquaculture industry also make the leap?
Photo courtesy of ShrimpTails Magazine
