It’s no easy task drawing a profile and painting the portrait of a typical seafood consumer. This is also why it’s difficult to develop a targeted marketing approach for shrimp promotion. However, ShrimpTails has had a go at trying to understand the different faces of the shrimp consumer. This article dives into the consumption trends of the world’s three largest markets for pacific white shrimp (L. vannamei) – China, Europe and the U.S. – and discusses how the food marketing triangle might help us understand shrimp consumers across the globe.
United States
The position of shrimp in the seafood industry is already quite established in the U.S. In fact, Pacific white shrimp continues to dominate the seafood preference of Americans. Traditionally, Americans consume peeled and value-added shrimp. Current data shows that imports of peeled frozen products, mainly sourced from India and Indonesia, are increasing. However, shell-on frozen products represented the strongest demand in 2019, experiencing a considerable growth of 39.5 percent between January 2019 and January 2020.
According to the National Oceanic and Atmospheric Administration (NOAA), in 2018, Americans consumed 7.3 kilograms of seafood, of which 2.1 kilograms was shrimp. Shrimp sales in U.S. restaurants have increased from 118.6 million kilogram in November 2018 to 125.8 million kilograms in November 2019, representing a 6.1 percent year-on-year growth.
The National Fisheries Institute (NFI), before the complications related to COVID-19, expected that the growth of shrimp sales in the foodservice sector may even reach 8 percent this year. Clearly, shrimp is not hard to find on restaurant menus, particularly in seafood restaurants, bars, and grills, and even family-style eateries. Among these operators, bar and grill restaurants have the biggest opportunity to introduce more shrimp products and recipes on their menus.
In the retail sector, too, shrimp sales have increased continuously over the last five years. Sales have spiked from 124.7 million kilogram in 2014 to 188.2 million kilograms in 2019. In addition, the number of households that regularly purchase shrimp has increased by 4.4 percent from 2014 to 2019. Traditionally, the biggest shrimp consumers in the U.S. were wealthy persons between 35 and 55 years of age. However, current trends suggest that the targeting of younger consumers in shrimp marketing campaigns has seen an uptake in recent years.
China
China’s shrimp consumption has seen extraordinary growth in the past years, with domestic consumption expected to surpass 2 million metric tons (MT) in 2020. Overall imports of Pacific white shrimp from 2018 to 2019 have also increased by 233 percent, resulting in a total volume of 651,618 MT in 2019.
Historically, seafood has always been an important aspect of the Chinese food culture. Shrimp preference also varies considerably based on demographics and social status. For example, in Beijing and other northern cities, larger-sized shrimp are preferred, while in the Guangzhou region, people prefer medium-sized shrimp. Generally, Chinese consumers look for the freshness ("xian") element. Technology, e-commerce, higher incomes, and a growing middle class have caused demand for shrimp to take off rapidly. In addition, more people have access to health care and better nutrition. This latter aspect is particularly relevant for the younger generation, which perceives seafood (and shrimp) as healthier choices.
A previous ShrimpTails article, published in the ShrimpTails China Special, divided Chinese consumers into several groups. On one side, we have the foreign nationals living in China who seek familiar products, and affluent Chinese nationals who want to convey their status through their purchases. Both are willing to pay for high-quality and safe imported shrimp, usually large-sized head-on shell-on (HOSO) or headless shell-on (HLSO) shrimp from Argentina and Ecuador.
Shrimp imported from Argentina and Ecuador is highly sought-after because of its larger size and bright red color, which the Chinese associate with good fortune. Hence, this type of shrimp is usually gifted or consumed during the Chinese New Year celebrations.
Meanwhile, on the other side, we have the middle-class consumers, who also look for quality products but whose purchases are more dependent on the price. As more Aquaculture Stewardship Council-certified products enter the Chinese market, consumer awareness on sustainable products also grows. Then there’s the younger generation of Chinese, who generally look for convenience and inexpensive products, mostly peeled shrimp in retail bags from Thailand or India.
Europe
In Europe, the third of the world’s largest markets for Pacific white shrimp, shrimp consumption is also increasing. Shrimp accounts for 6 percent, or about 1.5 kilograms per person, of the total fish and seafood consumption in Europe.
It is important to understand that Europe should not be viewed as a single market with one set of consumer preferences. The market should actually divide the market into two regions: North-western Europe and Southern Europe.
Southern Europe, with a large cookery production sector, primarily produces and consumes HOSO shrimp, mainly the larger sizes. Most of these shrimp volumes are consumed in Spain and France, generally sold cooked or blanched. Southern Europe has a huge seafood culture and history, as evidenced by the wide variety of dishes served particularly in Spain (think paella and tapas).
In contrast, consumers in northwestern Europe are less likely to use whole shrimp in their dishes but tend to favor convenience. Thus, easy-to-peel and ready-to-eat products are preferred. Shrimp can also be purchased pre-packed, weighed and in various value-added forms. The sizes of the shrimp tend to differ according to the various market segments. In retail, you will find smaller sizes of peeled shrimp, while in wholesale, you will find larger shrimp, either peeled or HLSO.
Food marketing triangle
Having analyzed these consumption trends and habits, it is fundamental for the market to take advantage of this knowledge. However, in the context of implementing a unified marketing approach, the diversity in trends and habits can also be a challenge.
Essentially, the marketing approach should be targeted based on the food culture and trends of a specific country or region. To this end, food marketing specialist Allan Cooper formulated his idea for a way of marketing that could cover major consumer trends. Cooper calls it the Food Marketing Triangle, a diagram which is instrumental in marketing shrimp through storytelling.
A product’s quality should be at the heart of any marketing campaign and can be supported by various storytelling tools. Quality here refers to the standardized food quality that a product should meet, meaning that it is safe for consumption and has passed food regulation requirements.
“The most important aspect is to secure a high-quality and safe product. If you don’t have the basic requirement of quality, you can’t produce an effective campaign,” Cooper said. Consumers have become increasingly concerned with the quality, safety and production of shrimp. These three items have been translated to the focal points Health, Sustainability and Traceability in Cooper’s Triangle, and are a good starting point from which to initiate a shrimp marketing campaign and tell its story.
Health: Consumers want safe and easy shrimp
Consumers usually assess the shrimp’s quality through easily discernible qualifiers such as color, odor and taste. However, it is not enough for the shrimp to have an appealing texture and color: Consumers also want to know if the shrimp they consume benefits their health.
The problem is that the reputation of shrimp has been marred by health risks due to antibiotics use and high levels of cholesterol. In a health-targeted campaign, marketing should be focused on the safety and quality of the seafood, as well as the convenience of shrimp in the kitchen. Consumers want easy-to-cook and satisfying dishes. A focus on healthy recipes that are flavorful and unique can help boost the image of shrimp as a stable pantry product.
American, Chinese and European consumers alike are demanding more convenience from shrimp products. This may mean more value-added segments in the portfolio of products offered such as ready-to-cook, breaded, or marinated shrimp. We can also already witness this to some extent in southern Europe, where we can see a broader range of peeled products as a result of a growing demand for convenience products.
Sustainability: Consumers seek sustainable products
In addition to the health aspect, consumers want to know if their shrimp is sustainable. In consumer market analyses and studies, the sustainability level of shrimp is associated with standard labels such as the Best Aquaculture Practices (BAP), which is common in the U.S., and the Aquaculture Stewardship Council for farmed shrimp, which is more established and widespread in Europe.
The ASC certification is especially sought after in the European market and has become a requirement in most retail markets. These labels are particularly in demand in Northwestern Europe's shrimp industry, but they have also permeated the French, Spanish, Italian, and Eastern European markets.
Chinese consumers have also begun to demand more sustainable products, and middle-class and wealthy consumers are increasingly willing to pay more for premium-quality products. Strong branding is also a focus in the Chinese market: For instance conscious labeling of a product to emphasize its origin (e.g. “Ecuadorian shrimp,” which are also mostly ASC-certified shrimp). Seafood companies and importers, too, are increasingly demanding sustainable products and are looking for ways to make a greater contribution to society and the environment.
According to Cooper, the focus on sustainability can cover three major areas: Social sustainability, environmental sustainability, and sustainable development. Consumers want to know that the products they are buying are not only good for the environment but that they are also good for the community. Social sustainability in the marketing campaign may entail stories on the way shrimp farms treat their farmers and employees while sustainable development can be highlighted through ideas on how aquaculture and farming shrimp can be developed in a sustainable manner.
Traceability: Consumers want to know where their shrimp comes from
The journey of shrimp from “farm to fork” is an important story. Particularly the European and American market is interested in buying traceable shrimp products. Traceability gives producers greater accountability and responsibility through transparency in the supply chain. This is especially relevant for vertically integrated farms where one company owns the hatcheries as well as the shrimp farms and processing plants.
In these structures, even the genetic family of the shrimp species can easily be determined.
As consumers also want to be involved actively in tracing the origin of products, marketing campaigns should focus on interactive ways to involve consumers in the shrimp’s journey. For example, in the Acuamaya Company Profile, a Guatemalan shrimp producer highlights the traceability features of its shrimp boxes on its website.
In sum, the three major shrimp markets have different consumption preferences and consume different product types in various ways. In all three, a certain product quality is expected. In marketing shrimp in the three major markets, the aspect of health, which includes safety and convenience, is a growing trend and trump card in China, Europe and the U.S. The same goes for traceability and sustainability, which are increasingly important requirements in China, north-western Europe and the US and are also being considered more in southern Europe.
The portrait of the shrimp consumer is difficult to define, especially when it changes over time. However, as evidenced by our analysis on recent consumption trends, the three major markets are becoming more aligned in terms of priorities and demands.
The shift towards convenience products, as evidenced in the diversification of product types and preferences – as well as the emphasis on safety, health, and nutritional attributes in promotional materials and product labels – can be witnessed in all three shrimp markets. The story behind shrimp production is also gaining traction as consumer awareness of sustainability and traceability increases. While every market has its own unique consumption patterns, there is an opportunity to “unify” efforts to target multiple markets by following these trends closely. Various companies are already trying to use these trends to their benefit and increase demand.
Photo courtesy of ShrimpTails
