Oversupply and major price declines continue to plague the global shrimp industry, but promoting consumption remains a top priority for the sector, as an increase in consumption could lead to drastically needed price stabilization, according to the latest industry report from the Global Shrimp Forum Foundation (GSFF).
Compiled by GSFF Marketing and Branding Consultant Arnd Jan Gulmans, “The Future is in High Demand” found that in order to effectively increase shrimp consumption, the sector must target the entire spectrum of consumers, including both occasional and first-time buyers.
By “getting the marketing right,” Gulmans said the industry can set a cycle in motion where prices stabilize, confidence grows in the value chain, stronger conditions for investment arise, and better products start hitting the market.
“All of this will, in turn, create more demand, but that’s [only] if we get our collective strategy right,” the report said.
Primarily focusing on farmed shrimp, which accounts for 55 percent of shrimp consumed worldwide, Gulmans said that in order to expand the shrimp market, there must be a focus on targeting and penetrating specific markets while removing barriers for growth, rather than focusing on the global market as a whole.
“In China, as well as in India, the affordability and availability of shrimp are bottlenecks for growth, except in the bigger cities. However, both affordability and availability are likely to grow in the coming years, and this will allow shrimp consumption to grow as well,” the report said.
Gulmans developed the report over a six-month period in 2023, using a broad desk research process and referencing in-depth discussions with industry leaders from multiple markets, including importers, exporters, retailers, producers, and experts, to gather information and data.
“It has been a fascinating six months conducting this research and writing my findings for the report. The shrimp industry has some very strong cards in its hands, and by playing these cards right, we can seize the opportunities for shrimp,” Gulmans said in a release.
There are many industry experts working to ensure those cards are played right. For example, the GSFF findings came on the heels of approximately 20 shrimp producers creating a global shrimp council to promote shrimp consumption around the world.
Shrimp producers from Ecuador, Mexico, India, Vietnam, and Indonesia met to discuss the formation of the promotional group – an effort led by Gabriel Luna, the owner of Ecuadorian shrimp company Glunashrimp, and David Castro, the CEO of Mexican seafood company Manta Bay. Aquaculture Stewardship Council CEO and Global Shrimp Forum Foundation Chair Chris Ninnes facilitated the meeting, ensuring that the effort remains sustainable in the long term.
“The Global Shrimp Council is an initiative with the intention to harmonize the interests of participants in this significant industry through a systemic vision. One of these interests is to introduce the global consumer to the benefits of consuming the finest sustainably produced protein sources, such as shrimp,” Castro said. “Shrimp is a flavorful, healthy, and nutritious protein that is accessible, easy to prepare, has low carbon emissions in its production, and uses minimal consumption of freshwater. I am greatly looking forward to seeing the outcome of our discussions and where this could take the industry.”
Another initiative aiming to bring the shrimp industry back toward projected growth was the inaugural Global Shrimp Forum, which took place from 6 to 8 September 2023 in Utrecht, the Netherlands. The event – the surplus revenue of which was used to fund the GSFF report – was purported to be “the warmwater shrimp industry’s first dedicated annual conference and business meeting, aiming to drive the shrimp industry toward a resilient and sustainable future.”
The study Gulmans put together is meant for use during any point of a shrimp promotion initiative that a company may institute – from inception to launch – to ensure the sustainable future the Global Shrimp Forum and other invested parties seek to bring about.
“This is an exciting time for the future of the industry. The foundation is very grateful to Arnd Jan for conducting this research, and we are looking forward to discussing the findings of his report with the wider industry and beyond,” Willem van der Pijl, the managing director as well as a board member of the GSFF, said.
Photo courtesy of the Global Shrimp Forum Foundation
