India Shrimp Market- Trend Analysis & Forecasts

India Significance in the Global Shrimp Supply

The shrimp market in India has witnessed significant growth in recent years due to increasing demand both domestically and internationally. India is one of the largest shrimp producers globally, with the industry contributing significantly to the country's aquaculture sector. The favorable climate conditions, abundant water resources, and government initiatives to promote aquaculture have all contributed to the expansion of the Indian shrimp market. India’s supply chain also plays a stabilizing role in the global market. When Southeast Asia or Latin America faces disease outbreaks or weather-related disruptions, Indian exporters often step in to fill the supply gap, keeping global markets balanced.

In the fiscal year 2022-23, India achieved a record fish production of 17.55 million tonnes, solidifying its position as the world's third-largest fish-producing nation. This accounts for 8% of global production and contributes approximately 1.09% to the country’s Gross Value Added (GVA) and over 6.724% to the agricultural GVA. For the fiscal year 2024–2025, the Department of Fisheries has been given an amount of Rs. 2,584.50 crore (~USD 309 million), which is the biggest sum ever given to the department. Government support and continuous advancements in aquaculture technology have significantly boosted shrimp production in India. Innovations such as improved breeding techniques, disease management practices, and efficient feed formulations have led to higher yields and better-quality shrimp.

According to Food and Agricultural Organization (FAO), India production is estimated to decline by 12-15% in 2023 as farmers reduced stocking density of shrimp in ponds due to declining global market prices.

India Shrimp Market Growth Factors

Competitive Pricing Supporting Export Opportunities

India's shrimp industry benefits from competitive pricing compared to other major shrimp-producing countries. Factors such as lower production costs, abundant labor supply, and economies of scale enable Indian exporters to offer competitive prices in the global market, attracting buyers seeking value for money. India exported 711.10 thousand tonnes of frozen shrimp products in FY 2023, and exports valued at USD 5.48 billion.

India is a major exporter of shrimp to key international markets such as the United States, European Union, and Japan. The growing demand for seafood in these regions, coupled with India's competitive pricing and adherence to quality standards, presents significant export opportunities for Indian shrimp producers.

Price Volatility and Infrastructure Constraints

Fluctuations in shrimp prices, influenced by factors such as currency exchange rates, global supply-demand dynamics, and trade policies, pose risks to both producers and traders. Price volatility can affect profit margins and investment decisions in the shrimp industry. Inadequate infrastructure, including cold storage facilities, transportation networks, and processing plants, hampers the efficiency of the shrimp supply chain in India. Poor infrastructure leads to post-harvest losses, quality degradation, and logistical challenges, impacting the competitiveness of Indian shrimp products in international markets.

India Shrimp Supply-Demand Analysis

India’s shrimp supply is dominated by aquaculture production. Farmed output has expanded rapidly in the past decade, with vannamei shrimp production now exceeding ** thousand tonnes annually. Pond yields in optimized farms average 5–7 metric tons per hectare per cycle, though smaller farms still struggle with lower productivity. Disease outbreaks remain the biggest threat, often cutting survival rates and reducing output by 15–25 % in some years.

On the demand side, global shrimp consumption is expanding due to rising incomes, urbanization, and consumer preference for protein-rich seafood. Shrimp demand is growing particularly fast in North America, Europe, Japan, and increasingly in China. Domestically, Indian shrimp consumption is estimated to be growing at 8–9% annually, fueled by rising disposable incomes in metro cities, changing dietary preferences, and expanding cold-chain retail. However, domestic consumption still accounts for less than 20 % of total production, keeping exports as the mainstay of the industry.

The balance of supply and demand is influenced by global trade dynamics. In years of high international demand, Indian farmers enjoy higher farm-gate prices. Conversely, when global orders slow, oversupply quickly translates into price drops, forcing farmers to sell into the domestic market at lower margins. This cyclical fluctuation underscores the industry’s exposure to external shocks and tariff decisions by major importing countries.

India Shrimp Supply Chain Bottlenecks/Challenges

The Indian shrimp supply chain is complex, involving multiple stages from hatcheries to processing units before reaching export markets. One of the key bottlenecks is the inconsistent quality of shrimp due to varying farming practices across regions. This inconsistency can affect marketability in international markets that demand high standards. Additionally, logistical challenges such as inadequate transportation infrastructure and delays in processing can lead to significant post-harvest losses. The lack of cold storage facilities in some regions exacerbates this issue, compromising shrimp quality during transit. Regulatory compliance, both domestically and internationally, also poses a challenge, with farmers and exporters needing to navigate a maze of certifications and standards to access global markets.

India Shrimp Market Segmentation

The Indian shrimp market can be segmented across multiple dimensions. By species, vannamei shrimp clearly dominates, accounting for over four-fifths of production and exports. Black tiger shrimp, once the mainstay of exports, now represents less than **% of volume, though it continues to fetch premium prices in niche Japanese and European markets. Other local varieties play only minor roles.

India’s shrimp is classified into different size categories, typically ranging from small counts like 100–120 pieces per kilogram to premium large sizes such as 16–20 pieces per kilogram. The bulk of exports are concentrated in medium-sized shrimp (31–40 and 41–50 counts per kilogram), which offer the best balance between farming efficiency and global buyer demand. Larger shrimp, such as black tiger in the 16–20 and 21–25 size range, fetch premium prices in Japan and Europe but are produced in smaller volumes due to higher farming risks and longer grow-out cycles. Smaller sizes below 70 counts per kilogram are mainly directed toward processed and breaded product lines, where consistent supply and lower cost are valued more than size. Over time, demand for medium sizes is expected to remain dominant, while value-added categories are absorbing a growing share of smaller shrimp in retail-ready formats.

By form, the market is still concentrated in frozen head-on and head-off shrimp, which together account for over **% of exports. However, peeled, deveined, breaded, and ready-to-cook shrimp are gaining ground, growing at more than 10% CAGR, driven by demand from retail and foodservice buyers in developed markets.

By channel, exports remain the largest segment, absorbing nearly **% of national production. Domestically, distribution is expanding beyond wet markets into supermarkets, hypermarkets, and online platforms, particularly in metros such as Delhi, Mumbai, and Bangalore. While local consumption is still modest in scale, the rising popularity of seafood diets is expected to make the domestic market more significant in the coming decade.

Shrimp in India primarily serves the export market, with a significant portion going to the USA, Europe, and Japan. Domestically, shrimp is utilized in the food processing industry, where it is prepared for ready-to-eat meals, canned products, and frozen food items. The hospitality sector, including restaurants and hotels, also represents a substantial end-use industry, with shrimp being a popular item on menus due to its versatility and appeal to both domestic and international tourists.

India Influence on Global Shrimp Price

India’s scale of exports gives it significant influence over global shrimp pricing. As one of the top three suppliers worldwide, its volumes often act as a reference point for international buyers. When Indian exporters push large volumes into the market, prices in the U.S. and Europe tend to soften, while supply disruptions in India often trigger price spikes.

Historically, average export prices for Indian vannamei shrimp have ranged between US$ 5–7 per kg, depending on size and quality. In recent years, value realization per kilogram has increased as exporters shift towards processed and value-added categories. In 2023, for instance, average export value rose by nearly **% year-on-year, even with only moderate volume growth, reflecting improved quality and higher value products.

While India does not hold absolute price-setting power—since Ecuador and Vietnam can quickly step in to balance supply—it does exert a moderating influence. Its position is strongest in medium-sized shrimp categories, where buyers often benchmark Indian offers before finalizing contracts with other suppliers.

Shrimp Trade (Export & Import) Trend

India has consistently maintained its position as a leading exporter of shrimp, with a significant portion of its production being exported to the USA, followed by Europe and Japan. Over the past decade, export volumes have steadily increased due to growing global demand and India's ability to offer shrimp at competitive prices. While exports dominate, imports are minimal, mainly consisting of shrimp feed and related aquaculture inputs. However, the trade landscape is influenced by international regulations, currency fluctuations, and global market dynamics, which can impact trade volumes and revenue.

India’s Vannamei shrimp exports have grown consistently, with the USA accounting for **% of total exports, followed by China and the EU. In 2023, shrimp exports were valued at US$** billion, marking a 5% year-on-year growth. Imports are primarily limited to broodstock, with India focusing on self-reliance to reduce dependency. Trade agreements and reduced tariffs with key markets have facilitated export growth. However, non-tariff barriers, such as stringent quality checks, remain challenges. The diversification of export markets to Middle Eastern and Southeast Asian countries has also contributed to trade resilience.

Market Competitive Landscape

Future Outlook

The future of the Indian shrimp market looks promising, with expectations of continued growth driven by technological advancements and increasing global demand. The government’s ongoing support for the aquaculture sector and the development of infrastructure are likely to enhance production capacities and export potential. However, addressing environmental concerns and ensuring compliance with international standards will be critical to sustaining growth. By 2030, India is expected to solidify its position as a global leader in shrimp production and exports, provided it continues to innovate and adapt to the evolving market landscape.