India Shrimp Market

India shrimp production reached 902.53 thousand tonnes in 2022 with a growth rate of 17% during the period from 2010 to 2022 (CAGR). Shrimp plays a crucial role in the global seafood supply chain, with India emerging as a key player in meeting this demand. As one of the largest exporters of shrimp, India contributes significantly to fulfilling the global demand for seafood, particularly in markets like the United States, Europe, and Japan.

India Significance in the Global Tuna Fish 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.

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.

Market Growth Factors & Opportunities

Increasing Consumer Demand Due to Rising Awareness of Health Benefits

Shrimp enjoys a growing popularity among consumers globally due to its taste, nutritional value, and versatility in cooking. As incomes rise and dietary preferences evolve, particularly in emerging markets, the demand for shrimp is expected to continue increasing. As health-conscious consumers increasingly prioritize nutrient-dense foods that support their well-being, the demand for shrimp as a healthy protein source is expected to rise. This trend is further fueled by the growing prevalence of lifestyle-related health conditions such as obesity, diabetes, and cardiovascular diseases, prompting individuals to make healthier dietary choices.

Shrimp is recognized for its high protein content, low fat levels, and various essential nutrients. Shrimp is rich in various essential nutrients, including omega-3 fatty acids, vitamins, and minerals. Omega-3 fatty acids, in particular, are known for their role in supporting brain health, reducing inflammation, and lowering the risk of chronic diseases such as heart disease and arthritis. Additionally, shrimp provides essential vitamins and minerals like vitamin B12, selenium, and zinc, which are important for energy metabolism, immune function, and overall well-being. As health-conscious consumers seek out nutritious food options, the demand for shrimp as a healthy protein source is expected to rise, further driving market growth.

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.

Market Restraints

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/Value 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.

Price Setting Power of India in Global Shrimp Value Chain

India’s setting power in the shrimp industry is largely derived from its ability to produce high volumes at competitive prices. The country’s vast coastline and favorable climate enable large-scale production, while the availability of low-cost labor further enhances its competitive advantage. India's position as a reliable supplier of quality shrimp, coupled with its strong export-oriented approach, solidifies its standing in the global market.

Shrimp End-use Industries

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.

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.

India Shrimp Market Competitive Analysis

The competitive scenario in the India shrimp market depicts a dynamic landscape marked by intense rivalry among industry players striving to capture market share and sustain profitability. With a multitude of stakeholders operating across the shrimp farming, processing, and export segments, competition is fierce.

Established companies like Avanti Frozen Foods Pvt. Ltd. and The Waterbase Limited maintain dominant positions through their extensive distribution networks, product diversification, and adherence to stringent quality standards. Additionally, emerging players are entering the market with innovative offerings and strategic alliances, intensifying competition further. Factors such as technological advancements, regulatory compliance, and market penetration strategies significantly influence the competitive dynamics.

Success in this competitive environment hinges on a combination of operational efficiency, product differentiation, and effective market positioning, making it imperative for players to continually innovate and adapt to changing market conditions to maintain their competitive edge.

Key Players in India Shrimp Market (Producers/ Processors/ Exporters),

■ Avanti Frozen Foods Pvt. Ltd
■ The Waterbase Limited
■ BKV Industries Ltd.
■ Coastal Corporation Limited
■ Zeal Aqua
■ IFB Agro Industries Ltd.
■ Suryo Foods & Industries Limited
■ Sandhya Marines
■ Apex Frozen Foods
■ Devi Sea Food Ltd.
■ Nekkanti Sea Foods Limited
■ Kadalkanny Frozen Foods

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.