India Vannamei Shrimp Market- Trend Analysis & Forecast to 2030

India vannamei shrimp market valued at US$ ** million and production reached ** thousand tonnes in 2023. India is a pivotal player in the global vannamei shrimp (Penaeus vannamei) market, leveraging its vast aquaculture resources and skilled workforce. With an expanding export footprint, India’s vannamei shrimp industry is a cornerstone of its seafood export revenues, driven by rising demand in key markets such as the USA, EU, and China.

Market/ Product Overview

The India vannamei shrimp market has witnessed significant growth over the past decade, becoming a major contributor to the global shrimp supply. Vannamei shrimp, also known as whiteleg shrimp/ Pacific white shrimp/ Mexican white shrimp, accounts for over 90% of India’s shrimp exports. Favorable climatic conditions, cost-effective farming practices, and government incentives have bolstered production. In 2023, India exported approximately ** metric tons of shrimp, with vannamei shrimp dominating the segment. Key markets include the USA, accounting for **% of exports, followed by China and Europe.

The Indian shrimp industry’s success stems from its robust aquaculture infrastructure, the adoption of advanced farming techniques, and stringent quality standards. However, the market faces challenges, including disease outbreaks and fluctuating international prices, which necessitate adaptive strategies.

India Significance in the Global Vannamei Shrimp Supply

India is a vital hub in the global vannamei shrimp supply chain, contributing nearly 15% of global shrimp exports. Its prominence is attributed to its cost competitiveness, high-quality production, and compliance with international food safety standards. India’s strategic geographical location enables efficient export logistics, reducing transit times to key markets. Additionally, India’s commitment to sustainability through responsible aquaculture practices enhances its reputation in the global market. Its ability to meet diverse consumer demands, from frozen raw shrimp to value-added products, strengthens its foothold in the supply chain.

India Vannamei Shrimp Supply & Demand Trend

India’s white legged shrimp production has grown exponentially, with annual output reaching ** metric tons in 2023. The adoption of improved broodstock and hatchery practices has significantly enhanced productivity. States such as Andhra Pradesh, Tamil Nadu, and Gujarat lead production due to favorable coastal conditions. Investments in aquaculture infrastructure, including feed mills and processing plants, have further supported growth. Seasonal production cycles ensure year-round availability, catering to both domestic and international markets.

The demand for Indian Vannamei shrimp is driven by its affordability and superior quality. Domestically, consumption has grown due to rising incomes and urbanization. Internationally, the USA, EU, and China remain top consumers, appreciating India’s adherence to quality standards. Increasing health consciousness and the preference for protein-rich diets also contribute to rising demand. Moreover, the expansion of e-commerce platforms has boosted accessibility, enhancing consumer reach globally.

India Vannamei Shrimp Market Growth Factors

India’s vannamei shrimp market is propelled by several growth factors. The government’s favorable policies, including subsidies for aquaculture infrastructure and the Pradhan Mantri Matsya Sampada Yojana (PMMSY), have incentivized farmers. The availability of cost-efficient broodstock and advanced farming techniques has enhanced productivity. Rising global seafood demand, coupled with India’s strong export capabilities, drives market expansion. Additionally, innovations in processing and packaging ensure longer shelf life, meeting international trade requirements. Collaborative efforts between industry stakeholders, including research institutions and farmers, have improved disease management, reducing production losses. India’s adherence to sustainability practices, such as environmentally friendly aquaculture, attracts eco-conscious buyers, further boosting market prospects.

India Vannamei Shrimp Market Restraints & Challenges

Despite its growth, the market faces constraints such as disease outbreaks, including the notorious White Spot Syndrome Virus (WSSV), which affects shrimp yields. Fluctuating international prices and high dependency on export markets make the industry vulnerable to global economic downturns and trade barriers. Environmental concerns, including water pollution and habitat degradation, pose challenges to sustainable aquaculture. The rising cost of feed, a significant production input, impacts profitability. Limited access to credit and insurance for small-scale farmers hinders investments in modern farming techniques. Furthermore, competition from other shrimp-producing nations such as Vietnam and Ecuador intensifies, necessitating continuous innovation and cost optimization.

India Vannamei Shrimp Industry: Supply Chain Constraints and Value Chain Challenges

The vannamei shrimp supply chain in India is fraught with bottlenecks, including inadequate cold chain infrastructure, leading to post-harvest losses. Logistics inefficiencies, such as delays in transportation and port clearances, impact export timelines. Limited availability of certified broodstock affects production quality and consistency. The fragmented nature of the industry, with numerous small-scale players, complicates standardization efforts. Moreover, stringent regulations in importing countries regarding antibiotic residues and certifications increase compliance costs. Seasonal variations in production disrupt the supply chain, while limited market access for small farmers restricts their ability to secure fair prices.

India Influence on Global Vannamei Shrimp Prices

India’s price-setting power in the global vannamei shrimp market is influenced by its status as a leading exporter. Competitive production costs enable Indian exporters to offer lower prices, giving them an edge in price negotiations. However, global factors such as demand-supply dynamics, currency fluctuations, and competitor pricing strategies impact India’s pricing power. While India’s ability to deliver high-quality products at competitive rates strengthens its bargaining position, external dependencies limit its control over international price trends.

The historical price trend for vannamei shrimp has shown volatility, driven by global market fluctuations. Export prices peaked during 2020 due to pandemic-induced supply chain disruptions, averaging US$ ** per kilogram. Wholesale prices within India ranged between ₹** - ₹** per kilogram in 2022. Seasonal variations and disease outbreaks have historically caused price spikes. However, improved farming practices and disease management have stabilized prices in recent years. Import prices for broodstock have seen a steady decline due to increased local production capabilities.

India Vannamei Shrimp Trade (Export & Import) Trend

India’s vannamei shrimp exports have grown consistently, with the USA accounting for **% of total exports, followed by China, Thailand, Singapore, Oman, and the EU. In 2023, shrimp exports were valued at US$ ** billion, marking a **% 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.

The US Department of Commerce raised the countervailing duty (CVD) on Indian shrimp exporters to 5.77% in its final determination on 28 October, 2024. Two companies faced higher duties of 5.87% and 5.63%. This surprised many exporters as the CVD was increased from the preliminary 4.36%, while duties on Ecuadorian and Indonesian shrimp were lowered. This marks the first CVD imposed on Indian shrimp, posing challenges for exporters. In response, Indian exporters and packers have lowered their offers by procuring shrimp at lower prices to mitigate the impact of the higher CVD on their margins.

India Vannamei Shrimp Market Competitive Analysis

The Indian vannamei shrimp market is highly competitive, with a mix of large-scale exporters and small-scale farmers. Leading companies such as Avanti Feeds, Devi Seafoods, and Sandhya Marines dominate due to their integrated operations, encompassing hatcheries, feed production, and processing. Mid-sized players like Apex Frozen Foods and Falcon Marine Exports contribute significantly to exports. Smaller players focus on niche markets or domestic consumption. The market’s competitiveness is further driven by advancements in processing technologies and adherence to international standards. Collaboration with international buyers ensures a steady demand for high-quality shrimp, enhancing India’s competitive edge.

List of Key Companies (Suppliers/ Processor/ Exporters),

■ Avanti Feeds Ltd.
■ Devi Seafoods Ltd.
■ Apex Frozen Foods Ltd.
■ Falcon Marine Exports Ltd.
■ Sandhya Marines Ltd.
■ BMR Group
■ Kings Infra Ventures Ltd.
■ Nekkanti Seafoods Ltd.
■ Waterbase Ltd.
■ Coastal Corporation Ltd.
■ SSF Ltd.
■ Mangala Marine Exim India Pvt. Ltd.
■ Zeal Aqua Ltd.

Future Outlook

The India vannamei shrimp market is poised for robust growth, with production projected to exceed ** million metric tons by 2030. Technological advancements, sustainable aquaculture practices, and market diversification will be pivotal in sustaining growth. The focus on value-added products and expanding domestic consumption will further strengthen the industry’s resilience, ensuring long-term profitability.