The frozen fish and seafood market is expected to grow at a compound annual growth rate of 6.91% over the forecast period to reach a market size of US$87.174 billion in 2025 from US$58.382 billion in 2019. Frozen fish and the seafood products are preserved and stored in vacuum tight compartments and at freezing temperatures to minimize the growth of unwanted microbes and ensure fresh and quality products to be delivered to the end user.
With the transition towards hygienic and safe food preferences, customers are inclined towards safe quality and certified frozen food. As per U.S Department of Agriculture (USDA) Fish and seafood meat is preferred over chicken and red meat (mutton/beef/pork/lamb) for relatively high levels of protein, omega-3, fatty acids and vitamins such as D and B-12. Moreover, frozen fish and sea food is better than the fresh form as the freezing process of fish and seafood meat in modern industry is initiated as it gets caught in its natural form so that the freshness is intact and does not provide time for bacterial growth. Also, the wastage can be minimized to great extent with timely checks throughout the supply chain with easy handling making it less prone to season changes.
The market been segmented based on the type primarily as Fish, Crustaceans, Shell fish, and Others. On the basis of distribution into Offline (Supermarkets/Hypermarkets/Convenience stores) and Online (Ecommerce driven Store/ Non-store). Based on the geography into North America, South America, Europe, MENA and Asia-pacific pacific regions in order to cover the global market prospects.
As per the trade volumes based on the data of World Bank, Greenland (North America), Taiwan (Asia), Russia (Europe and North Asia) are amongst the promising countries which have witnessed boost of production and exports of fish and seafood. However, United States (North America), and India (Asia) has lost a considerable share. Apart from the aforesaid countries Chile (South America) has generated high surplus from frozen fish trades, which also promotes the confidence in Chile to meet the demand.
In the situation of Covid-19 pandemic, the fish, seafood and the meat industry has suffered a great brunt due association of animal meat to the pandemic which has created distrusts among the masses. Eventually such claims cannot be verified with substantial proofs and the industry has been on its way to recovery in unlocked market scenarios.
Convenience for busy and higher income earning group Is leading the retail demand for Frozen meat
Considering the demographics and behavior of the working-class people, it is certain preparatory time constraints and irregular presence at home leads them to go for ready to be served or on the go food. Frozen fish and seafood market can cater to the segment by launching meat categories to be baked or fried depending upon the consumer preference which can be economic in terms of money, time and efforts. The surge in the population of world to urban and developed areas with increase in disposable income increases the dependency on instant or on the go food categories.
The trend for such consumer behavior seems to be on the long side and considering the frozen seafood market, it can be stated that there would regular and demand because of its inelastic nature.
Companies such as McCain’s Foods and its diverse product profile both in Vegetarian and Non-vegetarian domain can serve as example of meeting the demand for the food product without compromising on convenience.
Shortage of storage spaces at residences
As per the data provided by the World Bank, the families are shrinking in size and are now preferring to reside in small apartments requiring space for necessities in order to save on maintenance of the property, It can lead to the demand of consumer products which can be accommodated in less space without hindering the functionality or objectivity. If applied to frozen fish and seafood market, there is need for small portioned or customized packaging with serving period of 2 days at most as the consumers might not be willing to stack up.
Need for remote locations connectivity and development of customer-oriented strategies stands as challenge for the industry
With the global integration and the wide reach of technology, the customer base has now been expanded from then cities and concentrated areas to distant and far off residential areas such as counties or suburbs. To cater such scattered target audience around the world calls for effective and efficient supply chain, in the context of frozen fish and seafood market, any technical mishap at any point can result in the collapse of cold storages which can result in mass wastage of the products.
Along with the abovesaid technical challenges, the delivery process needs to be minimal and must adhere to ergonomics to ensure that the process to be customer friendly. The advancements in retailing of cold food markets for longer product shelf life, increase in demand for ready-to-cook food, increase in working population and preference of healthy and hygienic food habits globally are expected to augment the growth of the Frozen Fish and Seafood during the forecast period.
Asia Pacific region has the considerable share in the market followed by Europe and North America. The Asia Pacific and Europe have a major share in exports. Countries like Russia (North Asia) and China will register a significant growth because of the rising urbanization. Countries such as the USA, Brazil, and some other European Countries will register moderate growth because the market has reached a saturation point in these countries. Furthermore, these already have a substantial rate of urbanization and a stable economy. There is a need for innovation in the supply chain management of Frozen fish and Seafood industry without affecting the taste. Innovation will help control the wastage and will increase the availability and affordability of the fish and seafood meat.