A Comprehensive Insight into Shrimp and Prawn Processing Plant Market and Associated Opportunities

The shrimp and prawn industry has continued its rapid growth in recent years courtesy of a variety of factors, including shrimp and prawn’s high nutritional value, low-fat content, and preferable taste. Besides this, the growth can also be attributed to the increasing poultry meat consumption alongside seafood, with both seen as substitutes to the intake of red meat. 

To that end, it won’t be an exaggeration to say that shrimp is one of the most popular seafood products worldwide; it is consumed more than any other kind of seafood. On account of increasing health consciousness among consumers, frozen shrimp and prawns have become a norm in developed countries.

Such a market opens a huge opportunity for prawn processing plant manufacturers to cater to the needs of importers and exporters. 

The Case for Emerging and Developed Economies

Emerging economies like China and India have been witnessing rapid growth in their demand for fish and marine products, including shrimp along with crustaceans. This is because they are considered good sources of protein and constitute low volumes of cholesterol.

Besides these developing nations, Europe presents itself as one of the leading markets for shrimp and prawns, and it has continued to witness steady growth. In 2017, Portugal was identified as the country with the largest shrimp market with 57 kg being the highest per capita consumption. 

In addition to the above, North America is a leading region for the shrimp and prawn processing industry globally. For that reason, the CAGR in this region is expected to consistently be in excess of 2.5% for the next five years. 

The Case for the Overall Food Processing Sector

Seafood processing market projection is usually categorised into the market for processing equipment and the market for processed seafood. While the former has been growing at a CAGR of 5.6%, the latter’s growth is a bit slower at 5.2%. However, both these markets show great signs of continuous growth even post the pandemic. As a matter of fact, this industry is developing rapidly, as the volume of processed shrimp has increased, and processed shrimp is also expected to soar through the ranks over the next five years.

Factors Driving the Growth of Shrimp and Prawn Processing Industry

The following points summarise the factors and their relative importance.

1. Rising Health Consciousness is Driving the Consumption of Poultry Meat and Seafood Alternatives to Red Meat

Shrimp and prawn feed is generally made from fishmeal which means that prawns and shrimps are among the best sources of omega-3 and omega-6 fatty acids, highly important nutrients in the human diet that cannot be synthesised by our bodies, meaning they must be obtained from food we eat.

Furthermore, seafood is a less expensive and less allergenic source of protein compared to beef and pork. Thus, it is unsurprising that shrimp and prawns are gaining popularity in countries where red meat consumption is declining.

2. Shrimp and Prawn Products are Catching up with Other Animal Proteins

As stated above, shrimp has a high nutritional value, low-fat content, and good taste. As a result of this, many consumers have preferred it over other animal proteins. Consistent with the general trend in protein consumption among younger consumers in developed countries that largely drives the seafood market growth, shrimp is becoming increasingly popular among these consumers. 

3. Frozen Shrimp Shipment is Growing Rapidly

As the shrimp and prawn industry continues to develop, it has also witnessed rapid growth in frozen shrimp shipments worldwide. This has been driven by growth in demand for shrimp and prawns from emerging economies like China, India, Brazil, and the Philippines. There has also been an increasing demand for seafood from developed countries like the U.S., Canada, Japan, and Australia. 

Besides this, frozen prawn is also popular among consumers in developed countries, including Europe, due to its convenient transportation and storage location since it does not require refrigeration during transportation and storage throughout their lifetime. 

4. Growing Domestic Demand and Export Potential

Aside from the soaring need for shrimp and prawn products worldwide, there is a growing need to cater to the needs of importers and exporters. This will present an opportunity for shrimp processing plant manufacturers to tap into. Additionally, shrimp processing equipment manufacturers will likely see new opportunities as well, such as the manufacture of new equipment and the sourcing of raw materials.

In a Nutshell

Firstly, the shrimp processing business is expected to show positive growth in the coming years owing to the increasing demand for seafood from both developing and developed countries, with colossal industries like China and India at the forefront. As a matter of fact, there will be enormous opportunities for emerging economies like China and India as they are also on the cusp of developing their shrimp and prawn processing industry. Additionally, this industry will see a rise in exports to the global market, especially to developed countries with a growing need for red meat substitutes—all these point towards a bright future for shrimp processing plant manufacturers and investors.