U.S. Crustacean Market Analysis

U.S. Crustacean Market Analysis

Shrimps segment of the U.S. crustacean market exceeded USD 7.0 billion in 2019 and is likely to grow at a decent growth rate over the forecast timeframe. Shrimps have recorded as the most consumed sea food in the entire United States with increased consumption of most popular varieties such as giant tiger shrimps, white leg shrimp, gulf shrimps, and royal red shrimps etc. The product has achieved consumption of over 4.6 pounds per person in the year 2018.
 

Crustacean provides vital nutrients to human body such as proteins, minerals and vitamins and boost the immune system. In 2017, U.S. shrimp consumption increased three-tenths of a pound per person. High disposable income, supportive food culture, and strong domestic aquaculture industry shall further proliferate the crustacean demand in the coming years.
 

Imported shrimps dominate the U.S. market. Shrimp are heavily traded commodities with countries in Southeast Asia and Latin America leading the production and supply, however a large chunk of consumption and import takes place in developed markets. Demand in U.S. states continues to grow as consumer preferences have evolved with rising incomes and a growing share of production is absorbed by domestic and regional markets.
 

The U.S. crustacean market based on culture area is segmented into marine waters and inland waters. The marine waters culture area will register over 5% CAGR from 2020 to 2026. This segment will account for the largest share of close to 90% of the overall U.S. crustacean industry share in 2026. The natural ocean conditions in marine areas are conducive for crustaceans growth. In addition, coastal aquaculture which is practiced in artificial structures in areas adjacent to the sea, such as gated lagoons and coastal ponds generates large volume of crustaceans at a commercial scale.
 

However, the salinity is not stable in these structures and depends upon rainfall or evaporation, season and location. Furthermore, periodic high currents also affects crustacean farming in marine environment. Governments, foundations, nongovernmental organizations (NGOs) and local communities around the world are channeling substantial interest, capacity and funding to the establishment of Marine Protected Areas (MPAs).
 

Majority of seafood landing in the U.S. is mainly imported from several countries. This trend will likely sustain in coming years on account of increasing consumption of fresh and frozen seafood with shrimps among the leading product imported into the U.S. Nevertheless, NOAA Fisheries data claims that most of the imported seafood is caught by American fishermen at the first place and then the landing is exported overseas for processing and preparation in canned and frozen goods, and they are imported back as finished goods in the form of  fresh or frozen seafood products.
 

Alaska is the state that produces and supplies the most seafood in U.S. by pounds which comes in through Alaskan ports. In 2018, Alaska accounted for over 5.4 million pounds of caught product. Louisiana is also a primary production area owing to close proximity with the Gulf of Mexico. The region enjoys several advantages such as high regional demand for crawfish, warmwater for growing, and source of food which is primarily decaying plant material. Thus, Alaska’s crustacean market size is set to surpass USD 19 million by 2026.