Seafood companies are increasing their investments in the local market to meet the growing demand for premium seafood, including shrimps, squids, lobsters, and seer fish. This comes as exports face a decline amid global economic challenges.

The pandemic years have brought about a shift in the domestic seafood market, predominantly influenced by unorganized players.

“Overall, the local seafood market is growing by 9-10 percent. The market is seeing a gradual shift to organised players which are growing more than the industry at 30 percent or more,” said Shivam Gupta, director of WestCoast Fine Foods, an integrated seafood company with farms and hatcheries and an extensive retail network.

The pent-up demand in inland metropolises like Delhi and Bengaluru, coupled with the resurgence of sales in restaurants post-pandemic, has facilitated the growth, as stated by Gupta. He anticipates that the vertical will sustain its current levels of growth in the upcoming years.

The availability of shrimps in India has surged due to the thriving aquaculture industry, pushing the production to over 9 lakh tonnes. Presently, more than 7 lakh tonnes are exported, establishing it as a significant commodity in the seafood exports valued at $8 billion. Seafood processors and exporters estimate that approximately 30 percent of the production could be marketed domestically, as domestic prices are relatively competitive with export prices. The export market is currently experiencing a downturn in prices, attributed to oversupply and economic challenges in major markets like the US and Europe.

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Mathew Joseph, COO and co-founder of FreshToHome, a prominent online seafood and meat platform, reports that numerous high-value items, previously either exported or lacking local customer interest, are now gaining traction in the market.

“Vannamei shrimps, the mainstay of seafood export from India, are finding more takers domestically. Seer fish and tiger prawns selling in the range of INR 1,000 to 1,500 per kg have good demand. We even have requests for Atlantic salmon, which comes at INR 5,000 per kg, from big metros,” he said.

The company has allocated approximately INR 500 crore to enhance its infrastructure and transportation, ensuring the freshness of its products.

“We have factories in all the major cities in the country and we take extra care to maintain the cold chain network right from the harbour to the time it reaches the customer,” Joseph said.

For instance, the fish caught in Kerala is transported by air in the evening, reaching customers in Delhi the following morning. For deliveries beyond the city, the company utilizes its transportation equipped with cold storage facilities. Anticipating a minimum 20 percent increase in turnover this fiscal year, the company, valued at INR 1,100 crores, remains optimistic about its growth.

Seafood Preferences Shift: High-Value Items Gain Traction

According to research organization Expert Market Research, a key trend in the Indian shrimp market is the evolution of the food industry. This transformation is propelled by the increasing demand for ready-to-eat food items, spurred by factors such as rapid urbanization, busy work schedules, higher disposable incomes, heightened health consciousness, improved living standards, and a rise in the number of working women.

Even surimi, a value-added product crafted from fish meat paste to replicate the texture and flavor of items such as crab and lobsters, is gaining traction in the Indian market. Among the surimi products, crab sticks are particularly popular.

Gadre Marine Export, the leading surimi exporter in the nation, has penetrated the domestic market with its product offerings. “The rate of acceptance of surimi products in the Indian market has improved. We are doing INR 35-40 crore business in the Indian market. The domestic market is growing at 25 to 30 percent even though from a low base,” said Arjun Gadre, MD of the company.

Kings Infra Ventures Ltd., a company engaged in aquaculture farming and seafood trade, is entering the domestic market to establish a network of quick-service restaurants (QSR). With a plan to invest approximately INR 100 crore in the coming years, the company aims to establish QSRs on a franchisee basis, offering a range of ready-to-serve seafood recipes featuring prawns and other fish.

Initially, the company will establish 100 quick-service restaurants (QSRs) in Kerala and an additional 200 in Bengaluru.

“We intend to bring the convenience of heat and eat seafood delicacies in the domestic market under the brand Kings Bento,” Shaji Baby John, CMD of the company, said.

Abad Fisheries, a major seafood exporting company, conducts business worth INR 200 crore in India, utilizing 25 cold storages distributed across the southern states.

“At a time when we are facing reverses in the export market with new regulations, duties and attacks in the Red Sea leading to diversion of cargo, the domestic market is becoming stronger. Shrimp has ceased to be a specialty product and has become a regular affair even in weddings,” said its CMD Anwar Hashim.

Room for Growth: Developing the Domestic Seafood Market

Despite the increased affordability of high-value items like shrimp and a notable reduction in the general aversion to frozen fish, there is still room for further development in the domestic market, according to Abraham Tharakan, Chairman of Amalgam. Amalgam sells frozen food under the Buffet brand in the retail market.

“The government should go for a campaign similar to what it did for egg to promote seafood,” he said.

Ravi Kumar Yellanki, President of the All India Shrimp Hatcheries Association, noted that collaboration between the government and the industry is crucial to raise awareness about the health benefits of seafood such as shrimp. Additionally, efforts should be made to establish more cold chain networks.

“Shrimp has exquisite taste, is more versatile than chicken in making dishes and is highly sustainable to boot as it has lower feed conversion rates,” he said.

Mathew Joseph, associated with FreshToHome and serving as a fisheries task force member of the Confederation of Indian Industry (CII), mentioned that they have proposed to the government the establishment of infrastructure facilities, such as cold storages in harbors and fish markets, to minimize wastage. Expert Market Research anticipates a Compound Annual Growth Rate (CAGR) of 9.60 percent for the Indian shrimp market over eight years, projecting it to reach 2.12 million tonnes by 2032.

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