Increasing market share, Vietnamese shrimp is still facing fierce competition in the US

3 min read

According to the National Fisheries Agency (NMFS), U.S. shrimp imports in July increased by 13.8% in volume and 30.7% in value over the same period in 2020, reaching 83,000 tons, worth $904.5 million, an increase for the eighth consecutive month.

Generally, in the first 7 months of the year, US shrimp imports reached 518,700 tons, worth 5.25 billion USD, up 27.4% in volume and 36.9% in value over the same period in 2020.

In the first 7 months of the year, US shrimp imports from India, Ecuador and Vietnam increased sharply compared to the same period in 2020. India’s shrimp market share in total U.S. imports was stable compared to the same period in 2020, while ecuador’s and Vietnam’s share increased. Specifically, Ecudor’s shrimp market share increased from 15.4% to 20.8%. Vietnam’s shrimp market share increased from 6.9% to 7.9%.

“Also suffering the heavy impacts of Covid-19, but India and Ecuador have made efforts to boost shrimp exports to the US market to maintain this potential market. Therefore, Vietnam’s shrimp will be increasingly under stronger competitive pressure with these two supplying markets in the US market”, a representative of the Import-Export Department (Ministry of Industry and Trade) assessed.

Vietnam’s shrimp market share in total US imports has increased from 6.9% in the first 7 months of 2020 to 7.9% in the first 7 months of 2021. Photo: VNA

The Export-Import Department further reported that Ecuador’s shrimp exports to the Chinese market have been hampered by China’s suspension of shrimp imports from some major Ecuadorian processing companies and strict hygiene checks to prevent Covid-19.

Meanwhile, India also encountered some obstacles when containers from India were refused at the Chinese border.

Therefore, Ecuador and India have boosted shrimp exports to the US market and US shrimp imports from these two supply markets are expected to continue to increase in the last months of the year.

Ecuador has the advantage of a geographical location close to the US, easy transportation and is trying to improve its processing level. Previously, Ecuador only sold whole shrimp because there was no processing labor, now Ecuador increasingly employs female workers from neighboring countries to improve processing activities.

From mid-September, India increased stocking again when the price of raw shrimp increased and the number of Covid-19 infections showed signs of decreasing.

While both suppliers, India and Ecuador, have strategies to increase their market share in the US market, Vietnamese businesses are facing challenges in logistics, continuously increasing container rental prices, lack of containers, and lack of delivery time. Longer shipping time.

However, some agricultural experts said that Vietnam has the advantage of processing value-added products, steamed shrimp, peeling only the back to serve the retail segment, the market segment is having a lot of potential when the trend of home seafood consumption of the US is increasing.

According to the Import-Export Department, the demand for US shrimp imports in the last months of this year is still very large to meet domestic demand for year-end holidays. Inventories are low, US importers are buying to ensure product supply. Retailers are also trying to ensure supply in the US market until the first quarter of 2022.

It is forecasted that the demand for importing high-value shrimp products such as large-sized black tiger shrimp will increase to serve consumption at year-end family parties in the US. Big black tiger shrimp has long been Vietnam’s strength in the US market. This is an opportunity for shrimp exporters to increase their market share in the last months of 2021.

Source: ndh.vn – Translated by fintel.vn