Promote processed shrimp exports to the US in the last months of the year

Shrimp exports to the US increased sharply this year. Notably, the US tends to increase imports of processed shrimp, including processed shrimp from Vietnam.

Vietnam's shrimp deep-processing industry will avoid increasingly intense competition from India and Ecuador. Photo: Thanh Son.

According to the Vietnam Association of Seafood Exporters and Producers (VASEP), information from the US Department of Agriculture shows that, in the first nine months of this year, shrimp imports into the US reached 644.6 thousand tons, worth nearly US$ 5.6 billion, up 20% in volume and 23% in value over the same period in 2020.

Among shrimp products imported into the US, frozen shrimp (legacy shrimp, black tiger shrimp) accounted for the highest proportion with 179 thousand tons, worth nearly US$ 1.5 billion. Although still the largest group of imported shrimp products, frozen shrimp imported to the US decreased by 16-42% in volume and value over the same period last year.

Meanwhile, processed shrimp exports to the US grew impressively. Specifically, in the first nine months of 2021, processed black tiger shrimp and white-leg shrimp imports increased by 15% in volume and 17% in value. In addition, the import of powder-coated shrimp increased by 23% in volume and 25% in value.

Due to strong growth, processed black tiger shrimp and white leg shrimp are ranked second in the groups of shrimp exports into the US with 89,000 tons, worth US$ 924 million.

Thus, it can be seen that shrimp imports into the US this year tend to be quite clear, with an increase in imports of processed shrimp and a decrease in imports of frozen shrimp products.

There is a great opportunity for the Vietnamese shrimp exports to the US in the past months and in the coming time because the competitive strength of Vietnamese shrimp in the US market is deep-processed products, not frozen shrimp which is the strength of other suppliers such as India, Ecuador...

In the first 9 months of this year, Vietnam's processed shrimp exports to the US increased sharply by 16-35%, depending on the type of product. Meanwhile, Vietnam's frozen shrimp exports to the US fell sharply by 41% due to difficulty competing with similar products from India and Ecuador (two sources with a large output of raw shrimp and low prices).

Due to the strong growth of processed shrimp products, Vietnam's shrimp exports to the US in the first 9 months of this year still grew well. The General Department of Vietnam Customs shows that in the first 9 months of this year, shrimp exports to the US reached US$ 775 million, an increase of nearly US$ 100 million compared to the same period last year.

Vietnamese shrimp is currently in the Top 5 largest shrimp suppliers to the US, accounting for 12% of total shrimp imports into this market.

India, Ecuador, Indonesia, Vietnam, and Thailand are currently the 5 largest shrimp suppliers to the US. In the first nine months of this year, exports from India, Ecuador, and Vietnam increased sharply, while Indonesia increased slightly by 6% and Thailand decreased by 4%.

According to some shrimp industry experts, the market share of Vietnamese shrimp in the US has increased, proving that the US has "opened up" for consumption early, and the demand for food, including shrimp, especially processed shrimp, has increased.

In the last months of 2021, shrimp exports are generally favorable. Most of the leading markets for Vietnamese shrimp are recovering thanks to a vaccination rateation in the community and the Government's post-Covid-19 support packages.

Business services, restaurants, hotels, tourism... are gradually reopening in many markets. Therefore, demands for food will increase sharply by the end of this year, especially the need for seafood in general and shrimp.

In addition, due to the Covid-19 epidemic's impact, consumers tend to prefer deeply processed foods convenient for the fastest cooking.

Deep processing is a competitive advantage of Vietnam's shrimp industry, with many factories with modern equipment systems, ensuring high requirements for food safety and skilled workers.

Specifically, Vietnam's shrimp deep-processing industry will avoid increasingly strong competition from India and Ecuador. These two countries have strengths in raw or semi-processed shrimp for export due to the abundant and cheap raw shrimp resources.

It can be said that the current market's consumption demand has also created favorable conditions for Vietnam's shrimp industry to promote deep processing, thereby maintaining its market share in important markets.

The Covid -19 epidemic has changed consumption habits globally, especially in markets such as the US, EU ... Convenience food lines, small packaging is increasingly popular. Consumers tend to prefer deeply processed foods, integrated with many utilities, and convenient in the fastest processing of dishes.

Therefore, processed shrimp exports to the US will still have many opportunities to grow strongly in the last months to meet the increased demand during the Christmas and New Year holidays in 2022.