Industry Grapples with Unpredictable Catches, Geopolitical Tensions, and Mounting Scrutiny Over Sustainability and IUU Fishing

Global Squid Industry Navigates Rough Waters Amid Demand Surges and Fishing Grounds at Their Limit

WORLDWIDE
Monday, June 16, 2025, 00:10 (GMT + 9)

The global squid fishing industry is a dynamic and often unpredictable sector, currently grappling with tight supplies and fluctuating prices.

These are driven by environmental factors, evolving demand, and intense international competition. Valued at over $13 billion in 2024, the market is projected for continued growth, fueled by rising consumer demand for versatile and nutritious seafood.

However, this growth comes amid a more competitive and complex market. Rising global demand, geopolitical tensions, stricter regulations, and shifting environmental conditions—particularly impacting species like Dosidicus gigas, Illex argentinus, and Todarodes pacificus—are creating unprecedented challenges.

Key Species and Regions

The global squid trade is largely built around three primary species:

• Illex argentinus (Argentine shortfin squid): Found in the Southwest Atlantic, this is a mainstay of the industry, particularly around the exclusive economic zone (EEZ) of Argentina.

• Dosidicus gigas (Jumbo flying squid): Abundant in the Southeast Pacific off the coasts of Peru and Ecuador, this species dominates Asian processing lines.

• Todarodes pacificus (Japanese flying squid): Concentrated in the Northwest Pacific, especially around Japan, South Korea, and China.

Collectively, these species account for the bulk of global squid landings, which have fluctuated between 3 and 5 million metric tons annually in the past decade.

Source: Globl Fishing Watch

Major Fishing Nations

The most dominant fleets in squid fishing include:

• China: By far the largest global squid-harvesting nation. Chinese distant-water fleets operate off South America, West Africa, and in the Western Pacific. China’s high-seas jigger fleets have grown rapidly, although regulatory pressure is mounting over illegal, unreported, and unregulated (IUU) fishing.

• Argentina: Controls access to valuable Illex stocks within its EEZ. The Argentine jigger fleet is closely monitored, and the country is increasingly enforcing seasonal closures to protect spawning grounds.

• South Korea and Japan: Operate in the North Pacific and are key players in the Todarodes fishery. Japanese consumption of squid remains high, fueling strong domestic demand.

• Peru and Ecuador: In addition to being rich in Dosidicus gigas, both countries have growing processing industries and are trying to regulate a largely artisanal fleet, which often operates near Chinese factory vessels.

• Spain (Galicia): Though primarily a buyer and processor, Spain also participates in squid fishing via distant-water fleets and plays a crucial role in European market dynamics.

Chinese squid jiggers. Photo: courtesy EJF

Market Dynamics and Prices

As of Q2 2025, squid prices remain elevated due to several converging factors:

• Tighter Management: Argentina and other coastal states have shortened fishing seasons and imposed stricter quotas, reducing global supply.

• Fuel and Labor Costs: Distant-water operations face high overhead, especially as scrutiny over sustainability increases.

• Chinese Demand: China’s appetite for processed squid—especially dried and prepared formats—continues to fuel demand across Asia.

Average market prices for Illex argentinus and Dosidicus gigas have increased by 15–20% year-over-year. Illex is currently trading at around $2,600/ton (whole, frozen), while Dosidicus has surpassed $2,000/ton FOB.

Frozen illex squid (Argentina) and frozen giant squid (Peru)

Processing and Consumption Hubs

The raw squid caught on distant oceans embark on a complex journey through various processing and consumption hubs, a process that is increasingly centralized and often involves multiple transhipments. China, Thailand, and Vietnam undeniably dominate the processing landscape. These nations, particularly China, often import vast quantities of whole, raw squid, primarily from their own distant-water fleets or through international trade. These imports are then cleaned, processed into various forms (tubes, rings, tentacles, fillets), and subsequently re-exported to markets worldwide.

The Zhoushan port and logistics hub serves as one of the major squid hubs in the world

China's Role: The Apex of Processing and Logistics Within China, the city of Zhoushan in Zhejiang province stands out as a colossal hub for pelagic squid fishing, processing, and logistics. It accounts for over 70 percent of China's ocean squid catch and boasts immense cold storage capacity, exceeding 520,000 metric tons, forming the densest cluster of such facilities in the province. Zhoushan's Huiqun wharf is a constant bustle of activity, receiving frozen squid from transport ships arriving directly from distant fishing grounds, particularly the Southwest Atlantic and Southeast Pacific.

Squid processing plants in Zhoushan

The city has heavily invested in infrastructure, including a massive data warehouse at the Zhejiang International Agricultural Products Trade Center, which monitors real-time specifications, prices, and quantities of squid. This platform facilitates online transactions and connects fishing companies with processing and trade enterprises, integrating the entire supply chain. Zhoushan's strategic focus on processing and value-added products, despite challenges like rising labor costs, underscores its ambition to maintain its central role. Chinese processors are even exploring innovative ways to use cheaper parts of the squid, such as marinating cooked tentacles for snack markets in Asia.

Other Processing Powerhouses: Thailand and Vietnam also play crucial roles, leveraging their established seafood processing industries and competitive labor costs to handle significant volumes of imported squid, transforming them into consumer-ready products for export.

Major Importing and Consuming Markets: The processed squid then flows to major importing and consuming nations, primarily for foodservice and retail markets:

• The European Union: Countries like Spain, Italy, and France are paramount. Spain's port of Vigo remains one of Europe's leading squid import hubs, not only for domestic consumption but also as a significant processing and re-export center for other EU members. Squid features prominently in Mediterranean cuisine, driving consistent demand for both fresh and frozen products.
• Japan: A massive consumer, driven by its deep-rooted seafood culture, including sushi, sashimi, and diverse squid dishes. Japan imports substantial volumes, often favoring specific species and quality for its discerning market.
• United States: Growing in popularity, especially in foodservice through dishes like calamari, as well as increasingly in retail channels.
• South Korea: Another major consumer with a strong culinary tradition featuring squid in various forms, from stir-fries to seasoned dried snacks.

The efficiency of cold chain logistics and advancements in processing technologies have enabled this complex global supply chain, allowing squid caught thousands of miles away to reach dinner plates worldwide. However, this intricate network also highlights vulnerabilities to supply disruptions, trade policies, and price volatility, making the interplay of fishing, processing, and consumption a truly global economic dance.

Sustainability and Geopolitical Tensions

The global squid industry faces increasing scrutiny over its environmental footprint and governance. Concerns about overfishing are pervasive, driven by a surge in demand and a lack of comprehensive, scientifically-backed management plans for many stocks, particularly on the high seas. Compounding this, Illegal, Unreported, and Unregulated (IUU) fishing practices are a significant threat, especially by distant-water fleets operating near the Exclusive Economic Zones (EEZs) of Latin American nations. These clandestine activities not only deplete marine resources but also undermine the livelihoods of local artisanal fishers and create unfair competition.

Map of study area and management statuses considered here. Boundaries are based on Marineregions.org (2022). Source: Science Advance/ Fishing through the cracks: The unregulated nature of global squid fisheries

Nations like Argentina and Ecuador have been vocal in calling for improved regional cooperation and enhanced monitoring to combat IUU fishing. Argentina, in particular, frequently reports on the large "floating cities" of foreign fishing vessels, predominantly Chinese, operating just outside its EEZ in the Southwest Atlantic, raising concerns about the unsustainability of Illex argentinus squid catches and the evasion of national regulations. This dynamic often leads to geopolitical tensions, with Latin American coastal states feeling their sovereign resources are being undermined.

The South Pacific Regional Fisheries Management Organization (SPRFMO), a key body for managing high-seas fisheries in the Southeast Pacific, has indeed begun to implement conservation measures for Dosidicus gigas (Humboldt squid). However, challenges persist, including calls for stronger enforcement, more robust data collection, and binding measures for all member states. There's also a growing demand for a dedicated Regional Fisheries Management Organization (RFMO) for the unregulated high seas of the Southwest Atlantic, a critical area for squid.

Photo: courtesy South China Morning Post

Beyond environmental degradation, the scrutiny extends to human rights abuses within some distant-water fleets. Reports from NGOs highlight severe labor exploitation, forced labor, and poor working conditions on vessels, raising ethical concerns throughout the supply chain.

Addressing these complex challenges requires a multi-faceted approach, including greater transparency in supply chains, improved traceability of catches from ocean to plate, and stronger international cooperation to ensure accountability for all fishing activities, regardless of flag state or operating location.

The intersection of food security, marine conservation, and geopolitical influence is making squid not just a seafood commodity—but a strategic one

editorial@seafood.media
www.seafood.media

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