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Chinese Market: Decline in Whiteleg Shrimp Consumption, Surge in Lobster Demand

VIET NAM
Tuesday, February 18, 2025, 02:00 (GMT + 9)

Vietnam’s Shrimp Exports to China and Hong Kong

After a decline in the second quarter of 2024, Vietnam’s shrimp exports to China and Hong Kong rebounded sharply in the third and fourth quarters. In the fourth quarter of 2024, shrimp exports to this market surged by 69% to reach USD 258 million. For the entire year, Vietnam’s shrimp exports to China and Hong Kong totaled USD 843 million, marking a 39% increase compared to 2023. This significant growth propelled China and Hong Kong ahead of the United States as Vietnam’s largest shrimp import market, according to Ms. Kim Thu, Shrimp Market Expert at the Vietnam Association of Seafood Exporters and Producers (VASEP).

China’s domestic shrimp supply has declined due to adverse weather conditions, and Ecuador has also reduced shrimp exports to China in 2024. Additionally, China has implemented measures to boost consumer spending, further supporting Vietnam’s shrimp exports. In the first half of January 2025, Vietnam’s shrimp exports to China and Hong Kong surged by 191% compared to the same period in 2024, exceeding USD 51 million.

Vietnam Expands Lobster Exports to China

In 2024, within Vietnam’s shrimp export portfolio to China and Hong Kong, other shrimp species—including lobster—accounted for the highest proportion at 51.7%, reflecting China’s strong demand for Vietnamese lobster. Whiteleg shrimp accounted for 36.1%, while black tiger shrimp represented 12.2% of exports.

Black tiger shrimp exports to China declined more significantly than whiteleg shrimp. Processed black tiger shrimp and whiteleg shrimp products saw sharper declines than their fresh/live/frozen counterparts, with processed black tiger shrimp experiencing the steepest drop at 44%.

Conversely, exports of other shrimp species saw a substantial increase of 174%, with processed shrimp rising by 199% and fresh/live/frozen shrimp by 185%. Among these, live rock lobster was the most prominent product. Vietnam’s lobster exports to China surged in 2024, with China remaining the primary market, accounting for 98-99% of Vietnamese lobster exports.

Decline in Whiteleg Shrimp Imports by China

According to ITC data, China’s shrimp imports in 2024 totaled USD 6.8 billion, reflecting a 10% year-on-year decline. Vietnam was the only major supplier to increase its shrimp exports to China, as imports from other sources decreased.

Among imported products, rock lobster and other marine shrimp were the second most imported seafood items in China, increasing by 39% compared to 2023. In contrast, imports of warm-water shrimp, including frozen whiteleg shrimp, declined.

Ecuador, a key competitor of Vietnamese shrimp in China, primarily supplies whiteleg shrimp. Ecuador’s shrimp export value to China dropped by 14% in 2024 to approximately USD 3 billion. Similarly, Vietnam’s whiteleg shrimp exports to China and Hong Kong decreased by 5% to nearly USD 305 million.

Factors Behind the Decline in Whiteleg Shrimp Consumption in China

Despite the approach of the Lunar New Year, the Chinese market for whiteleg shrimp has shown no signs of revival, with prices continuing to decline. This downturn is not due to oversupply but rather a significant reduction in purchasing power among China’s middle class.

Whiteleg shrimp was once a staple for middle-class households due to its affordability and nutritional value. However, with economic growth slowing, income stagnation, and rising living costs, consumers have become more cost-conscious, shifting their dietary preferences. Aquatic proteins, once considered a preferred choice, are now viewed as discretionary purchases.

This declining consumption trend is particularly noticeable in major urban centers. Households are prioritizing cost-effective and easily stored protein sources, making meat a preferred choice over seafood. In mid-range and low-end markets, whiteleg shrimp consumption is in stark contrast to the demand for premium seafood products such as lobster, salmon, and king crab, which remain stable among high-income consumers.

The contraction of the whiteleg shrimp market is not an isolated event but rather a broader reflection of the vulnerability of mass consumer goods to economic pressures in China. To counteract this trend, shrimp exporters should leverage their strengths in lobster exports, intensify marketing efforts, and develop strategies to stimulate demand for traditional products like whiteleg and tiger shrimp in the Chinese market.

editorial@seafood.media
www.seafood.media

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