Indian seafood companies are redirecting their focus toward the domestic market, investing in high-value items such as shrimps, squids, lobsters, and seer fish. The move comes as a strategic response to the downturn in global exports, with the pandemic forcing a shift in the dynamics of the largely unorganized domestic seafood market.
Shivam Gupta, Director of WestCoast Fine Foods, highlighted the changing landscape of the local seafood market, revealing that it is growing at a rate of 9-10%. There is a noticeable transition towards organized players in the industry, with these entities experiencing growth rates of 30% or more.
The availability of shrimps in India has significantly increased, driven by booming aquaculture activities that have pushed production beyond 9 lakh tonnes. While over 7 lakh tonnes are exported, seafood processors and exporters believe that approximately 30% of the production can find a market in the domestic sphere. This shift is attributed to competitive domestic prices compared to export prices, with the export market witnessing a decline due to oversupply and economic challenges in major markets like the US and Europe.
Mathew Joseph, COO and Co-founder of FreshToHome, a leading online seafood and meat platform, highlighted the changing preferences in the domestic market. Even high-value items like vannamei shrimps, seer fish, and tiger prawns, previously earmarked for export, are finding substantial demand domestically. FreshToHome has invested around Rs 500 crore in infrastructure and transportation to ensure product freshness and is experiencing strong growth.
The acceptance of surimi products, including crab sticks, has also grown in the domestic market. Gadre Marine Export, a leading surimi exporter, reported doing Rs 35-40 crore worth of business in India, with the domestic market growing at 25-30%.
Kings Infra Ventures Ltd., specializing in aquaculture farming and seafood trade, is entering the domestic market with plans to set up a chain of quick-service restaurants (QSRs). The company intends to invest around Rs 100 crore to establish QSRs, initially setting up 100 in Kerala and another 200 in Bengaluru under the brand Kings Bento.
Abad Fisheries, a major seafood exporting company, has seen business worth Rs 200 crore in India, leveraging its 25 cold storages across southern states. CMD Anwar Hashim highlighted the strengthening domestic market, with shrimp becoming a regular feature even in weddings.
While the domestic market shows promise, industry experts believe more needs to be done to develop it further. Suggestions include government-led campaigns similar to those for eggs to promote seafood consumption, and joint efforts to raise awareness about the health benefits of seafood, creating robust cold chain networks.
Ravi Kumar Yellanki, President of the All India Shrimp Hatcheries Association, emphasized the need for collaboration between the government and the industry to enhance awareness and build infrastructure facilities such as cold storages in harbours and fish markets.
Research organization Expert Market Research projects a compound annual growth rate (CAGR) of 9.60% in the Indian shrimp market over eight years, reaching 2.12 million tonnes by 2032. Despite challenges in global exports, the optimism in the domestic seafood market signals a positive trajectory for the Indian seafood industry.
Source: Money Control
