A newly released report from NOAA Fisheries paints a troubling picture of the U.S. Gulf shrimp industry, revealing a dramatic decline in profitability, shrinking fleets, and mounting economic pressure that has pushed the sector toward a critical crossroads.

According to the agency’s economic snapshot, the industry has lost $268 million in revenue since 2021, highlighting a long-term erosion in economic stability that experts say has been building for decades.

As shrimp consumption has increased, the demand has been met by foreign imports. Credit: NOAA Fisheries

The report examines the economics of shrimp harvested in the Gulf of America, comparing prices between imported shrimp and U.S.-caught Gulf shrimp, while also analyzing landings, operating costs, participation levels, and profit margins within the fishery.

Profits Plunge as Imports Dominate the Market

One of the most alarming findings is the steep decline in revenue over just two years. Between 2021 and 2023, total Gulf shrimp revenue fell from $489 million to only $221 million, a drop of more than 50 percent.

The decline is not the result of weak consumer demand. In fact, U.S. shrimp consumption has more than quadrupled between 1984 and 2023. Instead, the surge in demand has been met almost entirely by imported shrimp, first from foreign wild fisheries and later from rapidly expanding global aquaculture operations.

U.S. wild-caught Gulf shrimp landings in 2023 were 15 percent below the average of the previous 10 years and 24 percent below the average of the previous 50 years. The drop in Gulf shrimp revenue from $489 million in 2021 to $221 million in 2023 was triggered by COVID and inflation. Credit: NOAA Fisheries

By 2023, shrimp harvested from the Gulf accounted for only 4.5 percent of the U.S. market, a dramatic fall from 28.7 percent in 1984.

The influx of lower-priced imports has forced domestic prices downward. Adjusted for inflation, the average price of Gulf shrimp has dropped from more than $6 per pound in the 1980s to less than $2 per pound in 2023.

“For decades, this fishery has been fishing down its capital stock—leading to slow attrition in good times. Bad times rapidly turn into crises,” summarized Dr. Christopher Liese, industry economist and lead author on the report.

“The long life of shrimp vessels has masked a fundamental weakness: The fishery is not economically sustainable enough to reinvest in itself. This is an industry consuming its own capital to stay afloat, delaying a crisis rather than ensuring a future.”

Shrimp boats tied up to a deteriorating dock in Brownsville, Texas. A lack of coastal infrastructure is another stressor on the Gulf shrimp industry. Credit: NOAA Fisheries/Carissa Gervasi

Fewer Boats, Fewer Jobs

Despite the financial downturn, shrimp populations themselves remain stable. Scientific assessments show that shrimp stocks are not being overfished, meaning the drop in harvests is tied primarily to economic pressures rather than environmental ones.

Landings of U.S. wild-caught shrimp in 2023 were 15 percent below the average of the previous 10 years and 24 percent lower than the average of the past 50 years.

“We know from our regular assessments that shrimp abundance is not the issue here,” stated Dr. John Walter, Deputy Director of the Southeast Fisheries Science Center. “We also know that because of declining profits, fewer vessels are shrimping, active vessels are shrimping less, and fewer crew are employed by the industry. This is driving the observed drop in landings, and exacerbating revenue declines.”

Between 2021 and 2023, the number of active shrimp vessels declined by 19 percent, resulting in the estimated loss of more than 1,200 jobs across coastal communities.

An Industry Struggling to Stay Afloat

Over the past 18 years, the Gulf shrimp fishery has operated with an average annual profit margin of only 0.5 percent, a level economists say is far too low to support reinvestment in vessels, equipment, and infrastructure.

As a result, the fleet has aged significantly, with many vessels operating far beyond their expected service life.

The situation worsened in recent years due to COVID-19 disruptions and rising inflation, which drove up fuel and operating costs while shrimp prices continued to fall.

“The struggles the industry is facing are immediately apparent when walking the docks in any of the major shrimping communities,” explained Dr. Carissa Gervasi, lead of the Shrimp Futures Initiative. “Docks are in disrepair while giant vessels with peeling paint sit idly.”

In many cases, shrimpers say going out to sea simply isn’t profitable.

When boats remain docked, however, the cycle deepens. Skilled captains and deckhands often leave for more stable land-based jobs, while idle vessels require costly maintenance before they can return to service.

“But many shrimpers are stuck. One fleet owner estimated that it would cost him $4 million to sell his 14 vessels and exit the industry. Shrimpers can’t afford to shrimp, and they can’t afford to stop shrimping.” — Carissa Gervasi

Searching for a Path Forward

Federal officials say the report is intended as a starting point for identifying solutions that could help restore the competitiveness of the domestic shrimp sector.

“This report puts numbers to the economic challenges facing the U.S. shrimp industry,” said Sarah Shoffler, NOAA Fisheries’ seafood advisor. “Achieving a truly resilient Gulf shrimp industry hinges on its ability to sustain profitability. The path forward will likely involve a strategic combination of technological investment, market differentiation, and robust public-private partnerships. We are committed to exploring solutions that could support this industry into the future.”

Photo: NOAA

The analysis is part of the Southeast Fisheries Science Center’s Shrimp Futures Initiative, which collaborates with industry leaders and stakeholders to evaluate strategies for improving the long-term viability of shrimp fisheries in the U.S. Southeast.

The effort also supports the NOAA Fisheries Seafood Strategy and aligns with Executive Order 14276, “Restoring American Seafood Competitiveness,” aimed at strengthening domestic seafood production and supporting U.S. fishing communities facing growing global competition.