Photo: VASEP/FIS

Value-Added Innovation is Key to Vietnam's Shrimp Consolidation

VIET NAM
Wednesday, October 08, 2025, 00:10 (GMT + 9)

The global shrimp market is rapidly shifting toward processed products, forcing Ecuador and India to restructure exports amid surging demand from the US and Europe.

The global shrimp market is witnessing a strong shift from raw material exports to value-added products, as reported by Ms. Kim Thu, Shrimp Market Expert at the Vietnam Association of Seafood Exporters and Producers (VASEP).

Clear Signals from Export Powers

Major exporting nations are reacting to new global demands:

• Ecuador: Traditionally known for exporting head-on, shell-on (HOSO) shrimp to China, Ecuador has accelerated its move into the processed segment for the US and European markets. In June 2025, Ecuador exported a record 126,074 tonnes (an 18% year-on-year increase). Exports to the US grew by 44% (21,388 tonnes) and to the EU by 42% (28,617 tonnes). Value-added exports doubled in just two years, rising from 127,980 tonnes in 2020 to 268,720 tonnes in 2022.

• India: Despite facing a tariff burden of nearly 60% in the US, India maintained positive growth in exports to that country in the first 7 months of the year. Pressure is forcing them to pivot towards the EU, where import restrictions are expected to be lifted starting in October 2025, intensifying competition, especially in the processed segment.

• Indonesia: Highly dependent on the US for 60% of its exports, Indonesia faces a 30% drop risk in sales due to a 19% tariff imposed by the US. The industry is seeking new markets in China (which imports around 1 million tonnes annually) and the Middle East, albeit with reduced profit margins.

Demand Reshapes the Market

On the demand side, major international markets confirm the trend toward processed and ready-to-eat products:

• Europe: Demand is growing significantly, particularly in Southern Europe, driven by young consumers seeking convenient, sustainably certified products.

• US and EU: Continue to increase imports from countries with transparent supply chains, like Vietnam, while imposing tariffs on competitors such as India and Indonesia.

• China: Although 70% self-sufficient, China imports to diversify. Consumers still prefer whole frozen shrimp over ready-to-eat products.

Opportunities and Challenges for Vietnam

As a renowned "global reprocessing hub," Vietnam holds a significant advantage. Its processing plants have a total capacity of millions of tonnes, offering a wide range of products: from frozen blocks to breaded and steamed shrimp, and value-added retail packaged products.

• Value-Added Growth: In the first 8 months of 2025, Vietnamese exports of value-added shrimp products (HS code 16) reached $1 billion USD, a 12% year-on-year increase, accounting for 34% of the country's total shrimp export value.

• Key Markets: The largest importers of this Vietnamese value-added product are the US (28% market share), Japan (18%), and South Korea (8%).

Ms. Kim Thu concludes that the industry's future lies in added value and sustainable branding, not raw shrimp output. To capitalize on this opportunity, Vietnam must accelerate the improvement of its supply chain transparency and product innovation investment.

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