Fresh and live seafood: A booming market in China

In the first half of 2024, Vietnam seafood exports reached nearly 4.4 billion USD, a nearly 6% increase compared to the same period in 2023. Notably, shrimp accounted for over 37% of the total with 1.64 billion USD, followed by pangasius at 21% with over 918 million USD, tuna at 10.7% with 471 million USD,cephalopod at 6.6% with 289 million USD, and other fish species at nearly 20% with 865 million USD. Most of the main products saw an increase in export value compared to the same period last year: shrimp and pangasius rose slightly by 6% and 5%, respectively, while crab exports surged by 75%, and tuna increased by 23%. However,cephalopod exports decreased slightly by 1% and other fish species declined by nearly 6%.

Positive signs for the shrimp sector were particularly evident in the lobster segment, with sales soaring from 46.6 million USD in the first half of 2023 to 126.7 million USD in the first half of this year, a 171% increase. Of this, 98% of sales came from live spiny lobsters and the main market was China.

Crab and other crustacean exports made the biggest leap among the main products in the first half of the year, surging by 75% to reach 125 million USD. Specifically, crab exports nearly doubled to nearly 93 million USD, while swimming crab  exports increased by 33% to over 31 million USD. Live crab exports alone generated 54 million USD in revenue, a nearly eight-fold increase compared to the same period last year. China was also the main consumer market for Vietnam's live crabs.

In the overall picture of seafood exports to the Chinese market in the first half of the year, fresh and live products were a highlight, contributing to an increase in seafood exports to this market. Accordingly, in the first six months of this year, Vietnam seafood exports to China reached nearly 690 million USD, an increase of 8.4%. Of which, pangasius still accounted for the largest proportion, 35% with over 243 million USD, but decreased by 7.4% compared to the same period last year.

Lobster emerged as the second largest export item to the Chinese market in the first half of the year, reaching nearly 122 million USD, a 174% increase and accounting for almost 18% of the total seafood export value to this market. Meanwhile, whiteleg shrimp exports to China decreased by 10% to only 117 million USD. Black tiger shrimp exports also declined by nearly 30% to 38.5 million USD.

Beyond shrimp and pangasius, many other types of seafood exported to China also experienced a decline in export value in the first six months of the year. However, live crab exports, one of the top four highest-value export items, surged 12-fold to 49 million USD.

Frozen seafood exports to China in the first half of the year generally decreased compared to the same period due to lower prices, while live seafood products had better prospects. Besides lobster and live crab, live clams (Undulated surf clam) and live snail also saw significant increases, rising 280% and 282%, respectively, compared to the same period last year.

China's frozen shrimp market is currently facing oversupply due to the influx of Ecuadorian products and high domestic harvest levels. In the first half of the year, China imported 436,000 tons of shrimp, of which Ecuadorian shrimp accounted for 330,000 tons, or 75%.

Meanwhile, the demand for salmon and lobster in China is expected to continue to grow. As a global leader in seafood consumption, Chinese consumers are increasingly favoring high-quality and value-added seafood products. There has been a shift from purchasing fresh seafood at traditional markets to buying fresh seafood through e-commerce channels. Among them, shrimp is the most popular seafood product purchased online by Chinese consumers.

Although the situation has gradually improved, with inflation and inventory levels decreasing, the consequences have still affected demand in importing markets. Vietnam's seafood exports to major markets have faced price competition from other suppliers, resulting in lower average export prices for main products such as shrimp and pangasius compared to 2023 and previous years.

Therefore, while total seafood exports in the first half of the year have recovered, the strong growth was mainly driven by a 64.5% increase in January, with subsequent months seeing more modest growth.

For the second half of the year, Vietnam's seafood exports are expected to return to the normal trajectory prior to the Covid-19 period. Exports are projected to increase compared to the first half of the year, with a surge in orders in the third quarter to serve the year-end holidays in various markets.