Salmon

Salmon Global Market Outlook

Global Production (2022-23)

Global salmon population reached about 2.7 MMT in 2022 and is expected to reach 2.9 MMT in 2023

• The global production in 2022-2023 is forecasted to reach 2.9 MMT a ~3.8 percent increase from the past year

• The sluggish demand is swayed by the late harvest, this oversupply had offset the increase in demand on a global scale and is expected to remain until the end of 2022

Global Seafood Market: Overview

• The global fish & seafood industry is highly fragmented, with a supply of approx. 187 MMT of fishes annually (both wild caught and aquaculture, 2022) and is estimated to reach 189 MMT in 2023.

• Fish capture over the decade has taken a more inland approach with the major capture type being aquaculture and tuna, shrimp, salmon are the most captured and traded species

• Aquaculture currently holds 65 percent of the market share, and it is expected to increase its share in the total capture beyond 70 percent by the end of 2023.

Market Drivers and Constraints : Salmon

The important driver for the seafood market is the increasing demand from the frozen ready-to-cook seafood industry, while the major constraints currently are the disease outbreaks and the costs incurred in ensuring a disease-free environment.

Drivers 

Increasing demand for processed/ready-to-cook seafood:

• The seafood industry is gaining momentum, due to convenience and time saving factors

• Increasing disposable income and per capita consumption are also seen favorable for the growth of the industry

R&D/technology:

• Aquaculture is gaining dominance over traditional agricultural practices, wild fish harvesting, etc., due to its volume production

Constraints

Shorter shelf life and disease outbreaks:

• Disease outbreaks can occur both during raising and processing seafood. Diseases, like ISA, have affected the salmon population in the Scandinavian countries

Government regulations:

• Salmon and trout farmers in Norway would be subject to a new 40 percent "resource rent" tax, according to the Norwegian government. Farmers who produce fewer than 5,000 tons annually are likely to receive an exemption.

Supply–Demand Analysis – Salmon

• Norway is the major salmon producing country globally followed by Chile, Canada and other region. It has been estimated that global salmon supply would cross over 3MMT by 2024, while the global supply of salmon is expected to increase by CAGR of around 5.6%, 2022-2026.

• Currently, more than 70 percent of salmon supply is through aquaculture than wild capture, with Norway (CAGR 7 percent) and Chile (CAGR 9 percent) accounting for the major share in harvesting aquaculture supply; and Sweden and Norway accounting for majority share occupying capture supply.

• British Colombia, Canada consistently ranks as the 4th largest farmed Atlantic salmon producer in the world; of the whole salmon harvested in the region, Atlantic salmon holds the supply share of around 96% and the rest is provided by Pacific salmon.