The increased demand in China for higher value products such as lobster, crab, abalone, scallops, oysters, mussels and caviar is the highlight of this year’s Asian Seafood Exposition to be held in Hong kong from 3-5 September..
In an interview with Retail In Asia, Mary Larkin, Vice President of Seafood Expositions at Diversified Business
Communications, said that seafood consumption is one of the fastest growing food categories and growth is not expected to slow down.
"The growth of the middle class has resulted in higher disposable income and increased consumption of premium seafood products. This has put pressure on the supply of seafood," she said.
Canned or preserved fish and seafood also registered the highest value growth of meal solutions (15 percent) in 2011.
"This product category has benefitted from the increasing presence of Western-style media using canned fish products, such as tuna salads, casseroles and sandwiches. Rising consumer prices did impact meal solutions in 2011; however, the average price growth of 5 percent in 2011 was less than overall food inflation, due to strong competition in this category ((according Euromonitor International, Packaged Food Sales, 2011)," she added.
RIA: How big is the demand for seafood in China (in particular) and Asia (in general)? Where is seafood supply coming from?
ML: As mentioned, demand for seafood in China is on the rise. However, output is not keeping up with the growth rate of consumption. The Agriculture Information Institute at China’s Academy of Agricultural Sciences is reporting a growth rate in consumption of 5.71 percent per year, while output is seeing an average rise of 3.83 percent. China in particular has become a net importer of shrimp in the past few years. In the past, there was less inter Asian trade but this has changed. Products are coming from all over the world with focus on specific species. (source: SeafoodSource.com)
RIA: The special focus of this year’s Seafood Exposition is Premium Seafood products. What are considered premium products and what are the factors that are spurring the demand for high-value seafood products?
ML: Premium seafood has become a focal point for the exposition in response to the demand from buyers attending the event. High-value, premium seafood includes species like lobster, abalone, shellfish and other premium products such as sea urchin and sea cucumber.
RIA: The United Nations predicts that seafood consumption in China will rise from the current average 12 kilograms per person to 36 kilograms by 2020. Can seafood suppliers from Asia and around the world supply the demand?
ML: Some consider the demand of seafood in China almost insatiable, but in contrast with locally produced seafood, there is a growing market for premium species, including shellfish and crustaceans, from Australia, the United States, and Europe. We expect this to be reflected in the growth of the seafood import market in China. This also increases the opportunity for more aquaculture products.
RIA: What are the major challenges of seafood supply and distribution in the region? How is this being addressed by seafood suppliers and buyers?
ML: One of the largest challenges for supply is that while China’s seafood production is unlike any other in the world, it relies on aquaculture-not wild caught. This is one of the reasons why companies from other areas of the world are addressing this demand by extending or expanding their reach into the Asian market. Hong Kong is a great place for it, as it serves as the re-export center into China, largely in part to its duty free status. An estimated 30-40% of seafood imported into Hong Kong is re-exported to China, United States, Macau, Vietnam, and Taiwan, according to the Hong Kong Tourism Board.
RIA: Are there any new technologies involved in seafood distribution, processing and packaging, storage, and logistics?
ML: As the demand increases, so also does the need for quality distribution. Cold storage has developed and the distribution chain is also developing in order to accommodate the growth. International companies are investing more in the processing and distribution.
RIA: This year’s exposition will gather 6,000 buyers from 50 countries and more than 150 exhibiting companies from 25 countries. What can seafood buyers expect from the event?
ML: The Asian Seafood Exposition has attracted over 6,000 buyers from 50 countries and more than 150 exhibiting companies from 25 countries last year. We won’t have the numbers for the 2013 expo until after the event but seafood buyers can expect a diverse roster of exhibiting companies. The Asian Seafood Exposition focuses on the entire Asian market, not just mainland China, which is an attractive reason for exhibitors to opt for this exposition.
We have also initiated special events like culinary demonstrations and master classes to further educate attendees on growing, sourcing, select, handling, and preparing products.
RIA: What is your outlook for seafood retail this year?
ML: The trends over the past few years globally, have reflected that any weakness in the economy has resulted in increased sales in retail and a drop in sales for food service. As lifestyles become more urban and busier, more consumers have turned to meal solutions with the demand for chilled and prepared food products growing.
Taking Stock is Retail in Asia’s fortnightly column dedicated to showcasing opinions from experts in the retail industry.