Shrimp exports surge 28% in early 2025, U.S. market shows strong potential

The U.S. government’s decision to impose tariffs on imports from China, Canada, and Mexico has opened new opportunities for Vietnam’s seafood industry. Shrimp exports, in particular, have shown promising growth, increasing by 28% in the first month of 2025.

In January 2025, Vietnam’s two key seafood exports—shrimp and pangasius—continued to expand into major markets, with China and Hong Kong remaining the largest buyers. According to Vietnam Customs, shrimp exports reached USD 311 million, marking a 28% year-on-year increase. Vietnamese shrimp is now present in 107 markets and territories worldwide.

Market dynamics and challenges

Despite the strong start, the Vietnam Association of Seafood Exporters and Producers (VASEP) has observed shifts in consumer behavior in China. The purchasing power of the middle class has weakened due to slower economic growth, declining incomes among mid- and low-income workers, and rising living costs. As a result, seafood, once considered a preferred protein, is now becoming more of an optional choice.

In the U.S. market, Vietnamese shrimp has secured the second-largest market share, following Indonesia. This shift comes as India and Ecuador have scaled back their shrimp exports to the U.S. Notably, Vietnam’s supply of shell-on shrimp to the U.S. has seen a slight increase, while peeled shrimp exports have surged by 21%. Meanwhile, Ecuador and India each recorded only a 2% rise in peeled shrimp exports, and Indonesia’s supply dropped by 15%. India continues to dominate this segment with a 57% market share.

Growth Outlook for 2025

Industry experts predict a more favorable outlook for Vietnam’s shrimp exports in 2025. Key markets such as the U.S., Japan, and the EU are showing signs of recovery, driving increased demand for Vietnamese shrimp. Additionally, the U.S.’s revised tariff policies on Ecuador and China could further boost Vietnam’s export volumes and revenue.

A VASEP representative noted that if Vietnam can address key challenges in production and processing, the shrimp industry could achieve a growth rate of 5-10% in 2025, aiming for an export value exceeding USD 4 billion.

Le Van Quang, CEO of Minh Phu Seafood Corporation, highlighted several positive factors contributing to this optimistic outlook. Efforts to reduce production costs have narrowed the price gap between Vietnamese shrimp and competitors from Ecuador and India. Favorable weather conditions have led to lower disease rates and reduced losses. Additionally, Vietnam’s 30-count shrimp and value-added processed shrimp products continue to gain a competitive edge in global markets. These factors position the industry well to achieve its USD 4 billion export target, provided there is adequate preparation in terms of raw material supply and investment.

Navigating trade barriers and strengthening supply chains

Despite these positive prospects, Vietnamese shrimp exporters still face trade defense measures in the U.S., including anti-dumping and countervailing duties, as well as stringent quality and food safety standards. Compliance with these regulations increases production and inspection costs for exporters.

To mitigate risks and maintain growth, VASEP advises exporters to develop contingency plans to prevent supply chain disruptions. Establishing stable and flexible sourcing strategies, both domestic and imported, will be crucial to avoiding raw material shortages.

Furthermore, businesses must stay updated on market trends, adjust product structures accordingly, and expand into new markets. Prioritizing product quality, transparency, and traceability will help maintain credibility and increase market share in key export destinations.

Source: https://vietfishmagazine.com/