China’s Seafood and Algae Industries

In recent years, China’s seafood and algae industries have experienced rapid development with the types of products being increasingly diversified and the industry chain being gradually extended. The retail sales value of China’s seafood and algae grew at a CAGR of 8.2%, from approximately CNY 219.6 billion in 2011 to approximately CNY 325.8 billion in 2016, of which (i) approximately 52.0% were attributable to frozen seafood; (ii) approximately 12.7% to dried seafood; (iii) approximately 10.7% to algae; (iv) approximately 4.9% to seafood snacks; and (v) the remaining proportion of 19.7% to other products. The retail sales value of China’s seafood and algae is expected to grow at a CAGR of 7.0% until 2021.

(A) Dried Seafood Industry in China

According to a 2011 publication by the Centre of Excellence Science Seafood & Health Innovation Research Institute of the Curtin University of Technology, Australia, seafood offers omega-3 long chain polyunsaturated fatty acids and a range of nutrients that are typically deficient in diets, including iodine, calcium, vitamin D, zinc and iron. Dried seafood is made by processing raw seafood for preservation and flavor and based on its research on published articles, dried seafood is found to possess nutritional values and health benefits similar to those of raw seafood with proper preparation and storage.

According to research (compiled by making references to data sourced from China Fishery Statistics Yearbook and General Administration of Customs of the PRC), the retail sales value of dried seafood in China has grown at a CAGR of approximately 7.1% from approximately CNY 29.4 billion in 2011 to approximately CNY 41.4 billion in 2016. As purchasing power, health consciousness and public awareness towards the health benefits of seafood increase, it is estimated that the retail sales value of dried seafood will continue to grow at a CAGR of approximately 6.5% from 2017 to 2021, reaching approximately CNY 56.7 billion by 2021. It is estimated that the retail sales value of dried seafood in Northern area, Southern area, Central Western area and others will continue to grow at a CAGR of approximately 6.6%, 6.4%, 6.8%, and 7.0% respectively from 2017 to 2021.

(B) Algae Industry in China

Dried algae are found to possess nutritional values and health benefits similar to those of raw algae with proper preparation and storage. In particular, according to the article entitled “Research Progress of Seaweed on the Promotion of Human Health (《海藻对人类健康促进作用的研究进展》)” published on “Chinese Fisheries” (《中国水产》) Issue No. 9, 2015:

• Algae is nutrient-rich and contains vasoactive chemicals with anti-tumor, anti-ageing and cardiovascular system protection functions. The food, supplement and drug products processed from algae are highly popular.

• The nutrition content and vasoactive chemicals of algae are mainly polysaccharides, proteins, demethylation, vitamins and antibiotics with nutritional qualities of low fat, low calorie, high protein, high dietary fiber and richness in trace elements, containing substantially nutritional and medicinal values for human health. The total retail sales value of algae in China has grown at a CAGR of approximately 9.0% from approximately CNY 22.7 billion in 2011 to approximately CNY 35.0 billion in 2016. As purchasing power, health consciousness and public awareness towards the benefits of algae increase, it is estimated that the total retail sales value of algae in China will continue to grow at a CAGR of approximately 8.0% from 2017 to 2021, reaching approximately CNY 51.4 billion by 2021. It is estimated that the retail sales value of algae in Northern area, Southern area, Central Western area and others will continue to grow at a CAGR of approximately 8.2%, 7.9%, 8.0%, and 8.3% respectively from 2017 to 2021.

(C) Seafood Snack Industry in China

Seafood snacks include: (i) snacks of marine animals (such as shredded squid and barbecued eel); and (ii) snacks of marine plants (such as sea sedge). According to RESEARCH, based on its research on published articles, seafood snacks are found to possess nutritional values and health benefits similar to those of raw seafood with proper preparation and storage. According to research, the total retail sales value of seafood snacks in China grew at a CAGR of approximately 13.1% from approximately CNY 8.6 billion in 2011 to approximately CNY 15.9 billion in 2016. Benefiting from the overall seafood industry drivers and developments in retail sales channels, the total retail sales value of seafood snacks in China is forecasted to continue to increase at a CAGR of approximately 10.0% from 2017 to 2021, reaching approximately CNY 25.6 billion by 2021. It is estimated that the retail sales value of seafood snacks in Northern area, Southern area, Central Western area and others will continue to grow at a CAGR of approximately 9.9%, 10.0%, 9.6%, and 10.7% respectively from 2017 to 2021.

(D) Frozen Seafood Industry in China

According to research, the retail sales value of frozen seafood in China grew at a CAGR of approximately 8.4% from approximately CNY 113.1 billion in 2011 to approximately CNY169.5 billion in 2016. Benefiting from the overall seafood industry drivers and improvements in frozen food chain logistic systems, the retail sales value of frozen seafood is forecasted to grow at a CAGR of approximately 6.5%, reaching approximately CNY 232.2 billion by 2021.