Shellfish Trends in China

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1 MARKET ACCESS SECRETARIAT Global Analysis Report Sector Trend Analysis Shellfish Trends in China February 2018 Executive summary China is Canada's second-largest agri-food and seafood trading partner in the world. In 2016, Canada exported almost C$7 billion worth of agri-food and seafood to China, of which fish and seafood represented C$765 million. This places China as the second-largest export market for Canada's seafood products after the U.S. China imported C$60 million worth of shellfish from Canada in 2016 representing 5% of China s total shellfish imports from the world (C$1.3 billion). Canada was the seventh-largest shellfish supplier to China in Canadian shellfish products are considered to be of superior quality, in terms of both sizes available and product quality. Shellfish such as oysters, scallops and mussels are considered high-end nutritious seafood around the world. As the growing middle class consumers in China are demanding more seafood, the export market for seafood is growing rapidly. The top types of shellfish China imported from the world in 2016 were cuttlefish and squid, which accounted for 33% (C$405 million) of China s total shellfish import. Frozen, dried, salted or in brine molluscs appeared to be the fastest growing imported shellfish in China, with the compound annual growth rate of 52% from 2012 to Contents Executive summary... 1 Shellfish market and trade... 2 Shellfish from the world... 2 Shellfish from Canada... 5 Oyster products... 7 Scallop products... 8 Conclusion... 8 For more information... 9 Resources... 9 Related reports Fish Trends in China Market Overview China An Overview of E-Commerce Trends in China Foodservice Profile - China

2 Shellfish market and trade Shellfish China imported from the world There are many consumers of shellfish (scallops, oysters, mussels, cuttlefish, clams, etc.) in China. China fisheries do not produce enough to supply the domestic market, which makes it an attractive market for exporters. According to Global Trade Tracker data, China imported C$1.2 billion of live, fresh and frozen shellfish in 2016 (up 13% over 2015). By value, Japan, with a 21.3% market share, was the leading supplier of shellfish products to China. Canada was ranked the seventh-largest supplier with 5% market share and a C$56 million export value. Top ten suppliers of live, fresh, frozen shellfish China imported from the world 2012 to 2016, C$ million *CAGR Country World ,067 1,203 15% Japan % North Korea % Indonesia % South Korea % United States % New Zealand % Canada % Russian Federation % Mexico % Australia % Source: Global Trade Tracker, Note: Products are either live, fresh, frozen, chilled, salted, smoked, dried or in brine *CAGR - Compound Annual Growth Rate From 2012 to 2016, imports from Canada grew at the compound annual growth rate (CAGR) of 12%. Imports from Indonesia experienced the fastest compound annual growth rate of 54%. China banned shellfish (giant clams called geoducks) import from the US for five months in 2014, which constituted one of the reasons for the US negative compound annual growth rate of -9% from 2012 to Page 2

3 HS code Top ten live, fresh, frozen shellfish China imported from the world by HS codes 2012 to 2016, C$ million Description *CAGR Total ,067 1,203 15% Smoked, dried, salted or in brine cuttlefish, squid % Frozen, dried, salted or in brine molluscs % Smoked, dried, salted or in brine scallops % Live, fresh or chilled molluscs % Live, fresh or chilled abalone % Live, fresh or chilled oysters % Smoked, frozen, dried, salted or in brine mussels % Smoked, frozen, dried, salted or in brine clams, cockles and ark shells % Smoked, frozen, dried, salted or in brine octopus % Live, fresh or chilled clams, cockles and ark shells % Note: *CAGR - Compound Annual Growth Rate In 2016, the cuttlefish and squid group of products accounted for 33% (C$405 million) of China s total shellfish imports from the world. Frozen, dried, salted or in brine molluscs appeared to be the fastest growing imported shellfish in China, with the compound annual growth rate of 52% from 2012 to Other than the C$1.2 billion of live/fresh/frozen shellfish that China imported from the world in 2016, China also imported C$103 million of prepared or preserved shellfish from the world as shown in the table below. That made China s total shellfish imports worth C$1.3 billion in HS code Prepared or preserved shellfish China imported from the world 2012 to 2016, C$ Description Total 134,217, ,168, ,588, ,611, ,041, Molluscs 3,877,498 3,512,640 3,717,291 77,382,174 51,868,471 Cuttlefish and squid 125,998, ,363, ,181, ,494,578 22,828, Scallops 1081,989 4,638,793 1,722,552 5,015,250 21,628,442 Clams, cockles and 1,767, , , ,543 3,062, arkshells Mussels 166, , ,515 1,729,206 2,953, Abalone 1,020, , ,539 52, , Snails 46, ,942 69,937 68, , Octopus 70,988 29,720 35,297 24,567 78, Oysters 187, ,256 1,347 3,677 55,243 Source for both tables: Global Trade Tracker, Page 3

4 HS codes Top ten live, fresh, frozen shellfish China imported from the world by HS codes 2012 to 2016, in tonnes Description *CAGR Total 311, , , , ,924 2% Smoked, dried, salted or in brine cuttlefish, squid 272, , , , ,381-16% Frozen, dried, salted or in brine molluscs 6,571 23,850 42,705 82, , % Smoked, dried, salted or in brine scallops 13,138 23,138 27,057 53,419 43,431 35% Live, fresh or chilled clams, cockles and ark shells 4,293 6,910 5,899 3,001 3,560-5% Live, fresh or chilled molluscs 4,832 5,291 5,282 3,837 3,310-9% Smoked, frozen, dried, salted or in brine mussels 1,238 1,470 2,068 2,349 3,251 27% Smoked, frozen, dried, salted or in brine clams, cockles % and ark shells Smoked, frozen, dried, salted or in brine octopus 5,105 8,430 2,086 2,024 2,869-13% Live, fresh or chilled oysters ,336 1,998 2,365 31% Live, fresh or chilled scallops ,292 2,371 1,932 43% Note: *CAGR - Compound Annual Growth Rate In 2016, China imported 334,924 tonnes of live, fresh, frozen shellfish from the world. Frozen, dried, salted or in brine molluscs grew at a compound annual growth rate of 112% from 2012 to 2016, followed by live, fresh or chilled scallops at a compound annual growth rate of 43%. In addition China imported 27,916 tonnes of prepared and preserved shellfish from the world in 2016 as shown in the table below. In total, China imported 367,840 tonnes of shellfish in Prepared or preserved shellfish China imported from the world 2012 to 2016 in tonnes HS codes Description Total 67,533 60,428 77,905 84,819 27, Molluscs 981 1, ,705 17, Cuttlefish and squid 66,169 58,657 76,606 47,017 7, Scallops , Mussels Clams, cockles and arkshells Snails Abalone Octopus Oysters Source for both tables: Global Trade Tracker, Page 4

5 Shellfish Imported from Canada In 2016, China imported C$56 million live, fresh, chilled shellfish from Canada, representing 5% of the total imports from the world. Top ten live, fresh, frozen shellfish China imported from Canada by HS codes 2012 to 2016, C$ HS code Description Total 353,41,796 33,252,071 41,372,096 43,031,560 56,469, Live, fresh or chilled molluscs 16,978,940 20,082,571 24,840,135 9,057,230 29,326, Smoked, frozen, dried, salted or in brine clams, cockles and 7,445,120 7,396,039 9,871,530 13,126,557 20,234,564 ark shells Frozen, dried, salted or in brine molluscs 7,765,410 2,049,547 1,042,448 5,315,509 4,665, Smoked, dried, salted or in brine scallops 251, , ,051 1,134,913 1,210, Live, fresh or chilled oysters 136, , , , , Live, fresh or chilled clams, cockles and ,327,436 13,452, ,162 ark shells Live, fresh, chilled mussels 0 0 5,529 17,179 20, Live, fresh or chilled scallops ,186 3, Live, fresh, chilled, frozen, salted, dried or 102, , , ,854 0 in brine snails Smoked, dried, salted or in brine cuttlefish, squid 25, ,545 0 Source: Global Trade Tracker (GTT), In 2016, China imported 3,428 tonnes of shellfish from Canada, which represented a 27% increase from 2015 and 1% of China s total shellfish imports for 2016 (334,924 tonnes). Page 5

6 Top ten live, fresh, frozen shellfish China imported from Canada by HS codes 2012 to 2016, in KG HS codes Description Total 2,798,996 2,551,787 2,603,306 2,692,966 3,428, Smoked, frozen, dried, salted or in brine clams, cockles and 1,174,714 1,038,299 1,407,670 1,441,223 2,182,397 ark shells Live, fresh or chilled molluscs 477, , , , , Frozen, dried, salted or in brine molluscs 775, , , , , Live, fresh or chilled oysters 14,708 22,713 96,399 69,991 93, Smoked, dried, salted or in brine scallops 15,501 33,969 13,027 42,318 42, Live, fresh or chilled clams, cockles and ark shells , ,841 11, Live, fresh, chilled mussels 0 0 1,524 3,612 3, Live, fresh or chilled scallops Live, fresh, chilled, frozen, salted, dried or in brine snails 45,829 35, ,344 25, Smoked, dried, salted or in brine cuttlefish, squid 6, ,010 0 In 2016, China imported 2,182 tonnes of clams, cockles and ark shells which accounted for 64% of the total shellfish imports (3428 tonnes)from Canada. This was a 51% increase from 2015 (2692 tonnes). China imported 93 tonnes of oysters and 43 tonnes of all types of scallops (HS codes: & ) in Prepared or preserved shellfish China imported from Canada 2012 to 2016, C$ *CAGR HS codes Description Total 2,082, , ,606 1,663,773 3,944,248 17% Clams 1,501, , , ,261 2,714,035 16% Molluscs 573, , , , , % Scallops 7,656 7,236 9,748 5,686 8,750 3% Mussels Snails 0 83, Source for both tables: Global Trade Tracker (GTT), *CAGR - Compound Annual Growth Rate China imported nearly C$4 million prepared or preserved shellfish from Canada in 2016 in the category of clams, molluscs and scallops. The total volume imported to China in 2016 was 220,969 kg as shown in the table below. Chinese customers prefer live, fresh, chilled shellfish to prepared or preserved shellfish. Page 6

7 Prepared or preserved shellfish China imported from Canada 2012 to 2016 in KG HS codes Description Total 218, ,007 64,463 90, , Clams 154,518 18,900 18,900 37, , Molluscs 63, ,862 45,271 52,984 69, Scallops Mussels Snails Oyster products Oyster products China imported from top ten countries 2012 to 2016, in tonnes Country World ,336 1,996 2,365 France ,347 1,609 Ireland New Zealand United States South Korea Canada Australia Namibia Japan South Africa Source for both tables: Global Trade Tracker (GTT), France took the lead in supplying oysters to China, which made up 68% (1609 tonnes) of the total world oyster supply (2,365 tonnes) in Canada was ranked the sixth-largest oyster supplier which accounted for 4% (93 tonnes) of the total world supply. Page 7

8 Scallop Products Scallop products China imported from top ten countries 2012 to 2016 in KG Country World 13,694,052 24,137,807 29,666,284 56,392,853 46,942,678 Japan 11,518,270 23,741,372 28,637,201 54,054,791 44,563,815 North Korea 1,990, , ,756 1,029,642 1,870,203 Russian Federation , , ,863 United States 94,396 17,720 31,446 3, ,559 Canada 15,871 34,214 13,319 42,777 42,959 Philippines ,011 23,201 Australia ,159 1,854 33,518 15,803 Norway 1,760 3,609 7,289 1,915 2,846 Ireland ,581 1,796 6,069 2,248 United Kingdom 7, ,798 Source: Global Trade Tracker (GTT), Japan was the dominant scallop supplier to China accounting for 95% (44,564 tonnes) of the total world s supply (46,943 tonnes) in However, the imports were 9,450 tonnes less than the 540,54 tonnes in 2015, a 20% decrease. Overall, the compound annual growth rate grew by 40% from 2012 to Canada was ranked the fifth-largest scallop supplier and captured 0.1% (43 tonnes) of the total scallop supply to China in 2016, representing compound annual growth rate of 28% from 2012 to Conclusion Shellfish like oysters, scallops and mussels are considered high-end nutritious seafood around the world. As China s middle class continues to grow, customers in China are demanding more seafood. As a result, the import market for seafood is growing rapidly in China. Numerous seafood restaurants and hotels entertain their customers with a variety of seafood including shellfish, lobsters, shrimp and other types of fish that contain high protein (over 20 g out of 100 grams). That attracts many international suppliers from the world. With the rising middle class and their increasing disposable income, more and more Chinese people can afford to buy a variety of high-priced seafood, raw, cooked, packaged or in other forms that keep them healthy. Canada and other seafood producing countries which provide high-quality and trusted products will have a good opportunity to increase their market share in China. Page 8

9 For more information International Trade Commissioners can provide Canadian industry with on-the-ground expertise regarding market potential, current conditions and local business contacts, and are an excellent point of contact for export advice. Overview of Trade Commissioner Services in China Find a Trade Commissioner For additional intelligence on this and other markets, the complete library of Global Analysis reports can be found under Statistics and Market Information at the following link, arranged by sector and region of interest: For additional Information on China Fisheries and Seafood Expo (CFSE) 2017, please contact: Ben Berry, Deputy Director Trade Show Strategy and Delivery Agriculture and Agri-food Canada Resources: Global Trade Tracker, Euromonitor International, China Bans Shellfish From U.S. West Coast for Arsenic and Toxin Levels, December 16, China Ends Ban on U.S. Geoducks, Other Shellfish, May 23, Page 9

10 Sector Trend Analysis: Shellfish Trends in China Global Analysis Report Prepared by: Hongli Wang, Market Analyst Her Majesty the Queen in Right of Canada, represented by the Minister of Agriculture and Agri-Food (2018). Photo Credits All photographs reproduced in this publication are used by permission of the rights holders. All images, unless otherwise noted, are copyright Her Majesty the Queen in Right of Canada. To join our distribution list or to suggest additional report topics or markets, please contact: Agriculture and Agri-Food Canada, Global Analysis 1341 Baseline Road, Tower 5, 3 rd floor Ottawa, ON Canada, K1A 0C5 The Government of Canada has prepared this report based on primary and secondary sources of information. Although every effort has been made to ensure that the information is accurate, Agriculture and Agri-Food Canada (AAFC) assumes no liability for any actions taken based on the information contained herein. Reproduction or redistribution of this document, in whole or in part, must include acknowledgement of Agriculture and Agri-Food Canada as the owner of the copyright in the document, through a reference citing AAFC, the title of the document and the year. Where the reproduction or redistribution includes data from this document, it must also include an acknowledgement of the specific data source(s), as noted in this document. Agriculture and Agri-Food Canada provides this document and other report services to agriculture and food industry clients free of charge. STAY CONNECTED Visit our online library of public reports for more information on this and other markets. Page 10

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