Shrimp Seed Market Report

Based on species, the white leg shrimp segment is the leading segment for the shrimp seed market. Whiteleg shrimp, renowned for their rapid growth and adaptability across diverse environments, present a lucrative opportunity for aquaculture projects. Their ability to increase stocking densities minimizes operational complexities, enhancing profitability. Especially, their robust disease resistance reduces the risks inherent in shrimp farming. Furthermore, fueled by consumer preference for their mild flavor and larger size, whiteleg shrimp command a substantial market share, ensuring sustained demand for farmers. Thus, the farmers primarily cultivate the shrimp seeds of whiteleg shrimp species, which hold a major market share in shrimp farming.

As per the data shared by ‘Aquaculture Steward Council’ Farmed shrimp make up 55% of the shrimp produced globally, and Pacific whiteleg shrimp and giant tiger prawns account for roughly 80% of production. The successful breeding of shrimp in captivity in 1973 resulted in a quick growth of shrimp farming in the next 20 years. Another factor that is driving the market is the use of technology, which is transforming the shrimp farming industry. Shrimp farmers are gradually beginning to utilize technology to assist in overseeing production and guaranteeing the health of the shrimp.
 
However, research into molecular-assisted genetic selection for high-growth shrimp strains adaptable to new protein sources is vital, focusing on traits like disease tolerance, including resistance to pathogens such as WSSV (White Spot Syndrome Virus). Developing commercial genetic lines with enhanced growth and disease resistance shows promise for significantly improving shrimp seed quality.

The selection of proper seed is a crucial aspect of shrimp farming that greatly impacts the operation's success and productivity. The quality of the seed determines about 70% of the success of shrimp farming operations. Selecting high-quality seed reduces the risk of yield failure due to their resistance to stressful conditions during and after transfer from hatchery to nursery, resulting in high survival rates and better growth. However, a disease outbreak among shrimp seed can lead to significant mortality rates, production delays, reduced stock quality, increased costs, and potential market impacts.

This situation can cause financial losses and increase expenses for medication and biosecurity measures, further straining profitability while potentially declining consumer confidence and affecting market demand and prices. Additionally, climate change poses a significant challenge to shrimp seed production. Rising temperatures and unpredictable weather patterns can disrupt the delicate balance needed for successful seed rearing and impede growth. Moreover, extreme weather events such as storms and floods can destroy shrimp seed habitats, complicating production efforts and the sustainability of shrimp farming operations. Furthermore, the rising popularity of veganism year after year can impact the shrimp seed market, as the rapid increase in plant-based diet consumption affects shrimp consumption, potentially leading to a decrease in market demand.

Key players in the industry employ strategies focused on introducing new products, merging with other companies, and acquiring businesses to expand their customer base and improve their product portfolio. In June 2024, at a location in Vietnam known as Nha Trang, Shrimp Improvement Systems (SIS) organized the 2023 Technical Seminar. The drive was to express appreciation to customers and agents while supporting shrimp farmers in reducing production expenses, improving growth rates, and guaranteeing successful harvests. This gathering underscored SIS's dedication to the long-term viability of Vietnam’s shrimp sector by offering valuable guidance and assistance to its customer base, thereby reinforcing the company's commitment to advancing shrimp farming techniques in the area.

However, in September 2023 Hendrix Genetics, a prominent global player in multi-species breeding, genetics, and technology solutions, announced the inauguration of its latest shrimp Breeding Multiplication Center (BMC) in Ranasthalam - Mandal, Srikakulam District, located within the Andhra Pradesh region of India. This development follows the establishment of a strategic Joint Venture partnership with Sapthagiri Hatcheries, a leading hatchery enterprise in India, earlier in 2022. The expansion underscores Hendrix Genetics' commitment to advancing shrimp breeding practices and fulfilling the escalating demand for top-tier shrimp genetics in the Indian market.

Furthermore, Viet Uc Seafood, a prominent shrimp postlarvae provider in Vietnam, has recently introduced a shrimp-processing facility in southern Vietnam, achieving full integration across the shrimp value chain. Situated in the Hi-Tech Agricultural Park within the coastal province of Bac Lieu, the Viet Uc-Bac Lieu plant stands out as Vietnam's pioneering processing plant with automation implemented in over 70 percent of its operations, as reported by the company.

The Asia pacific region is anticipated to dominate the shrimp seed market during the forecast period. The major countries involved in this industry include China, India, Thailand, Indonesia, and Vietnam— nations known for their well-established aquaculture sectors with a focus on shrimp farming. This includes plenty of other resources like infrastructure, expertise, and experience in shrimp farming, that collectively work towards creating an enabling environment for the growth of markets dealing in shrimp seeds. In addition to these favorable conditions such as climate and geographical location along coastal areas that support production of good-quality shrimp seeds. Moreover, regional governments have been very supportive of aquaculture with things like subsidies and research funds provided as incentives aimed at promoting environmental conservation measures through policies and infrastructure provision. In example last year by 2023, China leads in global wild shrimp catches recording over one million metric tonnes which is about a third proportionately.

The shrimp seed market is expected to see the fastest growth in the North America region over the forecast period. The region has experienced notable progress in shrimp farming technologies, encompassing enhanced breeding methods, superior disease control strategies, and the embrace of sustainable aquaculture approaches. These advancements have propelled the production of top-tier shrimp seeds, catalyzing market expansion. As per the studies, Fuel Tech, Inc., a leading technology firm specializing in optimizing combustion systems, emissions control, and water treatment, has unveiled a new white paper documenting a successful trial of its Dissolved Gas Infusion technology at a domestic shrimp farming facility. Titled "Demonstration of Fuel Tech, Inc.'s DGI Technology for the Royal Caridea Aquaculture Raceway," the paper highlights the technology's ability to efficiently dose and maintain dissolved oxygen levels, resulting in a significant boost in total production compared to conventional aeration methods.