Sector Trend Analysis – Fish and seafood trends in Austria

Introduction

Austria is a landlocked country and heavily relies on imports for its consumption of fish and seafood products consumption. The fishery is limited to aquaculture production and the country has put a strategy in place to increase its aquaculture production with freshwater fish from 34% to 60% by 2020. The "Aquaculture 2020 - Austrian strategy to increase the national fish production" report emphasizes the importance of sustainability and the food quality as guiding principles for its production and consumption. The goal is to improve self-sufficiency by mainly increasing trout production and carp pond farming.

Austria has one of the lowest consumers of fishing and seafood products in the European Union. However, the consumption of fish and seafood products has been increasing during recent years and this trend is expected to continue in the years to come.

Europe's fish stock is threatened by overfishing, and the European Union, therefore, encourages its member states to support sustainable fishing practices and has been advocating catch limits for some species. Sustainability is at the core of Austria's aquaculture promotion and producers are embracing this by adhering to the various certification or labelling of fish products.

Trade overview

Austria imports 95% of its seafood from the world (USDA, 2018). In 2020, the top three imports were prepared/preserved tunas, smoked pacific salmon and prepared/preserved fish. During the 2016-2020 period, the three fastest-growing imports in terms of value among the top ten imports Austrian fish and seafood were live trout, which grew by a Compound Annual Growth Rate (CAGR) of 10.2%, fresh/chilled fillets of pacific salmon and frozen fillets of pacific salmon, at 9.3% and 8.1%, respectively. In terms of quantity, the fastest-growing products were live trout (CAGR: 7.1%), frozen shrimps and prawns (6.2%) and flours, meals and pellets of fish or crustaceans, molluscs or other aquatic invertebrates, unfit for human consumption (5.9%).

In 2020, Germany was the largest supplier of fish and seafood to Austria, with imports valued at US$180.5 million, followed by the Netherlands (US$44.9 million) and Norway (US$41.6 million). Among Austria's ten largest suppliers, Spain had the highest growth over the 2016-2020 period, with a CAGR of 85.3.%, followed by Turkey (5.2%) and Italy (4.9%).

Direct fish and seafood exports to Austria are very low. Fish and seafood products mainly reach Austria by road or by water from other EU countries that have access to the World Ocean. Especially with sea freight, exports are often registered with the country where the product first enters the European Union through an importer. For Austria, this is often Germany and the Netherlands but not limited to these two countries.

Austria's top ten fish and seafood suppliers by product type, in US$ millions, in 2020

Canada's performance

In 2020, Canada was the 34th largest supplier of fish and seafood to Austria. Canada's fish and seafood exports were valued at U$1.6 million (these numbers do not fully account for all the Canadian seafood products transhipment through other EU countries). Fresh, chilled, frozen or dried seaweeds and other algae, frozen fillets of pacific salmon and frozen lobsters were the top three products that Canada exported to Austria. In 2020, the market share of Canadian fish and seafood products was 0.3%.

Canada's direct fish and seafood exports to Austria are very low, however, many Austrian retailers and specialists shops have Canadian fish and seafood in their portfolio, which is often done through importers/distributors in Europe. For example, niche products such as live lobsters, are often bought through an additional importer/distributor in Europe.

Retail market

In 2019, the category that recorded the highest retail sales was fresh fish and seafood (sold over the counter), with sales valued at US$431.6 million and a CAGR of 4.5% over the 2015-2019 period. This category was followed by processed (US$288.3 million) and whole cuts (US$223.0 million) chilled raw packaged fish and seafood products. Whole cuts and processed chilled raw packaged fish and seafood were the categories that grew the fastest over the 2015-2019 period with a CAGR of 5.4% and 5.0% respectively, and are forecast to lead the way into 2024.

In terms of volume sales, the three largest categories in 2019 were fresh fish and seafood (counter) at 32.0 Mkg, ambient fish and seafood (9.0 Mkg), and whole cuts chilled raw packaged fish and seafood (7.4Mkg). The latter category grew the most over the 2015-2019 period with a CAGR of 3.1% and is expected to remain the fastest growing category over the 2020-2024 period.

Processed seafood

In 2020, sales of processed seafood in Austria were valued at US$424.7 million and sales are forecast to reach US$530.8 million in 2025. Between 2016 and 2020, sales of processed seafood in Austria grew by 5.1% and sales are forecast to grow by 4.5% during the 2021-2025 period. Frozen processed seafood lead the way in terms of sales. In 2020, this category recorded sales valued at US$193.4 million. During that year, sales of chilled and shelf stable processed seafood were valued at US$130.4 million and US$100.9 million respectively. Chilled processed seafood is the category that saw the highest growth between 2016 and 2020, and is forecast to lead into 2025 in terms of sales.

Consumer trends

Despite the country having no direct access to the sea, fish and seafood products are very popular among the population in Austria. There is a growing number of restaurants specialized in international cuisine, notably from Asia and Mediterranean countries (World Wildlife Fund).

Fish and seafood products are growing in popularity among consumers due to the perceived health benefits. Per capita consumption of fish and seafood products was 13,2 kilograms per capita in 2017, (EUMOFA, 2020). Prepared fish meals are becoming a product of choices for many consumers, especially those who do not know how to cook fish. Sustainability, quality and organic foods are very important to consumers and this encourages producers to use certification labels such as the AMA Seal of quality, (only avalailbe for Austian products) or the Certified Sustainable Seafood MSC logo. Fish consumption is higher among the older segment of the Austrian population (55+ years. Among other factors that incite fish consumption are the appearance, the cost, the origin and the quality labels (EUMOFA, 2018) as well as the importance of organic food both in production and consumption.

Foodservice and distribution channels

In 2018, revenues from fish and seafood across various distribution channels in Austria were valued at US$3.1 billion. Combined revenues across all the channels increased by a CAGR of 4.4% over the 2015-2018 period.

The off-trade retail channel was the most important distribution channel for fish and seafood products in Austria. In 2018, distribution through this channel was valued at US$1.3 billion. The outlets of this channel experienced a CAGR of 4.5% during the 2015-2018 period. Hypermarkets and supermarkets were the most important channels, accounting for more than half of the total revenues of the off-trade retail channel, with revenues valued at US$720.4 million, followed by food and drinks specialists (US$320.6 million) and convenience stores (US$195.7 million). Cash and carries and warehouse clubs were the fastest growing outlets with a CAGR of 8.7% from 2015 to 2018, followed by "Dollar stores"/variety stores and general merchandise retailers (9.3%) and convenience stores (5.3%).

In 2018, revenues within the foodservice (profit operators) sector were valued at US$236.8 million. The restaurant outlet led the way with on-trade sales of US$152.4 million, followed by accommodation outlets (US$56.1 million) and on-trade retail outlets (US$10.7 million). All the outlets in this sector grew well. All channels grew by a CAGR of 3.7% between 2015-2018. The fastest growing channels were mobile operators with a CAGR of 4.1% while leisure, retail and workplace outlets all experienced a CAGR of 3.8%.

Outlets from the institutional channel (cost operator) also grew well over the 2015-2018 period, by a CAGR of 3.9%. In 2018, healthcare was the most important outlet with revenues valued at US$8.2 million, followed by educational (US$6.8 million) and welfare and related services (US$1.4 million). Educational institutions were the fastest growing sector of the institutional channel with a CAGR of 4.0%.

Competition

In 2018, Garnelen, which is owned by Elfin Feinkost Gmbh, was the brand with the biggest retail sales in Austria at US$55.6 million with a market share of 4.3%. Friedrich Kaiser Gmbh's brand FriedricHS6 had the second largest sales at US$35.3 million with a market share of 2.7%. Vier Diamanten was the third largest brand in terms of sales with US$25.2 million and a 2.0% market share. Moreover, Princes Limited was the only trademark owner to feature two brands among the top fish and seafood brands in 2018 with Vier Diamanten and Diamanten.

New product launches

Several manufactured products containing fish or seafood were launched in the Austrian market between 2015 and 2019, according to Mintel. The "fish products" category includes fresh, frozen, dried, preserved, smoked, or canned fish, shellfish and seaweed products. The majority of the products during this period were of new variety/range extension launch types.

Ethical considerations are very important when it comes to fish and seafood consumption trends, which explains why the two leading claims of new product launches were "ethical - sustainable" ( 51.7%) and "ethical - environmentally friendly" (50.2%). The top packaging types were skinpack, flexible, tray and carton, whereby most products were available chilled or frozen in supermarkets.

Example of new products

Conclusion

Although being one of the smallest fish and seafood markets in the European Union in terms of consumption, Austria in seeing a rise in the consumption of seafood products during recent years. Despite the lower consumption, their almost detal dependability on imports still makes Austria an attractive market. Fish products are positively associated with a healthy diet, sustainability and quality plays an important role in consumers' decisions when choosing fish products. Austria imports most of its fish and seafood products because it is a landlocked country. However, the country is trying to promote aquaculture to be more self-sufficient.

Canada has a very good reputation on fish and seafood in Austria. With the implementation of CETA and the elimination of tariffs on most fish and seafood products, Canada's fish producers have more opportunities to exports into the Austrian market, especially taken into account that Canada is well-positioned with many of the fish products that Austria imports such as atlantic salmon, frozen or fillets of pacific salmon. See the guide onNational Treatment and Market Access for Goods to review key provisions of the Agreement, including those related to fish and seafood products.

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Resources

• Euromonitor International, 2021
• European market observatory for fisheries and aquaculture products. Country Profile: Austria. 2020
• European Union. The EU Fish Market: 2019 Edition. 2019
• Federal Ministry of Agriculture, Forestry, Environment and Water Management. Aquaculture 2020 - Austrian strategy to increase the national fish production. 2012
• Global Data Intelligence, 2020
• Global Trade Tracker, 2021
• GlobeScan. Understanding & Activating Seafood Consumers – Europe. 2018
• Mintel Global New Products Database, 2020
• USDA. Austria – Exporter Guide. 2018
• World Wildlife Fund. Austria: not just for fish Fridays. Date unavailable
• World Wildlife Fund. Fisheries in Austria. Data unavailable

Sector Trend Analysis – Fish and seafood trends in Austria
Global Analysis Report

Prepared by: Saidouba Camara

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