Sector Trend Analysis – Fish and seafood trends in Mexico

Production and consumption

Global fish production, trade, and consumption all contracted strongly over the first half of 2020, whereby trends differed across species and products. The slight decline in production was driven by lower aquaculture output rather than capture fisheries that remained largely unchanged. According to the FAO Fish Price Index, International fish prices were 7% lower on average in 2020 (compared to 2019), due to the significantly lower demand from out-of-home food services (HORECA - hotel, restaurant, catering) during the pandemic. Overall, global per capita fish intake declined by about 0.5 kilograms in 2020 to 20.2 kilograms (14 kilograms in Mexico) with nominal fish prices expected to increase at a rate between 0.8% and 1.6% per annum over the 2021-2030 period (OECD-FAO Agricultural Outlook 2021-2030).

Mexico produced 1.7 million tonnes of fish (including molluscs and crustaceans) with a value of US$2,799.7 million in 2018. This amount consisted of 29% coming from aquaculture and 71% from fisheries (capture of wild resources). Over the last decade (2008-2018), the quantity produced increased by 5%, while its value increased by 85%. (OECD - Fisheries and Aquaculture in Mexico, 2021).

Globally, fisheries and aquaculture production is an important source of nutrition, and a basis of livelihoods. However, the demand for quality, sustainable, yet cost-effective fish and seafood products has proven to be challenging for small local fishing cooperatives (co-ops). Access to competitive markets is costly and small entrepreneurs in Mexico have to rely on expensive middlemen to prepare and market their catch. However, the SmartFish seafood company has a model to help small fishing co-ops succeed by adopting sustainable practices that can for the first time cut out the middleman, and better prepare them to compete directly with large commercial operators.^{Footnote 1}

Trade overview

In 2021, the world imported a total of US$163.7 billion (37,399.3 kilotonnes) in fish and seafood products. The top five global import markets were the US, China, Japan, Spain, and France, which accounted for a total of US$79.0 billion or a market share of 47.4% in 2021.

In 2021, Mexico was a net exporter of fish and seafood products with an export value of US$1.3 billion and an import value of US$975.9 million, representing a trade surplus of US$347.2 million. Mexico was the 28th largest fish and seafood import market in the world with a 0.6% market share in 2021, and a declining CAGR of −9.4% (2017-2021). Over the same period, Canada ranked as the 14th largest import market (2.2%) with an increasing 5-year CAGR of 5.2%.

In 2021, Mexico ranked as the 29th largest fish and seafood market globally in terms of volume share (0.8%) at imports of 304,013 tonnes, increasing at a CAGR of 0.2% (2017-2021). Canada ranked 18th in the world in volume terms (1.6% market share) with a CAGR of 2.1% over the same period.

In terms of value in 2021, China, Chile and the United States were the top suppliers of fish and seafood to Mexico with a market share of 37%, 14.5% and 11.3%, respectively. Canada was the 20th largest supplier to Mexico at exports of US$3.2 million and a market share of 0.3%. The value of Canadian fish and seafood exports to Mexico decreased continuously at a CAGR of −17.3% from 2017 to 2021.

In terms of volume, China (share: 43.2%), Vietnam (12.9%) and the United States (9.9%) were the top suppliers of fish and seafood to Mexico in 2021, growing or declining at a CAGR of +6.1%, −11.3% and −5.5%, respectively from 2017 to 2021. Canada was the 20th largest supplier at 1,105 tonnes and a market volume share of 0.4%. Mexico's imports from Canada declined by −11.5% between 2017 and 2021.

Frozen types of fillets of tilapia, fillets of Pacific, Atlantic and Danube salmon, and shrimps and prawns, in shell or not, even smoked (excluding cold-water) were the top three products that Mexico imported from the world. Most imports of the top 10 products from the world have been decreasing, representing a small CAGR of 3.7% (2017-2021). Amongst these top products, there was only continued small growth in the imports of frozen fillets of tilapia and prepared/preserved fish, along with the import of frozen cuttle fish and squid in 2021. None of these top products were imported from Canada over the last five years, at the exception of frozen fillets of salmon (HS: 030481) back in 2018.

Top ten fish and seafood suppliers to the Mexico in 2021 (US dollars)

Canada's performance

In 2021, Canada exported Can$1.6 million of fish and seafood products to Mexico. The top Canadian products exported to Mexico were live lobsters (43%), frozen Capelin, frozen herrings, frozen sea fish not elsewhere specified (n.e.s.) (27.5%), and other products of fish, shellfish, aqua invertebrates and dead animals n.e.s., not for human consumption (16%) (ie; fishmeal feed for the pet food industry and fish oil) in 2021. Between 2017 and 2021, the top 10 fish and seafood exports to Mexico have increased by a CAGR of 5.4%, while total exports decreased by a CAGR of −0.3%.

Canada's fish and seafood exports to Mexico (by province)

In 2021, Nova Scotia (NS) was the largest Canadian export province of fish and seafood products at a value of Can$737.1 thousand, followed by Newfoundland (Can$600.7 thousand), British Columbia (Can$254.4 thousand), and Quebec (Can$9.2 thousand). Exports from Newfoundland and British Columbia (BC) accounted for the largest growths at a CAGR of 86.2% and 4.7%, respectively, between 2017 and 2021. At the same time, exports from Québec (−46.8%) and Nova Scotia (−10.5%) registered steeper declines. Other provinces previously exporting fish and seafood products to Mexico over the last five years (zero exports in 2021) were Alberta, Ontario and Prince Edward Island (PEI).

Amongst Canada's top fish and seafood products exported to Mexico in 2021, all of its Canadian live lobsters came from Nova Scotia; all frozen sea fish n.e.s. (HS:03038919) were from Newfoundland; all other products of fish, shellfish, aqua invertebrates and dead animals n.e.s., not for human consumption (HS:05119100) were from BC; frozen Capelin mostly came from Newfoundland (72%) with its remainder coming from NS; and all frozen Herrings came from Newfoundland, previously exported mostly from BC. Other fish types such as Cod and Pollock came from Nova Scotia in 2021. Notably, Canadian salmon types that generally came from Alberta and British Columbia in previous years were not exported to Mexico in 2021. Canada's supply to Mexico of fish fats and oils in its fractions, n.e.s. that typically came from Ontario and mussel types from PEI have diminished to zero exports over the last few years.

Market sizes

In 2021, Mexico's retail sales of fish and seafood reached a total of US$5.3 billion (667,200 tonnes) representing a total volume decline of −8.0% since last year. Fresh types consisting of fish, crustaceans, molluscs and cephalopods accounted for 70.9%, while processed seafood categories (shelf stable, frozen, chilled) accounted for the remaining 29.1% of value sales.

When the COVID-19 pandemic hit the country, purchases of most fresh food items in the fish and seafood segment significantly declined in its frequency - contrary to pre-COVID habits where many consumers preferably purchased fresh on the day of consumption (notably, approximately 19% of the annual consumption of fish and seafood takes place during lent season between March and April). Due to the importance of freshness in the category, the fish and seafood sector experienced a more adverse effect from the global crisis than some other food sources of protein.^{Footnote 2}

Many consumers shifted to pre-packaged processed fish and seafood products that were ready-to-go and could be stored for several days. Shelf stable processed seafood products remained as the largest category in terms of retail sales at US$1.3 billion in 2021, yet declined in volume annual growth by −3.3%. Moving away from fresh seafood, consumers alternatively turned towards chilled (US$64.1 million) and frozen (US$227.4 million) processed seafood products that registered volume annual growths of 9.1% and 7.1%, respectively.

In 2021, foodservice sales of fresh and processed fish and seafood in Mexico reached a total volume of 282,800 tonnes, representing a declining CAGR of −0.7% (2017-2021). All on-trade categories were hit particularly hard in 2020 with foodservice outlets and resorts that were closed for more than three months, while operating at a reduced capacity for much of the time throughout the remainder of the year. Albeit, total volume growth almost returned to pre-COVID amounts in 2021 as restrictions were eased, consumer confidence increased and tourists started to return to Mexico.^{Footnote 2} Nevertheless, although foodservice sales are expected to spike further ahead in 2022 (375,100 tonnes), the country is forecast to have a declining 5-year CAGR of −3.7% with another dip in sales in 2023 - to only reach 322,100 tonnes in 2026.

Competitive landscape

In 2021, leading retail companies (and brands) of processed seafood products in Mexico included the Pescados Industrializados SA de CV - known as Grupo PINSA (Dolores, Mazatún) at 29.3% value share, Grupo Marítimo Industrial SA de CV - known as Grupomar (Tuny) at 16.8%, and Grupo Herdez SAB de CV (Herdez) at 6.5%. Private label brands also, represented a large share of 16.9% in 2021.

Although, specialist retailers did not fair very well during the pandemic due to less purchases for fresh products, major fish and seafood processors supporting these outlets such as Comercializadora Osa Mayor, Comercializadora Blanca Arena, and Alimentos del Mar SA de CV are expected to recover much of their former sales over the forecast period.^{Footnote 2}

Distribution channels

According to The Mexican Council of Promotion of Fishery and Aquaculture Products (CONAPESCA), the fish markets La Nueva Viga in Mexico City and Mercado del Mar in Zapopan, concentrate the highest trading in fish and seafood products in Mexico. La Nueva Viga is the second largest fish market in the world, after Tokyo's famous Tsukiji Market. COMEPESCA estimates that La Nueva Viga market sells more than 500 marine species, accounting for 65% of Mexico’s national production.

The distribution channels in which consumers chose to purchase their meat, fish and seafood products did not alter much between 2020 and 2021. Mexicans continued to avoid frequent outings by most often shopping from within modern grocery retailers such as hyper/supermarkets and discounters, which offer a large variety of products under one location and are able to support online orders.

When compared to pre-COVID sales, specialist stores have seen the most significant decline in traffic as some consumers also turned to purchasing packaged fish and seafood products from modern grocery retailers during the pandemic. Although, specialist stores are expected to recover in the forecast period, this switch to modern grocery outlets will likely remain popular and dampen sales of fresh fish and seafood from specialist outlets due to its convenience, safety and long shelf life.^{Footnote 2}

New product launch analysis

Mintel indicated that there were 155 packaged food or drink (7) products containing fish (153) and/or seafood (5) ingredients launched (including new variety/range extension, packaging, formulation or relaunched) in Mexico between the period of January 1st, 2017 and March 9th, 2022.

Description of above image

	2017	2018	2019	2020	2021	2022 (January to March)	Total
Fish	23	28	24	22	49	7	153
Seafood	1	1	1	1	1	0	5

Source: Mintel, 2022

Fish and seafood ingredient products

Top parent companies launching fish food and drink products in Mexico over the five year period (January 2017-March 2022) were Nestlé (36), Laboratorios Ordesa (7), FrieslandCampina (6), and Nutricia (6) for its baby formula or milk powder products; Walmart for its varied fish and meal products (11); Novalimentos mostly for their sauces (11); Alimentos Kay for its fish stick, fillets, nuggets, and fish burger products (8), and Herdez for its tuna products (6). Mexico manufactured 57.4% of its fish and seafood products, followed by Spain (9.7%), the Netherlands (8.4%), and the US (5.8%) - no Canadian brands were found on the retail shelves. Top brands over this period were Nestlé Nido Kinder/NAN Optimal Pro (18), Herdez (6), Itto - Sushiitto (6), Ricamar (5), Great Value (5), Neptuno (4), Frisolac Gold (4), and Marketside (3).

Common fish and seafood ingredients found in these packaged products in Mexican retailers include shrimp, clam, mussel, fish Sirimi (pressed fish meat), and anchovy. Other related ingredients included clam/oyster/crab extract or natural clam flavor, hydrolized fish collagen or fish protein, fish fats (source of Omega-3 fatty acids), oxidized fish oil, fish sauce or seafood juice, squid ink, and bonito fish powder and extract.

In Mexico, the fish or seafood flavours that were launched the most were salmon, Caesar or seafood [Q1-2020-2021]. New or popular ingredients included fruit vinegar, Amaranth red, rapeseed, beetroot, and fibres. Health and wellness and other functional related or leading trend claims (mostly found on baby formula or milk products) included Kosher, Halal, vitamins/minerals plus, immune system support, brain/nervous system, bone health, functional - other, digestive health and premium. Amongst these products, top growing claims included ease of use.

In the Mexican market, baby food was the largest fish category with 62 (40%) new product launches, followed by processed fish, meat and egg at 46 products (29.7%), and sauces and seasonings or meal and meal centers at 32 combined products (20.6%) over the approximately 5-year period. The launch of new products had the largest growths in categories such as processed fish products, sauces and seasonings, juice drinks and meals and meal centers between Q1-2021 and Q1-2022. However, the baby food category has been declining by −22.2% during this period.

Product examples

New fish, seafood or drink brands launched recently (2021-2022) in the Mexican market include Pescanova (Hake Nuggets), Antiqua Delicatessen (Surimi in olive oil), Natural Good Shape (coconut water with fish collagen), and Meat Me (shrimp with cheese pastries).

Opportunities for Canada

Although, local fishing cooperatives (co-ops) are striving for access to competitive markets to selling directly to consumers, small fishing communities along Mexico's coast generally must rely on expensive middlemen to combine and market their catch - to meet the high-volume demand of large retailers. While some product is exported to international markets, the majority is sold to Mexican consumers and restaurants.^{Footnote 1}

Niche opportunities, however, exist for premium products in higher-end restaurants and boutique hotels in major cities and tourist regions throughout Mexico for fresh and frozen fish and seafood such as lobster, mussels, cod, clams and other products: salmon, snow crab, blue fin tuna, etc.

Mexico is looking for innovative fish and seafood products with low prices, yet that are high in protein and nutritional content - to reach government strategic goals to boost consumption by one-third. Retailers have increased options of ready to consume frozen processed fish and seafood products and meal preparations including COSTCO, SAM's (Walmart de Mexico), among others. This product category has generated consumer interest associated to the pandemic and this trend may stay. There is opportunity for growth - in recognition of the need for cooperation amongst local stakeholders such as fish merchants, fishers and buyers - as Mexican initiatives looks to expand its consumer demand.

To better understand the differences between Mexican and Canadian business cultures, Canadian exporters should consider purchasing patterns, not only from a country basis, yet on a regional level as well. While some products might sell well in some regions, they may not be as popular in other areas. It is important for Canadian companies to work with local importers/distributors that are knowledgeable about Mexican trends, and whom can provide guidance on locating reputable business contacts, while also developing successful business relationships towards an appropriate strategy to enter the market. Local representatives can also assist with issues related to legal regulations, pricing, customs clearance, and provide other important technical/logistical sales support.^{Footnote 3}

Some options for finding Mexican distributors include: participating in relevant trade shows (Expo ANTAD, Abastur, Expo Hotel), participating in trade missions aimed at the Mexican market, and contacting reliable sources of information such as Mexican industry associations or the Trade Commissioner Service in Mexico; which has three business development offices (Guadalajara, Mexico City and Monterrey).

For more information

The Canadian Trade Commissioner Service:

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.

• Find a Trade Commissioner

More agri-food market intelligence:

International agri-food market intelligence
Discover global agriculture and food opportunities, the complete library of Global Analysis reports, market trends and forecasts, and information on Canada's free trade agreements.

Agri-food market intelligence service
Canadian agri-food and seafood businesses can take advantage of a customized service of reports and analysis, and join our email subscription service to have the latest reports delivered directly to their inbox.

More on Canada's agriculture and agri-food sectors:

Canada's agriculture sectors
Information on the agriculture industry by sector. Data on international markets. Initiatives to support awareness of the industry in Canada. How the department engages with the industry.

Resources

• CATSNET, Statistics Canada, 2022
• Embassy of Canada, 2022. Canadian Trade Commissioner Service : Mexico
• Euromonitor Intelligence. January 2022. Country Report: Fish and Seafood in Mexico
• Global Trade Tracker, 2022.
• LaJornada, Mexico City. 2 May, 2022. La Nueva Viga concentrates 65% of the annual Mexican fishing : Sader (in Spanish only)
• Ministry of Agriculture and Rural Development (COMEPESCA). 15 April, 2019. The great fish and seafood markets of Mexico (in Spanish only)
• Muñoz Nuñez, Daylin. Walton Family Foundation. November 2021. Supporting Diverse Entrepreneurs: To Creat a Market for Sustainable Seafood in Mexico, Work "Smarter"
• National Aquaculture and Fisheries Commission (CONAPESCA). 1 April, 2021. Tuna, mojarra, dogfish, croaker, sea bass and shrimp among the most representative fishery and aquaculture products in national consumption (in Spanish only)
• OECD-FAO Agricultural Outlook 2021-2030
• OECD Review of Fisheries Country Notes . January 2021. Fisheries and Aquaculture in Mexico

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

Prepared by: Erin-Ann Chauvin, Senior Market Analyst

© Her Majesty the Queen in Right of Canada, represented by the Minister of Agriculture and Agri-Food (2022).

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 Rd, Tower 5, 3rd floor
Ottawa ON  K1A 0C5
Canada
Email: aafc.mas-sam.aac@agr.gc.ca

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.