Sector Trend Analysis – Fish and seafood trends in Spain and Portugal

Introduction

Spain and Portugal are major fish and seafood consuming countries in the EU. In 2018, they were the second and third fish and seafood consumers in the EU, with per capita apparent consumption (PCAC) of 60.9 kilograms and 46.0 kilograms, respectively. Average PCAC in the EU is 24.4 kilograms (EUMOFA, 2020).

In 2019, consumption of processed fish and seafood through the foodservice through foodservice in the EU reached 734.800 tonnes, recorded the highest level in more than ten years. (EUMOFA, 2020). Spain and Portugal increased their out-of-home consumption of processed fish and seafood at a CAGR of 3.4% and 3.1%, respectively, from 2015 to 2019.

Due to a much larger population, the total consumption of fish and seafood in Spain is much higher than in Portugal. In Spain, consumption of main fresh fish and seafood products consumed declined at a CAGR of −0.8%, from 666.1 thousand tonnes in 2016 to 645.6 thousand tonnes in 2020. In Portugal, consumption of main products increased at a CAGR of 7.0%, from 60.4 thousand tonnes in 2016 to 79.1 thousand tonnes in 2020.

Trade overview

With imports of US$7.4 billion in 2020, Spain is the top fish and seafood importer in the EU and the fourth-largest market in the world, after the United States (US$23.0 billion), China (US$15.3 billion) and Japan (US$13.6 billion). Portugal ranked 17th worldwide for imports of fish and seafood (US$2.2 billion in 2020). Both Spanish and Portuguese imports grew in value at a CAGR of 5.0% and 1.5% respectively from 2016 to 2020. In terms of volume, Spain and Portugal ranked 4th and 23rd, respectively, in the world.

Spain

Spain has a diverse network of suppliers of fish and seafood products, with imports coming primarily from Morocco, Ecuador, China, Portugal and Argentina. Morocco is Spain's largest supplier of fish and seafood, and the value of its supplies has been growing steadily. Other fast-growing suppliers are Sweden and Norway. Portugal was the fourth-largest supplier of fish and seafood to Spain.

Canada ranked 36thin terms of suppliers of fish and seafood to Spain in 2020. Canada's share of imports grew at a much faster rate than most of the top 10 suppliers since 2016, at a CAGR of 6.3%, but its market share remained small at 0.6% in 2020.

Spain's total fish and seafood imports grew from US$7.2 billion in 2016 to US$7.4 billion in 2020, a CAGR of 0.6%. The top commodities imported by Spain are frozen shrimp and prawns (US$1.0 billion), frozen cuttlefish and squid (US$1.0 billion), prepared/preserved tuna, skipjack and atlantic bonito (US$612.1 million), frozen octopus (US$384.4 million), and fresh/chilled salmon (US$326.2 million).

Top five global suppliers of fish and seafood to Spain, by top three products, in US$ million, historical

Portugal

In Portugal, total imports of fish and seafood grew at a 0.5% CAGR from 2016 to 2020, reaching US$2.2 billion in value in 2020. Spain is by far Portugal's largest supplier, with a 40.7% market share in 2020. Sweden is the second-largest supplier of fish and seafood to Portugal, with a 13.0% share, followed by the Netherlands (8.5%), China (3.7%), and Denmark (3.3%). Portuguese imports from Canada declined at a CAGR of −31.9% from 2016 to 2020, and Canada's share of the market remains small at less than 0.5%.

Portugal's main global fish and seafood imports in 2020 were dried cod (US$233.9 million), frozen shrimp and prawns (US$179.7 million), frozen cod (US$142.7 million), salted cod (US$134.8 million), and prepared/preserved tunas (US$130.5 million).

Top five global suppliers of fish and seafood to Portugal, by top three products, in US$ million, historical

Canada's performance

Since 2016, Canada has increased its fish and seafood exports to Spain. Canada was Spain's 36th largest supplier of fish and seafood in 2020. Spain imported US$43.1 million of fish and seafood from Canada in 2020, representing an increase of CAGR at 6.3% from US$33.8 million in 2016. Top fish and seafood imports from Canada were frozen lobsters (US$19.5 million), live/fresh/chilled lobsters (US$16.7 million), and salted cod (US$1.8 million) in 2020.

In 2020, Canada was Portugal's 55th largest supplier of fish and seafood. Portugal imported US$0.9 million of fish and seafood from Canada in 2020, down from US$4.2 million in 2016, representing a CAGR of −31.9%. The top fish and seafood imports from Canada in 2020 were frozen flat fish (US$0.4 million), frozen fish (US$0.4 million) and frozen meat of fish of the families bregmacerotidae (US$69,359).

Retail sales

Spain

During the national lockdown, foodservice outlets were limited to takeaway and delivery services, heavily restricting sales and thus leading to a decline in on-trade sales of fish and seafood in 2020. As such, the focus turned to retail sales in 2020, as producers and retailers renegotiated profits and margins as sales were channelled towards retail outlets serving Spanish consumers confined to home seclusion for much of 2020. During 2020, therefore, companies turned their attention to raising their brand awareness in retail as well as concentrating on expanding their offering in supermarkets and hypermarkets for 2020 and the coming years as well (Euromonitor international, 2021).

Spain's retail sales value of total fish and seafood grew from 2016 to 2020 at a CAGR of 0.3% and were valued at US$10.2 billion (1,314.2 thousand tonnes) in 2020. They are expected to increase faster by 3.7% to US$12.1 billion (1,498.5 thousand tonnes) by 2025. Retail sales in 2020 demonstrate that Spanish consumers show a preference for fresh and shelf stable fish and seafood. This preference is expected to continue in the forecast period.

Portugal

Portugal's retail sales value of total fish and seafood declined from 2016 to 2020at a CAGR of 0.6%. Retail sales were valued at US$2.2 billion (270.9 thousand tonnes) in 2020 and are expected to increase by 3.5% to US$2.6 billion (299.5 thousand tonnes) by 2025.

Competitive landscape

Spain

In 2020, the processed fish and seafood retail market in Spain was dominated by private labels and others (73.7%) as opposed to brand labels. Grupo Calvo, Bolton Group, Hijos de Carlos Albo, JEALSA Rianxeira and Frigorificos del Noroeste were the top five brands in 2020. Frigorificos del Noroeste saw the largest growth (9.3%) in retail sales, from US$49.4 million in 2016 to US$70.4 million in 2020.

Following the upheaval of the COVID-19 pandemic, many Spanish companies have developed e-commerce platforms, aiming to sell fish to consumers that would ordinarily have been sold directly to foodservice outlets. More players are expected to follow suit in the forecast period as more companies learn to adapt to the conditions of COVID-19. Companies in fish and seafood are, therefore, expected to become more innovative in terms of their business models and selling methods. (Euromonitor international, 2021)

Portugal

In Portugal, the sector is also dominated by private labels and others (65.0% share in 2020). The number one player is Cofaco - Comercial e Fabril de Conservas. which accounted for 14.0% of the market in 2020.

COVID-19 pandemic has caused economic uncertainty and closure of the food service. In this context, Portuguese consumers are expected to increase their demand for more affordable seafood specie and frozen and processed fish. These consumer trends are likely to continue even after the pandemic (USDA, 2021)

Foodservice

Spain

The sales value of fish and seafood in Spain's foodservice industry experienced a 2.3% CAGR from US$2.2 billion in 2016 to US$2.4 billion in 2019. Before the COVID-19 pandemic, growth in sales value is forecast to increase, albeit at a lower rate of 1.6%, with sales expected to reach US$2.6 billion by 2023.

Demand for fish and seafood in Spain saw a sharp decline in 2020 as foodservice outlets around the country were closed during the national lockdown.

Restaurants are Spain's largest subsector with a sales value of fish and seafood of US$1.4 billion in 2019, up from US$1.3 billion in 2016, a CAGR of 2.3%. The restaurant subsector will continue to increase by 1.5% in the forecast period, with the sales value expected to reach US$1.5 billion by 2023. Accommodation channels were Spain's second-largest subsector, with a sales value of US$421.2 million in 2019, followed by pubs, clubs and bars (US$249.4 million), leisure channels (US$130.4 million) and retail outlets (US$107.6 million). All subsectors saw measurable growth in the 2016-2019 period and are expected to maintain these growth levels, at slightly lower rates, in the forecast period.

Portugal

Sales value of fish and seafood in Portugal's foodservice industry had a 2.0% CAGR from US$697.5 million in 2016 to US$739.5 million in 2019. Before COVID-19, growth in sales value is forecast to increase, albeit at the lower rate of 1.3%, as sales are expected to attain US$781.0 million by 2023.

Due to sanitary restrictions, fish and seafood sales in food service sectors are estimated to decline by 40% during the spring lockdown in 2020 (USDA, 2021).

The accommodation subsector is Portugal's largest subsector with a sales value of fish and seafood of US$548.6 million in 2019 and a CAGR of 2.0% from a sales value of US$516.3 million in 2016. The accommodation subsector will continue to increase by 1.3% in the forecast period, with the sales value expected to reach US$580.5 billion by 2023. Leisure channels were Portugal's second-largest subsector with a sales value of US$66.2 million in 2019, followed by mobile operators (US$44.1 million), pubs, clubs and bars (US$23.9 million) and restaurants (US$22.4 million). All subsectors reached measurable growth in the 2016 to 2019 period and are expected to maintain these growth levels, at slightly lower rates, in the forecast period.

New product launch analysis

Spain

According to Mintel's Global New Products Database (GNPD), there were 1,907 launches of fish and fish products (as an ingredient) in Spain between January 2016 and December 2020. In 2020, the top categories of food products offered were processed fish, meat and egg products, meals and meal centres, and snacks. The top claims (may contain more than one claim per package) were low/no/reduced allergen, gluten-free and microwaveable. The top five brands were Hacendado, Carrefour, Deluxe, Pescanova and Ifa Eliges. The top ingredients identified were fish and fish products, shellfish, tuna, prawn and cod.

Portugal

According to Mintel's GNPD, there were 147 fish and fish products (as an ingredient) launched as food products in Portugal between January 2016 and December 2020. In 2020, the top categories of food products offered were processed fish, meat and egg products, meals and meal centres, and savoury spreads. The top claims (may contain more than one claim per package) were environmentally friendly products and sustainable (habitat/resources) and no additives/preservatives. Top brands were Bom Petisco, A Peixaria de La Piara, and Sal de Plata. The top ingredients identified were tuna, sardine, fish and fish products, shrimp, and mackerel.

Examples of new product launches

Opportunities for Canada

The Comprehensive Economic and Trade Agreement (CETA)

With CETA, 98% of EU tariff lines are now duty-free for Canadian goods, and an additional 1% will be eliminated over seven years. Tariff elimination provides enhanced export opportunities into the EU market for Canadian producers, processors, and manufacturers, as well as for agricultural and agri-food products, fish and seafood, forestry goods, and the full range of industrial goods.

How does CETA benefit Canadian fish and seafood exporters? (Global Affairs Canada, 2020)

• Under CETA, almost 96% of EU tariff lines for fish and seafood products have become duty-free. 100% of these tariff lines will be duty-free after seven years.
• Before the CETA, EU tariffs for fish and seafood averaged 11% and could be as high as 25%.

For more information, please visit Opportunities and Benefits of CETA for Canada's Fish and Seafood Exporters.

Consult the Canada Tariff Finder to explore tariff information for the CPTPP market, and other countries with which Canada has a free trade agreement.

Conclusion

Spain and Portugal are among the largest consumers of fish and seafood in the world, and they import a significant proportion of what they consume. Spanish imports from Canada have increased significantly since 2015 at a CAGR of 22.6%, while Portuguese imports from Canada have decreased since 2015 at a CAGR of −0.9%. There is still room for growth, especially with the elimination of tariffs under the CETA.

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

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For additional information on Seafood Expo Global/Seafood Processing Global and Anuga 2021, please contact:

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Resources

• Euromonitor International, 2021
• Euromonitor International, 2021, Fish and Seafood in Spain
• EUMOFA, 2020, The EU fish market – 2020 Edition. The European Market Observatory for fisheries and aquaculture.
• Global Affairs Canada, 2020, Opportunities and Benefits of CETA for Canada's Fish and Seafood Exporters.
• Global Trade Tracker, 2021
• GlobalData, 2020
• Mintel Global New Products Database, 2021
• United States Department of Agriculture, 2021, Portugal: The Portuguese Seafood Sector

Sector Trend Analysis – Fish and seafood trends in Spain and Portugal
Global Analysis Report

Prepared by: Zhiduo Wang, Market Analyst

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