A giant wakes - again
A major trade show next month could mark a more positive phase for China’s seafood sector.
It was Napoleon who famously warned that when China wakes up, the rest of the world will know about it. China has in fact been in a form of slumber these past two years, brought about by various coronavirus lockdowns. But in seafood terms it will come alive again in November when the country stages the 26th annual China and Fisheries Seafood Expo in the north east city of Qingdao.
This dynamic event, also known as CFSE 2022 was originally scheduled for late October but because of new Covid restrictions has now been postponed until November 9-11.
The organisers said: “Due to the Covid-19 situation in China, Qingdao City officials recently announced a prohibition on mass gatherings such as trade shows until 31 October.”
“It was a hard decision to make, but at the end of the day we feel it was the right one,” said Peter Redmayne, President of Sea Fare Expositions, Inc, the overseas co-organiser of CFSE.
The good news is that China’s demand for imported seafood continues to grow in spite of the challenges associated with Covid.
Last year, for example, its officially reported seafood imports rose 15% to almost US $18bn (£15.7bn).
Despite the two-week postponement, the exhibition is expected to attract more than 30,000 industry specialists from across the world, fully opening up what is still the world’s largest seafood market.
The Norwegian Seafood Council has been keeping a close eye on the situation and has found that important changes are taking place since the disruptions caused by the pandemic.
While the Covid measures certainly had consequences, seafood exports showed a record breaking increase between January and August this year.
They rose by 45% to around NOK 4.5bn (£420m) over the same period last year with fresh whole salmon the most important value driver and accounting for 39% of that value.
Salmon is followed by frozen whole cod (up 18%) haddock (up 10%) and mackerel (up 9%).
The Seafood Council has found that, overall, the Chinese economy is experiencing “macroeconomic headwinds”, as result of a decline in the country’s real estate sector and tough “zero Covid” policies, which are dampening demand and the desire to invest.
Consumer habits are also changing with fewer people eating out and more cooking at home and shopping online (which is a developing trend in some European countries too).
The Chinese are the world’s most prolific Internet shoppers and online accounts for 29% of the national consumer market.
The Seafood Council says: “Despite the fact that sales in physical stores have picked up after a difficult spring, growth is 2.7% in July compared to July last year which is modest, given that this growth in recent years has been around 12% on average.
“Online shopping, on the other hand, is up 11% in the second quarter, and we see that consumption of food and household goods has been strong.”
Andreas Thorud, the Seafood Council’s China envoy, believes: “The pandemic’s closed restaurants have contributed to more Chinese being inspired to cook salmon at home. You can also see that salmon is becoming more prominent in grocery and online stores.
“From being a country where fresh salmon has mostly been consumed in restaurants, we see that the pandemic has made more Chinese in the big cities open their eyes to enjoying salmon at home. This is an exciting development that can increase the total market, and [shows] where Norwegian salmon must position itself.”
He says that in China the pandemic restrictions have been particularly strict, which has led to the restaurants being closed for long periods.
“This has led to people increasing their home consumption of seafood. While e-commerce is an important channel, the logistics must also work here. At the same time, our surveys show that trust in the outlet is crucial for customers”, he adds.
Thorud also thinks China’s increasing health awareness is one of the reasons why Norwegian salmon hits well with the consumer trends that are important in the country.
The Seafood Council’s report on the Chinese consumer shows that Norway is seen as a reliable and favoured export country.
“The good quality of our products is highly appreciated. Aspects such as a cold climate, clean water and a good environment are highlighted by consumers,” Thorud argues.
He continues: “We work strategically in this market, where there is unrealised potential. I think the decade we are in now is very defining for Chinese consumption habits for imported seafood. We meet a curious but also quality-conscious Chinese consumer. Then we have to meet his or her needs.”
He says that due to consumers’ awareness of seafood origins, an increasing number of retailers have strengthened consumer communication. For example, they mark the seafood origin on their products and marketing materials.
“We at the Seafood Council hope that strategic ties can be forged, and that partners and retailers will jointly maintain this work to build trust among consumers. That will increase the preference for Norway,” Thorud concludes.
The pandemic has made more Chinese in the big cities open their eyes to enjoying salmon at home