Inside Germany Seafood Trade

International Markets Bureau MARKET INDICATOR REPORT AUGUST 2012 Inside Germany Seafood Trade

Inside Germany Seafood Trade TRADE SUMMARY Fish and seafood in Germany is an expanding market that relies heavily on foreign suppliers. In 2011, Germany imported over US$5.4 billion worth of fish and seafood products, representing 88% of the total fish and seafood sold in Germany. In the global seafood market, Germany is a major importer. Imports of fish and seafood in 2011 increased by 14.5% over 2010. Top suppliers were Norway (13.4%), Poland (13.3%), China (10.6%), Denmark (9.4%), the Netherlands (9.1%) and the United States (5.0%). Germany s main fish and seafood imports include frozen fish fillets (US$1,538 million), smoked salmon (US$551.1 million), fresh salmon (US$315.3 million), frozen shrimp and prawns (US$297.4 million), prepared tuna/skipjack/bonito (US$294.8 million), and other fresh fish, excluding fillets (US$284.0 million). INSIDE THIS ISSUE Trade Summary 2 Canadian Performance 2 By the Numbers 3 Top Ten Fish and Seafood Suppliers to Germany, 2011 Market Sizes 5 Distribution Channels 7 4 In 2011, Germany exported just over US$2.4 billion of fish and seafood products, an increase of 13.3% over 2010. Most of Germany s fish and seafood exports were from the frozen fish category. CANADIAN PERFORMANCE In 2011, Canada exported US$28.4 million in fish and seafood products to Germany. Canada s top fish and seafood exports were: frozen fish fillets (US$5.7 million), frozen lobster (US$4.2 million), prepared shrimp and prawns (US$4.2 million), live lobster (US$3.3 million), and frozen shrimp and prawns (US$3.2 million). While Canada is dwarfed by its competitors in Germany and makes up less than 1% of the German market share, Canada still holds its position as one of Germany s top 30 suppliers of fish and seafood. According to German import statistics, imports of Canadian fish and seafood increased by approximately 10% from 2010 to 2011 (Global Trade Atlas, 2012). PAGE 2

BY THE NUMBERS Rank Total Import Top Import Country Top Import Supplied Value in US$ Value in US$ World 5,407,504,683 Frozen fish fillets 1,538,492,442 1 Norway 727,526,778 Frozen/chilled salmon 278,482,714 2 Poland 720,338,416 Smoked salmon 413,785,453 3 China 572,262,220 Frozen fish fillets 513,168,159 4 Netherlands 501,640,327 Frozen fish fillets 81,627,670 5 Denmark 492,545,170 Frozen fish fillets 74,649,622 6 United States 268,411,722 Frozen fish fillets 179,817,286 7 Vietnam 241,310,978 Frozen fish fillets 101,783,303 8 Thailand 147,478,078 Prepared shrimp and prawns 78,501,211 9 United Kingdom 142,402,326 Frozen fish fillets 23,522,683 10 Lithuania 107,857,958 Smoked salmon 71,280,669 Source: Global Trade Atlas, 2012. Top 10 Countries Supplying Germany with Fish and Seafood (based on import data) and Top Imported Products in 2011 According to Euromonitor, fish consumption in Germany is forecast to grow from 2012 to 2015. According to the German Fish Association, each German is expected to consume 17.5 kg of fish per year by 2015. In terms of consumption, frozen fish, which has a very positive image in Germany, demonstrated the best results. Fresh fish also had good results, reaching a 9% share of total fish consumption. Alaskan salmon, herring, salmon, tuna, pangasius and tilapia remained the most sought-after fish varieties in Germany. Fresh fish continues to face stiff competition from frozen and packaged/processed products. Packaged and processed fish are more cost-effective and more widely available than fresh fish, which influences consumption volume. In fact, the availability of fresh fish in Germany is somewhat limited, as most supermarkets do not have fresh fish departments. Nevertheless, health-conscious consumers will always tend to buy fresh or at least frozen unprocessed fish, which is also perceived as healthy. Import Value in US$ Millions 800 700 600 500 400 300 200 100 0 Top Suppliers of German Fish and Seafood Imports by Value, 2011 728 720 Norway Poland 572 502 493 China Netherlands Denmark United States 268 241 147 142 108 103 89 89 81 79 74 64 62 60 58 Vietnam Thailand United Kingdom Lithuania Iceland Spain Ecuador Russia Belgium France Turkey Bangladesh Italy Chile Source: Global Trade Atlas, 2012. PAGE 3

TOP TEN FISH AND SEAFOOD SUPPLIERS TO GERMANY, 2011 1. Imports from Norway 2. Imports from Poland Fresh/chilled salmon with bones $277.3M Smoked Pacific, Atlantic and Danube Salmon $413.4M Frozen fish fillets $147.8M Prepared/preserved herring, whole or pieces $84.3M Dried cod, whether or not salted $83.3M Frozen fish fillets $77.1M Frozen fish meat except steaks and fillets $65.3M Smoked fish, including fillets $48.4M Fresh/chilled fish fillets and other meat $45.0M Prepared/preserved fish, whole or in pieces $32.6M 3. Imports from China 4. Imports from the Netherlands Frozen fish fillets $512.6M Frozen fish fillets $80.8M Prepared/preserved fish, whole or pieces $7.0M Prepared/preserved shrimp and prawns $63.3M Frozen shrimp and prawns, including in shell $6.8M Frozen fish fillets and other meat $56.5M Prepared/preserved salmon, whole or pieces $6.5M Prepared/preserved tuna/skipjack/bonito $41.4M Frozen/salted/dried cuttlefish and squid $6.0M Prepared or preserved fish $18.2M 5. Imports from Denmark 6. Imports from the United States Frozen fish fillets $74.2M Frozen fish fillets $179.8M Frozen fish fillets and other meat $64.0M Caviar and caviar substitutes $20.8M Prepared/preserved fish, whole or pieces $29.4M Frozen sockeye salmon, excl. fillets $16.2M Smoked fish, including fillets $28.4M Frozen fish meat, except steaks and fillets $13.2M Smoked salmon $27.8M Frozen cod, excluding fillets $9.2M 7. Imports from Vietnam 8. Imports from Thailand Frozen fish fillets $101.6M Prepared/preserved shrimp and prawns $78.5M Frozen shrimp and prawns $78.5M Frozen shrimp and prawns $31.5M Prepared/preserved shrimp and prawns $30.5M Frozen/dried/salted cuttlefish and squid $11.4M Prepared/preserved tuna/skipjack/bonito $15.0M Prepared/preserved tuna/skipjack/bonito $9.8M Frozen/dried/salted cuttlefish and squid $5.6M Frozen fish fillets $3.9M 9. Imports from the United Kingdom 10. Imports from Lithuania Frozen fish fillets $23.3M Smoked salmon $71.3M Frozen shrimp and prawns $15.6M Frozen fish fillets $21.9M Smoked salmon $13.7M Prepared/preserved herrings, whole or pieces $3.8M Fresh/chilled fish fillets and other meat $9.0M Prepared/preserved fish whole or pieces $2.9M Salmon, fresh or chilled with bone $9.0M Fish and seafood, details unknown $2.5M Source: Global Trade Atlas, 2012. PAGE 4

MARKET SIZES Fresh Fish and Seafood Retail Sales in Germany by Segment in Thousands of Tonnes, Historic/Forecast Category 2007 2008 2009 2010 2011 2012 2013 2014 2015 Fish 260.3 266.8 268.1 284.3 289.7 294.6 299.8 304.9 309 Mollusks and cephalopods 73.7 74.6 75.3 70.8 71.3 71.8 72.4 73.0 74.5 Crustaceans 35.4 35.9 36.2 37.4 37.7 38.1 38.5 38.9 40.1 2016 314.2 75.2 40.7 Source: Euromonitor, 2012. While Germany may lag behind some other Western European countries in terms of fish consumption, fish and seafood is becoming more popular with Germans, thanks in part to the increasing focus on health issues, particularly obesity and cardiac health. More and more Germans are switching from meat to fish, as meat prices have risen over the past few years and fish prices have fallen, according to the Federal Trade Association of the German Fishing Industry. The consumers of fish in Germany are in the northern states Hamburg, Sachsen, Schleswig-Holstein, Berlin, Brandenburg and Bremen. Fish, particularly herring, features heavily in Northern German cuisine. Fresh Fish and Seafood Market Sizes in Germany % Volume Growth Forecasts Category *CAGR = compound annual growth rate Source: Euromonitor, 2012. Total 2012-2016 CAGR* 2012-2016 Fish and seafood 6.3 1.5 Crustaceans 6.8 1.7 Fish 6.7 1.6 Mollusks and cephalopods 4.7 1.2 The importation of frozen fish fillets, fresh or chilled fish fillets, and other fish meat is free of tariffs within the European Union (E.U.). E.U. countries exporting seafood to Germany also benefit from lower transportation costs and a common currency. However, in addition to E.U. directives and regulations, Germany has imposed its own requirements on imported fish; therefore, all imported fish products must comply with both German and E.U. food regulations with regards to ingredients, packaging, and labelling, as well as with applicable veterinary requirements. PAGE 5

MARKET SIZES (continued) Canned Fish and Seafood Retail Sales Value in Germany by Segment, Historic/Forecast, in US$ millions Category 2009 2010 2011 2012 2013 2014 Tuna 451.4 446.9 442.5 438.1 433.9 429.8 Other canned fish/seafood 237.2 227.2 217.3 207.6 198.1 188.9 Mackerel 26.9 26.0 25.2 24.5 23.8 23.2 Salmon N/A N/A N/A N/A N/A N/A Total 715.5 700.1 685.0 670.3 655.9 641.9 Growth over previous year -2.2% -2.2% -2.2% -2.1% -2.1% -2.1% Chilled Fish and Seafood Retail Sales Value in Germany by Segment, Historic/Forecast, in US$ millions Category 2009 2010 2011 2012 2013 2014 Coated fish/seafood 678.8 708.5 742.1 778.9 819.4 864.0 Raw seafood 569.3 576.3 584.7 594.6 606.0 619.0 Raw fish 424.6 439.9 456.4 474.2 493.3 513.8 Total 1,672.6 1,724.6 1,783.3 1,847.7 1,918.7 1,996.8 Growth over previous year 2.9% 3.1% 3.4% 3.6% 3.8% 4.1% Frozen Fish and Seafood Retail Sales Value in Germany by Segment, Historic/Forecast, in US$ millions Category 2009 2010 2011 2012 2013 2014 Raw fish 187.6 195.3 203.1 211.2 219.5 227.2 Coated fish/seafood 117.3 118.9 120.5 122.1 123.7 125.3 Raw seafood 96.2 97.7 99.3 100.8 102.4 103.9 Other fish/seafood 69.0 70.3 71.6 72.9 74.2 75.5 Total 470.2 482.2 494.5 507.0 519.8 532.0 Growth over previous year 2.6% 2.6% 2.5% 2.5% 2.5% 2.3% Source for all: Datamonitor, 2012. Germany is one of the world s largest markets for consumer-oriented foods, and fish consumption is four times higher than domestic production. However, consumption of fish products in Germany is still below the world average. In addition to quality and price, consumers are becoming more interested in the origin and breed of fish products, which also influences their buying decisions. It is also worth noting that most retailers have adopted sustainability programs that are shaping their fish-sourcing policies, such as Marine Stewardship Council (MSC) certification. Animal welfare is also a high-profile theme in Germany, and may play into consumers decision-making process, with regards to purchasing fish and seafood. PAGE 6

DISTRIBUTION CHANNELS Food retailing in Germany is dominated by five major chains: Metro Group, Edeka/AVA Group, Rewe Group, Aldi Group and Schwarz Group. Usually, the importation and distribution of fish products from countries outside the E.U. are handled by specialized importers. Fish and Seafood Distribution Channels in Germany by Value, 2010 Channel % Share Supermarkets / hypermarkets 82.5 Independent retailers 8.8 Specialist retailers 3.9 Convenience stores 2.6 Service stations 1.4 Department stores (Incl. duty-free shops) 0.7 Cash and Carry and Warehouse clubs 0.1 Source: Datamonitor, 2012. Company Shares in the German Fish and Seafood Market by Volume, 2010 Others, 14.5% Own Label, 68.5% Company Shares in the German Fish and Seafood Market by Value, 2010 Ow n Label Own 60% Label 60% Others 17% Iglo GmbH 20% Costa Costa Meeressp Meeresspezialitäten GmbH & ezialitäten GmbH Co. KG, & Co. KG, 2.5% Iglo GmbH, 14.5% Costa Meeresspezialitäten GmbH & Co. KG Co. KG, 3% 3% Source: Mintel 2012. Source: Mintel 2012. Source for all: Mintel, 2012. PAGE 7

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 assumes no liability for any actions taken based on the information contained herein. Inside Germany Seafood Trade Her Majesty the Queen in Right of Canada, represented by the Minister of Agriculture and Agri-Food Canada (2012). ISSN 1920-6615 AAFC No. 11783E 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. For additional copies of this publication or to request an alternate format, please contact: Agriculture and Agri-Food Canada 1341 Baseline Road, Tower 5, 4th floor Ottawa, ON Canada K1A 0C5 E-mail: infoservice@agr.gc.ca Aussi disponible en français sous le titre : Vue d ensemble du marché des fruits de mer en Allemagne