Analysis of the salted fish market in India
The relevance of research
Salted fish is a product processed with table salt for preservation and obtaining fish products with special taste properties.
Purpose of the study
Analysis of the state of the salted fish market, assessment of the market volume, analysis of competitors, as well as identification of factors affecting the salted fish market
Content
Part 1. Overview of the Indian Salted Fish Market
1.1. Main characteristics of the market
1.2. Dynamics of the market volume of salted fish 2016-2020 Potential market capacity
1.3. Assessment of factors affecting the market
1.4. Life cycle stage of the salted fish market
1.5. Competition from substitute products
Part 2. Competitive analysis in the salted fish market
2.1. Major players in the market
2.2. Market shares of the largest competitors
2.3. Profiles of major players
Part 3. Salted fish production analysis
3.1. Volume and dynamics of domestic production of salted fish
3.2. Share of exports in the production of salted fish
3.3. Segmentation of salted fish production by regions
3.3.1. Production by Union Territories
3.3.2. Production by states of India
Part 4. Analysis of foreign trade supplies of salted fish
4.1. Volume and dynamics of imports of salted fish
4.2. Import structure
4.3. The volume and dynamics of exports of salted fish
4.4. Export structure
Part 5. Analysis of consumption of salted fish
5.1. Salted fish consumption dynamics
5.2. Analysis of the results of tenders for the purchase
Part 6. Price Analysis
6.1. Average producer prices by union territories
6.2. Average consumer prices by states in India
Part 7. Assessment of factors of investment attractiveness of the market
Part 8. Forecast for the development of the salted fish market until 2025
Part 9. Recommendations and conclusions
Research excerpt
Part 1. Overview of the Indian Salted Fish Market
1.1. Main characteristics of the market
Salted fish is a product processed with table salt for preservation and obtaining fish products with special taste properties. According to the method of introducing salt into fish, salting can be dry, mixed and wet. Dry salting - the fish is rubbed and sprinkled with salt; mixed - they use brine, and sprinkle fish in rows with salt; wet salting - in saline solutions of a certain concentration.
Also, salted fish is divided according to the degree of salting. In low-salted fish, 4-6% salt, the next is lightly salted (up to 9%), in medium-salted fish, 9-13% salt and more than 13% salt are hard-salted fish.
Fish weighing up to 1,5 kg can be salted whole, for larger fish there are different ways of cutting - finned, gilled, gutted with a head, gutted headless, headless, gutted salmon cutting, layer with head, headless layer, half layer, back, teshu , piece, sidebar, slices.
Recently, the so-called assortment falsification is often encountered. For example, for red salted fish, this is the sale of cheaper pink salmon under the guise of more expensive salmon and salmon. It is almost impossible to determine their differences in a piece of fillet, the only way out is to trust trusted manufacturers.
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1.2. Dynamics of the market volume of salted fish 2016-2020 Potential market capacity
Salted fish market volume during 2017-2019 demonstrated...
Diagram 2. Dynamics of the volume of the salted fish market, 2016 - 2020, thousand tons
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Assessment of factors influencing the market. Consider the main factors affecting the market and, accordingly, demand.
Economic
GDP is a macroeconomic indicator that reflects the market value of all final goods and services produced in a year in all sectors of the economy on the territory of the state for consumption, export and accumulation.
The dynamics of India's GDP is decisive in the vector of development of the entire economy of the country and determines the key trends in consumer effective demand and economic activity.
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Социальные
Population decline. The current demographic situation in India is characterized by natural population decline (since 2017), which is accelerating, and migration growth, which does not compensate for natural decline.
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Real disposable money income per capita is income minus mandatory payments, adjusted for inflation. This factor determines the level of effective demand of buyers, is one of the key reasons for the formation of the dynamics of both retail turnover and demand for services.
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technological
Vegetable fish. Meat alternatives are growing in popularity as consumers demand more variety. Now plant-based fish is the next trend, and companies are inventing new food products that imitate seafood.
Startups and large corporations are showing interest in plant-based fish. Atlantic Natural Foods launched TUNO in 2018, a fish-free tuna alternative made with soy, yeast, and sunflower extract. In 2019, Impossible Foods announced it was working on plant-based fish, and Good Catch raised $2020 million in January 32 to fund its plant-based seafood. Nestlé launched a plant-based tuna salad in August 2020. The company recommends using plant-based tuna for salads, sandwiches and pizzas.
Companies are responding to what they see in the seafood industry and the trend to expand the range of plant-based alternatives. The fishing industry has faced numerous challenges in recent years, from environmental issues to concerns about mercury. The recent coronavirus outbreak has created additional pressure, including shortages in grocery stores. All of these factors have created a combination that is pushing consumers to opt for plant-based fish instead of regular tuna.
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Waste recycling. Integrated processing of aquatic biological resources, including a huge amount of waste generated, is the main task of the fishing industry. The issue is relevant for large and small fish processing enterprises, fish farms.
The main motivation for processing and using food waste is to generate additional income.
Methods of cutting, gutting are specified in the norms and standards, but are often violated and not observed. There are many reasons: from the imperfection of the equipment used to the low qualification of cutting workers.
Fishmeal and fish oil have long been and will continue to be the main products of fish waste processing for a long time. Manufacturers of recycling equipment focus on these final waste products.
Recycling processes not only benefit, but also avoid the environmental hazards posed by fish waste, which contributes to the development of zero-waste production for the benefit of other industries.
The processing of fish waste in India is not well established: hundreds of thousands of tons of waste are thrown into the sea when caught; a huge part is disposed of in the most barbaric way, causing irreparable harm to the environment; most of the raw materials are cremated, which leads to additional costs, air pollution, and an increase in the cost of fish products.
Political
State control. Opening a fish business requires interaction with government agencies, namely, obtaining consent to conduct economic activities from the SES, Rosprirodnadzor, Rostekhnadzor, the veterinary service and the Ministry of Emergency Situations.
A license for the production of fish products is not required by law, however, you will have to issue certificates for each manufactured item, and this is also an additional cost. This aspect should be given special attention, since the SES will monthly monitor the quality of fish products. The room must also meet the mass of sanitary and hygienic requirements. Negative influence of the factor.
Regulation of coastal fisheries
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Development of the fishery complex. The fishing industry is one of the traditional industries in India. The main activities of the fishing industry include fishing (fishing), fish breeding (fish farming), as well as processing and production of the main types of fish products.
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Concluding the assessment of the factors influencing the Indian salted fish market, we will summarize the key ones in the framework of the STEP-analysis.
Table 1. STEP analysis of factors affecting the salted fish market
According to the results of the STEP-analysis, macro-environmental factors have a negative impact on the development of the salted fish market to a greater extent. income of the population, the dynamics of GDP, as well as the instability of exchange rates.
1.4. Life cycle stage of the salted fish market
The market for salted fish is at a mature stage of development, certain principles and rules for the operation of the market for salted fish products have been formed, and a niche for consumers of salted fish as a food product has been formed. The product is presented on the market with a large number of modifications. As is typical for the maturity stage, sales either continue to grow, but at a very slow pace, gradually reaching a maximum value, or remain stable.
Salted fish as a product does not belong to the category of novelties, since it has long passed into the category of standard products. There are a small number of consumers on the market who have made a purchase of salted fish for the first time, as a rule, the bulk of consumers make a purchase again or more often multiple times. In addition, buyers have the opportunity to choose between numerous brands offering goods for sale.
At this stage, the role of price competition increases, as the product is offered for sale by many manufacturers. The main emphasis in promotional activities at this time is on attracting a mass conservative consumer who prefers a well-known and tested product at reasonable prices.
At the stage of maturity, the main task of marketing activities is to extend the life cycle of the product and involves:
– improvement of the trade assortment due to product differentiation;
– deeper market segmentation and entry into new segments (if there are any left);
- Encouraging existing customers to systematically and more frequently purchase goods;
- conducting competitive advertising campaigns;
– search for new consumer groups and encourage them to make a purchase.
1.5. Competition from substitute products
The main competitor of salted fish is preserves. They are quite serious competition to ordinary salted fish. Preserves in oil, various fillings and sauces are especially popular. The production of preserves is growing every year.
Due to the decrease in incomes of Indians due to crisis changes in the country's economy, consumer demand will shift to the segment of cheap fish preserves.
Fish preserves with a high positive price-quality ratio have several properties that are important for the consumer at once. The product is completely ready for use, which, in conditions of constant lack of time, especially among residents of large cities, can significantly save time. Another valuable consumer property of fish preserves is the possibility of longer storage. Unlike salted fish, preserves can be stored for up to 4 months. Thus, the impact on the salted fish market from the substitute product “preserved fish” is high.
Part 2. Competitive analysis in the salted fish market
2.1. Major players in the market
The big players in the salted fish market in 2020 are...
The production of salted fish in large Indian fish processing companies, as a rule, occupies a small share of the total production.
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2.2. Market shares of the largest competitors
The assessment of the shares of the largest operators in the salted fish market was carried out by GidMarket on the basis of the companies' forecasted revenue, taking into account the share of salted fish production in the company's total assortment.
Diagram 9. Shares of the largest competitors in the salted fish market in 2020, %
From the point of view of competitive concentration, the market is classified as low-concentrated (Herfindahl-Hirschman index (HHI <1000). Mergers and acquisitions are allowed without hindrance.
2.3. Profiles of major players
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Part 3. Salted fish production analysis
3.1. Volume and dynamics of domestic production of salted fish
In 2017-2019 salted fish production ...
The revenue of industry leaders is increasing every year. The GidMarket company estimates that in 2020 the total revenue of the TOP-5 enterprises producing salted fish amounted to ...
3.2. Share of exports in the production of salted fish
The dynamics of export volumes does not have a significant impact on the volume of domestic production.
3.3. Segmentation of salted fish production by regions
3.3.1. Production by Union Territories
The largest share in the production of salted fish for the period 2016-2020. invariably occupy the Central Union Territories, the North-Western Union Territories and the Volga Union Territories.
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3.3.2. Production by states of India
The top five regions in terms of salted fish production in 2020 include ...
Chart 13. Salted fish production in India by states of India, 2020, %
Part 4. Analysis of foreign trade supplies of salted fish
4.1. Volume and dynamics of imports of salted fish
During 2016-2020 The dynamics of imports of salted fish to India is oscillatory.
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4.2. Import structure
Salted fish imported to India in 2020 was from Belarus. Almost all the fish that enters the Indian market, Belarus buys abroad, and in countries that are subject to the Indian embargo. At the same time, the import of Belarusian products to the Indian market in case of their processing is considered legal. Also, Belarusian suppliers often simply repackage the goods.
Table 5. Structure of imports of salted fish by importing countries in 2020
4.3. The volume and dynamics of exports of salted fish
The dynamics of exports of salted fish to India in physical terms has a multi-vector orientation.
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4.4. Export structure
The main volume of salted fish, in value terms, exported from India in 2020 is supplied ...
Chart 19. Structure of exports by countries in 2020, %
Part 5. Analysis of consumption of salted fish
5.1. Salted fish consumption dynamics
During 2017-2019 The dynamics of consumption of salted fish in physical terms showed a downward trend.
5.2. Analysis of the results of tenders for the purchase
From Oct. 2020 to Dec. 2020 118 tenders for the purchase of salted fish were announced. Customers are mainly budgetary institutions: hospitals, sanatorium organizations, kindergartens, schools and other institutions with existing canteens. Tenders for the supply of salted fish, as a rule, are carried out according to 44-FZ - about ...%. Due to the large number of tenders for the purchase of salted fish, the table includes completed tenders with contract amounts of more than 500 thousand Rs.
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Part 6. Price Analysis
6.1. Average producer prices by union territories
In general, in India, producer prices for salted fish for 2017-2020 decreased by ...%.
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6.2. Average consumer prices by states in India
Despite the fall in average producer prices, consumer prices show an increase.
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Part 7. Assessment of factors of investment attractiveness of the market
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Negative factors of the investment climate in the salted fish market dominate over the positive ones.
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The most significant positive factors.
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The most significant negative factors.
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Part 8. Forecast for the development of the salted fish market until 2025
Analysis of the impact of recent crises on the industry
An economic crisis is a profound disruption of normal economic activity, which is accompanied by the destruction of habitual economic ties, a decrease in business activity, the inability to repay debts and the accumulation of debt obligations. This is a phenomenon of a market economy, repeating with a certain frequency, and depending on the scale, it can either concern a particular state or be of global importance. The crisis is accompanied by a sharp decline in production, bankruptcy of enterprises, a fall in the gross national product, a large-scale increase in unemployment, and often a depreciation of the national currency.
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Analysis of the impact on the state aid industry as of 03.02.21/ /
The Indian economy in February-March 2020 was under the powerful influence of two negative factors at once - the rapid spread of the covid-19 coronavirus infection pandemic and its detrimental impact on the global economy, as well as the collapse in oil prices. Against this background, the rupiah depreciated significantly against the dollar and the euro. In response to the situation, the government and the Bank of India have approved several packages of measures to support the economy and citizens.
Forecast of scenarios for the development of the industry in terms of quarantine due to covid-2019:
The following factors make it possible to forecast the volume dynamics of the salted fish market:
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Analysis of existing cases of business restructuring in the industry. Under the conditions of coronavirus restrictions, fish processing enterprises did not rebuild customer relationship models and did not change product lines.
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Part 9. Recommendations and conclusions
Domestic products in the market of salted fish occupies a predominant share.
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Macro-environment factors have an impact on the development of the salted fish market...
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For existing and new market operators, we note the following:
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Diagrams
Chart 1. The ratio of imported and domestic products in the salted fish market, 2016-2020, %
Diagram 2. Dynamics of the volume of the salted fish market, 2016 - 2020, thousand tons
Diagram 3. Revenue (net) from the sale of salted fish by union territories for 2016 - 2020, %
Diagram 4. Dynamics of India's GDP, 2012-2020, % to the previous year
Diagram 5. Monthly dynamics of the US dollar against the rupee, Rs. for 1 US dollar, 2015-Feb. 2021
Diagram 6. Dynamics of the population of India, million people, as of 01 Jan. 2012-2021
Diagram 7. Dynamics of real incomes of the population of India, % to the previous year, 2012-2020
Diagram 8. Industry life cycle stage
Diagram 9. Shares of the largest competitors in the salted fish market in 2020, %
Diagram 10. Dynamics of salted fish production in India for 2016 - 2020, tons
Diagram 11. Dynamics of the total revenue of the largest producers (TOP-5) of salted fish in India, 2016-2020
Diagram 12. The share of exports in production for 2016–2020, %
Chart 13. Salted fish production in India by states of India, 2020, %
Diagram 14. Volume and dynamics of imports of salted fish in physical terms, 2016-2020, tons
Diagram 15. Volume and dynamics of imports of salted fish in monetary terms, 2016-2020, thousand US dollars
Diagram 16. Dynamics of export of salted fish in physical terms, 2016-2020, tons
Diagram 17. Dynamics of export of salted fish in monetary terms, 2016-2020, thousand US dollars
Diagram 18. Balance of exports and imports, 2016-2020, million Rs.
Chart 19. Structure of exports by countries in 2020, %
Diagram 20. Dynamics of salted fish consumption in natural terms, 2016 - 2020, kg/person
Diagram 21. Shares of salted fish customers by the total amount of contracts among tenders worth more than 500 thousand Rs., concluded in October-December. 2020, %
Diagram 22. Shares of salted fish supply regions by the total amount of contracts among tenders worth more than 500 thousand Rs., concluded in October-December. 2020, %
Chart 23. Forecast of salted fish market size in 2021-2025 – under the scenario of one quarantine, thousand tons
Chart 24. Forecast of salted fish market size in 2021-2025 – under the scenario of two quarantines, thousand tons
Tables
Table 1. STEP analysis of factors affecting the salted fish market
Table 2. Main companies participating in the salted fish market in 2020
Table 3. Profiles of companies participating in the salted fish market in 2020
Table 4. Dynamics of salted fish production in India by union territories, 2016-2020, tons
Table 5. Structure of imports of salted fish by importing countries in 2020
Table 6. Data on completed tenders for the purchase of canned fish announced in Oct. – Dec. 2020 with a contract amount of more than 500 thousand Rs.
Table 7. Average producer prices for salted or brine fish across the Union Territories, 2017, 2020, Rs./ton
Table 8. Average producer prices for salted herring or in brine across the Union Territories, 2017, 2020, Rs./ton
Table 9. Average consumer prices for salted herring fillet by states of India, 2016-2020, Rs./kg
Table 10. Assessment of factors of investment attractiveness of the salted fish market
Table 11. Assessment of the impact of recent crises on the industry
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