In the first half of February, pangasius exports to the UK increased dramatically by 142% compared to the same period in 2022. VASEP said that along with China, the UK is also an optimistic destination for pangasius businesses in 2023.
According to the Association of Seafood Exporters and Producers (VASEP) in the first two months of 2023, the UK is among the few markets with positive growth in importing Vietnamese seafood. In the top 10 seafood export markets of Vietnam, all recorded a decrease of 18 - 50% over the same period, only the UK - the 6th largest market still maintained an increase of 22%.
As of mid-February, pangasius exports to the UK market reached nearly $7 million, accounting for 4.5% of total pangasius export turnover. Particularly in the first half of February, pangasius exports to the UK increased by 142% compared to the same period in 2022.
Previously, in 2022, pangasius exports to the UK reached $64 million, up 24% compared to 2021 and accounting for 2.6% of total pangasius export turnover. With this figure, the UK is Vietnam's sixth largest pangasius export market.
VASEP said that the UK has the highest inflation rate among major economies in the world. By January 2023, the inflation rate in this country remained at 10.1%, 5 times higher than the target set by the Bank of England.
Inflation changes UK seafood consumption trends. Instead of consuming more fresh/chilled seafood, today Britons are increasing their consumption of frozen seafood.
In the UK, people between the ages of 50 and 75 consume the most fish, spending up to £4 a week on fish products. Meanwhile, people under 30 spend an average of just £1.9 a week on fish. In particular, white fish is a particularly popular product in the UK, often used to make fish & chips.
Each year, imports of white fish into the UK market reach about $800 million-$1 billion. In 2022, imports of white fish into the UK market decreased by nearly 8%, of which the largest decrease in pollock fish products at 43%, and cod decreased by 13% due to the economic recession and the war between Russia and Ukraine.
In contrast, Vietnam's pangasius imports increased and accounted for about 5% of the UK's total imports of white fish. VASEP believes that this proportion is likely to be higher in 2023 when the UK economy is still heavily affected by inflation, and the war between Russia and Ukraine still limits the supply of cod and pollock to this market.
In addition, the advantage of preferential tariffs under the UK-Vietnam Free Trade Agreement (UKVFTA) is also an opportunity for businesses, especially in the context that importers want to find sources of competitively priced goods for the domestic market.
Therefore, VASEP believes that along with China, the UK is also an optimistic destination for pangasius businesses in 2023.
(Enterprise & Business)
Read more: Seafood Industry Report
SEAFOOD INDUSTRY REPORT 2022 & OUTLOOK 2023