The shrimp sector is a type of aquaculture wherein prawns or shrimp are raised for human intake in freshwater or marine habitats. Growing consumer demand for healthier protein substitutes and developments in aquaculture technologies are the main drivers of this thriving industry.
The worldwide shrimp output surging to 8 million metric tons in 2023. The shrimp market is expected to increase at a compound annual growth rate of 4.77% to attain US$91.23 billion by 2029, from its estimated US$69.22 billion in 2023.
Investors must comprehend the global dynamic of the shrimp industry to understand why Indian shrimp stocks are surging and indicating a growing shrimp aquaculture industry.
Also read: FMCG stocks drop as demand concerns weigh on sector
Global shrimp industry
55% of shrimp produced worldwide are farmed. Now, the shrimp-loving population in the US, Europe, Japan, and other countries has easier access to shrimp, thanks to farming. The major producers of shrimp are listed below.
Ecuador
The country was the leading producer of shrimp till the 1980s, but an epidemic dethroned the market leader, making way for China. The country regained its lost position in 2022. However, In 2023, the shrimp enterprises suffered a $1.5 billion loss.
Shrimp prices fell significantly more internationally than they did during the COVID-19 outbreak. The exports fell further in October 2024.
China
China became the market leader in the 1980s after Ecuador vacated its position. The shrimp industry in the US and China is running low, and the price of inputs like fishmeal and soymeal is going down. Due to an increasing imbalance among Asian manufacturers, China surpassed the United States of America as the largest import market with substantial supplies from Ecuador.
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Can shrimps be the next big thing in India?
The tumbling of global leaders in shrimp production and suppliers seems to be making way for the surging FMCG stocks. According to research by InCred Equities, the shrimp sector in India is expected to make a significant recovery in 2025 due to a recovery in global demand and a decrease in competition.
Being the world’s second-largest exporter and one of the world’s biggest producers, India’s shrimp business is vital to the country’s economy. With a projected valuation of US$ 8.3 billion in 2024, the sector is expected to reach US$ 20.9 billion by 2032.
A revenue rise of 8–10% is anticipated for Indian shrimp exporters this fiscal year. The two major contributors to this growth are listed below.
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Government support
Following the announcement by Finance Minister Nirmala Sitharaman of a major plan to boost shrimp cultivation and commercialisation in the Union Budget for 2024-25, FMCG shares of shrimp and seafood firms jumped by as much as 20%. The basic customs duty on shrimp was lowered by the government to 5%.
Reduction in inputs
Additionally, the budget proposed to waive customs duties on a number of components used in the production of fish and shrimp feed. Crisil pointed out that increased sales and decreased procurement costs will support an operating margin of about 7%. In 2025, the sector is also anticipated to benefit from a structural decrease in key input commodities like fuel and feed.
Also read: How the 2024 budget will transform economy and stock market – Key Insights!
Top FMCG stocks to watch out for
The three top FMCG shares expected to grow are ranked based on market capitalisation in the table below.
| Name | P/E | Mar Cap (₹ Cr.) | Div Yield (%) | Qtr Profit Var (%) | Qtr Sales Var (%) | ROCE (%) |
| Avanti Feeds Ltd. | 22.14 | 9263.34 | 1.00 | 53.11 | 5.99 | 20.01 |
| Apex Frozen Foods Ltd. | 174.81 | 828.59 | 0.76 | -120.02 | -17.05 | 4.96 |
| Kings Infra Ventures Ltd. | 41.03 | 403.36 | 0.00 | 57.01 | 43.52 | 17.65 |
On the last trading day of 2024, FMCG stocks surged, with Apex Frozen Foods and Avanti Feeds soaring to 16% in intraday trade on the BSE. The other details of the stock movement are listed below.
| Name | Intraday high (₹) | Percentage increase (%) |
| Avanti Feeds Ltd. | 653.35 | 8.97 |
| Apex Frozen Foods Ltd. | 276.35 | 16.04 |
Also read: List of FMCG Stocks in India 2025.
Conclusion- Hurdle to the shrimp sensation in India
The U.S. Department of Commerce suddenly slapped an antidumping tariff on imports of frozen warmwater shrimp from Ecuador, India, Vietnam, and Indonesia. Indian shrimp exporters would probably have to incur higher expenses as a result of the levy, even though Ecuador appears to be the country most affected.
However, the FMCG stocks in India are showing promising growth, irrespective of hurdles. Government support is expected to further propel the industry. It would be interesting to see what the new year brings to this market performer.
Also read: FMCG stocks drop as demand concerns weigh on sector.
FAQs
- What is the future of FMCG stocks?
The shrimp stocks that form a part of the FMCG industry are showing promising performance due to national and international factors. National factors include the support given by the 2024 budget to this industry through lowering customs duty and lowering prices of raw materials. The fall of global competitors has also contributed to growth.
- What happened on December 31st?
FMCG shares soared on the last trading day of 2024, hitting 16% intraday on the BSE for Apex Frozen Foods and Avanti Feeds. This spike was sparked by a study published by the domestic brokerage InCred Equities that showed a recovery for the shrimp industry in India in 2025.
- How to choose the right stocks?
Choosing the right stock is essential for optimising gains and minimising risks. Various factors determine the profitability of the stock. Broadly, the factors can be categorised into market-specific factors and investor-focused factors. Investors must decide their risk appetite and financial objectives to make stock choices that best fit their portfolio.
- How to analyse a stock?
Stock can be analysed quantitatively as well as qualitatively. Quantitative analysis involves both fundamental and technical analysis. Fundamental analysis evaluates the company’s financial health, whereas technical analysis measures stock performance.
- What did the American government do to the shrimp industry?
The United States Department of Commerce unexpectedly imposed an antidumping duty on frozen warmwater shrimp imports from Ecuador, India, Vietnam, and Indonesia. Even though Ecuador looks to be the most affected country, Indian shrimp exporters would most likely face greater costs as a result of the charge.
