Octopus is becoming increasingly popular in several markets, but there are issues with supply. There has been a decline in catches in recent years, with limited availability pushing prices up.
While some quotas for squid have increased, landings in South America have recently decreased. As such, there may be difficulties in securing sufficient supplies in 2023.
Octopus
In a report published by Renub Research in 2020, it was predicted that the global market for octopus would grow to almost 625 000 tonnes by 2025. However, global production of octopus is far from that. In 2021, a total of almost 375 000 tonnes of octopus (all species) were landed . Total exports of octopus (all products) in 2020 amounted to just 283 577 tonnes, an 11.8 percent decline from 2019.
The most important countries in the octopus sector have remained fairly consistent over the years. China is by far the largest producer, with 106 300 tonnes in 2021, or 28 percent of total landings. Other important producers include Morocco, Mexico and Mauritania,, with catches of 63 541 tonnes, 37 386 tonnes, and 27 277 tonnes, respectively.
The largest exporters of octopus in 2020 were Morocco (50 943 tonnes worth USD 438 million), China (48 456 tonnes worth USD 404 million) and Mauritania (36 419 tonnes worth USD 253 million).
The largest importers of octopus in 2020 in terms of volume were the Republic of Korea (72 294 tonnes), Spain (49 970 tonnes) and Japan (44 873 tonnes).
International trade
Japan’s imports of octopus have dropped dramatically since 2016 due to high prices . In 2016, Japan imported 56 534 tonnes, but in 2020, this had dropped to 44 873 tonnes, and in 2021 further to 33 740 tonnes. In 2022, Japanese imports of octopus increased again to 38 333 tonnes.
The largest suppliers to Japan were China, which shipped 9 674 tonnes in 2022 (down 3.9 percent on 2021), Mauritania (8 442 tonnes, up 11.1 percent) and Viet Nam (8 180 tonnes, up 39.1 percent).
The Republic of Korea also registered a decline in imports in 2022. Octopus imports went from 73 157 tonnes in 2021 to 65 380 tonnes in 2022 (down 10.6 percent). All the largest suppliers saw reduced amounts shipped to the Republic of Korea: China down 15. 1 percent to 27 275 tonnes, Viet Nam down 15.2 percent to 24 646 tonnes, and Thailand down 4.9 percent to 5 947 tonnes.
Squid
Major international squid producers operating in the Pacific have voiced concerns with the management of jumbo squid (Dosidicus gigas) resources in the Pacific. Although members of the South Pacific Regional Fisheries Organization (SPRFMO) agree on the importance of the fishery and the need for better management, they do not seem to be able to reach a consensus on how this can be done. There appears to be interest in limiting fishing effort, but members have thus far been unable to agree on the specifics. The fishery had an average annual production of about 840 000 tonnes between 2016 and 2020.
According to data published by the Argentine Ministry of Agriculture, Livestock and Fishing, the Argentine fishing fleet landed some 22 189 tonnes of illex squid during March 2023. This figure is 33 percent lower than the same month of 2022. The fishery has been relatively stable in previous years, but output fell in the early months of 2023.
During the first three months of 2023, total Argentine landings of illex squid amounted to almost 65 000 tonnes, considerably less than in previous years. The poorer supply situation has led to expectations of rising prices in 2023.
Trade
US squid imports are on a downward trend, and in January 2023, imports dropped by as much as 35 percent to 4 529 tonnes worth USD 30.5 million. However, because prices were up significantly, the import value in fact increased by 20 percent compared to January 2022. The United States of America imported much less squid from China. Imports from China dropped by 45 percent to 1 120 tonnes worth USD 6.3 million. While import volumes have been on a downward trend, the price trend is pointing up. Import prices in the USA have been going up since mid-2020, but took a tumble in the beginning of 2022. In Mid-2022, US import prices for squid made a recovery and are now still on the way up.
During 2022, Argentina’s exports of illex squid increased compared to 2021. A total of 146 645 tonnes worth USD 314.8 million were imported. This represented an increase of 21.3 percent in terms of volume and 26.4 percent in value compared to 2021.
In 2022, Spain imported 242 876 tonnes of squid and cuttlefish, down 13.2 percent compared to 2021. The two largest suppliers were the Falklands Islands (Malvinas) (57 841 tonnes, down 14.4 percent), Peru (41 623 tonnes, down 27.3 percent) and India (29 379 tonnes, down 5.1 percent).
The United States of America imported 74 606 tonnes of squid and cuttlefish in 2022, down 4.5 percent from 2021. China was the largest supplier, with 18 502 tonnes but registered a 32 percent decline in shipments to the United States of America. On the other hand, Argentina and India have won market share from China. Argentina shipped 11 324 tonnes (up 24.7 percent compared to 2021), while India shipped 10 347 tonnes (up 38 percent).
The Republic of Korea also saw a moderate decline in imports: in 2022 the country imported 142 727 tonnes of squid and cuttlefish, down 6.5 percent compared to 2021. The largest suppliers were China (55 083 tonnes, up 8.7 percent), Peru (39 691 tonnes, down 22.1 percent) and Chile (14 112 tonnes, up 27.2 percent).
Japan’s imports of squid and cuttlefish in 2022 ended up at the same level as in 2021: from 157 898 tonnes to 157 337 tonnes. The major suppliers were China, Peru and Chile.
China’s imports of squid and cuttlefish dropped by 36.4 percent in 2022 compared to the previous year. Imports totalled 311 243 tonnes, with 72 995 tonnes coming from Indonesia (down 18.7 percent from the year before), 35 734 from the United States of America (up 17.9 percent) and 22 805 tonnes from Viet Nam (up by an impressive 58.6 percent).
But China exported even more squid and cuttlefish. In 2022, Chinese exports of these species amounted to 532 988 tonnes, down by just 1.7 percent compared to 2021. As much as 19 percent, or 100 441 tonnes, went to Japan. 75 614 tonnes went to Thailand (up 3.8 percent) and 54 281 tonnes to the Republic of Korea (up 7.8 tonnes).
Outlook
It looks like supplies will be a bit tighter in 2023. Landings of octopus are expected to continue the downward trend, and therefore prices will rise further. This could result in consumer resistance in some markets. But at the same time, octopus is increasing in popularity in some markets, and it is expected that summer sales in the holiday countries around the Mediterranean will increase in 2023.
There will also be a tighter supply situation for squid. The major producers have reported lower landings. Consequently, prices for squid are also expected to rise.
https://www.fao.org/in-action/globefish/market-reports/resource-detail/en/c/1637994/
