Growing health awareness is expected to boost consumer demand for fish and seafood
New York, NY (PRWEB) September 23, 2014
The Fish and Seafood Wholesaling industry has grown at a moderate rate over the past five years. Growth in per capita disposable income in combination with growing health consciousness has encouraged Canadians to consume more fish and seafood both at home and at restaurants. This has encouraged food retailers and food-service establishments to increase their purchases of fish and seafood from industry operators, increasing industry revenue. Additionally, strong economic growth in much of the developing world has led to growth in the global middle class, which has demanded larger quantities of higher quality, more diverse food, including Canadian fish and seafood sourced from wholesalers. According to IBISWorld Industry Analyst Zachary Harris, “While rising downstream demand for industry products has boosted industry growth, industry expansion has been relatively limited by wholesale bypass, a phenomenon in which fishing and aquaculture enterprises are increasingly bypassing wholesalers and selling their output directly to retailers, food manufacturers and other downstream businesses.” However, despite this impediment, IBISWorld expects industry revenue to grow at an annualized rate of 1.6% over the five years to 2014. Industry revenue is forecast to grow 0.4% to $5.3 billion in 2014 alone.
Over the five years to 2019, the Fish and Seafood Wholesaling industry is expected to grow more strongly. “Similar to the past five years, growth in per capita disposable income and increasing health consciousness are expected to increase consumer demand for fish and seafood,” says Harris. As a result, domestic per capita consumption of fish and seafood is forecast to grow at an annualized rate of 0.5% over the five years to 2019 to 8.6 kilograms per person. More critical to the industry however, is the expected boost to revenue that will likely come about with the implementation of the Comprehensive Economic and Trade Agreement (CETA) between Canada and the European Union. While EU tariffs on Canadian seafood are currently very high, CETA, which is expected to be implemented in 2015 or 2016, is set to remove these tariffs. This will likely lead to a substantial expansion in the value of Canadian fish and seafood exported to the European Union, much of which will be conducted by industry operators. As a result of these anticipated trends, industry revenue is expected to grow over the five years to 2019.
For more information, visit IBISWorld’s Fish and Seafood Wholesaling in Canada industry report page.
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IBISWorld industry Report Key Topics
Establishments in the Fish and Wholesaling industry primarily wholesale fish and seafood for human consumption. Canned and packaged frozen fish and seafood products are excluded from this industry (see IBISWorld report 41319CA). The wholesaling of fish and seafood that are frozen, but not packaged, are included among this industry's operations.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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