India Shrimp and Red Chilles Market Outlook to 2030

The India Shrimp and Red Chilles Market was valued at approximately INR 13.00 trillion, based on the most recent market data for shrimp. This growth is primarily driven by increasing domestic and international demand for shrimp, fueled by their popularity in culinary applications and recognized health benefits. The shrimp sector has seen a surge in exports, with India being one of the world's leading exporters.

Key shrimp-producing states include Andhra Pradesh, West Bengal, and Gujarat, with Andhra Pradesh accounting for about 70% of total shrimp production. These regions benefit from favorable climatic conditions and established aquaculture practices, supporting robust supply chains and processing facilities that are pivotal in meeting both domestic and export demands for shrimp and red chillies.

The Indian government continues to support the sector through initiatives such as the Pradhan Mantri Matsya Sampada Yojana, which has allocated approximately USD 1.5 billion to enhance fish production, improve infrastructure, provide training, and promote technology adoption in shrimp farming. This initiative is aimed at supporting sustainable aquaculture practices and furthering the growth of the shrimp market.

India Shrimp and Red Chilies Market Segmentation

By Variety: The market is segmented into Vannnamei, Black Tiger, Scampi, Indian White Shrimp, Wild Marine Shrimp, and Others. Among these, the Vannnamei shrimp dominates the market, contributing the highest revenue. Its market leadership is driven by superior feed conversion rates, faster growth cycles, and strong export demand. Other varieties such as Black Tiger and Scampi are gradually gaining traction due to their premium positioning and niche market demand, especially in the EU and Japanese markets.

By Processed: The Indian shrimp market is segmented into Peeled, Whole Shrimp, and Others. The Peeled shrimp segment dominates the processed type market, accounting for more than half of the total market revenue. Its dominance stems from its high demand in export markets, particularly the US and Europe, where peeled and ready-to-cook formats are preferred.

India Shrimp and Red Chilles Market Competitive Landscape

The India Shrimp and Red Chilli Market is characterized by a competitive landscape with several key players, including NK Agro Exports (India) Pvt Ltd, Vijaya Krishna Spices Private Limited, and Siddhartha Corporation Private Limited. These companies are known for their strong operational capabilities and extensive distribution networks, which enable them to meet the growing demand for shrimp and red chillies both domestically and internationally.

India Shrimp and Red Chilles Market Industry Analysis

Growth Drivers

Increasing Global Demand for Seafood Products: The global seafood market is projected to expand remarkably, driven by rising consumer preferences for protein-rich diets. India, being the second-largest seafood producer, is well-positioned to capitalize on this trend. In 2023, India's shrimp exports alone accounted for approximately USD 4.88 billion. Frozen shrimp remained the single most valuable seafood export, making up around 66% of India’s total seafood export earnings. This growing demand is a significant driver for the shrimp and red chilles market in India.

Expansion of Aquaculture Practices in India: The aquaculture sector in India has seen substantial growth, with production increasing from 10 million tons in 2019 to approximately 13.9 million tons in 2023. This growth is supported by government initiatives aimed at enhancing sustainable farming practices. The National Fisheries Policy aims to double fish production by 2025, which will further boost shrimp supply and positively impact the red chilles market as a complementary product in seafood dishes.

Rising Demand for Chili Extracts in Food & Pharma: The growing use of red chili derivatives like oleoresins and capsaicin in processed foods and pharmaceutical formulations is significantly boosting market demand. India exports over 601,000 metric tons of red chili in FY 23-24 worth USD 1.5 Bn, marking a 15% increase from 524,000 metric tons (5.24 lakh tonnes) in the previous year. This trend is driven by rising preference for natural additives in sauces, snacks, and topical pain relievers.

Market Challenges

Pest Disease Attack: Pest and disease infestations continue to be significant challenges for red chili cultivation across India. Despite a 25-30% decline in cultivation observed in FY24 - primarily due to pest outbreaks, adverse weather conditions, and poor price realization. The total area under red chili cultivation reportedly expanded from 8.52 million hectares in 2022-23 to 9.9 million hectares in 2023-24, with production increasing from 2.78 million tons to 3.21 million tons. Despite the growth in area and output, profitability remains under pressure due to pest-related crop loss and rising input costs.

Limited Domestic Consumption: Although India ranks among the world’s top shrimp producers, domestic consumption remains limited, providing minimal cushion during periods of export decline. The industry’s strong dependence on international markets makes it susceptible to global price shifts, trade barriers, and tariff revisions. Additionally, reliance on imported shrimp feed ingredients heightens exposure to price volatility and supply chain disruptions, increasing overall operational risk.

India Shrimp and Red Chilles Market Future Outlook

The India shrimp and red chilles market is poised for significant growth, driven by increasing consumer awareness of health benefits and the expansion of aquaculture practices. Technological advancements in farming and processing are expected to enhance productivity and sustainability. Additionally, the rise of e-commerce platforms is likely to facilitate broader market access, allowing producers to reach a wider audience.

Market Opportunities

Export Potential to International Markets: India has the opportunity to expand its shrimp exports, which reached USD 4.88 billion in 2023-2024. With growing demand in markets like the USA and Europe, enhancing export capabilities could significantly boost revenue. The government’s focus on improving logistics and trade agreements will further facilitate this growth, making it a key opportunity for stakeholders.

Development of Value-Added Shrimp Products: There is a growing trend towards value-added shrimp products, such as ready-to-cook and marinated options. The market for these products is expected to grow by 25% annually, driven by busy lifestyles and the demand for convenience. Investing in product innovation and marketing can help capture this lucrative segment, providing a competitive edge in the market.