Indian Fish Market Outlook to 2028

Indian Fish Market Overview

• The India fish market is valued at USD 22.38 billion, driven by increasing domestic consumption and export demand. Rising disposable incomes, coupled with growing awareness of the health benefits associated with fish consumption, are major drivers of market growth. The domestic consumption is further fueled by government initiatives such as the Pradhan Mantri Matsya Sampada Yojana, aimed at enhancing the productivity of aquaculture and inland fisheries. Moreover, the growing demand for seafood from international markets, particularly from the EU, USA, and Southeast Asian countries, has propelled the market's export segment.

• The dominance of coastal states like Tamil Nadu, Andhra Pradesh, and West Bengal in the India fish market is primarily due to their geographical advantages, including extensive coastlines and the availability of natural marine resources. These regions have well-established fishing industries and benefit from favorable climatic conditions for both marine and freshwater fisheries. Additionally, these states have a robust infrastructure, including harbors and cold storage facilities, that facilitates large-scale fishing and processing operations, contributing to their leadership in the market.
• Indias National Fisheries Policy emphasizes sustainable development and the responsible use of marine resources. In 2023, the government introduced stricter marine laws to combat illegal, unreported, and unregulated (IUU) fishing, aiming to preserve fish stocks and promote sustainability. The policy also focuses on improving the livelihoods of small-scale fishers, who make up around 70% of the workforce in the sector. Enforcement measures have been tightened, with 500 crore allocated for monitoring and compliance programs along India's coastlines.

Indian Fish Market Segmentation

• By Product Type: The India fish market is segmented by product type into fresh fish, frozen fish, processed fish, and canned fish. Fresh fish continues to dominate the market due to its preference among Indian consumers, who value freshness and taste over convenience. Local wet markets serve as the primary distribution channel for fresh fish, and the shorter supply chain ensures minimal processing and faster delivery to consumers. However, the frozen and processed fish segments are growing rapidly, driven by the expansion of cold storage facilities and the increasing popularity of ready-to-eat fish products.

• By Distribution Channel: India's fish market is segmented by distribution channels into wet markets, supermarkets/hypermarkets, online channels, and specialty stores. Wet markets hold the largest share, primarily because they offer fresh fish at affordable prices and have a deeply ingrained presence in urban and rural areas. However, supermarkets/hypermarkets are increasingly gaining traction, especially in metro cities, due to their convenience and availability of diverse fish products. Online channels are also emerging as a key distribution point, capitalizing on urbanization and digital penetration.

Indian Fish Market Competitive Landscape

The India fish market is characterized by a mix of domestic players and a few international companies. Domestic giants like Avanti Feeds and Coastal Corporation have established strong supply chains that cater to both local and export markets. These companies leverage their significant production capacity, robust distribution networks, and strategic partnerships with feed suppliers and aquaculture farms. International companies, though limited in presence, play a role in the high-end processed fish segment, primarily serving export markets.

Indian Fish Industry Analysis

Growth Drivers

• Rising Domestic Consumption: Domestic consumption of fish in India has increased significantly due to shifting dietary preferences towards healthier protein options. In 2023, fish accounted for over 35 million tons of protein consumption in India, with inland fisheries contributing nearly 70% to the total fish production. The per capita fish consumption in India has risen to around 8 kg per year, driven by rising incomes and urbanization. The FAO reports that India's total fish production reached 14.73 million metric tons in 2022, and this upward trend is expected to continue as fish becomes a staple protein for many households across India.
• (Pradhan Mantri Matsya Sampada Yojana, Blue Revolution: The Indian government launched the Pradhan Mantri Matsya Sampada Yojana (PMMSY) with a total outlay of 20,050 crore to enhance fish production and double fish exports by 2025. The Blue Revolution initiative has further boosted the fisheries sector by modernizing infrastructure and promoting aquaculture. According to the Ministry of Fisheries, Animal Husbandry & Dairying, this scheme aims to increase fish production to 22 million metric tons by 2025 and create over 55 lakh employment opportunities. The investment in cold chains, post-harvest infrastructure, and export hubs has significantly reduced wastage and improved efficiency.
• Increasing Export Demand: India exported nearly 1.4 million metric tons of fish and fishery products valued at USD 7.76 billion in 2023, as per the Marine Products Export Development Authority (MPEDA). Major export destinations include the USA, European Union, and Japan. Shrimps constitute the largest share of Indias seafood exports, with about 780,000 metric tons exported in 2023. The demand for Indian seafood, especially shrimp, has been rising globally due to its high quality and competitive pricing, making India one of the largest exporters of fishery products worldwide.

Market Restraints

• Environmental Degradation and Overfishing: Indias fish stocks are under increasing pressure due to overfishing and environmental degradation. Coastal fish stocks in major regions like Kerala and Tamil Nadu have shown declining yields, with a reduction of up to 30% in specific fish species like sardines in 2023, as reported by the Central Marine Fisheries Research Institute. In addition, pollution and habitat destruction have severely impacted marine biodiversity, threatening the sustainability of India's fishing industry. The government estimates that over 60% of India's fish stocks are being harvested at unsustainable levels.
• Lack of Cold Chain Infrastructure: India faces a substantial gap in cold chain infrastructure, leading to post-harvest losses of around 25% in the fishery sector, particularly in rural areas. The Ministry of Food Processing Industries estimates that the lack of adequate cold storage and processing facilities has caused losses amounting to nearly 15,000 crore annually. The current cold storage capacity for fish and seafood products covers less than 10% of total fish production, which limits domestic supply and export potential.

Indian Fish Market Future Outlook

Over the next five years, the India fish market is expected to witness significant growth due to a combination of domestic consumption demand, rising export opportunities, and increasing government support for the fisheries sector. Innovations in aquaculture technology, such as recirculating aquaculture systems (RAS), and a focus on sustainable fishing practices are likely to play a critical role in shaping the future of the market. Additionally, expanding cold chain infrastructure and the growing popularity of processed fish products will further drive the market forward.

Market Opportunities

• Adoption of Sustainable Aquaculture Practices: The adoption of sustainable aquaculture practices is becoming increasingly critical in India, with an emphasis on eco-friendly farming techniques. Recent government initiatives aim to promote responsible aquaculture by offering subsidies and financial support for practices like biofloc technology and integrated multi-trophic aquaculture (IMTA). In 2023, approximately 200,000 hectares of aquaculture land were converted to sustainable practices. This shift not only reduces environmental impacts but also ensures higher productivity and better market access, particularly to eco-conscious consumers globally.
• Digitalization in the Fisheries Sector: Digital technologies are playing a transformative role in improving the efficiency of India's fish supply chain. Platforms like e-SANTA, launched by the government, are connecting aquaculture farmers with buyers directly, reducing intermediaries and improving profit margins. In 2023, over 3,000 farmers signed up for digital fish marketing platforms, resulting in the direct sale of 500,000 metric tons of fish. These digital tools also enhance traceability, making it easier to comply with international standards and boost export competitiveness.