Fish & Seafood

Huge Potential in China Retail Market for Alaska Salmon

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Up until now, the grocery store market for imported salmon in China has largely been dominated by farm-raised product sourced from Norway. But wild product from Alaska is steadily entering the consciousness of consumers with rising disposable income, and there is potential for sales to loom significantly larger in the future.

Researchers at the University of Alaska Anchorage and Purdue University of Lafayette, Indiana, have confirmed that China is an especially promising market for Alaska salmon. They interviewed more than 1,000 people in Beijing, Shanghai and Guangzhou, and found that seafood from harvested from Alaska’s sustainable and highly regulated fishery is appealing to shoppers, many of whom are entering the country’s growing middle class.

A new Alaska Sea Grant publication, entitled “Consumer Preference and Market Potential for Alaska Salmon in China: Preliminary Analysis,” summarizes the results. The report is co-authored by Angie Zheng, Holly Weng, Quentin Fong and Yonggang Lu. Fong is Alaska Sea Grant’s Kodiak-based seafood marketing specialist and a University of Alaska Fairbanks professor.

photosm china salmon surveyGraduate students interview shoppers in and around a frozen food merchandising case in Chinese supermarket.The publication is geared toward fishermen, seafood producers and marketers interested in selling Alaska salmon in the PRC. Researchers asked Chinese consumers about wild or farmed salmon, Alaska as the place of production, use of product forms (head, whole round, frame, etc.), methods of preparation and willingness to purchase.

Respondents gave a high ranking to characteristics associated with Alaska salmon – wild-caught, sustainably caught and color –indicating the high potential for increasing sales in the PRC.

China is the largest single export market for the state of Alaska. Seafood, worth $784 million in 2014, makes up the greatest percentage of those exports, with salmon generating about $290 million of the total.

While frozen products accounted for just 13.3% of fish purchase frequency among those surveyed, it is expected that this percentage will rise in the future as convenience becomes a bigger factor in home meal preparation – particularly in the ranks of time-pressed millennials. For the moment, live fish purchase frequency dominate the market by far at 64%, followed by chilled at 27%.

The authors advise that if Alaskan producers want to sell salmon directly to Chinese households and other buyers, they should focus on boneless fillets, steaks and heads. Marketers should also educate purchasers about preparation methods, the different salmon species and meat colors, and the sustainable nature of the harvest. The researchers recommend highlighting the advantage of wild-caught salmon and getting a “green” label showing reduced environmental impact of the product. The Chinese are likely willing to pay price premiums for Alaska salmon, as do consumers in the United States.

The illustrated, 16-page electronic publication is available as a free download by visiting: www.seagrant.uaf.edu. Alaska Sea Grant is a statewide marine research, education, and outreach program, and is a partnership between the University of Alaska Fairbanks and the National Oceanic and Atmospheric Administration.