STRATEGY
There are many great seafood choices available to consumers today, but we decided to focus on two most popular species with the largest market shares: shrimp and salmon.
Here is why:
Americans love shrimp, which is by far the most popular seafood in the United States. Salmon is the second most popular and one of the healthiest seafood to consume. Both species dominate the market by consumption per capita and account together for around 40 percent of the entire seafood market in the country.
With our fast-paced world getting even faster, our goal is to achieve a high capital growth across the entire timeframe we expect to invest for; i.e. short-term or more than one year but less than three years, medium-term or more than three years but less than eight years, and long-term or more than eight years.
Here is how:
With shrimp reaching market size in the controlled environment of warm-water RAS in just under four months, we expect each shrimp farm to start generating revenue within the first year of investment while new salmon farming operations are expected to become revenue-generating in the second and third investment years.
Offering branded, value-added seafood, including the meal kits, through Aquabanq’s seafood e-commerce platform should ensure both our long-term independence and long-term growth.
We believe that a horizontal diversification of our income streams by species, growth and revenues cycles, brands, sales and distribution channels is an effective strategy tool to reduce Aquabanq’s vulnerability to factors over which it has no or limited control, stabilize cash flow, boost brand image, and—most importantly—stay in touch and engage directly with consumers.
Market Opportunity
Aquaculture is currently the fastest-growing form of food production on the planet supplying over 50 percent of the world’s fish production and that number keeps increasing each year.
Consumer perception concerning the nutritional content of fish and seafood is a key determinant of downstream demand for the industry’s products and wholesale demand. In recent years, many consumers have turned toward seafood and away from red meat, such as beef, for health-related reasons. As a result, fish and seafood consumption per capita in the U.S. is expected to further increase, presenting the industry with a potential opportunity while fueling revenue growth.
Retail demand for the most popular seafood species such as shrimp and salmon surged by double digits in 2020 and will continue to rise this year, according to the collective opinion of 30 global seafood procurement executives surveyed by Spheric Research on behalf of Global Seafood Alliance.
Shrimp and salmon are the two most popular seafood species in the United States with the largest market shares:
Americans eat a total of 1.5 billion pounds of shrimp a year. That works out
to about 4.5 pounds per person.
The consumption of salmon in the United States reached a total of 980 million pounds per year, or about 3.0 pounds per capita.
U.S. is the second largest fish and seafood importer in the world with a small and fractured aquaculture industry, no major domestic players, and a lot of room to grow:
