In-depth Insights Report on the Fish Processing Equipment Industry in the Southeast Asian Market

Overview of the Industry Landscape

Fish processing equipment, as the core technology and support for stable production output in aquatic product processing, refers to professional mechanical equipment used for a series of operations such as pretreatment, deep processing, and packaging of various types of fish. Its scope of coverage is pervasive. Starting from the initial equipment for raw material cleaning, scaling, deboning, and gutting, followed by subsequent cutting, crushing, and shaping machinery, and finally weighing packaging, and preservation equipment, all these together form a complete system of fish processing equipment. This equipment is designed to improve the efficiency of fish processing, ensure product quality, and diversify product varieties to meet the growing Southeast Asian market demand. Our company, FXFM, has also invested a great deal of time and cost in the research and development of fish processing equipment.

Review of the Development Process

In the early 20th century, with the gradual expansion of the global fishing industry, the problem of low efficiency in manual fish processing became increasingly prominent. Early simple fish processing machinery began to emerge on the historical stage, mainly focusing on basic processes such as scaling and gutting, thus initiating the process of mechanization replacing manual labor.

By the middle of the 20th century, the progress of electrical technology and mechanical manufacturing processes propelled fish processing equipment to make great strides towards automation and semi-automation, significantly improving processing efficiency and the stability of product quality.

In recent years, under the sweeping wave of intelligence and digitization, fish processing equipment has continuously incorporated cutting-edge technologies, such as intelligent recognition, the Internet of Things, and big data analysis. This has enabled intelligent control of the equipment, fault early warning, and optimization of the production process, and the industry has entered a brand-new development stage.

However, with Southeast Asian markets' unique geographical location and abundant natural resources, it holds an important position in the global fishery landscape. For us who are focusing on the market in this region, it is of great significance to conduct an in-depth exploration of the current situation of its fishery industry. The reasons are as follows.

1. Thriving Aquaculture: Aquaculture in Southeast Asia is on a large scale and developing rapidly. Countries such as Vietnam and Thailand have extensive aquaculture areas, and the proportion of aquaculture production is quite high. Indonesia ranks third in the global aquaculture field, second only to China and India. It has a variety of aquaculture types, covering freshwater, brackish water, marine water, and paddy field aquaculture, among which the production of brackish water aquaculture accounts for the highest proportion. In recent years, marine cage aquaculture has emerged as a new force, and its production has been increasing year by year. In terms of aquaculture varieties, the production of tilapia, catfish (including pangasius), shrimp, milkfish, and carp accounts for more than 90% of the total aquaculture production (excluding algae).

2. Strong market demand: The population in Southeast Asia is nearly 700 million, and the economic growth rate remains stable at 4%-6%. With the continuous improvement of residents' living standards, the demand for aquatic products is increasingly strong. Taking shrimp and tilapia as examples, the market consumption of shrimp in Southeast Asia reached about 1.5 million tons in 2023, an increase of 8% year-on-year, and it is expected to exceed 1.8 million tons in 2025; the market consumption of tilapia was 800,000 tons in 2023, with an annual growth rate of about 6%.

3. Good opportunities for industrial development: The aquatic product industry chain in Southeast Asia has been continuously improved in recent years, and remarkable progress has been made in all links from aquaculture, fishing to processing and logistics. Currently, there are more than 2,000 aquatic product processing enterprises, with an annual processing capacity of over 5 million tons.

4. Favorable policy environment: After the Regional Comprehensive Economic Partnership (RCEP) came into effect, tariff concessions were achieved between China and Southeast Asian countries. In 2023, China's export value of aquatic products to Southeast Asia reached 3.5 billion US dollars, an increase of 15% year-on-year, among which the export value of shrimp increased by 20%, and the export value of tilapia increased by 12%. In addition, compared with the European and American markets, Southeast Asian countries have fewer trade barriers in the import of aquatic products and feed, and the market access conditions are relatively loose.

5. Facing resource and environmental challenges: On the one hand, problems such as marine pollution, overfishing, and marine ecological damage are becoming increasingly serious. For example, 38% of Indonesia's main fishery resource areas are in a state of overfishing, and more than one-third of the coral reefs have been damaged. On the other hand, the development of the marine economy requires a large amount of capital and technical support. Southeast Asian countries generally face the problems of capital shortage and backward technology, which to a certain extent restricts the development of the fishery industry.

Insight into Market Demand

Southeast Asia has a population of nearly 700 million, and its economic growth rate remains steady at 4%-6%. With the steady improvement of residents' living standards, the demand for aquatic products is showing an increasingly vigorous trend. Taking shrimp and tilapia as examples, the market consumption of shrimp in Southeast Asia reached approximately 1.5 million tons in 2023, an increase of 8% compared to the previous year, and it is expected to exceed 1.8 million tons by 2025. The market consumption of tilapia in 2023 was 800,000 tons, with an annual growth rate remaining stable at around 6%. This fully demonstrates the huge potential and vitality of the aquatic products market in this region.

Problems Faced by the Fishery Industry in Southeast Asia Currently

1. The shortage of funds restricts the upgrading of the industry.

The development of the marine economy requires a large amount of capital for infrastructure construction, equipment procurement, and technology research and development. However, Southeast Asian countries generally face the problem of capital shortage. It is difficult for fishery enterprises to raise sufficient funds to update fishing and aquaculture equipment and to construct modern processing plants and cold chain logistics facilities. Although the fishery industry in Cambodia accounts for 8%-10% of its GDP, due to the lack of funds, it is unable to cope effectively with the reduction of fish populations caused by overfishing and climate change. The shortage of funds hinders the introduction and application of advanced technologies and restricts the transformation of the fishery industry from an extensive model to an intensive and modern one.

2. Backward technology leads to low efficiency.

In the aquaculture sector, most Southeast Asian countries rely heavily on traditional aquaculture technologies. Compared with fishery-developed countries, there is a significant gap in advanced aquaculture technologies such as precise feeding, intelligent water quality monitoring, and disease prevention and control. This leads to unstable aquaculture production, frequent occurrence of diseases, and low feed conversion rates.

In the processing field, the processing technologies and equipment of most enterprises are outdated, and the levels of automation and intelligence are low, which affects product quality and production efficiency. For example, Vietnamese aquatic product processing enterprises, due to their backward technologies, find it difficult to meet the strict requirements of the high-end market for product quality and specifications when dealing with complex processing techniques of aquatic products.

At the same time, the lack of sustainable management technologies for fishery resources makes Southeast Asian countries have deficiencies in aspects such as resource assessment and reasonable fishing planning, and they are unable to effectively address the problem of resource decline.

Trade and Market Risks

1. Fluctuations in the International Market: Changes in the global economic situation have a significant impact on the export of fishery products from Southeast Asia. In 2023, affected by the slowdown in global economic growth, Vietnam's fishery exports faced difficulties. Because inflation severely affected the demand of global consumers, Vietnam's seafood exports decreased in the first quarter of 2023. The uncertainty of international market demand, as well as the increase in trade barriers triggered by the rise of trade protectionism, pose risks to the export of fishery products from Southeast Asia and have an impact on the economic benefits and development prospects of fishery enterprises.

2. Difficulties in Internal Market Integration: The economic development levels and consumption capacities of countries within the Southeast Asian region vary, and there are differences in market standards and regulatory systems. This has led to challenges in the circulation of fishery products and market integration within the region. The inconsistencies in product quality standards, certification systems, logistics, transportation rules, etc. among different countries have increased trade costs and the difficulty of transactions, and have restricted the formation of economies of scale and coordinated development of the fishery industry within the region.

FXFM MACHINE Strategies for Coping with the Challenges of Southeast Asian Fisheries and Seizing the Opportunities of Equipment Demand

1. Improve Technical Level

Technical Training and Exchanges: Organize technical training courses for fish processing equipment. Regularly conduct technical exchange activities, providing our enterprises with the opportunity to learn about the styles and requirements of machinery needed for each type of fishery in Southeast Asia, and making preparations for expanding the Southeast Asian market and localizing the market.

R&D Cooperation: Establish cooperative relationships with local scientific research institutions and universities, and jointly carry out fishery technology research and development projects. Research and solve the key technical problems faced by the development of local fish processing equipment.

2. Product R&D and Innovation
Customized Equipment Development: Conduct in-depth research on the actual needs of fish processing enterprises in Southeast Asia. According to the characteristics of different countries and different processing techniques, develop customized fish processing equipment. For example, pangasius processing enterprises in Vietnam, develop efficient equipment for peeling and deboning pangasius to improve processing efficiency and product quality.

Intelligent Upgrading: Increase investment in research and development of technologies such as intelligent recognition, the Internet of Things, and big data analysis, and add functions such as intelligent control and fault warning to fish processing equipment. Through intelligent upgrading, meet the needs of Southeast Asian enterprises for improving production efficiency, reducing labor costs, and optimizing production processes.

3. Market Promotion and Marketing
Hold Equipment Exhibition: Organize fish processing equipment exhibitions in major cities of Southeast Asia, and invite local fishery enterprises and processing enterprises to visit and experience. On-site demonstrations of the operation and performance of the equipment, enable customers to have an intuitive understanding of the advantages and features of the equipment and enhance the product's popularity and market recognition.

Cooperate with Dealers: Seek powerful dealers in various Southeast Asian countries and establish a sales network. Collaborate with dealers to carry out market promotion activities, provide technical support and after-sales service, jointly explore the market, and promptly meet customers' equipment procurement needs.

4. Optimization of After-sales Service
Establish Service Outlets: Set up after-sales service outlets in the main fishery production areas of Southeast Asia, and equip them with professional technicians and maintenance equipment. Ensure that when the equipment malfunctions, it can respond in a timely manner and provide maintenance services, reduce equipment downtime, and guarantee the normal production of enterprises.

Remote Technical Support: Utilize Internet technology to provide customers with remote technical support services. Through means such as video calls and online diagnosis, help customers solve problems encountered during the use of the equipment, and improve the timeliness and convenience of after-sales service.