Atlantic Salmon – Market overview
Mr John-Paul McGinley

Mr John-Paul McGinley, Managing Director of Sales and Marketing, MOWI Poland S.A.

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About Mowi

Mowi is one of the largest seafood company in the world and the largest producer and processor of the Atlantic Salmon.

About Mowi – operations

Annually Mowi’s products, approx 400 thousand tons, are sold in 70 countries.

Global harvest volumes Atlantic Salmon

Norway and Chile are the main origins producing Atlantic Salmon. The compounded annual growth rate of 6% in the period 2010-2019E. In 2016, algae bloom in Chile wiped out 100,000 tonnes and at the same time, Norway experienced biological challenges which led to high mortality, early harvest and shortage of large fish. 2019E harvest volume is 2,558,000 tonnes WFE.

Expected harvest volumes – Global

Global harvest volumes are expected to grow by 7% in 2019 and 4% in 2020E where it is expected to grow by 4% in Norway, 1% in Chile and UK, 2% in North America, 3% in Faroe Islands, 9% in Australia, 22% in Iceland, -3% in Ireland, 21% in Russia and 55% by others.

Expected harvest volumes – Norway

In Norway volumes of Atlantic Salmon harvest are expected to grow by 5% in 2019 on the back of higher smolt release in 2018. In 2020 it is expected to grow by another 4% on the back of slightly higher harvest weights, increased smolt stocking in 2019 and lower mortality.

Expected harvest volumes – Chile

Chilean harvest volumes are expected to grow by 4% in 2019 on the back of a higher smolt stocking in 2018 and the harvest is expected to grow by 1% in 2020 as a result of a well-performed industry the last few years. However, Chile is currently facing biological challenges with sea lice.

Market supply – Atlantic salmon

Europe is the largest market for Atlantic Salmon with ca. 58% market share. North America is the second-largest and the USA the largest single country by far, consuming just below 1/5 of the total supply of Atlantic Salmon. As single markets, this makes NA and USA the most important for Mowi.

Main fish categories Fish Europe

Fresh Fish is the main category in Europe with a 71% market share by fresh natural fish and freshly prepared in total. Fresh smoked has an 11% market share, frozen natural 11% and the minor, frozen prepared, has just 8% share of the market in Europe.

Top 10 Fresh and Frozen Fish Europe

On the top 10 list of fresh and frozen fish on selected markets 2018 in Europe (France, UK, Germany, Spain and Italy), the Salmon is the most important species where Mowi has 25% volume share, followed on by Cod, Alaska Pollock and Hake.

Fresh and smoked salmon Europe

When comes to categories within Salmon, natural fresh and smoked Salmon have basically the same value, but volumized the fresh Salmon has about 2/3 of the market on these same referenced markets.

Fresh salmon trend Europe

When looked at the fresh Salmon fish marked in Europe over the last few years we see that the Mowi’s share of prepacked Salmon has moved from 40 to 50% in only 5 years.

Fresh salmon trend Europe – top three

Prices for prepacked Salmon has been moving up again from 2015 on the main markets in Europe (France, UK and Germany) after years of stagnation.

Smoked salmon trend Europe

That is not the case on the main European markets for smoked Salmon.

Life has no limitations, except the ones you make

In recent years we have seen fantastic growth in prepacked Salmon but not as much in smoked Salmon. Should we be happy with that? I would say no.

Global trends

We have a great resource. Salmon is a fantastic resource. When we look at the global trend, we know that the population is growing and there will be more need for food in the world. We need to double our food supply.

The 10 most obese countries on earth

We, the seafood industry, have products which address many of the health concerns of the consumers – and we should be taking advantage of that.

Health authorities recommendations
USA Supermarket

We need to share our voice. When we look at the shelf in the supermarket we are really under-represented. In the US, around 5% space is designated for fish retail and in the UK is about 8%.

UK Supermarket
Poland Sumermarket

We need to come up with new ideas to increase the share of fish products to consumers.

Media investment in meat category 2018

The meat industry is spending a lot of money on marketing their products while the fish industry is not.

Share of spend: fish versus meat in 2018
Meat Supermarket

Meat does a fantastic job selling their products, but we can do much better.

Meat in a supermarket
Sea products in a supermarket
Demand for high quality opens up value opportunities

We need to listen to consumers and meet their demands.

First genuine salmon brand on the market

We have taken this seriously, by putting a high-quality Salmon on the market. We also changed the name of the company to deliver a new brand.

2019 – The MOWI launch Poland