Why is There a Shortage of Canned Shrimp? A Detailed Look at the Reasons Behind the Scarcity

Canned shrimp has become harder to find on grocery store shelves in recent months. As a shrimp lover myself, I was disappointed the last time I tried to stock up on my go-to canned shrimp for make shrimp cocktails and other recipes. But it got me wondering – why exactly is there such a shortage of canned shrimp lately?

In this article, I’ll explore the main factors causing the current canned shrimp shortage. After extensive research, it seems the shortage boils down to a few key reasons:

• Adverse weather conditions in Asia disrupting shrimp farms and yields
• Labor shortages impacting shrimp processing facilities
• Supply chain issues like lack of cans, trucking, and port delays
• Continued high consumer demand outpacing supply

By understanding what’s driving the canned shrimp shortage, we can get insight into how long it might last and when supply may rebound. Keep reading to learn more about the key drivers of the canned shrimp deficit

Weather Disasters in Asia Devastating Shrimp Farms

Asia is the epicenter of shrimp farming and harvests the majority of the world’s shrimp supply. However, the region has been hit by severe weather events over the past year or so, wreaking havoc on shrimp farms.

In particular, parts of Thailand, Indonesia, and India have dealt with heavy monsoon rains, flooding, and tropical storms. These weather disasters have destroyed shrimp enclosures and caused lower-than-normal yields. With fewer shrimp being harvested, this provides less supply to meet global canned shrimp demand.

For example, India was hit by two cyclones in 2021 along with heavy rainfall which impacted shrimp farm operations. And in Thailand, shrimp farms suffered from an outbreak of disease made worse by flooding conditions.

With shrimp farms producing less seafood, this has led to sharp increases in shrimp prices over the past year. Prices for frozen shrimp tails jumped 61% in 2021, while canned shrimp prices rose almost 50%. This supply destruction from adverse weather has been a primary driver behind the shrimp shortage.

Labor Shortages Impacting Shrimp Processing Facilities

Getting shrimp from the farms to people’s plates involves several steps of processing. This includes catching, peeling, freezing, canning, and preparing the shrimp for retail distribution. But seafood processing facilities have been impacted by labor shortages, reducing capacity to handle the harvest.

In the United States, shrimp processing plants largely rely on immigrant workers with H-2B visas. But there have been limits placed on these temporary work visas, leaving many facilities understaffed. Plants are having trouble finding enough workers to peel, devein, and prepare the shrimp.

For example, a major shrimp processing company in South Carolina said they were 30% understaffed and unable to run their operations at full capacity. This labor crunch ends up creating a bottleneck, slowing down the entire supply chain. With fewer workers, facilities can’t handle the volume of shrimp coming in from shrimpers.

Overseas, Vietnam and India also imposed COVID-related restrictions and lockdowns that limited labor availability for shrimp processing activities. All of these workforce issues have contributed to the tight shrimp supply.

Supply Chain Chaos Impacting Cans, Trucking, and Ports

Moving shrimp from processing plants to grocery store shelves involves intricate supply chain logistics. But supply chains have been severely disrupted, making it harder to get canned shrimp to market.

First, there is an aluminum can shortage that is impacting many canned goods. Aluminum can production slowed significantly during the pandemic. This aluminum scarcity makes it tough for seafood companies to obtain cans to package their shrimp. With fewer cans, less canned shrimp can make it to market.

Trucking shortages are also causing distribution headaches. With the truck driver shortage, it’s become more challenging and costly to transport shrimp from processing facilities to retail distribution centers. Limited trucking capacity slows the movement of goods through the supply chain.

Finally, port congestion and delays have also prevented shrimp inventories from smoothly flowing. For example, ships bringing in shrimp from India and Southeast Asia have faced extensive delays unloading cargo at U.S. ports like Los Angeles. With container ships waiting weeks to dock, this stalls shrimp from getting unloaded, warehoused, and distributed.

Consumer Demand Still Going Strong

Another piece of the puzzle is that consumer demand for shrimp remains very robust, especially for canned shrimp. The pandemic saw a huge shift to retail grocery sales and more home-cooking. Even as restaurants have reopened, consumers are still purchasing elevated grocery items like shrimp.

Canned seafood saw strong growth in 2020 and 2021 due to the shift to retail and stockpiling behavior. U.S. canned seafood sales increased 15% in 2020. And shelf-stable seafood purchases jumped 24% in the 52 weeks ending October 3, 2021 compared to 2020.

With more people cooking at home, canned shrimp emerged as a consumer favorite due to its versatility and convenience. Demand has outpaced supply over the past two years, intensifying today’s shrimp shortage.

When Will the Canned Shrimp Supply Rebound?

The good news is that shrimp industry experts believe the supply chain issues leading to the canned shrimp shortage should be temporary. As pandemic impacts continue to subside, supply and demand should come back into balance over the next 12-18 months.

Barring additional weather disasters in Asia, shrimp farm production is forecasted to rebound robustly in 2022 and 2023 as conditions improve. This should alleviate some pressure on supply. Plus, as more workers return, processing plants will be able to handle higher volumes to satisfy demand.

However, it may take a bit longer for aluminum can production and trucking issues to stabilize. But ports and shipping companies are actively working to improve efficiency and eliminate cargo backlogs.

In the meantime, consumers may continue to see limited availability of canned shrimp or higher prices. But the shrimp supply chain should right-size itself over the next year or two to meet rising demand and get canned shrimp fully back on store shelves.

Finding Alternatives to Canned Shrimp

With canned shrimp still facing limited availability for the foreseeable future, home cooks may need to find temporary substitutes for their recipes. Here are some possible alternatives to use in place of canned shrimp:

• Look for frozen, pre-cooked shrimp if your grocery store has adequate stock. Thaw before adding to recipes.

• Try swapping in lump crab meat or lobster meat for a similar texture and flavor in seafood recipes.

• Canned tuna or chicken can work as lower-cost substitutes in some dishes like shrimp salads or casseroles.

• For vegetarians, you can replace shrimp with extra firm tofu, jackfruit or hearts of palm for some recipes.

• In terms of flavor, you can mimic shrimp taste with mushroom varieties like king oyster or shiitake mushrooms.

While canned shrimp may be harder to come by for a little while longer, try out some suitable stand-ins for your cooking needs. Before long, we should see canned shrimp fully restocked at grocery stores. But in the meantime, be patient and get creative with recipes to cope with the shortage!

Recent Canned Shrimp Recall Expands Supply Issues

Just as the canned shrimp supply looks to improve over the coming year, a major recall was recently expanded, exacerbating inventory shortages for one popular brand.

Back in February 2023, Kawasho Foods USA Inc. recalled certain lots of Geisha Medium Shrimp 4oz cans. The initial recall was due to concerns that the shrimp may have been underprocessed, posing spoilage risks.

However, on April 23, 2023, the company significantly expanded its recall to include all lots of Geisha Medium Shrimp 4oz cans distributed nationwide over the past several months.

This expansion covers all 4oz cans shipped to retailers in the majority of U.S. states between December 2022 and April 2023.

The recall noted that even shrimp not showing visible signs of spoilage could be impacted. Consumers are advised not to use any of the recalled cans, even if the shrimp appears normal.

With this popular brand of canned shrimp now completely unavailable for the near future, this compounds the overall supply shortage facing the category. It may make finding alternate canned shrimp brands even more difficult until production is resumed.

The broader supply chain challenges were already limiting canned inventory. Now this huge recall has wiped out availability of one major national shrimp brand in the retail channel. This will likely prolong tight supplies through 2023 until the recall is resolved and production resumes.

Looking Ahead to the Future of Canned Shrimp

While consumers may need to remain patient over the next 6-12 months, the long-term future looks bright for the canned shrimp segment. Once supply chain issues subside, analysts expect a robust canned seafood rebound.

The global canned seafood market is projected to grow at a 7.6% compound annual rate from 2022 to 2028. Canned shrimp should benefit from this strong growth trajectory based on its versatility and nutrition profile.

Innovations in packaging, flavors, and convenience should also boost canned shrimp demand. For instance, pouches and grab-and-go packaging are making canned shrimp easier for busy consumers.

And the ongoing health and wellness movement will further drive growth for high-protein,