From shrimp slump to snack lines: Seafood exporters find lifeline in frozen food

On a seafood factory floor in Chattogram's Sagorika area, automated machines churn out parathas, pressed and sealed within seconds for export to the United Kingdom and Europe.

It's a quiet, efficient operation – but it signals a deeper shift, as a struggling seafood industry pivots to frozen foods to stay afloat.

The facility, operated by Seamark Group, was not built on parathas. Like many in the sector, it began as a seafood exporter nearly three decades ago.

However, shrinking raw material supply, especially shrimp, is forcing firms to rethink operations and move cautiously into frozen convenience foods to keep factories running.

This undated image shows workers wearing protective gear packing frozen food products at a processing facility. Photo: TBS

A sector on the back foot

Bangladesh's frozen fish exports, once close to $1 billion annually, have fallen to around $450 million, hit by supply shortages, environmental degradation and a global slowdown.

At the firm level, the decline is sharper. Seamark's earnings have dropped from $40-60 million to around $20 million, of which frozen food contributes about $5 million – still growing but far below earlier levels.

Industry insiders point to multiple pressures. Pollution is pushing fish stocks deeper into the sea. Waterbodies are shrinking due to land development. Intensive farming practices, especially heavy fertiliser and pesticide use, are degrading aquatic ecosystems.

Delays in adopting high-yield shrimp varieties such as vannamei have also left Bangladesh behind its competitors.

"India produces around 1.5 million tonnes of vannamei shrimp from 100,000 hectares," said Kamrul Alam, vice president of the Bangladesh Frozen Foods Exporters Association. "We produce only about 100,000 tonnes from 200,000 hectares."

With only around 30 of the 75 member factories still operating, the sector is under severe pressure. Exporters such as Total Food Processing, ACI Foods and Apex Foods have also joined the shift into frozen food production lines, reflecting a broader industry move toward diversification amid mounting constraints.

A lifeline built on existing strengths

Against this backdrop, frozen food has emerged as a fallback. Paratha, samosa and singara are now being produced on lines once used for fish and shrimp, helping firms keep operations running and workers employed.

This shift is not random. Seafood exporters are leading it because they already meet strict international food safety standards. Systems such as HACCP and export health certification are already embedded in their operations – essential requirements in global food trade.

Years of seafood exports have also built strong relationships with international buyers, giving firms a ready entry point into frozen food markets and lowering barriers compared to new exporters.

That combined advantage – compliance and buyer connectivity – allows firms to repurpose facilities, adjust production lines and access established markets, particularly in Europe.

"Many factories have turned to frozen snack exports just to stay afloat," Kamrul said. "Without that option, more would have shut down."

In effect, frozen food is less a reinvention and more a buffer, buying time while the industry adjusts.

Opportunity knocks, scaling remains a challenge

There are, however, signs of momentum. Changing lifestyles in Bangladesh and abroad are increasing the demand for ready-to-cook foods. As dual-income households rise and cooking time declines, frozen items are shifting from convenience to necessity.

The global frozen food market was worth about $531 billion in 2025 and is projected to reach $841 billion by 2033, growing at around 5.9% annually.

"The response is encouraging," said Seamark managing director Iqbal Ahmed. "This market has grown significantly over the past decade."

Trade access is also a key driver. During a recent visit, British High Commissioner Sarah Cooke highlighted opportunities under the UK's Developing Countries Trading Scheme (DCTS), which offers duty-free access for most Bangladeshi exports.

"It's not just the diaspora – British consumers are also buying these products," she said. "Bangladesh can export duty-free, which creates real opportunities for exporters and jobs."

She noted that around 99.8% of tariff lines are eligible for duty-free entry, improving competitiveness in UK markets. "It's a win-win – good for Bangladesh, jobs, and UK consumers," she added.

Still, she said the sector remains underdeveloped. Infrastructure gaps, weak innovation, limited research and a shortage of skilled manpower – especially women workers – continue to constrain scaling. While British investment is creating manufacturing jobs, stronger structural support is needed for broader growth.