Sector Trend Analysis – Fish and Seafood Trends in Austria

Introduction

Austria is a landlocked country and heavily relies on imports for its consumption of fish and seafood products consumption. The fishery is limited to aquaculture production and the country has put a strategy in place to increase its aquaculture production with freshwater fish from 34% to 60% by 2020. The "Aquaculture 2020 - Austrian strategy to increase the national fish production" report emphasizes the importance of sustainability and the food quality as guiding principles for its production and consumption. The goal is to improve self-sufficiency by mainly increasing trout production and carp pond farming.

Austria has one of the lowest consumers of fishing and seafood products in the European Union. However, the consumption of fish and seafood products has been increasing during recent years and this trend is expected to continue in the years to come.

Europe's fish stock is threatened by overfishing, and the European Union, therefore, encourages its member states to support sustainable fishing practices and has been advocating catch limits for some species. Sustainability is at the core of Austria's aquaculture promotion and producers are embracing this by adhering to the various certification or labelling of fish products.

Trade overview

Austria imports 95% of its seafood from the world (USDA, 2018). In 2019, the top three imports were prepared/preserved tunas, smoked pacific salmon and prepared/preserved fish. During the 2015-2019 period, the three fastest growing imports in terms of value were smoked trout, which grew by a CAGR of 55.8%, fresh/chilled fillets of pacific salmon and frozen fillets of pacific salmon, at 11.8% and 9.8%, respectively. In terms of quantity, the fastest growing products were smoked trout (CAGR: 67.0%), smoked pacific salmon (5.8%) and frozen shrimps and prawns (5.7%).

In 2019, Germany was the largest supplier of fish and seafood to Austria, with imports valued at US$182.5 million, followed by the Netherlands (US$50.7 million) and Norway (US$48.0 million). Among Austria's ten largest suppliers, Turkey had the highest growth over the 2015-2019 period, with a CAGR of 85.3.%, followed by Viet-Nam (10.7%) and Norway (9.2%).

Direct fish and seafood exports to Austria are very low. Fish and seafood products mainly reach Austria by road or by water from other EU countries that have access to the World Ocean. Especially with sea freight, exports are often registered with the country where the product first enters the European Union through an importer. For Austria, this is often Germany and the Netherlands but not limited to these two countries.

Austria's top ten fish and seafood suppliers by product type, in US$ millions, in 2019

Canada's performance

In 2019, Canada was the 38th largest supplier of fish and seafood to Austria. Canada's fish and seafood exports were valued at US$145,298 (these numbers do not fully account for all the Canadian seafood products transhipment through other EU countries). Live fish, smoked salmon and sea cucumbers were the top three products that Canada exported to Austria. In 2019, the market share of Canadian fish and seafood products was 0.2%.

Canada's direct fish and seafood exports to Austria are very low, however, many Austrian retailers and specialists shops have Canadian fish and seafood in their portfolio, which is often done through importers/distributors in Europe. For example, niche products such as live lobsters, are often bought through an additional importer/distributor in Europe.

Retail market

In 2019, the category that recorded the highest retail sales was fresh fish and seafood (sold over the counter), with sales valued at US$431.6 million and a CAGR of 4.5% over the 2015-2019 period. This category was followed by processed (US$288.3 million) and whole cuts (US$223.0 million) chilled raw packaged fish and seafood products. Whole cuts and processed chilled raw packaged fish and seafood were the categories that grew the fastest over the 2015-2019 period with a CAGR of 5.4% and 5.0% respectively, and are forecast to lead the way into 2024.

In terms of volume sales, the three largest categories in 2019 were fresh fish and seafood (counter) at 32.0 million kilograms (Mkg), ambient fish and seafood (9.0 Mkg), and whole cuts chilled raw packaged fish and seafood (7.4Mkg). The latter category grew the most over the 2015-2019 period with a CAGR of 3.1% and is expected to remain the fastest growing category over the 2020-2024 period.

Consumer trends

Despite the country having no direct access to the sea, fish and seafood products are very popular among the population in Austria. There is a growing number of restaurants specialized in international cuisine, notably from Asia and Mediterranean countries (World Wildlife Fund).

Fish and seafood products are growing in popularity among consumers due to the perceived health benefits. Per capita consumption of fish and seafood products was 13.4 kg in 2015, a significant increase from the previous years (EUMOFA, 2018). Prepared fish meals are becoming a product of choices for many consumers, especially those who do not know how to cook fish. Sustainability, quality and organic foods are very important to consumers and this encourages producers to use certification labels such as the AMA Seal of quality, (only avalailbe for Austian products) or the Certified Sustainable Seafood MSC logo. Fish consumption is higher among the older segment of the Austrian population (55+ years. Among other factors that incite fish consumption are the appearance, the cost, the origin and the quality labels (EUMOFA, 2018) as well as the importance of organic food both in production and consumption.

Foodservice and distribution channels

In 2018, revenues from fish and seafood across various distribution channels in Austria were valued at US$3.1 billion. Combined revenues across all the channels increased by a CAGR of 4.4% over the 2015-2018 period.

The off-trade retail channel was the most important distribution channel for fish and seafood products in Austria. In 2018, distribution through this channel was valued at US$1.3 billion. The outlets of this channel experienced a CAGR of 4.5% during the 2015-2018 period. Hypermarkets and supermarkets were the most important channels, accounting for more than half of the total revenues of the off-trade retail channel, with revenues valued at US$720.4 million, followed by food & drinks specialists (US$320.6 million) and convenience stores (US$195.7 million). Cash & carries & warehouse clubs were the fastest growing outlets with a CAGR of 8.7% from 2015 to 2018, followed by "Dollar stores"/variety stores & general merchandise retailers (9.3%) and convenience stores (5.3%).

In 2018, revenues within the foodservice (profit operators) sector were valued at US$236.8 million. The restaurant outlet led the way with on-trade sales of US$152.4 million, followed by accommodation outlets (US$56.1 million) and on-trade retail outlets (US$10.7 million). All the outlets in this sector grew well. All channels grew by a CAGR of 3.7% between 2015-2018. The fastest growing channels were mobile operators with a CAGR of 4.1% while leisure, retail and workplace outlets all experienced a CAGR of 3.8%.

Outlets from the institutional channel (cost operator) also grew well over the 2015-2018 period, by a CAGR of 3.9%. In 2018, healthcare was the most important outlet with revenues valued at US$8.2 million, followed by educational (US$6.8 million) and welfare and related services (US$1.4 million). Educational institutions were the fastest growing sector of the institutional channel with a CAGR of 4.0%.

Competition

In 2018, Garnelen, which is owned by Elfin Feinkost Gmbh, was the brand with the biggest retail sales in Austria at US$55.6 million with a market share of 4.3%. Friedrich Kaiser Gmbh's brand FriedricHS6 had the second largest sales at US$35.3 million with a market share of 2.7%. Vier Diamanten was the third largest brand in terms of sales with US$25.2 million and a 2.0% market share. Moreover, Princes Limited was the only trademark owner to feature two brands among the top fish and seafood brands in 2018 with Vier Diamanten and Diamanten.

New product launches

Several manufactured products containing fish or seafood were launched in the Austrian market between 2015 and 2019, according to Mintel. The "fish products" category includes fresh, frozen, dried, preserved, smoked, or canned fish, shellfish and seaweed products. The majority of the products during this period were of new variety/range extension launch types.

Ethical considerations are very important when it comes to fish and seafood consumption trends, which explains why the two leading claims of new product launches were "ethical - sustainable" ( 51.7%) and "ethical - environmentally friendly" (50.2%). The top packaging types were skinpack, flexible, tray and carton, whereby most products were available chilled or frozen in supermarkets.

Example of new products

Baked Fish Fingers

Company	Hofer
Brand	Almare Seafood
Category	Processed fish, meat and egg
Sub-category	Fish products
Market	Austria
Manufacturing country	Germany
Store name	Hofer
Store type	Supermarket
Date published	November 2019
Launch type	New variety/range extension
Price in US dollars	2.19

The Baked Fish Fingers are a new range of fish products from Almare. These frozen fish fingers packed in a carton that features the Certified Sustainable Seafood MSC logo. This products contains among other things, Alaska pollack fillets, wheat flour, rapeseed oil or potato starch.

Mussels in Garlic Butter

Company	Billa
Brand	Billa
Category	Processed fish, meat and egg
Sub-category	Fish products
Market	Austria
Manufacturing country	Austria
Store name	Hofer
Store type	Supermarket
Date published	July 2019
Launch type	New packaging
Price in US dollars	2.80

The repackaged Miesmuscheln in Knoblauchbutter (Mussels in Garlic Butter) from Billa is made mussels (Mytilus chilensis), salt parsley and has is flavoured with butter and garlic powder. This product has a Certified Sustainable Seafood MSC logo.

Tuna Carpaccio

Company	Merkur Warenhandels
Brand	Merkur Selektion
Category	Processed fish, meat and egg
Sub-category	Fish products
Market	Austria
Manufacturing country	Poland
Store name	Merkur - Ihr Markt
Store type	Supermarket
Date published	December 2019
Launch type	New variety/range extension
Price in US dollars	4.95

Merkur Selektion's Tuna Carpaccio is an new variety of a prodcut. The product is made with smoked tuna, vinaigrette, beechwood smoke falvour and parmigiano reggiano. The skinpack package features the MSC logo.

Conclusion

Although being one of the smallest fish and seafood markets in the European Union in terms of consumption, Austria in seeing a rise in the consumption of seafood products during recent years. Despite the lower consumption, their almost detal dependability on imports still makes Austria an attractive market. Fish products are positively associated with a healthy diet, sustainability and quality plays an important role in consumers' decisions when choosing fish products. Austria imports most of its fish and seafood products because it is a landlocked country. However, the country is trying to promote aquaculture to be more self-sufficient.

Canada has a very good reputation on fish and seafood in Austria. With the implementation of CETA and the elimination of tariffs on most fish and seafood products, Canada's fish producers have more opportunities to exports into the Austrian market, especially taken into account that Canada is well-positioned with many of the fish products that Austria imports such as atlantic salmon, frozen or fillets of pacific salmon. See the guide on National Treatment and Market Access for Goods to review key provisions of the Agreement, including those related to fish and seafood products.

For more information

International Trade Commissioners can provide Canadian industry with on-the-ground expertise regarding market potential, current conditions and local business contacts, and are an excellent point of contact for export advice.

• Overview of Trade Commissioner Services in Austria
• Find a Trade Commissioner

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For additional information on Seafood Expo Global, please contact:

Ben Berry, Deputy Director
Trade Show Strategy and Delivery
Agriculture and agri-food Canada
ben.berry@canada.ca

Sector Trend Analysis – Fish and Seafood Trends in Austria
Global Analysis Report

Prepared by: Saidouba Camara

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