EU consumers slightly reduced their overall seafood consumption in 2017, as trade flows and demand shifted in key categories, according to the EU Fish Processors and Traders Association's (AIPCE-CEP) annual Finfish report (download the full report here in PDF).

While per capita consumption -- subtracting exports from estimated domestic supply and imports -- is trending along averages since 2006, the 24.8 kilograms per capita was down 1.2 percent from last year's 25.1 kg/capita.

Overall total consumption was placed at 12.68 million metric tons in 2017, a 0.9 percent decline over the year prior. However, the level is the second highest since the EU 27/28 was formed "and confirms the long-term trend for fish consumption [is] rising," AIPCE noted.

"As a trading bloc the EU presently [is] the most important for fish and seafood globally but other regions are becoming more significant and we must ensure that we keep developing," AIPCE wrote. "It is also essential not to put any unnecessary barriers – whether tariff or non-tariff – that could inhibit this consumption."

Even with the overwhelming dependence on imports, EU exports showed strength during the year, with 2.114 million metric tons shipped, a rise of 6.9 percent.

Supplies on the rise

The overall supply of seafood for food use to the EU 28 countries was estimated at 14.79 million metric tons, around 2.6 percent higher than the long-term average since 2006.

EU quotas were up 17 percent in 2017 from the year prior, to 4.47 million metric tons, led by pelagics such as herring, sprat, mackerel and blue whiting. However, less than 75 percent of the overall quota was utilized, and the bloc remains overwhelmingly dependent on imports, with over 62 percent of the overall supply coming from outside of the EU, the report noted. Domestic EU aquaculture production continues to be minimal, with only sea bass and bream providing any significant volumes.

"In every sector imports have been the lifeblood of the industry for many years and fulfill an essential role reliance only on domestic supply would leave a much smaller industry and limit the scope for both growth and innovation," the report authors wrote.

Tuna, salmon and cod continue to be the top three consumed species in the EU, and of those, tuna is showing the strongest growth, with consumption climbing 8.7 percent to 1.46 million metric tons, with Ecuador's exports of loins and prepared tuna in particular rising, a likely result of the free trade agreement between the two parties.

Whitefish sees supply shifts

Overall demand for whitefish, both wild and farmed, grew slightly, according to the report, up 0.4 percent to 3.12 million metric tons. Wild whitefish supplies continued to come overwhelmingly from imports, with around 88.9 percent coming from overseas.

The overall cod supply into the bloc last year -- domestic and imports -- was 1.23 million metric tons, 2.3 percent below 2016, largely the result of lower EU catches. Strong Barents Sea and Iceland biomass and quotas have lifted the supply in recent years, and even if those peaks have passed, AIPCE wrote, "the EU remains the largest single market for all species of cod and may prove more resilient than other regions of the world in its appetite for cod and take an even larger share of the supply."

Alaska pollock imports rose slightly, but the stable numbers belied some significant shifts.

Most notable were sharp declines for fillet imports from China, which fell over 5.5 percent to 345,351 metric tons, indicating a continued shift away from twice-frozen products. The overall volume, however, still accounts for around 43 percent of the total supply of pollock.

Meanwhile, direct imports of pollock fillets from Russia rose by 12.8 percent to 106,196 metric tons, over 20 higher than the volumes just three years ago.

US Alaska pollock imports, which also accounted for 43 percent of the overall supply of frozen fillets on the EU market, climbed 5.6 percent to 340,308 metric tons.

Surimi supply fell by 6.5 percent to 252,200 metric tons.

Wild whitefish consumption overall remains heavily tilted toward imports, with the European Union at 11.2 percent self-sufficiency.

That dependence, however, does not come at a loss for the EU domestic harvesting sector, the report asserts.

"Continued access to global whitefish fisheries without unnecessary barriers is essential if the processing industry is to be viable and in turn maintaining that viability is key to be able to offer longer term opportunity to the EU catching sector," report authors wrote.

Pangasius remains the only major farmed whitefish import into the EU, and while it has "gained a stronger foothold" in some key markets, "its share has been slipping away for several years as its appeal has been diminishing in some of the key markets." EU consumption of the fish is down around 40 percent from its historical peak, according to the report. Freshwater fish imports overall were down 19.5 percent to 412,000 metric tons.

Tilapia consumption, despite its huge global volumes, was estimated at around 50,000 metric tons, or around 1 percent of overall supply, primarily Chinese imports.

China's overall share of the whitefish supply continues to decline, and now accounts for a 22 percent share, the authors noted.

Salmon supply down

AIPCE estimates overall salmon supply declined 2 percent in 2017 to 1.37 million metric tons, the result of lower imports of fresh farmed salmon fillets as well as a decline in canned salmon exports, largely the result of lower overall supply from Pacific salmon fisheries.

Norway was overwhelmingly the largest supplier of salmon, accounting for 95 percent of the 811,300 metric tons of whole fresh volume. The Faroe Islands accounted for around 4 percent with 29,540 metric tons.

Norway's overall fresh fillet exports to the EU were down sharply, by over 20 percent to 85,079 metric tons.

Frozen fillet exports from Norway were flat at 50,668 metric tons, while Chile's frozen salmon fillet exports declined by more than 23 percent to 43,570 metric tons.

Vietnam taps EU shrimp market

The overall shrimp supply -- wild and farmed -- fell "modestly" to 883,900 metric tons, the report found. Of the volume, Vietnam, Ecuador and India accounted for the lion's share with their farmed shrimp exports.

Vietnam exports reached 123,254 metric tons, up 23 percent from the year prior. Ecuador and India exports were flat at 116,324 metric tons and 100,326 metric tons, respectively.

Argentina, Greenland and Canada all increased their exports of wild shrimp to the bloc.

EU market shows promise despite slow growth

Overall, AIPCE-CEP said the report showed strong indications that the overall market is climbing long term, but it notably did not delve deeply into the impact from Brexit.

The association also puts its 2018 per capita estimates higher at 25.4 kg/capita.

"[W]e have been in a period of improved availability of many species from both wild capture and aquaculture so we should perhaps be expecting more growth," the report authors wrote. "However, competition for fish is not lessening and the EU is a mature market."

AIPCE estimates the EU seafood processing industry accounts for more than 3,500 companies, 120,000 jobs and €27 billion ($30.6 billion) in turnover.