MARKET ACCESS SECRETARIAT Global Analysis Report

Inside Denmark The Fish and Seafood Trade August 2015

TRADE SUMMARY*

CONTENTS

With a population of 5.4 million, a strong economy, and a stable business environment, Denmark is a highly developed country with an advanced consumer market. Copenhagen, the capital of Denmark, has approximately 20% of the total population and is the hub of government and business activity. The country possesses an efficient business sector, a successful energy sector, and an advanced agricultural sector. Denmark is a large international trader, and although the country produces an overall agricultural surplus, it is reliant on imports to meet the needs of its domestic agriculture-processing sector.

Trade Summary...............................1

Denmark imported US$3.6 billion worth of fish and seafood from the world in 2013, an increase of 10.8% from 2012. Denmark’s supply of fish and seafood is very diversified and is imported from over 50 countries. The top suppliers in 2013 were Norway with a 38.8% share, Greenland (12.4%), Faroe Islands (6.9%), Germany (5.7%), and Sweden (4.5%). Canada was Denmark’s seventh-ranked supplying country with 3.1% of the market in the same year.

Canadian Performance ...................2 By the Numbers...............................2 Market Sizes....................................3 Market Shares by Company............4 Top Ten Fish and Seafood Suppliers to Denmark in 2013 .........5 For More Information .......................6 Resources .......................................6

In 2013, Denmark’s primary fish and seafood imports included fresh salmon (US$886.1 million), fish fats and oils shrimp and prawns (US$200.6 million), cold-water (US$174.4 million), fish pellets (US$161.6 million), and frozen salmon fillets (US150.4 million). Denmark exported US$4.6 billion in fish and seafood in 2013, an increase of 12.3% from the previous year. Denmark’s leading exports were fresh salmon (US$704.4 million), fish pellets (US$348.8 million), cold-water shrimp (US$271.4 million), fish fats and oils (US$262.3 million), and fresh salmon fillets (US$193.8 million). Top export destinations were Germany with a 16.9% share, France (10.7%), and United Kingdom (8.7%). *Please note that at the time of writing this report, 2014 information on the Denmark fish and seafood trade is not available

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CANADIAN PERFORMANCE •

Canada was the 7th-largest import supplier of fish and seafood to Denmark, with sales of US$124.3 million in 2013 (based on Denmark import data). This represents a decrease of 6.5% from 2012 due to a drop in prepared shrimp and prawns in bulk, as well as seaweed and other algae.

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The leading products imported from Canada in 2013 included prepared shrimp and prawns (US$77.3 million), frozen cold-water shrimp and prawns (US$23.6 million), preserved shrimp and prawns in container (US$5.3 million), frozen lobster (US$2.4 million) as well as seaweed and other algae (US$2.7 million). (GTA, 2015).

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Denmark is 7th-largest recipient of our exports of fish and seafood, and received approximately 1.7% of Canada’s seafood exports in 2014. Overall, fish and seafood was Canada’s most significant export sector to Denmark, and represented 13.7% of all Canadian merchandise exports to Denmark in 2014 (GTA, 2015).

BY THE NUMBERS •

Denmark is the twelfth-largest market for imported fish and seafood in the world with a value of US$3.6 billion in 2013. Denmark is also one of the top fish and seafood importers amongst European Union (E.U.) countries, not far behind the United Kingdom and Sweden.

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In 2013, Denmark imported around 363,142 tonnes of fresh or chilled salmon, valued at more than US$886.1 million. Fresh salmon's share of total Denmark fish imports was 24.5% in the same year.

Top Ten Suppliers of Fish and Seafood to Denmark and Top Imported Products in 2013 (Based on Denmark Import Data)

Rank

Country

Total Import Value (US$)

1 2 3 4

World Norway Greenland Faroe Islands Germany

3,604,774,555 1,383,555,875 449,346,513 251,652,332 206,977,918

5

Sweden

162,868,541

6

Iceland

159,599,802

7

Canada

112,344,260

8 9 10

United Kingdom Poland United States

94,574,808 86,429,156 83,710,450

Top Import Supplied Fresh or chilled salmon Fresh or chilled salmon Frozen cold-water shrimp and prawns Frozen salmon fillets Fish meal and crustacean pellets Products of fish and molluscs not fit for human consumption Fish flour/meal and crustaceans pellets not fit for human consumption Prepared shrimp and prawns not in airtight containers Frozen salmon Prepared whole fish Fish fats and oils (not liver) not modified

Top Import Value (US$) 886,175,316 829,315,810 135,837,965 88,608,006 52,151,262 34,182,435 42,013,849 77,374,914 16,050,978 16,026,019 33,475,268

Source: Global Trade Atlas, 2015.

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Top Ten Denmark Fish and Seafood Imports from the World in 2013

Rank 1 2 3 4 5 6 7 8 9 10

Top Imports Fresh or chilled salmon Fish fats and oils (not liver) Frozen cold-water shrimp and prawns Fish flour meal and crustacean pellets (not for human consumption) Frozen salmon fillets Preserved shrimp and prawns Preserved shrimp and prawns, not in airtight containers Products of fish and molluscs (not for human consumption) Frozen halibut Fresh or chilled cod

886,175,316 200,603,060 174,480,441

24.58 5.56 4.84

% Change in Imports Value 2013/12 37.31 -30.82 14.04

161,678,526

4.49

-20.27

150,481,211 142,368,321

4.17 3.95

46.31 5.51

141,368,443

3.92

-5.27

136,740,060

3.79

64.2

120,242,599 118,348,929

3.34 3.28

12.74 19.29

2013 Import Value (US$)

% Share of Total Imports

Source: Global Trade Atlas, 2015.

MARKET SIZES Fresh/Chilled •

The fish and seafood market size in Denmark has been growing at a compound annual growth rate (CAGR) of 3.9% since 2009 to reach volume sales of over 34 million kilograms, for a value of US$629.9 million in 2014. It is expected to continue growing at this rate until 2018, when it is forecasted to reach total volume sales of over 38 million kilogram for an estimated value of US$706.4 million

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According to Datamonitor, Fresh/chilled fish was the largest subcategory in Denmark in 2014 (48.8%), followed by fresh/chilled seafood (6.3%) and coated fish/seafood (1.4%). The seafood market size recorded at a CAGR of almost 4.1% since 2009 and is expected to continue growing at a slightly higher rate over the forecast period 2014-2018.

Packaged •

The overall volume of canned/preserved fish and seafood had a CAGR of 1.8 % from 2009-13, and is expected to continue to grow at CAGR 2.1% from2014 to 2018. The growth in this subcategory can be attributed to an overall ease of use, affordability and innovative offerings.

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Other canned fish and seafood represent 13.0% of total sales in this subcategory reaching US$85.9 million and a volume of 9.1 million kilograms. Canned tuna held 9.5% value sales with US$77.6 million and for a volume of 6.5 million kilograms.

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Datamonitor’s indicates that canned/preserved foods is generally less expensive, however Danish consumers are increasingly seeking fresh and frozen alternatives for their perceived freshness. As such, frozen fish and seafood products are expected to increase in value and volume sales. The CAGR 1.4% registered between 2009-13 in the frozen fish and seafood category is expected to double from 2014-18.

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Retail Value Sales of Processed Fish and Seafood in Denmark Historic/Forecast in US$ millions end Period Growth (%) Category

2009

2013

F

2014

F

2018

CAGR % 2009-13

CAGR % F 2014-18

Total processed fish and seafood Chilled fish/seafood

549.4 248.3

610.6 289.3

629.9 299.5

706.4 340.3

2.7 3.9

2.9 3.2

Raw fish Raw seafood Coated fish/seafood Canned fish/seafood Tuna Mackerel Salmon Other canned fish/seafood Frozen fish/seafood Raw seafood Raw fish Coated fish/seafood Other frozen fish/seafood

198.8 40 9.5 164.2 70.6 13.8 0.5 79.3 136.8 52.7 41.4 14.6 28.1

232.4 46.9 10 176.5 76.7 15.3 0.5 84 144.8 57 42.5 14.9 30.4

240.5 48.9 10.1 179.7 77.6 15.6 0.6 85.9 150.7 62.3 40.9 14.3 33.2

271.6 58.2 10.5 195.3 82.3 16.7 0.6 95.7 170.7 73.4 43.2 14.8 39.3

4.0 4.1 1.3 1.8 2.1 2.6 0.0 1.4 1.4 2.0 0.7 0.5 2.0

3.1 4.4 1.0 2.1 1.5 1.7 0.0 2.7 3.2 4.2 1.4 0.9 4.3

Source: Datamonitor, 2015.

MARKET SHARES BY COMPANY Denmark leading fish and seafood processors, Royal Greenland S.A, ranked first with an 18% value share in 2013, followed by Gamba Food S.A and A. Espersen S.A with 13% and 6% respectively, dominate the seafood market. Private label products have seen their sales stable at 28% of the total processed fish and seafood market. Euromonitor describs the Royal Greenland company as a company that has a strong focus on chilled and frozen fish/seafood, which accounted for more than 95% of the company’s sales in Denmark in 2013. Within these categories, Royal Greenland has a wide product portfolio including smoked products. Top Companies by Market Shares for Processed Fish and Seafood in Denmark - % Breakdown Based on Retail Value Sales Company Royal Greenland S.A Gamba Food S.A A. Espersen S.A Caldic Group Tamaco Nyborg S.A Findus Group Limited Ardo N.V. Uhrenholt S.A Permira Skagerak Fiskeeksport S.A Private Label Other

2012

2013 18% 13% 6% 6% 3% 3% 2% 2% 2% 1% 28% 17%

18% 13% 6% 6% 3% 3% 2% 2% 2% 1% 28% 17%

Source: Datamonitor, 2015.

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TOP TEN FISH AND SEAFOOD SUPPLIERS TO DENMARK IN 2013 All of the figures listed below are in United States dollars 1. Imports from Norway Fresh/chilled salmon

2. Imports from Greenland 829.3M

Frozen cold-water shrimp and prawns

135.8M

Fresh/chilled cod

85.8M

Preserved shrimp/prawns in airtight container

125.0M

Fresh/chilled salmon fillets

66.3M

Frozen halibut/turbot

108.4M

Fresh fillets codlet

57.9M

Frozen flat fish fillets

21.7M

Dried salted cod

57.1M

Frozen cod

13.4M

3. Imports from Faraoe Islands

4. Imports from Germany Flour meal and fish pellets not for human consumption

Frozen salmon fillets

88.6M

52.2M

Fresh/chilled salmon

31.0M

Preserved mackerel

23.9M

Dried fish fillets of codlet

21.8M

Fresh/chilled cod

11.1M

Frozen coalfish fillets Fish and molluscs products not for human consumption 5. Imports from Sweden Fish and molluscs products not for human consumption

17.0M

Frozen cod

8.5M

15.3M

Fish fats and oils

8.2M

Fresh/chilled salmon

6. Imports from Iceland Flour meal and fish pellets not for human consumption

42.0M

21.1M

Fresh codlet fillets

28.0M

Fresh/chilled herrings

14.5M

Fish fats and oils

17.3M

Fresh Pacific salmon

14.4M

12.6M

Fresh/chilled cod

14.1M

Prepared fish Fish and molluscs products not for human consumption 8. Imports from the United Kingdom

77.4M

Frozen salmon

16.1M

23.6M

Fresh mackerel

15,6M

Prepared tunas/skipjack/bonito

10.7M

7. Imports from Canada Prepared shrimp and prawns not in airtight Container Frozen cold-water shrimps and prawns Preserved shrimp/prawns in airtight container

34.2M

5.3M

Frozen lobsters

2.4M

Seaweeds and other algae 9. Imports from Poland

1.8M

Whole fish Fish and molluscs products not for human consumption Frozen cod fillets

10.4M

Preserved shrimp and prawns, not in airtight container Fresh/chilled cod 10. Imports from United States

5.9M 4.9M

16.0M

Fish fats and oils

33.5M

14.1M

Frozen cod

16.7M

Frozen Alaska Pollock fillets Preserved shrimp and prawns not in airtight container

12.6M

8.4M

Frozen salmon

6.2M

Preserved shrimp/prawns in airtight container

4.7M

9.1M

Frozen scallops

4.4M

Source: Global Trade Atlas, 2015.

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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 Service in Denmark www.tradecommissioner.gc.ca/dk

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Find a Trade Commissioner www.tradecommissioner.gc.ca/eng/find-trade-contacts.jsp

For additional intelligence on this and other markets. The complete library of Global Analysis reports can be found under Statistics and Market Information at the following link, arranged by sector and region of interest: ats-sea.agr.gc.ca For additional information on Seafood Expo Global 2015. please contact: •

Ben Berry. Deputy Director Trade Show Strategy and Delivery Agriculture and Agri-Food Canada [email protected]

RESOURCES Euromonitor International 2014. • Health and Wellness in Denmark • Packaged Food in Denmark • Chilled Packaged Food in Denmark • Frozen Packaged Food in Denmark Datamonitor Market Data Analytics. 2014 The Danish AgriFish Agency http://agrifish.dk/fisheries/fishery-statistics/ Global Trade Atlas. 2014

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Inside Denmark: The Fish and Seafood Trade Global Analysis Report Prepared by: Karim Zarrouki. Market Analyst © Her Majesty the Queen in Right of Canada. represented by the Minister of Agriculture and Agri-Food (2015). Photo Credits All photographs reproduced in this publication are used by permission of the rights holders. All images, unless otherwise noted, are copyright Her Majesty the Queen in Right of Canada. For additional copies. to request an alternate format, and for all other inquiries regarding this publication. please contact: Agriculture and Agri-Food Canada. Global Analysis 1341 Baseline Road. Tower 5. 3rd floor Ottawa. ON Canada. K1A 0C5 E-mail: [email protected] The Government of Canada has prepared this report based on primary and secondary sources of information. Although every effort has been made to ensure that the information is accurate. Agriculture and Agri-Food Canada (AAFC) assumes no liability for any actions taken based on the information contained herein. Reproduction or redistribution of this document, in whole or in part, must include acknowledgement of Agriculture and Agri-Food Canada as the owner of the copyright in the document, through a reference citing AAFC, the title of the document and the year. Where the reproduction or redistribution includes data from this document, it must also include an acknowledgement of the specific data source(s), as noted in this document. Agriculture and Agri-Food Canada provides this document and other report services to agriculture and food industry clients free of charge. Page | 7