Vietnam’s shrimp exports to the European Union (EU) continued to grow in 2025, but new animal-welfare rules are shifting from voluntary guidance to mandatory requirements and could reshape supply chains from 2026 onward.

Steady growth, but mounting competitive pressure

In 2025, Vietnam’s shrimp exports to the EU maintained positive momentum. According to data from Shrimp Insight, during the first ten months of 2025 the EU imported around 374,500 tonnes of frozen white-leg shrimp and value-added shrimp products, up 18% year on year. Import value reached €2.35 billion, an increase of 21%. This growth reflects resilient shrimp consumption across many EU economies, particularly in Southern Europe and Northwestern Europe, which together account for more than 95% of total EU shrimp imports.

According to the Vietnam Association of Seafood Exporters and Producers (VASEP), Ecuador remains the largest supplier to the EU, exporting more than 203,700 tonnes, up 37%, far outpacing competitors. India ranked second with approximately 51,500 tonnes, up 33%, benefiting from scale and cost advantages. Vietnam placed third with nearly 46,000 tonnes, up 12%. While the market-share gap between Vietnam and India is relatively narrow, the distance from Ecuador continues to widen, creating significant competitive pressure.

Vietnam Customs data show that by mid-December 2025, shrimp exports to the EU exceeded USD 562 million, up 22% from the same period in 2024. This confirms the EU’s role as a key market for Vietnam’s shrimp sector, combining large demand with strong purchasing power for value-added products. However, behind this positive picture lie growing warning signs: import standards are becoming stricter, extending beyond food safety to encompass animal welfare throughout the entire production and processing chain.

One notable challenge concerns pre-processing methods before preservation. Several major retailers in the EU and the UK have announced a shift from recommendations to mandatory requirements for fully stunning shrimp—primarily using electrical methods—before icing, replacing traditional cold-shock techniques. Retailers such as Tesco, Marks & Spencer, Sainsbury’s and Waitrose have incorporated these requirements into their purchasing policies, linking compliance directly to supplier eligibility. As a result, animal welfare is no longer merely an ethical consideration but has become a technical requirement in commercial transactions.

Animal welfare as a new technical barrier

Unlike traditional trade barriers, animal-welfare requirements cannot be addressed through administrative procedures or certificates alone. Exporters must invest in new harvesting and pre-processing technologies, redesign operating processes and ensure effective control during live shrimp transportation. Electrical stunning systems involve substantial upfront costs, while profit margins in the shrimp sector are already under pressure from rising input costs, intense price competition and increasingly demanding environmental and social certification requirements.

From a global competition perspective, these new standards may indirectly favor countries with large-scale production models, high certification rates and vertically integrated supply chains. Ecuador, for example, has a significantly higher share of ASC-certified shrimp compared with Vietnam, along with tightly linked farming and processing systems, making it easier to integrate stunning technology or upgrade processes. India, benefiting from lower costs and rapid expansion, is also increasing its EU market share amid volatility in other markets, particularly the United States.

For Vietnam, the challenge extends beyond equipment costs or technological upgrades. A critical concern is preventing the transition from creating an excessive “digital and technological gap” between large enterprises and small and medium-sized enterprises (SMEs), which make up a substantial portion of Vietnam’s shrimp export supply chain. Without appropriate support mechanisms, there is a real risk that many SMEs could be excluded from supply chains, leading to fragmented production linkages and a decline in overall competitiveness.

VASEP recommends that early development of domestic technical guidelines and standards, along with financial mechanisms to support technological upgrading, will be crucial to prevent the shrimp industry from being caught off guard by this new wave of higher standards. As competition intensifies, the ability to simultaneously meet requirements on price, quality and production standards will determine whether Vietnamese shrimp can strengthen its position in the EU market in the coming years.

Source: Công Thương Newspaper