Shrimp Processing Plant Setup Cost

Shrimp Processing Plant Project Report (DPR) Summary: 

IMARC Group's comprehensive DPR report, titled "Shrimp Processing Plant Project Report 2026: Industry Trends, Plant Setup, Machinery, Raw Materials, Investment Opportunities, Cost and Revenue," provides a complete roadmap for setting up a shrimp processing unit. The shrimp market is driven by rising global seafood consumption, growing preference for high-protein diets, expansion of aquaculture farming, increasing exports from Asia-Pacific countries, and advancements in cold-chain logistics. The global shrimp market size was valued at USD 74.672 Billion in 2025. According to IMARC Group estimates,the market is expected to reach USD 105.37 Billion by 2034, exhibiting a CAGR of 3.9% from 2026 to 2034.

This feasibility report covers a comprehensive market overview to micro-level information such as unit operations involved, raw material requirements, utility requirements, infrastructure requirements, machinery and technology requirements, manpower requirements, packaging requirements, transportation requirements, etc.

The shrimp processing plant setup cost is provided in detail covering project economics, capital investments (CapEx), project funding, operating expenses (OpEx), income and expenditure projections, fixed costs vs. variable costs, direct and indirect costs, expected ROI and net present value (NPV), profit and loss account, financial analysis, etc. 

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What are Shrimp? 

Shrimp are aquatic crustaceans widely cultivated and processed for human consumption due to their high nutritional value, delicate texture, and versatile culinary applications. Commercial shrimp species are reared in aquaculture systems of both freshwater and marine types, and under controlled conditions, so that the quality and yield are always the same. Shrimp are full of good-quality protein, essential amino acids, omega-3 fatty acids, vitamins, and minerals but at the same time, they have low saturated fat content. Shrimp that are processed can be found in many different forms such as raw, cooked, peeled, deveined, frozen, and value-added variants etc., so they can cater to a wide range of consumers and food-service demands across the globe. 

Key Investment Highlights 

• Process Used: Cleaning, grading, peeling, deveining, cooking (optional), IQF freezing, glazing, and packaging.
• End-use Industries: Food processing, hospitality, retail seafood, quick-service restaurants, and export trade.
• Applications: Used for frozen seafood products, ready-to-cook meals, canned seafood, restaurant and catering supplies.

Shrimp Plant Capacity: 

The proposed processing facility is designed with an annual production capacity ranging between 5,000 - 10,000 MT peeled shrimp, enabling economies of scale while maintaining operational flexibility. 

Shrimp Plant Profit Margins: 

The project demonstrates healthy profitability potential under normal operating conditions. Gross profit margins typically range between 20-30%, supported by stable demand and value-added applications. 

• Gross Profit: 20-30% 
• Net Profit: 8-12% 

Shrimp Plant Cost Analysis: 

The operating cost structure of a shrimp processing plant is primarily driven by raw material consumption, particularly fresh/frozen shrimp, which accounts for approximately 75–85% of total operating expenses (OpEx).

• Raw Materials: 75-85% of OpEx 
• Utilities: 5-10% of OpEx 

Financial Projection:  

The financial projections for the proposed project have been developed based on realistic assumptions related to capital investment, operating costs, production capacity utilization, pricing trends, and demand outlook. These projections provide a comprehensive view of the project’s financial viability, ROI, profitability, and long-term sustainability.

Major Applications: 

• Food Processing Industry: Used in frozen packs, breaded products, marinated items, canned seafood, and ready-to-cook meals.
• Hospitality and Foodservice Industry: Used for making curries, grilled dishes, salads, and international cuisines.
• Retail and Supermarkets: Household consumption involves buying shrimp as frozen, chilled, peeled, deveined, and cooked. 
• Export Industry: Processed shrimp are exported to markets around the world which meet international food safety and quality standards. 

Why Shrimp Processing? 

✓ High-Value Protein Food Segment: Shrimps are on popular when it comes to seafood consumption due to their protein-rich nature, low-fat content, and flexibility in different cuisines, which guarantees the high demand even among the low-income groups. 

✓ Strong Export Potential: In the case of shrimp production, several countries are leveraging the significant export demand, huge foreign exchange earnings, and securing long term contracts with global buyers and distributors. 

✓ Alignment with Food Consumption Trends: Urbanization along with the trend towards frozen and convenience food consumption combined with increasing health awareness all boosting the demand for processed shrimp products faster. 

✓ Government and Policy Support: The fisheries development programs, aquaculture subsidies, export incentives, and investments in cold chain and port infrastructures are all supporting the industry's growth. 

Transforming Vision into Reality: 

This report provides the comprehensive blueprint needed to transform your shrimp processing vision into a technologically advanced and highly profitable reality. 

Shrimp Industry Outlook 2026: 

The shrimp market is primarily driven by rising global seafood consumption supported by increasing awareness of the health benefits of lean protein and omega-3 fatty acids. Rapid growth in aquaculture enabled consistent supply compared to wild catch fisheries. Expanding international trade, supported by improving freezing and cold-chain logistics, enhanced shrimp availability across regions. Moreover, technological advancements in aquaculture farming, disease management, and processing automation are improving yields and operational efficiency.Besides, Asia-Pacific remains the largest producer and exporter of shrimp, led by countries such as India, Vietnam, Indonesia, and China, benefiting from favorable climatic conditions and cost-effective labor. India’s shrimp export segment continues to gain momentum, supported by strong international demand and expanding market access in key importing countries. For example, as per the Press Information Bureau (PIB), frozen shrimp continued to dominate India’s seafood exports in both volume and value, with the US and China emerging as the largest destination markets. In FY 2023–2024, export volumes increased by 2.67%. During FY 2022–2023, India shipped 1.74 million tonnes of seafood valued at ₹63,969.14 crore (USD 8.09 billion). The steady rise in export volumes and sustained dominance of shrimp in India’s seafood basket underscore the sector’s robust growth trajectory and strengthening global competitiveness.

Leading Shrimp Processors: 

Leading processors in the global shrimp industry include several multinational companies with extensive production capacities and diverse application portfolios. Key players include: 

• Aqua Star 
• High Liner Foods 
• Wild Ocean Direct 
• Thai Union Group PCL 
• Clearwater Seafoods 
• Avanti Feeds Limited 
• Mazzetta Company, LLC 
• Nordic Seafood A/S 
• The Waterbase Limited 
• Surapon Foods Public Company Limited 

all of which serve end-use sectors such as food processing, hospitality, retail seafood, quick-service restaurants, and export trade. 

How to Setup a Shrimp Processing Plant? 

Setting up a shrimp processing plant requires evaluating several key factors, including technological requirements and quality assurance.  

Some of the critical considerations include: 

• Detailed Process Flow: The processing process is a multi-step operation that involves several unit operations, material handling, and quality checks. Below are the main stages involved in the shrimp processing process flow:
  • Unit Operations Involved 
  • Mass Balance and Raw Material Requirements 
  • Quality Assurance Criteria 
  • Technical Tests
     

• Site Selection: The location must offer easy access to key raw materials such as fresh/frozen shrimp, water, ice, and packaging. Proximity to target markets will help minimize distribution costs. The site must have robust infrastructure, including reliable transportation, utilities, and waste management systems. Compliance with local zoning laws and environmental regulations must also be ensured.​ 

• Plant Layout Optimization: The layout should be optimized to enhance workflow efficiency, safety, and minimize material handling. Separate areas for raw material storage, production, quality control, and finished goods storage must be designated. Space for future expansion should be incorporated to accommodate business growth.​ 

• Equipment Selection: High-quality, corrosion-resistant machinery tailored for shrimp production must be selected. Essential equipment includes hatchery tanks and aeration systems, feed dispensers and water quality monitoring systems, harvesting nets and graders, peeling and deveining machines, cooking and blanching units, iqf (individually quick frozen) systems, and cold storage and blast freezers. All machinery must comply with industry standards for safety, efficiency, and reliability.​ 

• Raw Material Sourcing: Reliable suppliers must be secured for raw materials like fresh/frozen shrimp, water, ice, and packaging to ensure consistent production quality. Minimizing transportation costs by selecting nearby suppliers is essential. Sustainability and supply chain risks must be assessed, and long-term contracts should be negotiated to stabilize pricing and ensure a steady supply. 

• Safety and Environmental Compliance: Safety protocols must be implemented throughout the processing process of shrimp. Advanced monitoring systems should be installed to detect leaks or deviations in the process. Effluent treatment systems are necessary to minimize environmental impact and ensure compliance with emission standards.​

• Quality Assurance Systems:  A comprehensive quality control system should be established throughout production. Analytical instruments must be used to monitor product concentration, purity, and stability. Documentation for traceability and regulatory compliance must be maintained. 

Project Economics: 

​Establishing and operating a shrimp processing plant involves various cost components, including:​ 

• Capital Investment: The total capital investment depends on plant capacity, technology, and location. This investment covers land acquisition, site preparation, and necessary infrastructure. 

• Equipment Costs: Equipment costs, such as those for hatchery tanks and aeration systems, feed dispensers and water quality monitoring systems, harvesting nets and graders, peeling and deveining machines, cooking and blanching units, iqf (individually quick frozen) systems, and cold storage and blast freezers, represent a significant portion of capital expenditure. The scale of production and automation level will determine the total cost of machinery.​ 

• Raw Material Expenses: Raw materials, including fresh/frozen shrimp, water, ice, and packaging, are a major part of operating costs. Long-term contracts with reliable suppliers will help mitigate price volatility and ensure a consistent supply of materials.​ 

• Infrastructure and Utilities: Costs associated with land acquisition, construction, and utilities (electricity, water, steam) must be considered in the financial plan.

• Operational Costs: Ongoing expenses for labor, maintenance, quality control, and environmental compliance must be accounted for. Optimizing processes and providing staff training can help control these operational costs.​ 

• Financial Planning: A detailed financial analysis, including income projections, expenditures, and break-even points, must be conducted. This analysis aids in securing funding and formulating a clear financial strategy.   

Capital Expenditure (CapEx) and Operational Expenditure (OpEx) Analysis: 

Capital Investment (CapEx): Machinery costs account for the largest portion of the total capital expenditure. The cost of land and site development, including charges for land registration, boundary development, and other related expenses, forms a substantial part of the overall investment. This allocation ensures a solid foundation for safe and efficient plant operations. 

Operating Expenditure (OpEx): In the first year of operations, the operating cost for the shrimp processing plant is projected to be significant, covering raw materials, utilities, depreciation, taxes, packing, transportation, and repairs and maintenance. By the fifth year, the total operational cost is expected to increase substantially due to factors such as inflation, market fluctuations, and potential rises in the cost of key materials. Additional factors, including supply chain disruptions, rising consumer demand, and shifts in the global economy, are expected to contribute to this increase.

Capital Expenditure Breakdown:

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Operational Expenditure Breakdown:

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Profitability Analysis: 

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Latest Industry Developments: 

• July 2025: Prime Shrimp launched its new Prime Shrimp Burger across direct-to-consumer and food service channels. Made with 80% shrimp and free from STPP, the cook-from-frozen patties use responsibly sourced Pacific White Shrimp from Ecuador. The product debuted on QVC, selling out during initial broadcasts, and is now available to food service operators through distributors such as Sysco. 
   
• May 2024: Natural Shrimp Inc. announced plans to expand sales of its sushi-grade shrimp into new U.S. markets following a significant increase in production at its Webster City facility. The company strengthened its presence in Chicago and is securing new commercial outlets across the Upper Midwest, including Minneapolis, Kansas City, and Tulsa, targeting Asian and regional markets to support wider distribution and continued market growth. 
   
• March 2024: Laitram Machinery strengthened its global footprint by acquiring Martak’s shrimp peeling operations, a move aimed at expanding its cold-water shrimp processing capabilities and reinforcing its position in the international shrimp equipment market. 
   
• February 2024: India-based seafood platform Captain Fresh acquired US importer CenSea Inc., enabling the company to significantly scale its North American presence and increase the share of US revenues to more than half of its overall business. 

Report Coverage:

Report Customization

While we have aimed to create an all-encompassing shrimp processing plant project report, we acknowledge that individual stakeholders may have unique demands. Thus, we offer customized report options that cater to your specific requirements. Our consultants are available to discuss your business requirements, and we can tailor the report's scope accordingly. Some of the common customizations that we are frequently requested to make by our clients include:

• The report can be customized based on the location (country/region) of your plant.
• The plant’s capacity can be customized based on your requirements.
• Plant machinery and costs can be customized based on your requirements.
• Any additions to the current scope can also be provided based on your requirements.

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