Seafood demand is strengthening across China’s non-tier-one cities with openings emerging in less mature categories

China's seafood sector is currently under pressure as consumers become more price-conscious and suppliers are being pushed to adjust accordingly. "The market is experiencing consumption downgrading, which has driven upstream fisheries to follow suit with price reductions," says Qiang Geng, CEO of Landi Seafood, a China-based seafood importer.

Yet alongside that squeeze, is another shift. "The purchasing power of consumers in tier-two and -three cities is catching up with those in tier-one cities," says Geng. "But overseas SME fisheries often only look at the demand in large cities, which may not be authentic.”

Tier-two and three cities, he argues, should now be the primary target for many businesses entering the market who, until now, might have otherwise focused exclusively on big coastal cities, high-end restaurants and premium consumers.

Products that sell and why

For most overseas SMEs, particularly those with affordable, high-quality products in categories that remain relatively rare in China, tier-two and tier-three cities represent the primary volume opportunity. "Consumers are seeking more affordable seafood products, while importers are selecting novel categories to attract consumer purchases," explains Geng.

Greater purchasing power across non-tier-one cities is also creating space for premium products alongside more mass-market offerings. "The premium consumer market has always existed with distinct differentiation," Geng notes, adding that quality expectations in that segment are significantly higher than in the rest market.

Nutritional awareness is also on the rise, bringing with it an increase in seafood consumption across all market segments. "The growing pursuit of health has driven demand in some local health product industries," says Geng, pointing to it as one of Landi's own growth drivers. For suppliers that carry a credible health story alongside clear market positioning, this creates potential entry points into the growing tier-two and -three markets.

Navigating the popularity shift

Not every category is moving at the same pace, however. "There is a clear trend of popularising high-quality seafood that were previously positioned as premium," notes Geng. Seafood once seen as a luxury is increasingly becoming a daily purchase for a much wider group of Chinese consumers.

Salmon is the clearest example of this shift. A few years ago salmon was largely confined to high-end Japanese restaurants and premium supermarkets in major cities but has now increasingly become a part of everyday household consumption via fast-growing accessible delivery channels. According to the Norwegian Seafood Council, China’s Atlantic salmon market totalled 143,000 tonnes in 2025, while Norwegian seafood exports to China have grown by double-digit percentages annually over the past decade.

On the flip side, adoption of fresh fish fillets remains modest and the demand for this category is still building gradually. "Its demand once halved and is now in the recovery phase," says Geng, citing both the Covid pandemic and Japan's discharge of nuclear-contaminated water as the causes of this change.

While salmon has become an established category, as more specialised fresh fillet categories continue to recover, this may leave more room for foreign SMEs in China in less mature segments.

Getting a foot in the door

According to Geng, China’s seafood regulations are not difficult to navigate – as long as one is willing to study, it can definitely be understood. "The laws and regulations are clearly stated in black and white, as are the inspection standards," he adds. Many foreign suppliers fail to invest the time to figure out the requirements, often due to language barriers. Others assume China's customs standards to be more lenient than their own. "The reality, however, may be just the opposite," Geng warns.

Beyond regulatory readiness, SMEs also need to consider their route to market options. Cold chain improvements have reduced transportation costs and e-commerce has decreased the number of intermediaries, but needless to say both have their challenges. "If overseas suppliers want to take advantage of these [routes] for importation, they need to understand the logic of China's internet and have the financial resources to find a reliable importer for unified purchasing," says Geng. Selling on e-commerce platforms requires a physical entity in China and all relevant certificates.

Skipping competitive research is another common mistake among new entrants. "SME fisheries often overestimate their competitiveness and set high prices blindly without conducting a comprehensive investigation into the market pricing and the situation of competing products," Geng notes. As purchasing power and geographical focus shift in China, this is particularly important for businesses looking to sell into the market.

The inside take: What separates success from failure

For overseas SME fisheries considering China, success comes down to the following:

Go where the growth is

• Target tier-two and tier-three cities.
• Novel, affordable species with limited domestic availability.
• Health and nutritional credentials as an additional hook.

Get the basics right

• Detailed market research before entry.
• Channel research before route-to-market decisions.
• Comprehensive investigation into market pricing and competing products.

Know the rules

• Study China’s inspection standards early.
• Local associations for regulatory navigation.
• Physical entity and relevant certificates for e-commerce sales.

About the Author

Navigator Global is a digital platform designed to guide companies throughout their internationalisation journey, from identifying the markets with the greatest potential to executing their market entry strategy, connecting them with strategic information, local experts and solutions tailored to each stage.

The platform is designed to provide businesses with a single, structured gateway to end‑to‑end international trade support, something no other institution has been able to do. 

Sign up now to Navigator Global here.