The squid supply chain is undergoing an accelerated transformation, driven by price volatility, logistical weaknesses, and a decisive leap toward traceability and best practices. In this scenario, Sustainability is no longer an extra but a requirement. commercial, regulatory and reputational in virtually all buyer markets.
For exporters, processors, and retailers, 2025 marks a turning point with equal parts risk and opportunity. The key is to combine flexible sourcing, audit-proof compliance, and value-added products. Those who integrate traceability technology, participate in improvement initiatives and anticipate demand will emerge stronger in the current cycle.
Prices and offers: a year of saw teeth
The squid price index has shown an erratic pattern in 2025, with moderate declines in May and sharp increases in June due to sudden supply disruptions. The underlying signal is a structural imbalance between fishing areas. alternating peaks of abundance with precautionary closures.
In the Southeast Pacific, Peru halted landings of giant flying squid when quotas were met, increasing the cost of raw materials; meanwhile, in the Southwest Atlantic, after good initial catches, several conservation closures curtailed the final stretch of the campaign. The paradox is that, even with less availability, the price does not always rise linearly., making clear the instability of the market.
Furthermore, the relative scarcity of substitute species pushed up the Illex: with the early closure of the Patagonian in the Malvinas in 2024 and lower entries of Dosidicus gigas due to environmental conditions, Many buyers redirected their demand to Illex in the second half of the year.
The most significant cost factors now are fuel, logistics, and competition for raw materials among high-consumption destinations. Post-pandemic demand in the hospitality industry and the recovery of the foodservice channel have consolidated firm prices., although without widespread overheating.
Supply chain under pressure: from ship to table
The Asian processing triangle—China, Thailand, and Vietnam—remains the main industrial lung of squid, but its stability increasingly depends on volatile sources. Lower catches in South America and East Asia, geopolitical tensions and the impact of climate have stressed availability and deadlines.
The practical consequence is a logistics network more vulnerable to closures, port delays, and inventory shortages. Companies that combine contracts at origin with flexible reprocessing and mixed loads are better mitigating costs and stock-outs.
Sustainability and innovation: levers of growth
Generation Z and younger shoppers are demanding seafood with visible certifications and traceability. In response, the sector is embracing digitalization, blockchain, AI to optimize flows and temperature control, and verifiable reporting standards. Ready-to-cook products, IQF formats and premium cuts They fit the demand for convenience without sacrificing environmental criteria.
This transition is also technological: GDST tracking solutions, electronic logbooks, and QR code labels that link capture, batches and thermal records streamline customs audits and controls.
Sectoral governance: a roadmap against IUU fishing and abuses
The Global Squid Supply Chain Roundtable, coordinated by SFP, strengthened its strategy in 2023 to address illegal, unreported, and unregulated fishing and human rights risks. The operational plan pivots on four fronts: governance and participation, transparency and traceability, science-based management and social due diligence.
In governance, companies sign a memorandum to align responsible purchasing policies and submit to reviewable operating rules; in transparency, publishing sourcing policies is encouraged. Use FishSource assessments, map traceability tools, and pilot projects in key fisheries., in addition to pushing for improved import controls.
In science, the priority is to strengthen population assessments, support international agreements, expand co-management in artisanal fisheries, and activate or accelerate FIPs. In human rights, we are working on clear corporate policies., identification of due diligence tools, evaluations of critical fishing grounds and plants, and purchasing conditioned on recommendations derived from those evaluations.
Participation requires applying by mail to the coordinator, signing the MoU, acknowledging the public declaration on IUU squid, collaborating with SFP and experts, make an initial contribution of USD 3.000 and an annual feeThe strategy is supported by a publicly accessible library of resources on IUU squid fishing.
Illex argentinus: biology, dynamics and role in the market
The Illex argentinus, native to the Southwest Atlantic, is a short-lived, highly productive squid whose annual cycle causes strong interannual fluctuations. Matures, spawns once, and dies, which makes classic stock assessment approaches difficult and shifts the focus to ensuring that enough individuals are able to spawn.
After several robust years, 2024 closed with Argentine landings of around 154.565 tons and positive CPUE signals in 2022 and 2023. Even so, Current catches are below the highs of the late 90s, and environmental changes may have reduced productivity since the early 2000s.
Much of the Illex is frozen whole on board and travels to Asia, especially China, to be transformed into tubes, rings, tentacles and T+T blocks. Processing includes cleaning, softening, grading, refreezing and glazing. under HACCP standards that ensure quality and consistency.
Fishing areas and campaign calendar
The catch core extends across the Argentine shelf and slope, the Malvinas waters, and the high seas bordering the EEZ. The peak season runs from January to May., with Argentine jiggers and distant water fleets operating under powerful banks of lights visible by satellite.
In the Falklands, the first season typically runs from February 1 to June 15 and is managed with licenses and effort limits; in 2024, An exceptional first campaign led to the cancellation of the second due to conservationIn the North Atlantic, Illex illecebrosus operates from June to October on a smaller scale.
The seasonal pulse of Illex in the Southern Hemisphere is clear: peaks in the first and second quarters and a decline in the third and fourth. Importers concentrate purchases in the first half of the year, with larger sizes and better industrial performance, planning inventories for the rest of the cycle.
Catching methods: jig vs. trawl
Night fishing with 100 to 200 high-intensity lights per vessel, automatic jigs, and quick freezing dominates in terms of selectivity and quality. By-catches are minimal and there is no contact with the bottom., although energy consumption and light pollution are impacts worth monitoring.
The mid-water or bottom trawl, used by the Argentine and Falklands fleets, can provide volume when the squid sinks or the weather is bad, but increases the probability of bycatch and reduces quality due to stressThe Falklands management team is introducing observers and mitigation measures if bycatches increase.
Global catches and main origins
Adding the Argentine EEZ, the high seas, and the Falklands, by 2024 there would have been around 300.000 to 350.000 tons of Illex, with the United States and Canada contributing around 5.000 to 10.000 tons in the North. Argentina exported practically everything landed, while fleets from China, Korea and Taiwan caught large volumes on the high seas.
China re-exports whole squid and processed products to more than 100 countries; in 2023, its exports of squid and cuttlefish exceeded 124.000 tons. Spain acts as a European hub with reprocessing and redistribution from Vigo, and Korea and Taiwan supply super-frozen product with reinforced traceability.
Top Illex exporters and smart buying tactics
Argentina It leads in Illex exports, with coastal plants that freeze to −40 °C within a few hours, catch certificates recognized by the EU and the United States, and FOB price signals that are quickly replicated by the CFR market. Closing up to 70 percent of the program in February optimizes price and sizes.
China operates powerful fleets and cutting lines in Qingdao and Zhoushan for sized and IQF rings, with GDST-ready traceability and QR-enabled pallet labels linking documents and temperatures. It is the natural option for added value when raw materials are scarce..
Spain reimports and reprocesses Illex in Galicia, reshipping to the EU, North Africa and the Gulf, with top-level logistics from Vigo and factories focused on renewable energy and FIP or MSC credentials in similar species. Ideal for DDP and just-in-time deliveries within the EU.
South Korea It combines transparent AIS, −60°C tunnels in Busan, and fast-track routes to the United States; the government can release buffer stocks to stabilize prices. Premium format for demanding catering and sashimi.
Taiwán Unloading super-frozen products in Kaohsiung, with digital observation cameras and e-logbooks that protect audit trails, and versatile 10 lb or 2,5 kg packaging. Highly valued for its translucency and clean aroma in sushi chains.
Importing markets: Europe, the United States, and Asia
The EU, led by Spain and Italy, accounts for a significant amount of consumption. Between January and September 2024, Spain imported nearly 9.725 tons from Argentina, 51 percent of the EU and UK total, while Italy accounted for around 31 percent. The closure of the Patagonian route in the Falklands boosted Illex's purchases., and the rings and tentacles combination rules in food service and retail.
In the United States, fried squid is ubiquitous, and seasonal local catches coexist with large processed imports from Asia. Total squid imports reached nearly 68.000 tons in 2022 across all species, with monthly peaks and valleys. Distributors such as Sysco and US Foods demand standardized T+T and IQF formats. and SIMP-ready documentation.
China is both a growing processor and consumer: part of the imported Illex is not re-exported and feeds the hospitality and ready-to-eat food industry. South Korea absorbs around 17 percent of Argentine exports, Japan maintains very high quality standards, and Southeast Asia and Singapore Squid finds transshipment and regional distribution channelsThe GCC is adding demand to the international hospitality industry.
Buyer segments and preferences
HORECA values ​​consistency, ease of use, and a stable average price; retailers demand attractive packaging, consistent sizing, and clear labels, while traders and importers They focus on price, availability and document complianceIn the EU, smaller rings and whole tentacles are preferred; in the United States, versatility prevails; in Asia, texture and flavor guide culinary use.
Specifications, icing and labeling
Pipes are graded by length or by pieces per pound, with scales such as 3 to 5, 5 to 8, 8 to 10 inches, or U5, U10, and up. Typical frosting ranges from 2 to 10 percent, with emphasis on declaring net weight without including that layer of protection, as required by European regulations.
In bulk blocks, a little more frosting is acceptable per exposed surface area, while in retail bags, a uniform 5 percent is desired. Excess icing is considered deceptive practice if not labeled, and reputable suppliers maintain consistent standards.
Regulation and compliance: SIMP, EU and CNCA certificates
The United States plans to include squid and cuttlefish in SIMP as a risk category, requiring the provision of vessel information, flag, FAO areas, dates, quantities, and proof of legality. Traceability from the ship to the processed product It will be essential, especially when there are transshipments and reprocessing in third countries.
The EU requires a catch certificate issued by the flag state, in addition to health certificates, and that the exporting plant be on the authorized list. In chains with intermediate processing in China, We must link the Argentine raw material with the final product through processing declaration and batch-to-batch traces.
China, through GACC and Decree 248 registration, requires foreign plants exporting to its market to be registered and audited. Factories with HACCP, ISO 22000, BRC or IFS simplify access to multiple destinations and more easily pass cross-audits.
Quality risks and how to avoid them
The smell of ammonia appears due to decomposition when the temperature is excessive or evisceration is delayed. Prevention is clear: Immediate cooling, refrigerated seawater, rapid freezing and rapid processing after thawing, more sensory controls at reception and line.
Visible bleaching may be due to surface dehydration from freezer burn or the improper use of bleaching agents. Serious processors They avoid unauthorized additives, apply uniform icing, and use barrier packaging. To preserve the natural ivory color. Squid is a mollusk and must be labeled as an allergen; cross-contamination should be controlled in the plant.
SOPs range from pen and ink sac removal, metal detectors, strict cold chain and cold thawing recommendations for the customer, to storage at −18°C with FIFO rotation. Well managed shelf life extends from 12 to 24 months, although the first year offers better quality.
FIP, certifications and social responsibility
In Argentina, CAPA, the jigging chamber, has been promoting a comprehensive FIP for Illex since 2022, with support from SFP and the ambition to approach MSC standards, covering around 90 percent of national catches. Another Taiwan-led FIP addresses the high seas and the Falklands to fill gaps in regional management.
Jigging is selective and clean in terms of bycatch, but it consumes a lot of energy; trawling requires controls and mitigations for bycatch and potential benthic impacts. Many buyers prioritize squid caught with a jig to comply with sustainability policies and internal standards.
On the social front, alarms have been raised over harsh working conditions and cases of forced labor in distant water fleets. Initiatives such as RFVS certification for vessels and human rights due diligence in procurement are gaining traction, with a real risk of customs blockages if abuses are detected.
Regional governance in the South Pacific: Dosidicus gigas
The South Pacific RFMO is discussing limiting effort and increasing observer coverage on the high seas for giant squid, which averaged 840.000 tons annually between 2016 and 2020. The lack of consensus puts the precautionary principle in jeopardy, with 35 percent of catches occurring in international waters and posing a high risk to coastal artisanal fleets.
Companies from the SFP Roundtable and associations such as CALAMASUR urge a robust agreement that stabilizes the resource and livelihoods throughout Chile, Peru, and Ecuador. Limit open access and increase observers It would be the first step towards responsible management in a key fishery for global chains.
Impact of the SFP Roundtable
Since its creation, the Combined Squid Board has multiplied the volume under improvement: SFP analysts came to estimate that almost a fifth of the world's production It is already sustainable or is on the way, with potential new FIPs that could raise that percentage to around 37 percent.
Foodtech innovation: fermentation-based alternatives
Aqua Cultured Foods has developed squid-like strips using microbial fermentation that mimic the texture and flavor of traditional batter. Each 100g provides approximately 80 kcal, 20g of protein, and 12g of fiber, with no sodium or saturated fat, compared to the typical values ​​for real squid. These mycoproteins seek to reduce fishing pressure and emissions, opening an alternative category of interest to restaurant chains.
Promoting responsible purchasing in Spain
In Madrid, ClientEarth brought together retailers and industry to align messages and commitments around the sustainability of tuna, octopus, squid, and squid. The Platform for Sustainable Fisheries brings together major chains such as ALDI, El Corte Inglés, and Mercadona. promoting pre-competitive collaboration and explicit support for priority FIPs for the Spanish market.
Trends 2026 to 2030: Climate, Data, and Efficiency
Stronger boom-bust cycles are expected in Illex due to ocean variability, with distribution shifts and a greater reliance on AI and satellite-based predictive models. Sustainability will tend to become a purchasing standard for large customers, and processing automation will reduce labor bottlenecks.
Fleets will push to reduce their carbon footprint with fuel efficiency or alternative fuels, and plants will adopt renewables for industrial cooling. Vertical integration and direct alliances between fleets and processors will ensure supply and traceability data with greater resilience.
Market, segmentation and recent developments
Squid is growing, driven by healthy and affordable protein in Asia, Europe, and the United States. In North America, NOAA reports annual catches of nearly 47.000 tons and a fleet of 215 licensed vessels. regulated industry sign with local weightIn Europe, the Mediterranean maintains the traditional pulse with traceability requirements; Asia-Pacific combines fishing, processing, and mass consumption; South America exports Argentine Illex; and MEA adds demand due to urbanization and tourism.
By type, the market includes cuttlefish, European squid, Argentine illex, flying jumbo squid, and others; by form, canned, frozen, and refrigerated; by end user, commercial and domestic; and by channel, offline and online. Digital sales grow due to convenience and assortment, while the physical channel dominates through freshness inspection and immediate purchase.
Among the industrial players are King Fish Products, Lee Fishing, Maruha Nichiro, Mitsubishi, Mowi, Nippon Suisan, Nissui, Sukses Lautan, Super Royale Seafoods and Thai Union. In 2025, Maruha Nichiro announced cobia aquaculture trials as a protein diversification, and in 2023 Oceano Seafood acquired Sea Fresh to Strengthen the premium American squid chain.
To stay informed and follow industry trends, many companies and analysts share updates on corporate networks; There are active profiles on LinkedIn, Facebook and Instagram from specialized companies that report prices, campaigns and sustainability progress.
The path forward combines contract sourcing during peak seasons, agile reprocessing, comprehensive documentation compliance, participation in FIPs, preferential jigging, rigorous quality control, and exploration of new product categories. Companies that invest in traceability, science and social responsibility are better positioned to navigate squid volatility and turn sustainability into real competitive advantage.