Company: GRPS
Filing Date: 2025-07-17
Form Type: 10-K
Source: 0001683168-25-005173
Chunk: 8

Company: Trans American Aquaculture, Inc
Filing Date: 2025-07-17
Form: 10-K
Item: Item 1
Chunk 8
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 6 

Our Markets

United States

The United States is the second largest import market
and second largest consumer market for shrimp in the world having consumed 1.6B lbs. of shrimp in 2021.5
The majority of imported and consumed shrimp is of smaller variety (<22 grams). We focus on growing larger shrimp (28+ grams) as there
is strong demand for large, sustainably produced shrimp but limited quantities as we believe some of our competitors focus on intensive
methods that produce smaller shrimp. Our focus will be to sell to retailers first and niche markets second, where the pricing makes economic
sense.

Worldwide

The total global value for shrimp trade in 2022 was
$24B USD.6 The total global production of farm raised shrimp
in 2022 was slightly over 4.0 MMT or 8.8 billion pounds. In the last decade, to keep up with global demand, production of farm raised
shrimp has grown 60% and now accounts for more than 54% of all global shrimp produced for food.

The demand and production of farm raised shrimp is
at an all-time high with annual production growth estimated to be 6.72% CARG (compounded annual growth rate) through 2028.7
Global growth rates had stagnated during the COVID Pandemic, however in the U.S., imports grew by 7.4% YoY, with global consumption rates
increasing by 14% by late 2021. Post COVID production output increased significantly for Ecuador, which is now on par with India in terms
of total production volume, resulting in a total global supply in line with demand, which had impacted global prices negatively. The demand
for shrimp continues to rise and, more importantly, the demand for premium quality product should impact prices positively going forward
as demand starts to again outpace supply.8

The world's largest consumer markets for shrimp are
(in order): China, the U.S., and the EU+UK, with China consuming roughly 24% (1.8 MMT) of all produced shrimp. The U.S. and EU account
for roughly 10% each. Japan, being the 4th largest consumer of shrimp, prefers larger, higher quality head on shrimp, but per capita
consumption is very dependent on the value of the Yen.9

Recent developments around the use of antibiotics
in Indian grown shrimp by the EU, could significantly impact the exports by