The FAO Released Its Second-quarter Global Cephalopod Market Report: Strong Demand For Octopus Drives Up Prices, While Oversupply Of Squid Suppresses Price Increases.

Since the second quarter of 2025, the global cephalopod market has shown a distinct divergence. Octopus prices have continued to rise due to strong demand and limited resources, while squid and cuttlefish are experiencing oversupply in some major producing areas, leading to a significant slowdown in overall price increases.

Octopus: Demand drives prices, rekindling aquaculture controversy

Morocco and Mauritania, major octopus suppliers to Europe, saw their fishing seasons conclude in March and April, respectively, with good catches. Morocco, originally scheduled to restart its season in June, postponed it to July 15 to protect stocks and set a lower summer quota of 19,650 tons, a lower than usual level. Driven by strong demand, octopus prices in Portugal rose 15% year-on-year in the first quarter of 2025, while those in Spain rose 9%. However, household consumption in Italy and Portugal fell 7% year-on-year, indicating that high prices are suppressing retail demand.

In the waters off southwestern Britain, a marine heatwave has caused a surge in octopus populations, dubbed the "octopus boom." Fishermen benefited from quota-free fishing opportunities, but stocks like crabs and lobsters were impacted by predation. The UK's marine management agency noted that octopus populations are highly volatile, requiring long-term monitoring and species-level data.

In the Asian market, Japanese octopus prices continued to rise, increasing by 8.7% year-on-year in June. Major imports came from Mauritania, Morocco, and China, with Vietnam emerging as a rapidly emerging supplier. Meanwhile, Spain's approval of octopus farms sparked ethical and environmental controversy, prompting INTERCIDS to propose a nationwide ban. Several US states are also considering bans on octopus farming, and the New Zealand government is under pressure to cancel related research funding.

In terms of trade, Japan imported 7,831 tons of octopus in the first quarter of 2025, a 23% year-on-year increase. Supplies from China increased to 2,201 tons (up 1%), while those from Vietnam and Morocco increased by 23% and 374%, respectively. South Korea imported 15,187 tons during the same period, a 0.42% year-on-year increase, with Vietnam replacing China as the largest supplier.

Squid and Cuttlefish: Peru closes its season early due to oversupply in the South Atlantic.

In the South Atlantic, Argentina and Uruguay jointly closed the Argentinian squid (Illex argentinus) fishing season on June 10 to protect breeding stocks. The flying squid (Todarodes pacificus) fishing season opened in southern Hokkaido, Japan, but the first auction yielded almost no catches. Chile has established a public-private partnership to strengthen the sustainable management of giant squid (Dosidicus gigas).

Peru's giant squid fishing season, originally scheduled to end at the end of August, closed early on June 30th after the 304,200-ton quota was exhausted. Research indicates that increased sea salinity is driving squid populations closer to shore, making it easier for smaller boats to operate. The total first-quarter catch of Loligo squid in the Falkland Islands was only 22,000 tons, far below the average of 30,000 tons in previous years. Meanwhile, Argentina landed 205,400 tons of squid in the first half of the year, a 17-year high, attributed to favorable marine conditions.

China's "Marine Squid Index" shows that overall price increases slowed from April to May 2025, rising to 281.07 points in June. Regionally, squid prices fell in the South Atlantic due to oversupply, while prices rose in the Southeast Pacific and Indian Oceans due to fishing disruptions and tightening supply.

Global Trade: Significant Regional Differences

In terms of imports and exports, China imported 67,103 tons of squid and cuttlefish in the first quarter of 2025, a year-on-year decrease of 14.32%. The United States supplied 20,457 tons, a year-on-year increase of 73.29%. Exports from Indonesia and Malaysia declined significantly. During the same period, China exported 128,755 tons, a year-on-year increase of 9.9%. Of this total, 22,579 tons went to Thailand (up 58.4%) and 14,587 tons to South Korea (up 5.65%). However, exports to Japan, 21,167 tons, represented a year-on-year decrease of 8.36%.

Spain imported 60,148 tons, a year-on-year increase of 12.41%. Imports from China surged 185.05% to 14,358 tons, and Indian supplies also increased by 46.18%. The United States imported 16,143 tons, an increase of 8.7% year-on-year, with significant increases in supply from Argentina and India, while Chinese exports decreased by 1.24%. South Korea imported 28,803 tons, a year-on-year decrease of 12.74%, but supplies from Chile and Mexico surged. Japan imported 25,029 tons, a year-on-year decrease of 11.51%, with significant declines in supplies from China and Peru.

Outlook

Octopus prices are expected to remain under upward pressure, driven by strong global demand and resource constraints. Squid and cuttlefish prices, however, are expected to weaken overall due to oversupply in some producing areas, though with significant regional variations. With the US potentially imposing tariffs on imported cephalopods in August 2025, international market prices may experience renewed volatility. Overall, tightening global policies and pressure on resource sustainability will continue to dominate the cephalopod market.