The Impact of Marine Pollution on the Seafood Market Risks and Response in the Seafood Processing Industry

Research Article
Open access

The Impact of Marine Pollution on the Seafood Market Risks and Response in the Seafood Processing Industry

Zixuan Zhou 1*
  • 1 Wuxi United International School, Wuxi, China    
  • *corresponding author shijingzhao@ldy.edu.rs
Published on 3 January 2025 | https://doi.org/10.54254/2754-1169/2024.LD19024
AEMPS Vol.145
ISSN (Print): 2754-1177
ISSN (Online): 2754-1169
ISBN (Print): 978-1-83558-839-0
ISBN (Online): 978-1-83558-840-6

Abstract

This article delves into the profound implications of global marine pollution on the operations of seafood processing enterprises. It scrutinizes the multifaceted threats that pollution poses to marine ecosystems, which in turn affects the supply chains, production costs, and marketing efforts of these businesses. The research employs a meticulous analysis of specific case studies and the latest empirical data to uncover the nuanced ways in which pollution incidents can erode market demand and tarnish brand reputation. The paper further proposes a suite of targeted response strategies designed to mitigate these effects. These strategies encompass technological enhancements to reduce environmental impact, compliance with evolving policies and regulations, and strategic adjustments to market positioning and branding initiatives. The ultimate goal of these measures is to ensure that seafood processing enterprises can not only sustain their competitive edge but also contribute to the broader objective of sustainable development amidst the challenging backdrop of marine pollution. By offering a comprehensive examination of the issue and actionable solutions, this study aims to inform both industry practices and policy-making to foster resilience and sustainability in the seafood industry.

Keywords:

Market impact, supply chain, response strategies, pollution impact, brand reputation

Zhou,Z. (2025). The Impact of Marine Pollution on the Seafood Market Risks and Response in the Seafood Processing Industry. Advances in Economics, Management and Political Sciences,145,59-65.
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1. Introduction

In recent years, the problem of marine pollution becoming more complex and serious globally, as the nuclear and plastic pollution are becoming major pollution sources, which brings serious threats to the health and stability of marine ecosystems. These pollution incidents not only cause irreversible damage to marine environment but also lead to a decline in ecosystem service functions, which affecting industries relying on marine resources, especially seafood processing enterprises that are highly depending on the marine ecosystem. As the pollution issue becoming more serious, companies are now facing newly appeared challenges in supply chain management, production costs, and marketing. The consumer trustiness decline and market demand fluctuation are caused by marine pollution further intensify operational risks. This paper aims to explore the economic impacts of main marine pollution on to the seafood processing industry, reveal the specific effects of pollution incidents on market demand and brand reputation by analyzing typical case data. Ultimately, this article proposes targeted response strategies to help companies maintain competitiveness in this complex environment and achieve sustainable development.

2. Overview

Modern events such as the 2019 large-scale oil spill in Brazil and the 2023 radioactive contamination incident from Fukushima's discharged wastewater in Japan have negatively impacted the global marine environment. These events have demonstrated to us how serious a concern marine pollution is becoming to the sustainability of marine ecosystems and associated sectors, and how it is currently getting worse on a global scale. Marine contamination has raised the possibility of media attention, the amount of advocacy from environmental organizations, and public calls for action for firms that process seafood as their primary product. The public's skepticism over the safety of seafood presents these businesses with hitherto unheard-of challenges in the areas of supply chain management, production cost control, and brand upkeep. Against this background, this article gains important real-world social significance by studying the economic impacts of marine pollution on seafood processing enterprises. Furthermore, analyzing the impacts of recent marine pollution incidents on the seafood market, also gives a better understanding of the responsibility of the companies that related to such events and find out companies’ ability responding to these events. This article dives into specific enterprise cases to explore the impacts of marine pollution events on market demand, supply chain management and brand reputation, With the results, it can help companies to effectively responding to these incidents so that they can maintain their competitiveness and sustainable development capabilities in related fields.

3. The Relevance of Marine Pollution to the Seafood Processing Industry

3.1. The Current State of Global Marine Pollution

Global marine pollution has gradually become a focal point of international concern in recent years, with more media reporting on the current status of marine pollution and more organizations participating in the protection of the marine environment. However, at the same time, the marine ecology is deteriorating. For instance, with plastic pollution, as the world population grows, plastic emissions are also increasing annually. According to a report by the OECD, due to the non-biodegradable nature of plastics, their widespread use, while economically beneficial, also has a long-term environmental impact [1]. Since the 20th century, global plastic production has increased significantly, with over 800 million tons produced, of which about 9% have been recycled, 12% incinerated, and a staggering 79% of plastic waste ending up in landfills or the natural environment [2]. Each year, over 10 million tons of plastic waste directly enter the oceans [3], with over 80% of marine litter is plastic in total. Because plastic products break down slowly, some of the area forms plastic stems which may take hundreds of years to fully decompose. In this lengthy process, plastics are broken down into microplastics. These tiny particles enter the food chain through consumption by marine life, ultimately affecting our marine food safety [4]. Not only severe plastic pollution, but nuclear pollution has also gradually become one of the mainstream marine issues discussed in society in recent years. Taking the Fukushima incident in Japan as an example, studies after the Fukushima nuclear accident have shown that the combination of radioactive substances with plastic waste has had a long-term negative impact on marine ecology. Radioactive cesium and other substances enter the bodies of marine organisms through plastics, causing them to be exposed to radiation for a long time [5]. These research findings indicate that marine pollution is not only physically threatening the ecology but also spreading rapidly through chemical and radioactive pollution.

3.2. Dependency Analysis of the Global Seafood Processing Industry

Although the current seafood processing industry has already been affected by marine pollution the global seafood processing industry is still heavily dependent on the marine ecosystems, with the overall decline in marine resource quality also impacting the sustainability and economic benefits of the entire seafood market [6]. Marine plastic pollution directly leads to the reduction in marine life numbers and the deterioration of the ecological environment. This negatively affects nearly all marine ecosystem services [7], causing a significant decline in the quantity and quality of fish caught by enterprises, and also making aquaculture into a more serious condition. To address these challenges, the industry and governments have begun adopting a series of measures. For example, promoting sustainable fishing techniques and the construction of marine protected areas to protect and restore marine ecosystems. However, the global seafood processing industry's dependence on marine resources also indirectly limits the industry and government plans for sustainability and marine protected areas. These plans, as long-term goals, inevitably sacrifice short-term business interests, which may lead to a lack of cooperation from enterprises, gradually worsening the marine ecological situation and thus forming a vicious cycle.

4. The Impact of Marine Pollution on the Supply Chain of Seafood Processing

4.1. Food Safety Issues Caused by Marine Pollution

In addition to negatively impacting the composition and functionality of marine ecosystems, the current level of marine pollution in the world directly jeopardizes the safety and quality of seafood, which in turn has an adverse effect on consumer health. Especially the issue of plastic pollution, studies have shown that plastic microparticles can accumulate in the bodies of marine organisms and be transmitted to humans through the food chain. These microparticles not only contain harmful components of plastics themselves but may also adsorb heavy metals and persistent organic pollutants (POPs), such as polychlorinated biphenyls (PCBs) and polycyclic aromatic hydrocarbons (PAHs), which have bioaccumulative and potential carcinogenic properties in the human body [8]. Nuclear pollution also leads to the accumulation of radioactive elements in marine organisms. For example, after the Fukushima nuclear leakage incident near Japanese waters, radioactive substances such as radioactive cesium were released into the Pacific Ocean, affecting marine life, especially bottom-dwelling fish, with levels of radioactive pollution. These radioactive substances accumulate in the bodies of marine organisms, ultimately affecting human food safety [8]. Although studies have shown that the levels of radioactive cesium are decreasing annually, for coastal consumers who primarily consume seafood, the diffusibility of radioactive cesium remains a potential threat to food safety. The uncertainty and risk of contamination in raw material quality have led many seafood processing enterprises to increase their tracking and quality control efforts for raw materials. Although the food risks caused by marine pollution have already been imprinted into consumers' consumption concept, companies are also seeking to reduce the impact of plastic pollution through technological innovation.

4.2. Reduction of Fishery Resources

The growth and reproduction of marine life have been impacted by the cumulative effects of pollution on marine species, damaging the equilibrium of the food chain and reducing the amount of unpolluted fishery resources. As an example, marine plastic pollution, studies have shown that fish, sea turtles, seabirds and many other marine organisms are affected negatively by directly eating plastic microparticles or being entangled in large plastic waste. These organisms often occupy higher positions in the food chain [7]. The reduction of such organisms leads to an irrational distribution of marine life across the food web. Changes in the distribution of organisms in the food web mean that the ecological balance of the ocean has been altered, such as the increased growth of harmful algae, which release toxins that kill or repel other marine life, further reducing fishery resources and affecting fishery output [9]. The reduction in fishery output caused by marine pollution also triggers an economic chain reaction, causing income declines for fishermen and related enterprises. As fishing costs increase and catch volumes decrease, many fishing communities face economic pressures and need to find alternative livelihoods [9].

4.3. Challenges in Logistics and Transportation

Until now, marine pollution has brought multiple challenges to the global seafood processing industry, but it has also prompted seafood logistics to optimize its efficiency and reliability in an indirect way by helping companies to adapt to the times. Of course, the type of pollution affecting different regions also causes logistics optimization strategies to change in different directions. Taking plastic pollution as an example, the main problem brought by plastic pollution is the accumulation of a large amount of plastic waste. Plastic waste forms the so-called "plastic soup" in the ocean, clogging some areas of the shipping route and thus hindering the transportation of ships. Enterprises must then reroute their shipping routes under such circumstances, which increases transportation risks and costs. Areas severely affected by plastic pollution also require additional navigation and monitoring measures to ensure shipping safety [7].

Secondly, there are more complex challenges that the transportation systems need to face, which is brought by radioactive pollution. Areas affected by radioactive substances need to follow strict testing and isolation to prevent radioactive substances from entering other countries and regions through seafood, posing food safety risks to consumers [8]. It can be seen that radioactive pollution not only requires enterprises to increase transportation and testing costs but may also affect the efficiency of the supply chain due to international trade regulations.

5. The Economic Impact of Marine Pollution on Seafood Processing Enterprises

5.1. Direct Economic Losses

According to statistics, if the amount of marine litter continues to increase, the economic losses caused by marine pollution could reach up to $229 billion to $731 billion by 2030 to 2050[6], which has shown that marine pollution has caused huge economic impact on the global seafood market. There is a significant direct economic loss which is caused by marine pollution to seafood processing enterprises. To start with, marine pollution directly leads to a decline in the quality of seafood raw materials. To avoid a decline in the quality of final products, seafood processing enterprises must invest more resources in the cleaning and testing of raw materials. These tests not only include cleaning costs but also expensive chemical and biological testing fees to ensure that products meet safety standards, thus ensuring consumer health. There are also areas severely affected by pollution, where seafood from these areas is prohibited from entering the market. For example, marine nuclear pollution, according to research reports, the concentration of radioactive substances in certain marine organisms has exceeded international safety standards, so these marine organisms are prohibited from fishing and selling [8]. This represents a direct economic loss for enterprises, increasing operating costs and potentially affecting the long-term economic sustainability of enterprises.

5.2. Indirect Economic Losses

Not only direct economic loss, but marine contamination also causes serious indirect financial costs for businesses that process seafood, mostly show up as a deterioration in consumer confidence, market reputation, and long-term brand value loss. Because of the public opinion impact brought by marine pollution, the environmental concerns caused by pollution make companies lose their consumer trustiness as consumers doubt more on the safety of seafood, directly leading to a decline in consumer confidence in enterprises, followed by a decrease in brand benefits, market share, and shares, thereby reducing enterprise profits. As environmental protection gradually becomes a mainstream issue discussed in society, global consumers' attention to food sources and sustainability increases. Enterprises are also forced to change their business models, such as adopting emerging clean technologies, changing transportation chains, or promoting environmentally certified products, to restore their reputation among consumers, which also requires more capital investment and operating costs. The blow to the seafood market caused by marine pollution also makes investors see the risks of continuing to invest in seafood processing enterprises, which also affects the financial situation and development prospects of enterprises. In summary, whether it is direct economic impacts or indirect economic impacts, seafood processing enterprises will face a significant financial burden, while also bearing the risk of losing market competitiveness and economic sustainability.

6. Strategies and Measures for Businesses to Address Marine Pollution

6.1. Response to Policies and Regulations

Amid the voices protecting the marine environment around the world, governments around the world respond to the public and promulgate new environmental regulations. Future control over seafood will inevitably become stricter, but enterprises can still reasonably use these regulations to maintain compliance, use policies to benefit enterprises, and respond to new challenges. For seafood processing enterprises, ensuring that all production activities comply with international and regional environmental regulations is crucial. The changes in the seafood industry chain need to strictly adhere to these regulations to avoid high fines due to violations and establish a good corporate image among consumer groups. Not only satisfied with adhering to existing environmental regulations, enterprises should also actively cooperate, working with governments, environmental organizations, and other industry partners to jointly promote the sustainable development of the industry and enhance their influence and visibility in the industry. Taking advantage of policy-driven benefits, many governments provide tax incentives, subsidies, and other incentives for enterprises to adopt environmental measures. Enterprises can also use these incentives to reduce the costs of adopting new technologies and practices and invest in more environmentally friendly production technologies in the future.

6.2. Production and Technological Improvements

While adapting to policies, companies also need to make improvements to their production and technology. First, they should reduce the damage to the marine environment while alleviating dependence on marine resources. From the perspective of technological innovation, many modern emerging technologies can to some extent mitigate the disruption to the marine ecological balance. For example, modern electronic monitoring systems and selective fishing technologies introduced in the entire fishing system can significantly reduce non-target fishing, reducing ecological damage. In marine aquaculture, recirculating aquaculture systems (RAS) can also significantly reduce water use and pollutant emissions. Many enterprises are trying to find environmentally friendly transportation and packaging solutions to meet consumers' expectations for environmentally friendly products, as new regulations are published and market demand for sustainable products gradually increases. These solutions include using biodegradable packaging materials and optimizing logistics routes to reduce carbon footprints [9]. Changes in material use can also be made, such as for product packaging, enterprises can use packaging made from biological materials such as algae, which can decompose faster in the natural environment, replacing common plastics or other biodegradable packaging, thus reducing the amount of plastic entering the ocean. At the same time, enterprises can also comprehensively review their production chain, from raw material procurement to finished product sales, optimizing stages that generate a large amount of waste and consume a lot of resources, which are not only environmentally friendly but also economical. By implementing similar measures, enterprises can mitigate their environmental impact, stand out in fierce market competition, enhance their positive brand image and market share, and consumers will trust the products more. However, such environmental actions may increase the overall industry chain cost, so they need the strong support of enterprise executives and the cooperation of all employees. Changing traditional supply chains and logistics strategies requires long-term time and resource investment, and many enterprises give up the seafood market route, but enterprises that are still persevering and trying to change have the hope of gradually overcoming these obstacles with technological development and promoting the entire industry towards a more sustainable direction.

6.3. Market and Branding Strategies

Not only optimizing the production line and responding to regulatory policies, but the real way to make consumers notice the changes made by enterprises in the context of marine pollution is to properly use marketing methods and change the enterprise's brand strategy. A foremost method is to change its market positioning. As people's awareness of environmental protection increases, the market demand for sustainable seafood is also gradually increasing. Enterprises can change by researching the current mainstream consumer demands, such as responding to the current voice of environmental protection. Launching a series of environmentally certified seafood products not only meets market trends but also attracts consumers who have a high awareness of environmental protection. Next is brand responsibility. Enterprises can regularly publish sustainable development reports or cooperate with marine environmental protection organizations to jointly initiate marine cleaning activities, making it one of the new core constructions of the brand to showcase the efforts made by enterprises in reducing marine pollution. Establishing an environmentally responsible brand not only gives consumers a more positive brand image but also establishes a responsible, big-picture corporate stature in the industry. Finally, enterprises also need to change consumers' perceptions. Cooperating with related environmental organizations, holding public welfare activities and seminars to educate consumers on the importance of marine protection and the benefits of choosing sustainable seafood products, thereby further consolidating the effectiveness of the strategies mentioned above, the market can also further enhance the demand for environmentally friendly seafood products.

7. Conclusion

As the problem of global marine pollution becoming increasingly serious, seafood processing companies are facing unprecedented challenges. Not only reveals the wide-ranging impact of marine pollution on seafood processing companies; by going through detailed data analysis and case studies, this article also explores the specific impacts of these issues on corporate economics and brand reputation. Based on this, this paper also proposes a series of practical countermeasures, including adopting new technologies, optimizing their way of managing multiple supply chains, compliance with updated policies and regulations and branding their market strategies, which are aimed to make a reduction to the impact of pollution and enhancing the market competitiveness of companies.

In addition, the article also emphasizes that government, enterprises and society are all sharing responsibility to solve the problem, by advocating broader cooperation and coordinated efforts to face global environmental issues. Continuing innovating technologies and promulgate new policies as well as active adjustments at the enterprise level, the seafood processing industry can not only adapt to current environmental challenges, but also provide support for the sustainable use of marine resources in the future. Ultimately, these efforts will help drive the entire industry in a more sustainable direction, bring long-term economic benefits to enterprises, and contribute to the protection of the global marine environment.


References

[1]. OECD. (2019). Global outlook on plastics: Economic drivers, environmental impacts, and policy options. OECD Publishing.

[2]. Carney Almroth, B. C., & Eggert, H. (2019). Marine plastic pollution: Sources, impacts, and policy issues. Review of Environmental Economics and Policy, 13(2), 317-326. https://doi.org/10.1093/reep/rez012

[3]. Jambeck, J. R., Geyer, R., Wilcox, C., Siegler, T. R., Perryman, M., Andrady, A., Narayan, R., & Law, K. L. (2015). Plastic waste inputs from land into the ocean. Science, 347(6223), 768-771. https://doi.org/10.1126/science.1260352

[4]. Andrady, A. L. (2011). Microplastics in the marine environment. Marine Pollution Bulletin, 62(8), 1596-1605. https://doi.org/10.1016/j.marpolbul.2011.05.030

[5]. Buesseler, K. O. (2015). Exposures and effects in the marine environment after the Fukushima accident. Marine Pollution Bulletin, 90(1-2), 6-13.

[6]. Alistair McIlgorm, Karen Raubenheimer, Daniel E. McIlgorm, Rachel Nichols, The cost of marine litter damage to the global marine economy: Insights from the Asia-Pacific into prevention and the cost of inaction, Marine Pollution Bulletin, Volume 174, 2022, 113167, ISSN 0025-326X,

[7]. Beaumont, N. J., Aanesen, M., Austen, M. C., Börger, T., Clark, J. R., Cole, M., ... & Wyles, K. J. (2019). Global ecological, social and economic impacts of marine plastic. Marine Pollution Bulletin, 142, 189-195. https://doi.org/10.1016/j.marpolbul.2019.03.022

[8]. Tumey, T. A., Buesseler, K. O., & Pike, S. M. (2016). Fukushima-derived radionuclides in the ocean and biota off Japan. Proceedings of the National Academy of Sciences, 109(16), 5984-5988. https://doi.org/10.1073/pnas.1120794109

[9]. Seltenrich, N. (2015). New Link in the Food Chain? Marine Plastic Pollution and Seafood Safety. Environmental Health Perspectives, 123(2), A34. http://dx.doi.org/10.1289/ehp.123-A34


Cite this article

Zhou,Z. (2025). The Impact of Marine Pollution on the Seafood Market Risks and Response in the Seafood Processing Industry. Advances in Economics, Management and Political Sciences,145,59-65.

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ISBN:978-1-83558-839-0(Print) / 978-1-83558-840-6(Online)
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Volume number: Vol.145
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References

[1]. OECD. (2019). Global outlook on plastics: Economic drivers, environmental impacts, and policy options. OECD Publishing.

[2]. Carney Almroth, B. C., & Eggert, H. (2019). Marine plastic pollution: Sources, impacts, and policy issues. Review of Environmental Economics and Policy, 13(2), 317-326. https://doi.org/10.1093/reep/rez012

[3]. Jambeck, J. R., Geyer, R., Wilcox, C., Siegler, T. R., Perryman, M., Andrady, A., Narayan, R., & Law, K. L. (2015). Plastic waste inputs from land into the ocean. Science, 347(6223), 768-771. https://doi.org/10.1126/science.1260352

[4]. Andrady, A. L. (2011). Microplastics in the marine environment. Marine Pollution Bulletin, 62(8), 1596-1605. https://doi.org/10.1016/j.marpolbul.2011.05.030

[5]. Buesseler, K. O. (2015). Exposures and effects in the marine environment after the Fukushima accident. Marine Pollution Bulletin, 90(1-2), 6-13.

[6]. Alistair McIlgorm, Karen Raubenheimer, Daniel E. McIlgorm, Rachel Nichols, The cost of marine litter damage to the global marine economy: Insights from the Asia-Pacific into prevention and the cost of inaction, Marine Pollution Bulletin, Volume 174, 2022, 113167, ISSN 0025-326X,

[7]. Beaumont, N. J., Aanesen, M., Austen, M. C., Börger, T., Clark, J. R., Cole, M., ... & Wyles, K. J. (2019). Global ecological, social and economic impacts of marine plastic. Marine Pollution Bulletin, 142, 189-195. https://doi.org/10.1016/j.marpolbul.2019.03.022

[8]. Tumey, T. A., Buesseler, K. O., & Pike, S. M. (2016). Fukushima-derived radionuclides in the ocean and biota off Japan. Proceedings of the National Academy of Sciences, 109(16), 5984-5988. https://doi.org/10.1073/pnas.1120794109

[9]. Seltenrich, N. (2015). New Link in the Food Chain? Marine Plastic Pollution and Seafood Safety. Environmental Health Perspectives, 123(2), A34. http://dx.doi.org/10.1289/ehp.123-A34