It’s been somewhat steady — if not quite smooth — sailing for seafood categories heading into a new year. Food retailers have opportunities across fresh, frozen, and canned segments to garner more attention and sales through a diverse product assortment and ongoing education efforts about preparation and sourcing. As with most categories, there are both headwinds and tailwinds affecting this type of protein.
One significant challenge remains inflation. Overall fresh seafood prices rose again in October after initially falling in prior weeks, according to data from 210 Analytics and Circana. “While prices are looking better for the consumer, the average price per pound remained significantly higher than the average price per pound for the three biggest animal proteins of chicken ($3.09), pork ($3.15), and even beef ($6.68),” notes Anne-Marie Roerink, principal at 210 Analytics. However, there is some positive news: four of the top five sellers in refrigerated/fresh seafood showed deflationary conditions in October.
The situation is improving in the frozen seafood sector. The average price of frozen shrimp dipped by 5.4% and frozen salmon saw a 4.2% drop. This led to volume growth, while shelf-stable seafood posted a 1.7% gain in sales alongside a 5.7% increase in volume during the same period.
What’s Cooking?
Despite inflation, some dynamics favor seafood growth. Notably, the ongoing trend of cooking at home has gained traction. The 2024 “Power of Seafood” report from FMI – The Food Industry Association revealed that home-cooked seafood accounts for 59% of consumption, reflecting a 6% increase from 2023. Rick Stein, VP of Fresh Foods at FMI, mentioned, “Consumers are overwhelmingly showing a preference for eating [food at home].” He predicts that after a two-year reduction in seafood purchases, there will be a rebound in 2025.
Research from the Alaska Seafood Marketing Institute (ASMI) supports this optimism. “Recent research from ASMI shows that 74% of consumers wish they ate seafood more than they do, with 66% noting that cooking guidance would help them cook it more often,” says Amy Dukes, head of retail marketing at ASMI. Acknowledging seafood’s nutrition benefits, 78% of seafood consumers prioritize health and nutrition, coupled with a growing desire to eat sustainably. This trend suggests that seafood may remain a key part of consumers’ home meals in the future.
Ways to Sell More Seafood
Given the increase in home cooking, grocers can adopt strategies to keep seafood prominent among shoppers seeking meal solutions.
1. Share More Recipes and Suggestions: Consumers often lack knowledge regarding seafood preparation. Grocers can provide in-store and online recipes, cooking tips, and even leverage the expertise of seafood counter staff. According to the FMI study, 39% of seafood customers seek advice from the seafood counter. Providing point-of-sale materials that include recipes and cooking tips can significantly inspire consumers.
2. Highlight the Diversity of Offerings: While shrimp and salmon are popular, grocers can stimulate interest by introducing shoppers to less-common seafood varieties. Recent trends have shown a surge in tinned seafood sales, driven by viral TikTok social media posts in 2024. Staff can also inform customers about options like arctic char or swordfish steaks, fresh locally caught fish, or unique preparations.
3. Tap into Demand for Convenience: Retailers can offer ready-to-cook and marinated seafood products, as well as heat-and-serve options. Such conveniences cater to busy consumers looking for quick meal solutions.
4. Add Seafood Promotions to the Mix: When market conditions improve, retailers can promote seafood items strategically. As prices stabilize or decrease, consumers are likely to respond positively to promotions. Amy Dukes points out the effectiveness of specials—especially for convenience items like pre-marinated seafood or unique seafood types.
5. Play to the Health Halo of Seafood: With a growing focus on healthy eating, seafood’s reputation as a nutrient-rich option can be leveraged. A recent study published in the International Journal of Cancer found that omega-3 fatty acids from fatty fish can potentially reduce cancer risk. Educating consumers about health benefits can further encourage seafood consumption.
6. Share Sourcing Stories: Transparency in seafood sourcing can create trust and appeal among consumers. For instance, 74% of consumers are more likely to choose seafood when they see the Alaska Seafood logo, particularly Millennials, who associate it with sustainability. Clear communication regarding the origin and sustainability practices can positively influence purchase decisions.
7. Monitor Alternatives: As with other animal proteins, the seafood market is witnessing a rise in plant-based and seafood alternatives. The 2025 trends forecast from Whole Foods Market projects that plant-based aquatic ingredients will gain traction. Retailers should be vigilant about incorporating these alternatives into their offerings.
Conclusion
With a thoughtful approach that educates consumers, emphasizes variety, and leverages health benefits, food retailers can effectively boost seafood sales as more people cook at home. By staying informed about market trends and adapting to evolving consumer preferences, businesses can position themselves favorably in the competitive seafood market.