The seafood sector is experiencing a unique confluence of challenges and opportunities. While recent reports indicate a decline in overall seafood sales, market dynamics suggest that there are still ample prospects for significant growth. Factors such as product diversity, a strong focus on sustainability, and a rise in home cooking can play pivotal roles in enhancing seafood sales.
The latest data from Circana, featured in the 2024 “Power of Seafood” report by the Food Industry Association, underscores this situation. The report shows that approximately 85.4% of households purchased some form of seafood, contributing to an impressive $18.8 billion in sales for the category in 2023. Notably, fresh seafood accounted for $6.2 billion and frozen seafood for $6.7 billion. Despite experiencing a 3.1% decline in revenue, the outlook remains encouraging.
Rick Stein, VP of Fresh Foods at FMI, notes that the pandemic has significantly influenced seafood consumption patterns. Many consumers learned how to prepare various seafood dishes during this time and are now applying those skills at home. Frequent consumers of seafood, who eat it two or more times per week, have been particularly resilient, continuing to support the market.
Variability in sales among different seafood species highlights shifting consumer preferences. According to July sales data from 210 Analytics, while overall dollar sales may have declined, consumption of specific types—particularly salmon and shrimp—has seen growth. Alaska salmon, in particular, is favored by two-thirds of consumers who have a preference. Retailers can leverage this trend by offering a wider variety of species and formats.
Frozen seafood has emerged as a key segment within the market. With 79% of seafood consumers indicating a likelihood to purchase frozen seafood, the perception of convenience and value has taken root. These products are often seen as having equal quality to fresh seafood. Additionally, shelf-stable seafood products, such as canned and pouches, are gaining traction as consumers look for affordable options. Reports indicate that sales of canned seafood items grew 1.5% from July 2023 to July 2024, reaching $263 million.
Interestingly, innovative ready-to-eat products are transforming consumer perceptions and preferences. New offerings—ranging from canned smoked rainbow trout by Safe Catch to hand-packed sardines from Patagonia Provisions—are capturing shopper interest and expanding the market for shelf-stable seafood.
To maximize sales potential, seafood retailers can adopt educational and promotional strategies to enhance shopper engagement. Providing information on health benefits, such as seafood being a high-quality source of protein and essential nutrients, can sway consumer preferences. Marketing campaigns that communicate these attributes will resonate well with health-conscious shoppers looking for nutritious options.
Rider from the Alaska Seafood Marketing Institute highlights that cooking instructions are paramount. Two-thirds of shoppers express that cooking guidance, such as recipes and preparation techniques, would inspire them to incorporate more seafood into their diets. Offering value-added products—like marinated filets or pre-prepared kebabs—can help simplify the cooking process, catering to busy consumers who value convenience.
Furthermore, retailers have an opportunity to connect with a sustainability-minded audience by promoting seafood products that are responsibly sourced. Data indicates that preferences for wild-caught seafood significantly outweigh farmed options, with wild-caught products preferred by four to one. Alaska seafood is particularly favored, with consumers leaning towards it five times more than seafood from other sources. Highlighting sustainable practices and sourcing can distinguish a seafood department and appeal to conscientious consumers.
The “Power of Seafood” report highlights that a staggering 74% of seafood shoppers regard commitment to sustainable and environmentally responsible seafood as a significant factor in their purchasing decisions. This marks an increase from 31% in 2019, showing an evolving consumer consciousness when it comes to seafood sourcing.
As the seafood category navigates current challenges, a renewed focus on innovation, marketing, and sustainability will be crucial in catalyzing further growth. By actively adapting to consumer demands and preferences, seafood retailers can effectively enhance sales and market presence.
