Seafood Category Gets New Sales Hook
If there are plenty of fish in the sea, as the saying goes, there are plenty of opportunities to boost sales across seafood categories. Although seafood has experienced some overall declines in units and sales in recent history, greater product variety, an emphasis on sourcing and sustainability, and continuing cook-at-home behaviors can net a greater share of shoppers’ protein dollars.
According to data from Chicago-based market research firm Circana, shared in the 2024 “Power of Seafood” report published by FMI — The Food Industry Association, 85.4% of households purchase “any” type of seafood. The category rang up $18.8 billion in sales in 2023, fueled by fresh ($6.2 billion) and frozen ($6.7 billion) products.
Despite a 3.1% decline in seafood revenue in 2023, this year’s market is looking better. “We’ve seen overall seafood consumption levels drop due to inflation-driven prices and seafood costs relative to other proteins, but we continue to see shoppers enjoy seafood at home, particularly frequent seafood eaters who consume seafood two more or more times per week,” points out Rick Stein, VP of fresh foods at Arlington, Va.-based FMI. “During the COVID-19 pandemic, many shoppers learned how to prepare seafood dishes at home, and they haven’t forgotten those skills or the savings they see when preparing seafood meals at home.”
Some products are faring better than others as shoppers balance value and at-home eating experiences. July sales data shared by San Antonio-based 210 Analytics reveals that dollar sales remain down overall, but more species are growing in pounds, among them salmon and shrimp. Cod is also having a solid year in terms of sales, that data shows.
The Alaska Seafood Marketing Institute (ASMI) reports that two-thirds of consumers who have a preference opt for Alaska salmon over any other type. That said, people are looking for more options, and suppliers and retailers are giving it to them, the Juneau-based organization has found.
“Seafood in more formats means more sales overall,” asserts Megan Rider, domestic marketing director at ASMI.
Quality Meets Value and Convenience
Frozen seafood has been a particular bright spot as shoppers gravitate to value-oriented offerings and are getting more familiar with using such products. “Seventy-nine percent of seafood consumers are likely to buy frozen seafood, which is seen as affordable, convenient and increasingly recognized as equal in quality to fresh,” notes Rider. “Plus, having it available and promoted year-round in more places in the store will ensure that consumers can easily find and purchase it.” She adds that Circana data shows that eight in 10 consumers are likely to buy frozen seafood, and most of them cite the convenience factor.
Additionally, shelf-stable seafood is having a moment, for similar reasons. “The sales of cans/pouches are also accelerating,” affirms Anne-Marie Roerink, principal at 210 Analytics. Sales of these items rose 1.5% from July 2023 to July 2024 to hit $263 million for the latter month.
Several new ready-to-eat offerings sold in the center store have come to market. Recent examples include canned smoked rainbow trout from Safe Catch; hand-packed canned sardines in three flavors (Coconut Curry, Extra Virgin Olive Oil and Tomato Sauce) from Patagonia Provisions; and a soon-to-launch cold-smoked tuna in a stand-up package from Acme Smoked Fish Corp.
Casting Around for Information and Inspiration
In addition to offering different formats and species while also promoting favorites like salmon and shrimp, food retailers that carry seafood products can attract more shoppers and move more products through educational and promotional efforts.
Leveraging the halo effect of seafood is one way to bolster sales and volume. “As inflationary pressures decline, we’ll see more consumers return to seafood, and that is an opportunity for food retailers to focus on the sustainability and health and well-being aspects of seafood options, along with educating shoppers about different seafood varieties and preparation options,” observes Stein.
Rider agrees, pointing to such nutritional attributes of seafood as high-quality protein, vitamins, minerals, and naturally occurring omega-3 fatty acids EPA and DHA. “Marketing efforts should continue to communicate the health benefits of seafood, which consistently win out against other proteins,” she asserts.
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Rider also underscores the importance of providing cooking instructions. “While sales and promotions are the primary in-store purchase driver, two in three shoppers say cooking guidance, like recipes, techniques and more, would inspire them to consume seafood more often,” she observes.
Seafood departments can provide shortcuts to make it more convenient for shoppers to prepare seafood dishes at home. “For both cost and convenience, shoppers are attracted to value-added products like marinated filets or fresh-prepared items like kebabs and salmon cakes,” says Rider. “For example, an Alaska seafood wholesaler recently launched frozen miso-glazed Alaska black cod filets, to great success, introducing what was traditionally perceived as a high-end, luxury species to aspiring home cooks around the country.”
To help grocers assist their shoppers, ASMI offers in-store merchandising materials, training, ads, photography and recipes. The group also provides information on how fresh-frozen seafood can be prepared without thawing, using Cook It Frozen techniques.
Stein echoes the importance of giving consumers more ideas, including suggestions directly from seafood associates. “During these inflationary times, shoppers want to be sure they are getting the most value out of their purchases, and with seafood, shoppers are uncertain of how to cook it properly,” he notes. “Shoppers tell us they want more education from their seafood department about cooking techniques, recipes and the different benefits of seafood varieties. That’s why customer service-oriented seafood counter associates are so important. Food retailers should be sure to share the health and well-being and sustainability benefits of seafood with shoppers, such as USDA’s MyPlate information encouraging consumers to eat seafood two or more times per week.”
Finally, grocers can reach sustainability-minded consumers by showcasing seafood products sourced in a responsible way. “Seafood consumers prefer wild-caught seafood four to one over farmed, and across the U.S., shoppers prefer seafood from Alaska five to one, compared to other sources,” observes Rider. “For retailers, this means continuing to highlight the source, such as Alaska, as well as sustainability certifications, such as Responsible Fisheries Management.”
The “Power of Seafood” report affirms that shoppers are paying attention to sourcing from a sustainability standpoint. According to that study, nearly 74% of seafood consumers say that a store’s commitment to sustainable or environmentally responsible seafood is the primary (14%), a very important (32%) or a somewhat important (27%) reason in their decision of where they purchase seafood. Additionally, half of shoppers are now aware that their seafood store identifies whether the seafood sold there is sustainable, up from 31% in 2019.
