Why has seafood per capita consumption been flat since 2007?

The previous discussion on stagnant per capita seafood consumption does not suggest a grim outlook for supermarket seafood. Just as the grocery industry adapted to the rising seafood demand in the 80s and 90s, it is now essential to reassess retail seafood programs to align with current market conditions. Seafood consumption varies significantly by zip code and even by neighborhood.

While some grocers may be satisfied with their existing returns and see no need for change, a one-size-fits-all approach rarely succeeds in retail seafood. It is anticipated that grocers who tailor their seafood merchandising and operations to align with today’s consumer preferences will spearhead the next wave of seafood retail.

The objective of these insights is to offer guidance to the grocery industry on how to enhance revenue through seafood sales. One suggestion is to reduce the footprint of ice cases. Some grocers are likely already contemplating or implementing modifications to their store layouts. Expanding seafood sales within the deli, sushi, grab-and-go, and prepared foods sections aligns well with both current and future consumer trends. These departments are thriving, and incorporating more seafood items will further boost their performance.

Grocers should begin transitioning ready-to-eat seafood from the meat and seafood cases to the deli, sushi, grab-and-go, and prepared foods sections. The pace and extent of this transition will depend on each grocer’s existing programs and future plans. The seafood department is unique in that it often displays unwrapped ready-to-eat and raw proteins together, typically separated only by a small plexiglass divider.

Storing and handling ready-to-eat and raw seafood together in the same case is outdated and inappropriate. For instance, raw chicken breast is not placed next to chicken salad in the deli case, nor is a roast beef sandwich displayed alongside raw rump in the meat case. This cross-merchandising strategy is fundamentally flawed and long overdue for revision in retail seafood.

There are also opportunities for grocers to increase their share of food service seafood, particularly concerning ready-to-eat items in the quick-service restaurant (QSR), fast casual, and dinner house sectors. Over the past 15 years (excluding the pandemic), consumers with more disposable income have demonstrated a growing preference for dining on food prepared outside the home. This trend includes an increase in purchases of heat-and-eat meals, as well as a rise in delivery and ready-to-eat item pickups. Furthermore, the QSR, fast casual, and dinner house sectors often provide fewer seafood options at competitive prices compared to well-managed grocery food service operators.

The next discussion will focus on the importance of merchandising all consumer packaged goods (CPG) frozen and ambient seafood within the seafood department. While significant changes and investments with numerous moving parts and team member considerations are proposed, it is important to recognize that many factors lie beyond the control of the grocery and seafood industries. However, grocers can manage operations within their stores and offices. To enhance profits from seafood, a close examination of internal practices is essential.