It’s the Perfect Time to Review Retail Seafood Programs

Since 1979, experience behind retail seafood counters has involved engaging with stakeholders and consumers across over 40 states and five countries. These interactions have fostered a profound respect for the U.S. food industry, especially within the grocery sector. No other country offers the same quality, variety, consistency, and value as the dedicated professionals in the U.S. food industry.

All living organisms require nourishment for survival, and humans have transformed this necessity into a wide array of culinary delights. Food producers and grocers have excelled in meeting both needs and desires. Operating a grocery store is challenging, even during the best of times, and seafood departments can be particularly demanding. Seafood consumption has remained stagnant since 2007, with little indication of significant improvement on the horizon.

This assessment is informed by long-term per capita consumption (PCC) data, observations, and discussions with industry professionals and consumers. Some grocers may find it beneficial to reevaluate their seafood programs in light of current market conditions. The insights provided aim to offer a fresh perspective for grocers to better align their seafood departments with future consumer needs.

Although questions may arise regarding the validity of PCC calculations, they remain as valuable as any other quantitative seafood data. The National Marine Fisheries Service (NMFS) report from 2020, covering the years 1980 to 2018, serves as a notable example (see page 16). NMFS will continue to update data over time, but the report indicates consumption increases of 3.5 pounds in the 1980s, 2.1 pounds in the 1990s, 0.6 pounds from 2000 to 2009 (largely attributed to the persistent mercury myth), and 1.2 pounds from 2010 to 2018.

In 1968, the PCC was 11 pounds, rising to 19.2 pounds in 2019, though this figure may be revised. From 2007 to 2019, consumption increased by only 8 ounces. Caution is advised against relying heavily on seafood data from 2020 to 2022 due to the pandemic.

Two notable factors emerged during those years. First, it took a global pandemic and subsequent food service shutdowns to enhance seafood sales in grocery stores. Second, while more consumers tried seafood during this period, retail sales data from 2023 suggests they may now be feeling “fished out.”

Seafood experienced substantial growth from 1968 to 2007, but that momentum has since slowed. Several reasons can be identified for this decline:

• A general shift among consumers away from animal proteins.
• A natural leveling of demand.
• Price comparisons with other animal proteins.
• The seafood industry’s failure to effectively counter false narratives surrounding mercury, aquaculture, overfishing, sustainability, and related topics.
• Self-inflicted negative issues within the industry.

These reasons will be explored further in future discussions. While these factors were not created by the grocery industry and are beyond its control, grocers can influence their responses to current seafood market realities. Seafood retail programs reflect the diversity of the country’s consumers.

The approach to seafood varies among grocers—some prioritize margins, others focus on marketing, while most adopt a combination of both strategies. There are exemplary seafood programs throughout the U.S., and this trend is expected to continue. In a recent Supermarket News seafood story, several merchandising changes for grocers are suggested. Future posts will delve deeper into these potential changes.