Seafood Retailers Encounter a Demographic Dilemma

Effectively merchandising seafood is becoming increasingly complex due to the diverse preferences and buying patterns of consumers based on age and ethnicity. Retailers looking to maximize seafood sales must implement tailored strategies that align with the behaviors of their unique customer segments, according to analysts.

Different age groups, including Gen Z (18-26), millennials (27-42), Gen X (43-58), and baby boomers (59-75), exhibit varying levels of interest in seafood. For instance, younger consumers are more inclined to visit grocery seafood counters with 14% of millennials and 13% of Gen Z shoppers reporting regular visits, compared to only 7.1% of Gen X and 3.4% of baby boomers. Furthermore, 18% of millennials and 17% of Gen Z consumers indicated they are likely to visit seafood counters on most trips, while 11% of Gen X and 10% of baby boomers reported the same.

Ethnic demographics also play a significant role, as multicultural consumers show a higher tendency to visit seafood counters compared to their white counterparts. According to the Collage Group, 55% of white customers never visit these counters, while only 35% of Asian, Black, and Hispanic shoppers share this sentiment.

Many consumers who avoid service counters believe that it increases the cost of seafood items, as noted by Jack Mackinnon, senior director of cultural insights at Collage Group. Millennials, in particular, express concerns about engaging with staff and feeling rushed to make decisions. “Gen Z shares these concerns, whereas older consumers, especially boomers, are less apprehensive about social interactions,” Mackinnon said, although most shoppers generally appreciate social exchanges.

Hispanic and Black consumers also express greater concerns regarding the safety and cleanliness of seafood presented at open counters. While freshness remains the primary reason consumers visit seafood counters, other appealing factors vary by demographic. Gen Z and millennials often cite the opportunity to sample products, and many Black shoppers mention that shopping at counters is more convenient than navigating aisles.

Highlighting eco-friendly sourcing practices can also resonate with different shopper segments, with millennials and Black customers more likely to seek out sustainable seafood options. Retailers are encouraged to emphasize the convenience, personalization, and cleanliness of seafood service counters to encourage visits from all demographics, especially for items that require expertise for optimal selection.

While the overall percentage of seafood consumers in America remained stable in 2023, interest levels diverged significantly among shopper segments. Together, Gen Z and millennials account for nearly half of frequent seafood purchasers, while boomers and Gen X primarily consist of occasional buyers, as outlined in the Power of Seafood 2024 report by FMI — The Food Industry Association.

Interestingly, both frequent and occasional seafood consumers display similar gender distributions, whereas non-seafood consumers are predominantly female (63%). The report further highlights that minority groups, particularly Hispanic and Black consumers, are more inclined to purchase seafood online.

Consumer preferences for wild-caught versus farm-raised seafood also differ by demographic. Overall, 39% of shoppers prefer wild-caught seafood, while 23% favor farm-raised options, particularly younger individuals without children. Furthermore, a notable 39% of seafood customers—primarily from Gen X and baby boomer demographics—express no preference or lack awareness of the distinctions between the two types.

Younger shoppers are more likely to continue purchasing seafood over time. Among the seafood buyers lost last year, 33% were from Gen X, 20% were older millennials, and 17% were younger boomers, as reported in the Seafood at Retail 2024 report by Chris DuBois of Circana and Anne-Marie Roerink of 210 Analytics LLC.

Older consumers tend to favor frozen seafood products, with baby boomers, seniors, retirees, and Gen Xers significantly over-indexing in this category. They also have a stronger inclination toward purchasing shelf-stable seafood.

Understanding and responding to these demographic differences is essential for sustaining and expanding a store’s seafood customer base. The Power of Retail emphasizes the importance of retaining and growing high-value consumers, as their purchasing decisions directly impact category performance.