U.S. Market for Fish and Seafood, with a Focus on Fresh

Many factors are influencing the growth and direction of the seafood market, not the least of which include a push toward sustainability in the production and retailing of fresh seafood and shellfish and an effort by the industry to educate consumers on the safety of seafood products and the ease of cooking and preparation.

U.S. Market for Fish and Seafood, with a Focus on Fresh, a new report from Packaged Facts, provides an in-depth look at the $20 billion U.S. seafood industry with an emphasis on the largest segment, fresh fish and shellfish. The report tracks key trends affecting U.S. seafood supply and demand, and provides a comprehensive analysis of the main driving forces within the U.S. seafood industry, including the import/export supply chain, consumer attitudes and emerging public opinion, competitor analysis, environmental data. Using various sources, we also evaluate the state of the market and offer likely developments and future trends.

U.S. Market for Fish and Seafood, with a Focus on Fresh makes important predictions and recommendations regarding the future of the seafood industry, and pinpoints ways current and prospective market participants can capitalize on current trends and spearhead new ones. No other market research report provides both the comprehensive analysis and extensive data that this study offers across following segments:

• The Products.
• The Market (including market size, composition, projected market growth, future trends, and international perspective).
• The Marketers (market structure plus detailed marketer and brand shares).
• Sales and Distribution Channels (extensive discussion of foodservice and retail venues).
• Marketing and New Product Trends (e.g., foodservice/retail cross-over and number of product launches by trend/type).
• The Consumer (demographics, attitudes and lifestyle trends).

The report includes extensive information from several sources—including many interviews with key industry representatives - as well as dozens of practical, easy-to-read charts, tables and graphs, all of which are thoroughly examined in light of the many dynamic trends at play in this rapidly shifting market.

Chapter 1: Executive Summary

Scope of Report

Report Methodology

The U.S. Seafood Market

Fresh and Frozen Seafood Accounts for 77% of Fishery Products

Table 1-1: U.S. Annual Per Capita Consumption of Commercial Fish and Shellfish, 1997-2007

Filet and Steaks Consumption Flat; Breaded Fish Reverses Decline

Table 1-2: Production of Value-Added Fish Products, in Thousand Pounds 2002-2007

Reduction in Restaurant Traffic Reduces Seafood Consumption

Average Consumer Makes Four Trips a Year to the Seafood Department

Factors That Increase Seafood Consumption

Health Benefits of Seafood Encourages Consumption

Aquaculture May Lower Prices and Increase Availability

Country of Origin Labeling May Assure Consumers of Safety

Barriers to Seafood Consumption

Food Safety Concerns Keep Some Americans From Seafood

Consumers Not Educated in Seafood Preparation

Most Popular Species of Fresh Seafood

Table 1-3: Top Ten Species by Annual Consumption (in pounds, per person) 2003-2007

Sustainability

Economic Downturn Affecting Seafood Consumption

Table 1-4: U.S. Annual Per Capita Consumption of Fish And Shellfish (in pounds), 2003-2007 (actual), 2008-2012 (estimated)

The Consumer

One Third of Consumers Never Buy Fresh Seafood

Northeastern and Pacific Urban Dwellers Consume More Fresh Seafood

Typical Fresh Seafood Consumers are Middle Aged, Affluent, and Married

Fresh Seafood Consumers are Health Conscious

Table 1-5: Health Attitudes for Seafood, Hamburger, and Chicken Consumers

Retail Trends

Supermarket Sales of Seafood Up Slightly in 2007

Slightly Fewer Supermarkets Offering Fresh Seafood

Frozen Seafood Sales Slowed in 2008

Table 1-6: Frozen Seafood Sales, 2008 vs. 2007

More Than Half of Seafood Consumers Shop at Wal-Mart

Foodservice Seafood Trends

Red Lobster Leads Seafood Restaurant Chain Sales

Seafood Chains Hit Hard By Consumer Spending Decreases

Top Seafood Foodservice Distributors

Red Chamber and Trident Seafoods are Top Seafood Companies ..

Imports and Exports

Imports

Seafood Imports Were a Record $13.7 Billion in 2007

Table 1-7: Edible Fishery Products Imports 2003-2007

Exports

U.S. Exports More than 80 Percent of Catches

Table 1-8: Edible Fishery Products Exports 2003-2007

Domestic Seafood Production

Pacific Coast Dominates U.S. Fishery Landings

Trends and Opportunities

Better-for-you Products

Prepared Seafood Dishes For Convenience

Increasing Consumer Demand for Eco Labeling and Health Information

Supermarkets Will Be Eateries

Asian and Hispanic Population Growth May Boost Seafood Consumption

Maturing Baby Boomers Drive Growth in Seafood

Chapter 2: The Market

Highlights

Market Overview

Market Size of Seafood in the United States

Seafood Consumption Declined Slightly in 2007

Table 2-1: U.S. Annual Per Capita Consumption of Commercial Fish and Shellfish, 1997-2007

Seafood Consumption Far Less Than Other Protein Sources

Figure 2-1: Average U.S. Protein Consumption, 2000-2007

Fresh and Frozen Seafood Accounts for 77% of Fishery Products

Table 2-2: Value of Fishery Products, 2003-2007

Consumer Spending on Meat, Poultry, Fish and Eggs

Table 2-3: Average Annual Consumer Food Expenditures: Total vs. Meats, Poultry, Fish and Eggs, 2002-2006 (in dollars)

Consumption of Filets and Steaks Rising

Table 2-4: Per Capita Consumption of Filets and Steaks, and Sticks and Portions 2000-2007

Production of Fish Sticks and Portions Up (Temporarily), Breaded Shrimp Down

Table 2-5: Production of Value-Added Fish Products, in Thousand Pounds 2002-2007

Grocery Seafood Sales Grow Slower Than Other Items

Table 2-6: Changes in Grocery Item Sales - October 2008 vs. October 2007 .

Seventy Percent of Seafood Consumed in Restaurants

Consumers Cut Back on Eating Out

Average Consumer Makes Four Trips a Year to the Seafood Department

Alaska Pollock is Most Valuable Seafood Fillet

Table 2-7: Production of Top 10 Fresh and Frozen Fillets by Species, 2003-2007

Canned Product Prices and Supply Remain Steady

Table 2-8: U.S. Production of Canned Fishery Products, 2006 and 2007

Market Drivers in Seafood Consumption

Growing Awareness of Health Benefits

The “Japanese Factor”

What About Fish Oil Supplements?

Lent is Christmas for the Seafood Industry

Aquaculture May Lower Prices and Increase Availability

Figure 2-3: Global Fisheries and Aquaculture Production, 1980-2010

Figure 2-4: U.S. Aquaculture Production, 2006

Country of Origin Labeling May Assure Consumers of Safety

Frozen vs. Fresh: Advantages and Drawbacks

Farmed vs. Wild

Organic Seafood Growing 20% Annually

What is Organic Seafood Anyway?

Convenience Packaging

Barriers to Seafood Consumption

Food Safety Concerns Keep Some Americans From Seafood

Government and Retailers Promote Safety, But Not Easing Fears

Consumers Not Educated in Seafood Preparation

Economic Factors Affecting Seafood Consumption

Consumers Squeezed in 2008

Table 2-9: Percent Changes in Food Price Indexes, 2004 through 2009

Table 2-10: Percent Changes in Consumer Indexes, September 2004 through September 2008

Restaurants Face Triple Threat

Some Seafood is Considered an Unnecessary Luxury

Is Seafood Recession Proof?

Canned Seafood Making a (Brief) Comeback

Table 2-11: Sales of Shelf Stable Seafood, 2008

Fresh Seafood Consumption

Most Popular Species of Fresh Seafood

Table 2-13: Top Ten Species by Annual Consumption (in pounds, per person) 2003-2007

Shrimp Is The Most Popular Seafood

Figure 2-5: Shrimp Imports by Major Exporter, by Volume 2007

Figure 2-6: Shrimp Exports by Major Importer, by Volume 2007

Tuna: Mercury Concerns Driving Down Consumption

Cod: Quickly Disappearing

Tilapia: Farmed Species Continues to Grow

Pollock: The All-purpose Fish

Figure 2-7: Seafood Consumption Change, 2002-2007 (percent)

Salmon: Health Benefits Outweigh Risks

Sustainability

Table 2-8: Number of Marine Stewardship Council-labeled Fishery Products

The Sushi Industry

Sushi popularity broadens amid health concerns

Consumer Cards Promote Sustainable Sushi

Competitive Profiles: Sushi Without Guilt

Advertising and Promotion

Eco Labeling Can Be a Marketing Tool - If it’s Clear

NGOs Try To Prevent Label Confusion

Blogs and Social Networking

Key Seafood Marketing Events

Market Forecast for Seafood

Size of the U.S. Seafood Market

Table 2-13: U.S. Supply of Edible Fishery Products, by Weight, 2003-2013 ..

Table 2-14: U.S. Domestic Fishery Products, by Value, 2003-2013

Fresh and Frozen Seafood Consumption Will Decline Through 2009

Table 2-15: U.S. Annual Per Capita Consumption of Fish And Shellfish (in pounds), 2003-2007 (actual), 2008-2012 (estimated)

Table 2-16: U.S. Annual Per Capita Consumption of Fishery Items (in pounds), 2003-2007 (actual), 2008-2012 (estimated)

Chapter 3: The Consumer

Highlights

Simmons Data - What They Are …

One Third of Consumers Never Buy Fresh Seafood

Table 3-1: Consumer Frequency of Use of Grocery Departments and Services

Fresh Seafood Consumers Spend Less Overall

Table 3-2: Grocery Expenditures: Weekly Overall, Fresh Seafood Consumers, Hamburger Consumers

Table 3-3: Seafood and Hamburger Purchase, by Household Size

Who Eats Fresh Seafood?

Northeastern and Pacific Urban Dwellers Consume More Fresh Seafood

Figure 3-1: Regional Seafood Consumption

Figure 3-2: U.S. Seafood Consumption By Metro Market Size

Fresh Seafood Consumers: Middle Aged, Affluent, Married

Figure 3-3: Fresh Seafood Consumption, by Age

Figure 3-4: Fresh Seafood Consumption, by Income

Figure 3-5: Fresh Seafood Consumption, by Marital Status

Fresh Seafood Consumers are Health Conscious

Table 3-4: Health Attitudes for Seafood, Hamburger, and Chicken Consumers

Majority of Seafood Eaters Enjoy Cooking, But…

Table 3-5: Percentage of Seafood Eaters Who Enjoy Cooking

Seafood Eaters Frequent Fast Food Restaurants

Table 3-6: Percentage of Seafood Eaters Who Dine Out

Table 3-7: Protein Consumption Trends, 2004-2008

Pescatarians Unite

Food Safety Fears Not Keeping Many Consumers From Seafood

Table 3-8: Changes in Food Purchasing Habits Out of Safety Concerns

Chapter 4: Retail and Foodservice Channels

Highlights

Retail Sales of Fish and Seafood

Supermarket Sales of Seafood Up Slightly in 2007

Drop Off In Restaurant Traffic Could Benefit Some Seafood Retailers

Grocers Predict Growing Seafood Sales

Seafood is a Small Part of Grocer’s Pie, But Has High Profits

Fewer Supermarkets Offering Fresh Seafood

Table 4-1: Availability of Departments and Services in Supermarkets, 2005-2008

Salmon and Shellfish Most Popular Fresh Items; Crab Most Expensive

Table 4-2: Seafood Purchases at Supermarkets: Penetration and Spending by Household in 2007

Fresh and Frozen Seafood Sales

Fresh Seafood Sales Down at Conventional Supermarkets

Frozen Seafood Saw an Average 5% Annual Growth 2002-2007

Frozen Seafood Sales Slowed in 2008

Table 4-3: Frozen Seafood Sales, 2008 vs. 2007

Table 4-4: Frozen Seafood Usage, 2004-2008

Shrimp is Most Popular Frozen Seafood

Figure 4-1: Types of Frozen Seafood Used

Gorton’s is the Top Frozen Seafood Brand

Figure 4-2: Most Popular Frozen Seafood Brands

Supermarket Seafood Marketing Trends

More Than Half of Seafood Consumers Shop at Wal-Mart

Figure 4-1: Top Supermarkets for Seafood

Wal-Mart, Costco Win, Traditional Supermarkets Lose

Consumers Paying More For Private Label Seafood But Not Buying More

Merchandising Seafood as a Stand-alone Department

The Return of the Fishmonger

Consumers Eat Seafood in the Store

More Retailers Embracing Sustainability

Table 4-5: Greenpeace’s Top Five Sustainable Supermarkets for Seafood

Retailer Profile: Whole Foods Market

The Gold Standard in Seafood Sustainability

Trouble Ahead for Whole Foods?

Supermarkets Train Consumers to Prepare Seafood

Foodservice Seafood Trends

Foodservice Dining Trends

Sushi at 7-Eleven

Quick Serve Restaurants Growing

Eating Healthy

Sustainability a Growing Issue For Restaurant Operators

Calorie and Fat Labeling on Menus May Boost Seafood Consumption

Table 4-6: Nutrition Comparison of Dinners at Macaroni Grill

Seafood Chains

Red Lobster Leads Seafood Restaurant Chain Sales

Figure 4-3: Leading U.S. Seafood Restaurant Chains

Casual Dining Restaurants

Red Lobster is Second Most Popular Casual Dining Chain

Table 4-7: Most Popular U.S. Restaurant Chains 2008

Leaner Times For Casual Dining Seafood Restaurants

Figure 4-4: Casual Dining Seafood Chains

McCormick & Schmick’s: Boom Times Over for Now

Fast Food Fish

The Seafood QSR Segment is Relatively Tiny and Slow-Growing

Table 4-8: QSR Sales Growth by Segment, 2004-2006

Figure 4-5: Market Share of QSR Segments, 2006

Figure 4-6: Market Share of QSR Seafood Restaurants, 2007

Long John Silver’s Is King Of QSR Seafood

Table 4-9: Fast Food Visited in Last 30 Days

Table 4-10: Most Popular Fast Food Seafood Chains - 2008

Fast Food Burger Chains Still Rule

Table 4-11: Top Ten Fast Food Chains, by Consumer Selection, 2008

Chefs Concerned About Sustainability; Consumers Less So

The Seafood Supply Chain: Wholesalers and Distributors

A Frenzy of Mergers and Acquisitions

Top Seafood Companies

Table 4-12: Top 10 U.S. Seafood Companies in 2007 (by sales)

Top Seafood Foodservice Distributors

Table 4-13: Leading U.S. Foodservice Distributors, by Sales, 2007

Chapter 5: Supply and Trade

Highlights

Imports and Exports

Import Shares are Highest for Fish and Shellfish

Figure 5-1: Import Shares by Volume, 2000-2005

Seafood Imports Were a Record $13.7 Billion in 2007

Table 5-1: Edible Fishery Products Imports 2003-2007

Table 5-2: Edible Fishery Products Imports, by Principal Items (Volume) 2003-2007

Table 5-3: Edible Fishery Products Imports, by Principal Items (Value) 2003-2007

Imports: Shrimp Still Dominates, Though Slipping

Table 5-4: Leading U.S. Seafood Imports

Figure 5-2: U.S. Imports from Major Areas by Volume, 2007

Figure 5-3: U.S. Imports from Major Exporters, by Volume, 2007

Exports: U.S. Exports More than 80 Percent of Catches

Table 5-5: Edible Fishery Products Exports 2003-2007

Table 6-6: Leading U.S. Seafood Exports

Asia is the Largest Trading Region With U.S

Figure 5-4: U.S. Exports to Major Areas, by Volume 2007

Figure 5-5: U.S. Exports to Major Importers, by Volume 2007

Into China and Back Again

Crabs, Scallops and Salmon Most Valuable U.S. Commercial Species

Figure 5-6: U.S. Commercial Landings 2004 and 2007, Top 10 Species (in millions of dollars)

Pacific Coast Dominates U.S. Fishery Landings

Table 5-7: U.S. Domestic Commercial Landings by Region, by Volume

Table 5-8: U.S. Domestic Commercial Landings by Region, by Value

Alaska Is The Seafood State

Figure 5-7: U.S. Domestic Commercial Landings by Region, 2007 (million USD)

Figure 5-8: Fishery Landings at Major U.S. Ports, 2007 (million USD)

How the Economy Affects Industry and Prices

Fuel Costs May Shake Out Independent U.S. Fishers

Grain Prices Dry Up Catfish Farms

Long Term Help For Fishers

Environmental Issues

Overfishing: 30% of World’s Fish Stocks Overexploited

From Overfishing to an Acceptable Level of Fishing

Effects of Hurricanes on Gulf Coast Fisheries

Chapter 6: Trends and Opportunities

Highlights

Five Consumer Expectations

Better-for-you Products

Convenience Trend Means More Deli Purchases

Increasing Consumer Demand for Eco Labeling and Health Information

Figure 6-1: Perceived Value of a USDA Organic Label

Consumers Must Trust Labels

Turning Grocery Stores into Restaurants

Changing Demographics Represent a Growth Opportunity

Asian and Hispanic Populations Growing at Faster Rate

Table 6-1: U.S. Population Change, by Race or Ethnicity, 2000 to 2004

Asians and Hispanics Consume More Seafood

Maturing Baby Boomers to Drive Growth in Seafood

Figure 6-2: Projected Protein Source Consumption Change

Sustainability is Paramount

Seafood Industry Will Continue to Drive Sustainability

Players Throughout the Supply Chain are Aware of Sustainability Issues

Figure 6-3: Percent of Chain Restaurants Using Sustainable Seafood in 2007 and 2012

Figure 6-4: Percent of Retailers Using Sustainable Seafood in 2007 and 2012

Figure 6-5: Percent of Wholesalers Using Sustainable Seafood in 2007 and 2012

Competitive Profiles: EcoFish and FishChoice

Aquaculture

Government Promotes Sustainability

Alternatives to Farming: Safer But Less Controllable

Appendix: Addresses of Selected Marketers