As the overall consumer market continues to be influenced by an inflationary environment, capitalizing on growing “affordable indulgence” spending could be a way the seafood industry can make headway.
David Portalatin, a senior vice president and industry advisor for food and foodservice at data firm Circana, said during the 2025 Global Seafood Market Conference that the average consumer in 2024 was pulling back spending on a number of items as higher costs for things like car insurance and housing made them balk at other big-ticket purchases. According to Circana data, spending on items like tech, footwear, clothing, and video games and digital items dropped heavily in 2024.
In purely statistical terms, consumer spending was relatively robust in 2024 and the average consumer actually spent more money during the year. However, the psychological influence of spikes in cost of items like car insurance – which cost 12.7 percent more on average – made people think twice about discretionary spending.
“That has a big influence on what happens in the restaurant space,” Portalatin said.
The perception of cost increases is also more important for many consumers than the reality of inflation. In Q3 2024 inflation at quick service restaurants was relatively low, but because of compounded inflation over multiple years the typical item was 34 percent more expensive than it was in 2019.
That jump in cost makes consumer wary of spending too much while eating out, Portalatin said.
The gap between the cost of food at retail and at foodservice has also widened, with the average price per eating occasion at restaurants costing USD 6.42 (EUR 6.17) more than the cost of a meal at home.
That high perception of cost has influenced consumers, who are shying away from larger purchases. However, Portalatin said there’s still clear trends that show consumers still want to buy things – they’ve just adjusted what they’re buying.
“Even in these industries that volume is down, there are example after example after example of people that are absolutely crushing it,” Portalatin said.
The Stanley mug craze was one example of a product outperforming the industry at large, he said. Viral videos of the mug and the craze around it drove spending for the product – which also influenced portable beverageware in general. Portable beverageware is one of the fastest growing discretionary items on the market, according to Circana data.
Certain types of cosmetics have also seen huge success, even as consumers pull back spending elsewhere.
According to Portalatin one of the key takeaways is that consumers still want to reward themselves with a purchase – they just don’t want to spend as much to do it. A specialty coffee or a cosmetic that costs relatively little but feels indulgent are ways consumers reward themselves without struggling financially.
That tendency is also something the seafood industry could capitalize on, Portalatin said.
“There’s a great opportunity to be in the treat or reward end of the business, because consumers are willing to pay a premium because they’re cutting back elsewhere,” Portalatin said.
Portalatin said consumers are also seeking out food at different times of the day than breakfast, lunch, and dinner – presenting yet more opportunity for seafood to offer that little treat that serves as an indulgence or reward.
“I would encourage you to innovate around things that empower consumers to have these moments that may occur at different times of day. They may be more snackable kinds of occasions, they may be portable,” he said.
