U.S. seafood inflation at retail continued to ease in February, and the start of the Lent season early in the month boosted sales of frozen and ambient seafood.
New U.S. Bureau of Labor Statistics Consumer Price Index data showed fish and seafood prices dropped 3.9 percent year over year in February and 0.7 percent month over month.
Circana data analyzed by Lakeland, Florida, U.S.A.-based 210 Analytics backed up those statistics, highlighting that frozen seafood prices plunged 8 percent year over year to an average of USD 7.13 (EUR 6.53) per pound in February.
Frozen seafood’s big February price drop was a contributing factor to the category making a “long-awaited comeback,” 210 Analytics Principal Anne-Marie Roerink declared in the company’s U.S. Retail Update report.
Units of frozen seafood sold jumped 5.9 percent in February compared to the same month a year ago. Due to the lower prices, however, sales by value in the category declined 2.5 percent to USD 700 million (EUR 641 million), according to Circana.
Frozen pollock experienced the greatest year-over-year growth by frozen seafood species in February, with sales by value rising 14 percent to USD 64 million (EUR 58.5 million), and volume by pounds jumping 24.5 percent.
Though frozen seafood found success, fresh seafood sales dropped 8.8 percent year over year by value in February to USD 675 million (EUR 618 million), and volume sold also declined 8.7 percent, continuing a trend in which slowing inflation did not lead to increased sales in the category.
Fresh lobster saw the greatest sales decline, dropping 23.6 percent year over year in February, while volumes sold plunged 27.9 percent.
After being one of the lone seafood bright spots at retail in 2023, fresh crab sales also fell 20.5 percent in February, with units sold decreasing 20.4 percent.
Fresh tilapia sales decreased 20 percent, and units fell 22 percent; trout sales in the category decreased 17.9 percent, and units fell 17.8 percent in February.
Overall, grocery prices in February reflected a consumer-friendly retail market to start 2024, as total grocery prices and food-at-home prices stayed flat month over month. Food-away-from-home prices rose only 0.1 percent compared to January, according to CPI data.
“As we look at prices for early 2024, there is welcome news for consumers, as February CPI data suggests a continued easing of inflation,” FMI – The Food Industry Association Vice President of Tax, Trade, Sustainability, and Policy Development Andy Harig said in a press release.
Harig said prices on key commodities such as dairy products, as well as fruits and vegetables, actually fell month over month.
“Affordability is a core value for grocers and an essential component of our competitive industry where the average net profit for food retailers is 2.3 percent, Harig said. “Despite the challenges to our supply chains and businesses over the last four years – including Covid, transportation disruptions, and labor market shortages – the industry will continue to partner with American consumers to address inflation and make sure American food supply remains the safest, healthiest, and most affordable in the world.”
