Inflation is still a problem for the grocery industry, but it is not impacting seafood as much as previous months.
Food-at-home prices rose 0.3 percent in February 2023 versus January 2023, and it is up 10.2 percent versus last February, according to the U.S. Bureau of Labor Statistics’ Consumer Price Index. Food away from home prices rose 0.6 percent from January to February 2023 and 8.4 percent compared to February last year.
Fish and seafood prices overall rose 1.5 percent in February versus February 2022, with the biggest price hike – 3.8 percent – in shelf-stable seafood.
IRI and 210 Analytics also reported a 3.1 percent incline in shelf-stable seafood prices and a 2.4 percent increase in frozen seafood inflation in February, but only a 0.5 percent increase fresh seafood prices.
The low fresh seafood inflation was driven by a 6.1 percent price drop in fresh shellfish, led by crab, which had a 13.4 percent price drop, and lobster, which decreased 12.1 percent.
As a result, fresh seafood sales rose 3.5 percent to USD 544 million (EUR 517 million) in February, according to IRI and 210 Analytics. Fresh crab sales spiked 27.3 percent, while catfish sales rose 12.7 percent and salmon sales inclined 6.3 percent. On the other hand, shrimp sales dropped 12.1 percent and lobster sales dropped 4.9 percent.
“For the first time in a long while, fresh seafood was able to turn around the performance and move back into year-on-year growth territory. However, this only happened because of the depth of the decline last year. In other words, the bar was set much lower and we exceeded it, but the pounds and units are still trending below pre-pandemic levels,” 210 Analytics Principal Anne-Marie Roerink told SeafoodSource. “[Nonetheless], it is fantastic to see that fresh seafood is back into the black and now it’s a matter of keeping the momentum going. Prices are more favorable [and] this is seafood’s big time of the year due to Lent. By continuing to underscore affordability, versatility and health, I think we have a good opportunity to indeed continue the growth momentum.”
Frozen seafood sales, on the other hand, were negatively impacted by inflation in comparison with last year’s numbers, according to Roerink. But sales only dropped 0.1 percent to USD 582 million (EUR 553 million).
“Frozen had tremendous spikes in 2020 and 2021, in seafood and beyond, and maintaining those spikes has proven to not be all that easy,” Roerink said. "We still see strength in trips and strength in household penetration. And volume is moving very, very close to year ago levels here also.”
Inflation is still an issue, as salmon prices jumped 18.3 percent, while frozen pollock prices soared 11.9 percent in February. Conversely, frozen shrimp prices fell 2.1 percent, while frozen crab inflation plummeted a significant 15.2 percent.
After several months of sales gains, shelf-stable seafood sales again inclined a significant 8.2 percent to reach USD 217 million (EUR 206 million) in February, and a record USD 2.7 billion (EUR 2.6 billion) for the year ending in February, according to IRI and 210 Analytics.
In February, ambient tuna in cans and pouches reached USD 159 million (USD 151 million) in sales, a 9.7 percent year-on-year increase for the largest seller.
“Sales here are mostly inflation-boosted, but there is certainly no shame in that. We see dollar growth for most categories to be directly related to an increase in prices,” Roerink said.
The biggest opportunity is for canned seafood to move from a back-up pantry item to becoming a planned meal occasion, whether a quick tuna salad or sandwich for lunch, or a casserole for dinner, Roerink said.
“The opportunity here is the classic with a twist: How can you make that tuna sandwich, salad, or casserole just a bit different?” she said.
Frozen seafood manufacturers might boost sales by “embracing the new ways of cooking a bit more,” Roerink said, such as providing instructions for the air fryer.
“More than seven in 10 U.S. households now have an air fryer and it is quickly emerging as a game changer in preparing all sorts of dishes. Salmon is among the top 10 Google searches of how to prepare in the air fryer, for instance,” she noted.
Frozen seafood supplier Gloucester, Massachusetts, U.S.A.-based Gorton’s recently latched on to the increasingly popular air-fryer trend. After first announcing the products in 2021, Gorton’s began selling its new Air Fried Fish Fillets and Air Fried Butterfly Shrimp in retailers nationwide in early January 2023. The products feature Alaska pollock fillets and whole tail-on butterfly shrimp lightly seasoned with panko breadcrumbs.
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