The latest data from Seafish indicates ‘significant shifts’ in seafood consumption and sales across the UK over the past year, highlighting ongoing trends and emerging challenges in the market.
Seafood consumption in the UK has seen a marked decline, with a 22% drop from 2006 to 2022. The decline has accelerated post-Covid-19, with a current rate of 30% every decade. Despite these trends, the average seafood consumption remains just over one portion per person per week, half of the recommended ‘two a week’ for good health.
Demand for farmed seafood and convenient products like fish pie mix and coated fish remains strong, suggesting that convenience plays a crucial role in consumer choices despite financial pressures.
Retail sales of seafood have reverted to a pattern of price-driven growth following a temporary boost during the Covid-19 pandemic. While inflation has driven up the value of seafood, consumption continues to decline. Seafood inflation peaked at around 12%, below the 19% peak for general food inflation, and had fallen to 6.5% by the end of 2023.
Retail sales of seafood have decreased by 13.6% since their peak in 2021, with the rate of decline yet to stabilise. The only segments showing volume growth are the cheapest seafood options, such as frozen fish fingers and battered seafood, driven by the trend of preparing fish and chips at home and a switch to more affordable species like Alaska pollock.
Seafood servings in the foodservice sector remain below pre-pandemic levels, currently down 18% compared to 2019. However, seafood has outperformed the total foodservice market, with a 6% increase in servings compared to a 4% rise for total food and drink in 2022.
The performance of seafood servings varies across different out-of-home channels. Quick Service Restaurants, Pubs, Travel and Leisure, and Workplace and Education sectors have seen growth, while Full Service Restaurants and Fish & Chip Shops have experienced declines.
Notably, fish and chip shops have lost a share of seafood servings to other channels, with Pubs and Workplace and Education increasing their shares since December 2019.
In retail, the cost of seafood compared to other proteins like chicken is significant, prompting many consumers to switch. This dynamic might shift if rising soya prices lead to increased meat prices, potentially narrowing the price gap with seafood.
A slight movement from frozen to chilled seafood categories is expected, which may slow the decline in seafood consumption. Older consumers (over 65) buy twice as much seafood as younger consumers (under 34), indicating a need to attract younger buyers to sustain market growth.
In the foodservice sector, fewer people dining out and a general reluctance to cook seafood at home suggest a further decline in seafood consumption. Seafood faces challenges related to price and familiarity, as fewer people grow up eating seafood. This trend could boost the market for ‘ready to eat’ seafood products and takeaways, such as fish and chips and prepared meals.
According to the report, fish and chips remain a relatively expensive option due to rising costs, such as higher potato prices expected in the next 12 months. Access the full report here.