Changing choices

The legacy of the Covid-19 pandemic is just one of a number of factors shaping consumer demand for seafood, a new report from the Norwegian Seafood Council concludes. Vince McDonagh explains.

Seafood consumption is now being driven in many directions, making it difficult for companies to follow a clear strategy.

This is the conclusion of the latest Norwegian Seafood Council global survey into how the market is shaping up this year.

While issues such as cost and taste probably continue to dominate, other factors such as sustainability and the way we shop and eat are playing an increasingly important role.

The Seafood Council has 15 offices worldwide plus representatives in several other countries, so it is probably better able than most to study what is happening around the globe.

It has taken a deep dive into some of the most pressing developments facing the both the aquaculture and wild fish industry and reveals how they are helping to drive transformative change.

The report titled Oceans Of Change provides a powerful overview of the latest trends shaping the sector.

Cover of Oceans of Change report

The previous year’s report underscored escalating consumer demand for transparency in supply chains and the growing appetite for convenient, nutritious proteins.

This year’s edition shows continued interest in these areas, but shifts the focus to the pivotal role of technology and innovation.

Lars Moksness, the council’s Analyst on Consumer Behaviours said: “Some years a single trend dominates the path of the seafood industry. In 2024, it is a balanced handful of converging trends that influence and push each other along: technology, innovation, sustainability and the cost-of-living crisis to name a few.”

“It’s health, it’s convenience, it’s indulgence and it is country of origin,” said Seafood Council CEO Christian Chramer, talking about how coming back to the sector after an eight-year absence, he sees that the megatrends affecting seafood have continued to follow the same themes.

Christian Chramer

But that isn’t to say things haven’t changed. Health is an area Chramer points to as example of a key theme that has expanded in recent years.
“In some regions, it will be more about lifestyle, the way we live and how we treat our body,” he says. “Elsewhere, coming out of the pandemic, it is more about the effect of our way of living and wanting to be healthier.

Here are some of the study’s key points:

Sustainability and ethical consumption
Sustainability has been a growing buzzword in recent years and the trend has only become more relevant this year. At COP28 in Dubai – the biggest UN climate meeting to date – for example, campaigners highlighted the potential offered by aquatic food systems to feed the growing global population.

The report says: “Seafood businesses that prioritise sustainability and ethical practices can tap into the growing market segment of eco-conscious consumers while also contributing to the long-term health of marine ecosystems and the overall sustainability of the seafood industry. This long-term view is a key element that should not be forgotten.”

It adds that certification programmes like the Marine Stewardship Council (MSC) and Aquaculture Stewardship Council (ASC) serve as drivers in moving the industry toward sustainability as well as providing consumers with confidence that the seafood they eat is sourced responsibly. But education is needed to help consumers understand what all this means.

Cost and luxury
Inflation began climbing in late 2021 and many countries saw the cost of living – including food prices – rise faster than at any point in the last 40 years. Seafood, of course, was not exempt.

Many consumers attempted to seek out cheaper deals for food, looking for a balance between quality and cost.

The study says that across many countries, consumers switched supermarkets as they tightened their belts, either opting for more value-focused brands or looking for special offers.

Even though inflation has eased somewhat, food prices in particular remain high at the time of writing and consumers have yet to feel the benefit of a shift in western economies.

A recent worldwide study (The Power of Seafood: FMI) found that seafood sales totalled $16.2bn (£12.4bn) in 2022 – a 3.8% decrease compared with 2021.

This led to a dramatic shift in action in some countries. In Portugal, for example, shoppers were looking for deals and promotions while across the border in Spain more people began cooking at home, and UK and Japanese consumers visited restaurants less frequently.

Pan frying shrimps at home

The growth of seafood at home
The study says it is hard to underestimate the impact of the pandemic on where people eat. The boost that was given to at-home consumption by lockdowns and social distancing has been given a further nudge in the cost-of-living crisis, where people have responded by further cutting restaurant visits.

Looking at data from the Seafood Council’s Deep Dive research – and focusing only on salmon – it sees that, across several markets at least 45% of consumers most often eat salmon at home. In some countries the figure was far higher and at 85% Norway led the pack.

Cooking habits also changed, with some countries devouring sushi although in the UK frying salmon remains the most popular method of cooking seafood. Snacking, often featuring salmon, is also on the rise.

The way we shop and eat
Another pre-pandemic trend that got a huge boost under Covid-19 is the online shopping and delivery market.

Analysts noted that the “market gained a great deal of traction from the pandemic,” with “growth seen in almost every market”.

It expects the online food delivery market to reach US $1.22 trillion (£0.9 trillion) in 2024, with a predicted compound annual growth rate of 10.06%, resulting in a projected market volume of US $1.79 trillion (£1.4 trillion) by 2028.

Across these segments, China and the US are leading the way with what the report calls their “large consumer bases and robust delivery infrastructures”.

In Singapore, for example, a whole host of online seafood options are available, from market stalls with a 60-year history offering online ordering, to high-end, former restaurant-only suppliers, and to others promising same-day delivery.

In the UK, the company Dockside Seafood is one of a growing number of omni channel seafood retailers.

Founded in 1980, the Fleetwood Docks firm has a fishmongers and a preparation centre that is open to the public seven days a week.

Twenty years ago, it expanded into the wholesale business and today it also offers fresh and frozen seafood online – as well as seafood selection boxes, fish boxes, condiments and recipe inspirations.

Conclusion
The study says that this year it is a handful of converging trends, as mentioned earlier, that influence and push each other along; technology, innovation, sustainability and the cost-of-living crisis to name a few.

“The seafood industry can use technology to streamline processes, saving money and potentially making products more affordable to consumers.

“As well as offering the potential to cut waste and costs, innovation also addresses many of the questions around the sustainability of fish and seafood as an essential – and increasingly important – source of protein.”

So why do consumers continue to add sometimes expensive seafood to their shopping baskets in a cost-of-living crisis?

The Seafood Council believes: “While taste, tradition and the general appeal are obviously big factors, an overarching theme is health: a focus on living longer, better and the avoidance of ill-health.

“Fish and seafood was always the healthy choice, but that healthy lifestyle was further thrust into the spotlight under Covid-19 and has become a lasting legacy of the pandemic.”