Retailers have opportunities to drive increased seafood sales by offering high-quality seafood from Alaska.

Research from Circana shows that among all seafood consumers (those who have purchased salmon for home consumption in the last three months), 54% say they are eating more seafood at home than they were two years ago. That compares with 6% who say they are eating less seafood, and 40% whose at-home seafood consumption has remained even.

Consumers’ desire to eat a healthier diet is by far the main driver among consumers who are eating more seafood at home, cited as a reason by 60% of those whose consumption has increased.

Although sales of both fresh and frozen seafood soared during the pandemic, retailers have struggled to maintain those levels since that time, as many consumers shifted back toward their pre-pandemic routines.

“Frozen seafood in particular is one of the most sensitive categories to consumer mobility, and as things returned to normal in 2022, sales receded,” said Chris Dubois, executive VP and fresh protein practice leader, Circana. “But I think we’re nearing the end of the decline and are ready to build something new.”

The top 10% of seafood buyers buy almost 45% of all seafood, and eat seafood once per week, he noted.

“This is an incredibly strong core, and growing it is the key,” he said.

The research also pointed to a bright future for at-home seafood consumption, as younger consumers — both Gen Z and Millennials — consume seafood at home more often than Gen X and Baby Boomers. Older Millennials, who report eating seafood at home 67 times per year, are the sweet spot.

In addition, the frequency of at-home seafood consumption also increases with income. Consumers earning more than $100,000 annually report eating seafood at home 64 times per year, compared with 47 times per year for consumers earning less than $50,000 annually.

Also boding well for the future of seafood sales is consumers’ stated desire to eat more seafood. A whopping 62% of consumers said they are trying to increase seafood consumption; that is more than any other protein, and double the 31% of consumers who said they are seeking to eat more plant-based foods.

Driving retail sales

DuBois sees three primary strategies for retailers seeking to capture this increased consumer demand for seafood: staffing the seafood counter with knowledgeable staff; reinforcing the protein content and health benefits of eating seafood, and offering convenient, value-added seafood solutions.

“A big driver of sales for seafood is the person behind the seafood counter,” he said, noting that more than 40% of recent seafood purchasers said that they specifically sought advice on selection and recipes from seafood department staff.

In addition, reinforcing the health benefits and protein content of seafood, which can be done both online and at the counter, is important, DuBois said.

“Don’t be shy and assume that people know,” he said.

The sales-driving power of ready-to-eat or ready-to-cook seafood offerings also points to opportunities for retailers. The most successful retailers offer a larger selection of these value-added items, which help drive higher sales, said DuBois.

In addition, retailers have an opportunity to grow seafood sales in other departments, including deli/prepared foods, the freezer case, and the shelf-stable center store.

In the prepared foods area, sushi has become a $2.5 billion-plus category in terms of annual sales, according to DuBois. In fact, the most successful prepared foods departments offer more sushi — 29 sushi items vs. an average of 12 nationwide — and they also get a higher ring on average ($6.65 vs. $5.32 nationwide), he said.

The benefits of Alaska seafood

Circana’s research also highlights the benefits of offering seafood from Alaska. Consumers clearly have a favorable opinion of Alaska seafood, which has a “halo” effect on perceptions of the store overall.

“Alaska is a state, but it’s a powerful brand as well and casts an incredible halo across products,” said DuBois.

In addition to the benefits it confers as a U.S.-sourced product, it also has a “wild, clean outdoors image that resonates with consumers,” he said.

Of those consumers who have a preference, 64% prefer Alaska salmon over other varieties, according to Circana research. In addition, more than 80% of consumers say they would be more likely to purchase Alaska seafood if it is labeled as being from Alaska or has the Alaska Seafood Marketing Institute’s “Alaska Seafood” logo on display. In addition, 78% said they would pay more if they saw the “Alaska Seafood” logo.

Consumers associate Alaska seafood with being fresh, wild-caught and healthy, Circana’s research found.

The appeal of Alaska seafood also extends to center store, both in the shelf-stable aisles and in the freezer case. The top 25% of retailers in shelf-stable seafood specifically offer more Alaska items in their assortments, and these retailers get 8.1% of dollar sales from Alaska items, vs. 6.5% for the remaining retailers, according to Circana.

“Alaska salmon in particular is the big driver of the sales outperformance,” DuBois said. “To make your sets sell, add more Alaska-sourced items.”

Frozen seafood follows a similar pattern — 53% of top seafood buyers prefer wild-caught seafood (vs. 15% who prefer farmed), which should inform retailers’ seafood assortments. When it comes to breaded and other value-added items, the packaging should indicate “wild-caught” to help drive sales, DuBois said.

The Circana data highlights the upside for retailers that offer Alaska seafood. The average basket containing refrigerated Alaska seafood totals $105.79, for example, which is almost 5% more than baskets containing refrigerated seafood in general. It’s also more than double the average basket size for consumers who do not purchase refrigerated Alaska seafood.

Clearly Alaska seafood represents an opportunity for retailers to both drive sales and enhance consumer perceptions of their store offerings overall. These products provide an unmatched level of quality, and when combined with the right service levels and merchandising, lead to bigger baskets at checkout.

For more information about how Alaska seafood can bolster your stores’ sales, visit ASMI’s retail-specific resource content here.