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Seafood consumption in the UK is in serious decline, with an urgent need to recruit younger consumers to ensure the long-term future of the sector, according to a newly-released update from UK seafood industry public body Seafish.
Consumption of seafood in the UK fell 22% from 2006 to 2022, the report shows, with the decline further accelerating post-COVID-19, marking a 30% reduction every ten years.
That means current consumption stands at just over one portion per person per week, half the recommended amount for good health, Seafish says.
Following a temporary boost during the COVID-19 pandemic, seafood retail sales have reverted to a pattern driven by price increases, with inflation lifting the value of the category while consumption continues to falll, the report shows.
Seafood inflation peaked at around 12%, significantly lower than the 19% seen in general food inflation, and has since decreased to 6.5% by the end of 2023.
Despite the overall decline in seafood consumption, there is sustained demand for farmed seafood and convenient products like fish pie mix and coated seafood items, the Seafish report notes.
Bargain hunting has driven growth in the cheapest seafood segments, such as frozen fish fingers and battered seafood, due to consumers preparing fish and chips at home to save money, as counter foodservice prices have risen with inflation.
Retail seafood shoppers aged over 65 years buy twice as many as those aged under 34 years: two ‘younger’ consumers need to be recruited for each ‘older’ consumer lost, according to Seafish.
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Meanwhile, seafood servings in food service remain approximately 20% below pre-pandemic levels. However, seafood has outperformed the total foodservice market, with a 6% increase in seafood servings compared to a 4% rise in total food and drink servings since 2022.
Quick Service Restaurants, Pubs, Travel and Leisure, Workplace, and Education have all seen growth in seafood servings, while Full Service Restaurants and Fish & Chip Shops have experienced declines, Seafish says.
Fish and chip shops have lost market share to other channels since 2019, although seafood consumption remains linked to social occasions.
The outlook for seafood consumption remains volatile, as inflation continues to affect prices and consumers opt to economise on household expenses. Retailers and food service businesses will need to continue to adapt to high costs and shifting consumer behaviours, the report indicates.
The food service sector is expected to see further polarisation, with seafood outlets expected to either prioritise "premium" offerings for consumers willing to pay extra, or transform into general takeaways.
Meanwhile, in seafood retail, while many consumers are switching to cheaper proteins such as chicken, the price gap between seafood and other proteins like chicken may eventually narrow due to increased soya prices for feed, potentially stabilising consumption.
"Expect a little movement from frozen seafood into the chilled category that will flatten out the seafood consumption decline: fewer consumers leaving seafood, just eating less," the report states.
However, seafood remains challenged by "price and familiarity", the report argues, with "fewer people are brought up eating seafood".
The sector urgently needs to to recruit younger consumers to offset the loss of older ones, the report suggests: "Retail seafood shoppers aged over 65 years, buy twice as many as those aged under 34 years: two ‘younger’ consumers need to be recruited for each ‘older’ consumer lost."
"Long term consumption per capita is a real concern. Seafood is not ‘recruiting’ enough new consumers to compensate for the loss of consumers for whom seafood has more relevance," the report states.
The report also notes that the preference for ready-to-eat seafood products and takeaways may rise as fewer people opt to cook seafood at home, but this will mean an overall further decline in seafood consumption.
The full Seafish "Fish as Food" 2024 report is available to read here.
