Rising Demand for Canned Seafood Expected to Drive Global Sales in 2023
The popularity of canned seafood is a rising trend that has been sweeping through global markets in 2023, driven by increasing health consciousness. Additionally, canned products such as canned tuna, mackerel, and sardines are economically priced, making them an attractive option following the inflationary pressure affecting meat products such as beef and poultry. On top of this, a canned seafood social media craze has also boosted sales and popularity of this category among the younger demographic. Consequently, global canned fish and seafood sales are expected to rise to USD 50.2 billion in 2023, a 2.9% increase compared to 2022, according to Global News Wire.
Source: Tridge, Global News Wire
Particularly, canned tuna is the most sought-after variety due to its superior taste and quality owing to its buttery and creamy texture, and sales are forecast to rise by 2.6% YoY to USD 19.76 billion in 2023. Global canned sardine sales are also expected to reach USD 9.49 billion in 2023 from USD 8.93 the previous year, a growth of 6.3%, while global canned salmon sales could rise by 7.1% YoY to USD 4.82 billion in 2023. In Vietnam, a leading canned seafood supplier, dried and canned fish exports reached USD 78 million in April, 65% more than the previous month, lifting the accumulated value of the first four months to USD 78 million, up 33% from 2022.
In North America, the world's largest canned seafood market, demand for canned tuna and sardines has seen an uptick following a surge in popularity on social media platforms, such as TikTok and YouTube, through videos showcasing different ways of preparing meals utilizing canned seafood for special occasions. Consequently, leading companies, such as Bumble Bee and Chicken of the Sea, in the sector aiming to capitalize on this trend utilized creative design styles in packaging and developed new marketing strategies to drive sales. For example, Scout Canning, a Vancouver-based brand, has started selling its canned seafood products in small attractive boxes with themed designs, such as holidays and entertainment. According to the Wall Street Journal, this strategy drove the company's canned seafood sales by 82% YoY in 2022. As a result of such innovations, canned seafood sales in the US shot up to USD 2.7 billion in 2022, 10% more than the previous year.
Source: Scout Canning
One of the main reasons why canned seafood products have seen a bump in sales in 2023 is the affordability of these products compared to canned meat options. Beef prices have risen sharply in 2023 due to inflation and the impact of the spread of the mad-cow disease, while poultry products have surged due to bird flu outbreaks in large markets such as the EU. In the US, the Producer Price Index for processed meat rose to 283.05 in April 2023, while the Producer Price Index for processed fish/seafood was 138.40 during the same month, a significant price differential of 144.65, according to the US Bureau of Labor Statistics.
Source: Tridge, US Bureau of Labor Statistics
Despite growing interest in canned seafood, many consumers still prefer traditional meat products such as beef and poultry and are unaware of the nutritional value of seafood products. According to the Research Institutes of Sweden (RISE), seafood contains far more nutritional value than red meat. As a result, many firms in this sector have sought to market the versatility, nutritional value, and price advantages of canned seafood to drive sales. Certain upscale restaurants have added a conserve spread to their menus, with recommended wine pairings. Other brands have added recipes to their packaging with suggested pairings to attract picky eaters and utilized easy-open, BPA-free packaging to attract young consumers. In January 2023, Chicken of the Sea, a leading brand in the sector with a 10% market share, adopted strategies to appeal to the younger demographic by advertising that it was giving its mascot, Catalina, a head-to-fin makeover while adopting “Wild-Caught Happiness” as its tagline.
Canned seafood’s popularity is not expected to taper down for the rest of the year as inflationary pressures continue to drive consumer decisions. Given that interest in canned seafood products is growing among young consumers, Tridge expects promotional campaigns to lean toward more youthful themes and designs. As a result, global canned seafood sales are expected to continue rising steadily till 2030 at a CAGR of 2.9%.
For further reading, follow the links below:
2. The Impact of the Mad Cow Disease in Brazil on the Global Beef Industry
3. The Cost of Breakfast Rises to Record Levels as Food Inflation Persists in the US and the EU