Factors influencing seafood sales in US retail markets

Abstract

US seafood retail markets are highly competitive and have evolved rapidly to supply an increased diversity of seafood products. Retail scanner data collected from grocery outlets using Universal Product Codes (UPC) reveals realistic market trends and provides deeper understanding of consumer trends. Using weekly store-based scanner data (NielsenIQ ScanTrack data) from September 2016 to August 2021, this study analyzed the product characteristics that influence seafood consumption in retail markets for general seafood as well as specific seafood categories such as finfish, crustacea, and mollusks. Explanatory variables included: price of seafood, whether the product was farm-raised, promotional share, product form (frozen or refrigerated seafood, entrée, or others), value-addition, labeling characteristics, seasons, regions, and the effect of the pandemic period. Price had a significantly inverse relationship with the quantity of general and specific seafood products sold. Being farm-raised had a positive impact on the quantity of seafood products sold in retail markets. Promotional practices also had positive effects on retail seafood sales, however with diminishing marginal returns. Among seasons, the spring season had significantly higher sales in the retail market for general seafood and finfish, but significantly lower sales for crustacean and mollusk products. Sales in the Southern region had a consistently positive effect on overall retail seafood sales. Results also indicated that retail market seafood sales were significantly higher during the COVID-19 pandemic period. Private labeling (store brands) exhibited a positive influence on seafood quantity, the same with products without any labeling information compared to products with company labels. The study highlights key market trends in US retail outlets and suggests specific marketing strategies that could be useful for seafood products.