February 14, 2022 — While the seafood sector appears well positioned for growth, can the supply chain hold as demand rises? The Food Institute takes a closer look at some of the category’s recent developments.
Supply chain implications as demand grows
Fresh and frozen seafood product revenues were higher over the last year and Allied Market Research projects sales to rise at a 2.5% CAGR through 2027.
Yet, potential issues await merchandisers that are unable to keep pace with growing consumer demand for a wider array of seafood options, beginning with the rising interest in preparing seafood at home in reaction to the pandemic.
Supply chain restraints, such as declining quotas for some wild-caught seafood species, are also causing out-of-stocks and increasing the demand for products that are in short supply, which is helping to drive inflation. This includes most shellfish products, which because of fishing restrictions, were facing lower harvests in 2021 and lower quotas in 2022.