Aquaculture America 2023

February 23 - 26, 2023

New Orleans, Louisiana USA

FACTORS INFLUENCING U.S. RETAIL SEAFOOD MARKET SALES

Lianqun Sun* and Ganesh Kumar

Delta Research and Extension Center, Thad Cochran National Warmwater Aquaculture Center, Mississippi State University, Stoneville, Mississippi-38776 USA

 



As the largest seafood market in the world, the United States retail markets are highly competitive and rapidly evolving. Consumer preferences evolve constantly as reflected by the changing dynamics of the seafood market as well as the increased diversity of seafood products sold in retail markets. In-depth analysis of retail scanner data collected from grocery outlets using Universal Product Codes (UPC) would provide a greater understanding of the retail market trends. Using weekly store-based scanner data (ScanTrack data) from AC Nielsen company from September 2016 through August 2021, this study analyzed how product characteristics affect seafood consumption in the retail market for general and specific seafood categories using regression techniques. The explanatory variables include price, seafood category (finfish, crustacea, mollusks, and others), farm-raised, season, promotional share, product form (frozen or refrigerated seafood, entrée, or others), region, value-addition, the effect of the pandemic period, and labeling characteristics. The regressions results show that price is the biggest indicator of quantity sold in the market, and their relationship are inverse, which means higher price results in lower quantity demand, and vice versa for general seafood as well as specific seafood categories, such as finfish, crustacea, and mollusks. In addition, farm-raised seafood species had a positive impact on seafood quantity sold in the retail market. Promotional practices also showed positive effects on retail seafood sales. Spring season was positively related to the quantity demanded in the retail market, for general seafood and finfish, but negatively related to crustacea and mollusks. The results also indicated that seafood consumption has increased during COVID-19 pandemic time. As the largest seafood consumption region, sales in the South region had a consistently positive effect on overall seafood sales as well as on. Conversely, the west north region had negative effects on seafood sales and specific seafood categories. Private labeling (store brands) also had a positive effect on seafood quantity in the retail market while products with no label or company label had a negative sign on seafood consumption.