US retail sales of frozen plant-based seafood are off to a shaky start this year, suggesting the category is struggling to hold consumers.
In January, US retailers sold just over $888,000 (€825,000) of frozen plant-based alternative seafood items, a 12.1 percent drop in value versus January of 2022. The number of units sold during January tumbled by nearly 24 percent compared to the same month the year prior, according to new IRI supermarket sales data compiled by market research firm 210 Analytics.
And February was no better. Sales of just over $795,000 (€738,000) were down 15 percent from February of 2022, and the number of units sold fell by 23 percent.
For the 52-week period ending Feb. 26, the number of units of plant-based seafood alternatives sold at US supermarkets was flat. The value of these sales rose 9.1 percent to just over $11 million (€10.2 million). By comparison, during that same 52-week period, US retail sales of real seafood exceeded $11.3 billion (€10.5 billion).
"With the negative growth in recent months, that likely means that units and volume will start to drop further in the latest 52-week view moving forward," 210 Analytics CEO Anne-Marie Roerink told IntraFish.
The initial strong sales start for vegan seafood items during the pandemic has clearly slowed.
US sales of plant-based frozen seafood alternatives hit $11.5 million (€10.6 million) in 2022, up 17.1 percent from 2021, according to data from IRI Integrated Fresh and supplied by market research firm 210 Analytics.
Despite the double-digit dollar sales rise, both the number of units sold and the volume sold in 2022 grew at a noticeably slower pace.
Last year, more than $175 million (€162 million) was invested in companies producing or planning to produce alternative seafood items. The investment reflects a 92 percent increase from the $91 million (€84.3 million) invested in the sector in 2020.
Controversy continues
The category continued to spark debate, most recently at the Seafood Expo North America (SENA) in Boston earlier this month.
Doug Hines, founder and owner of Atlantic Natural Foods, makers of the Tuno brand of plant-based canned tuna, told IntraFish earlier this year that his company last fall asked to be allowed to exhibit at the 2023 show but was denied by show organizers Diversified, who cited a policy prohibiting plant-based products to be exhibited at the show.
Following the SENA event, Monica Talbert, the CEO of alternative supplier The Plant Based Seafood Co., alleged Handy Seafood, a leading US crab producer, was "secretly" offering samples of its plant-based seafood at the Boston show, despite Diversified's prohibition.
Despite the controversy, several seafood companies have produced plant-based seafood lines.
Most notably, three of the largest fish finger suppliers to the UK and EU market -- Birds Eye and Iglo parent Nomad Foods, Germany-based Frosta and Young's Seafood parent Sofina -- launched plant-based "fish finger alternatives."
Chicken of the Sea Frozen Foods, owned by seafood conglomerate Thai Union Group, itself one of the world's largest global shrimp suppliers, is partnering with the Ish Food Company, a Pennsylvania-based plant-based shrimp maker.
Bumble Bee, Southwind Foods and others have struck deals with plant-based seafood producers to distribute their products alongside traditional seafood items.
