Seafood Product Preparation & Packaging
Industry Profile Report
Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters
Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
The 450 seafood product preparation and packaging companies in the US process fish, shellfish, crustacea, seaweed, and other sea life into fresh, canned, dried, smoked and frozen foods, as well as bait and seaweed products. Processors are often located along coasts or rivers to speed access to fresh catches. Some firms process seafood on vessels or “floating factory ships."
Health and Seasonality of Fisheries Supply
The seafood product preparation and packaging industry relies on healthy fisheries and is subject to limits on seasonal catches.
Meeting Health Regulations
NOAA’s Fisheries Seafood Inspection Program and the FDA inspect operations and ensure that the industry complies with food safety regulations.
Industry size & Structure
The average seafood product manufacturer operates a single location, employs 63 workers and generates $31-32 million in annual revenue.
- The industry consists of about 450 companies that employ 28,300 workers and generate $14.3 billion in annual revenue.
- The industry is concentrated with the 20 largest firms representing 59% of industry revenue.
- The average American consumes 20.5 pounds of fish and shellfish each year, which totals more than 6.5 million pounds consumed annually.
- The US is a net importer of seafood products with the value of imports exceeding exports by a ratio of 9:1.
- Large companies include SeaPak, Beaver Street Fisheries, East Coast Seafood, American Seafoods Group, and H&N Foods International. Many of the large companies, like Thai Union, Starkist, and Bumble Bee, are US divisions of foreign firms.
Industry Forecast
Seafood Product Preparation & Packaging Industry Growth
Recent Developments
Nov 23, 2024 - Prices Rebounding
- The producer price index for seafood product producers, which measures prices before reaching consumers, rose 1.2% in September compared to a year ago after falling 2.4% in the previous September-versus-September annual comparison, according to the latest US Bureau of Labor Statistics data. Producer prices for seafood product producers have been trending upward since May. Employment by seafood product producers slumped by 2.7% year over year in September, while average wages at food manufacturers rose 4.9% in October to a new high of $23.76 per hour, BLS data show. Employment by the industry is seasonal and typically peaks in July.
- The FDA is asking the seafood industry, academia, and other relevant parties for more information on perfluoroalkyl and polyfluoroalkyl substances (PFAS) in seafood, Seafood Source reports. The agency in November opened a request for information regarding PFAS, also known as “forever chemicals” because they don’t easily break down and have been shown to accumulate in the environment and in human bodies. The FDA has said its testing indicates that seafood may be at higher risk for environmental PFAS contamination compared with other types of foods. According to the agency, the purpose of the request is to help increase its understanding of the potential for PFAS exposure from seafood. It says it intends to use the information submitted in response to its request to help inform future activities to reduce dietary exposure to PFAS that may pose health concerns. The deadline for comments is February 18, 2025.
- Sales of fresh and frozen seafood at US retail stores fell in August, Seafood Source reports. Dollar sales of frozen seafood dropped 4.2% to $739 million and declined 2.6% by volume, while dollar sales of fresh seafood fell 2.2% to $807 million and sales by volume dropped 4.9%, according to Circana Integrated Fresh data analyzed by 210 Analytics. Retail seafood prices have been falling this summer, which led to sales gains in some niche categories in June and July, although prices of fresh and frozen seafood rose slightly in August, resulting in a corresponding dip in sales, according to 210 Analytics Principal Anne-Marie Roerink in a recent US Retail Seafood Performance Review report. Per the August Consumer Price Index (CPI), fish and seafood prices at retail dropped 2.3% in August compared to a year ago, while prices rose by 0.2% month over month.
- US fisheries are in hot water, according to NOAA Research’s study of marine heat waves. Ocean heat waves occur when sea surface temperatures exceed 90% of typical regional temperatures, factoring in seasonal fluctuations, and can last from days to years, affecting not only surface waters but also the bottom of the ocean. Marine heat waves stress marine life, leading to mass die-offs of fish, marine mammals, and seabirds, and coral bleaching. They can also trigger harmful algal blooms and intensified hurricanes. Cool- and cold-water fish, like cod and salmon, are particularly vulnerable to heat waves, according to the US Fish & Wildlife Service. Other species negatively impacted by warming waters include Dungeness and Alaskan snow crab, Pacific cod, and shrimp. Fish and seafood populations, their habitats, and the US fishing industry are feeling the impact, with experts warning that climate change could critically harm the $253 billion US fishing industry.
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