How to avoid becoming a “Seafood Has Been”
How to avoid becoming a “Seafood Has Been”
By Ruth Levy
I have realized after spending seven weeks oversees in the past three months that the US is moving to a ’seafood has been’ status. In fact, if the data from the GAA conference in Malaysia and the Groundfish Forum in Auckland is to be believed, the USA by 2030 will comprise just 10% of the world’s middle class. The East is rising and the economic ‘Center of Gravity’ continues to shift east.
With the meteoric rise of middle class in the BRIC countries (Brazil, Russia, India and China) more money will be spent on luxury goods and seafood is a luxury food. The numbers are mind boggling….3 billion middle class in the world by 2030; only twenty years away! The new members to the middle class are used to spending a high proportion of their income on food. This group will see their overall food spending percentage to income decrease but this spending will include more purchases of luxury food items. More people will have the ability to choose what they want to eat for pleasure, not for necessity. Food items that were out of reach will now be affordable and will be consumed locally versus being exported. Anyone who imports seafood into the US sees this happening now.
While I was in China, export prices were rising due to a variety of factors, not the least of which was the growing domestic market. The same was true in India, a country where the majority of people (1.2+ billion) are vegetarians. While there, we were told 4% of that population eats seafood which means 48 million people are seafood consumers. Consequently, the domestic Indian fresh head on shrimp market is growing at an exponential rate and the Indian shrimp exporters have a new element to factor into their export pricing equation.
So where does this leave the US consumer? We have expectations regarding our food cost and portion size that looking ahead, aren’t sustainable in this new BRIC era. The past is becoming unrealistic when facing the future. This is true in many different areas not just seafood. Americans are going to have to make some adjustments. Especially with respect to seafood, there is going to be too much competition to have an expectation of cheap, large portion sizes. Will US Seafood consumption continue to decline as the emerging nations’ consumption increases?
Seafood is a vital part of the American diet. The health benefits far surpass the other protein categories. While we might be a ‘has been’ when viewed through the lens of our existing food style, we still are in the fore front with respect to food innovation and creativity. The US still sets world trends and most of the world still aspires to have what we have. Americans need to be creative with how we use seafood…consider skin on fillets, smaller portion sizes, creative cuts and food pairings as options. Value is no longer just about how many ounces for what cost…value is now about getting a healthy, diverse protein to the end user at a level that is affordable and satisfactory. What is an acceptable quantity on the lunch/dinner plate is going to have to be adjusted downwards. We are going to have to pay more for availability.
This new value proposition is hitting Americans in all areas of our lifestyle and our supremacy at the top of the world heap is changing. If we don’t adjust we literally won’t have, others will be there first. We need to wake up and think ahead, not wait for things to go back to the way they were, those days are gone. Seafood processors/importers need to tap into our ‘can do’ ability and give the market options so that seafood remains a dynamic protein category for the US consumer.
Cephalopods