Newer options energize shelf-stable seafoodNewer options energize shelf-stable seafood

The shelf-stable seafood category is proving to be not so stable.

Growing shopper interest in convenience and more exciting eating is triggering strong sales activity throughout the sector from a wide range of shopper segments.

Salmon and sardines have the strongest volume gains over the last year, with sales up 7.6% and 7.7%, respectively, for the 52 weeks ending Dec. 29, reports Circana, a Chicago-based market research firm.

Tuna, which has a 72.2% share of category dollar sales, had a 3% increase in volume sales, while total shelf-stable seafood volume rose 3.4% to 650.9 million.

Salmon is benefitting from a 6.6% price decline over the last year along with a reputation as being a strong source of Omega-3 fatty acids, which medical professionals cite as helping to reduce the risk of heart disease, said Chris DuBois, Circana executive vice president, perimeter practice leader.

“As people look for more protein, they see salmon in cans as having a good price with a health halo that carries over from the fresh case,” he said. “Salmon is more expensive than tuna, but many shoppers are willing to pay extra because it still feels like they are getting a bargain. Shoppers see it as one of the best protein values.”

Salmon had an average volume price of $5.31 over the last year, versus $4.80 for tuna and $5.11 for the shelf-stable seafood category, Circana reported.

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Demand for sardines is also increasing despite an average price of $5.52, a 1.2% increase from a year earlier. Helping to spur sales is the growing popularity of sardines on social media and greater shopper interest in high-protein options, DuBois said.

“The sleepy shelf-stable fish category has turned into something exciting when looking at sardines, other higher-end canned fish, and pouches,” he said.

In pursuit of pouches
Volume sales of shelf-stable seafood in pouches are up about 7.1% over the last four years, while canned seafood is down about 14.3%, Circana reported. Increasing shopper interest in convenience and a wider range of flavors are fueling demand for the selections, DuBois said.

Pouched tuna options, for instance, which typically sell in 2.5- and 2.6-ounce packages, include applewood smoke, bacon ranch, chipotle seasoned, cracked pepper & sea salt, herb & garlic, honey BBQ, hot Buffalo, jalapeño, lemon & pepper, lemon sesame & ginger, ranch, spicy Thai chili, and sun dried tomato & basil. Salmon options in pouches include lemon dill and mango chipotle.

While pouches typically cost more than canned seafood, many consumers are willing to pay for the convenience, he said. “Pouches are portable and can be used for eating everywhere,” DuBois said, “Unlike cans, there is no pull-top and the need to drain water and oil. It is ready to be put on bread and works for eating at home, the office, and even the car. It is a big deal for energizing the category.”

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The potential shopper base for pouches is growing too as more work-from-home shoppers are returning to the office and seeking easy-to-prepare lunches, he said.

“Manufacturers are trying to modernize the shelf-stable seafood category, and it is working,” DuBois said. “They are keeping the packaging simple because convenience matters. People do not want to spend as much time preparing meals.”

The expanding array of pouch flavors is particularly attractive to younger shoppers, who tend to be more adventurous eaters, he said. “Different choices create more excitement as no one wants to try the same flavor over and over again,” Dubois said. “That is making pouches a huge winner.”

Visibility is vital
Despite the sales increases, retailers will need to situate pouches in secondary displays in different areas of the store if they are to increase product awareness and maximize activity, he said.

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“The hardest part is getting people to walk down the shelf-stable seafood aisle,” DuBois said. “The category is ripe for growth when there is more exposure of the products to consumers. All shoppers do not go down every aisle and many are missing selections.”

Retailers will also benefit by cross-merchandising pouches with bread and deli options and on endcaps to bring exposure to products while making it easier to purchase meal ingredients from a single area, DuBois said. “The biggest growth barrier is not health, convenience, or flavor, but awareness,” he said. “Getting people to see the product and put it in their carts is the greatest difficulty.”

Moving forward, DuBois forecasts that seafood in pouches will continue to grow much faster than the canned segment, and that will spur retailers to experiment with newer pouch varieties, including bigger packages and more flavors, he said.

The growing popularity of shelf-stable seafood is not likely to impact fresh seafood department sales as the products typically serve different eating occasions, DuBois said. “Shelf-stable seafood has more of a lunchtime than a dinner role,” he said.