U.S. Crustacean market growth to accentuate from production uptick of lobsters

Date of publication : 8/5/2020
Source : https://www.gminsights.com/industry-analysis/us-crustacean-market

Unprecedented demand for a slew of seafood products is likely to boost the U.S. crustacean market size as aquaculture seafood products continue to gain momentum in the region. Trend for commercial seafood products among millennial and gen Z population at various outlets will become more noticeable in the U.S. The commercial landings at ports by U.S. fishermen were pegged at close to 10 billion pounds (9.9 bn), valued at $5.4 bn in 2017.

Crustaceans have been gaining traction in terrestrial and marine food chains and can satiate several niches. Prominently, crustaceans can recycle nutrients as filter feeders and are being introduced as a source for large aquatic mammals.

Crustacean market revenue growth is likely to witness an upswing on the heels of e-commerce platforms foraying into seafood market in both B2C and B2B operations. Numerous retail giants, including Target and Walmart have been expanding their penetration in the untapped areas through these channels. In the recently compiled research report by Global Market Insights, Inc., U.S. crustacean market size has been projected to surpass US$ 10.2 bn by 2026, expanding at a CAGR of around 5.4% during the same time period.

Growth opportunities may emanate from fresh or frozen food, accounting for around 75% of the seafood products consumed in the U.S. It is worth noting that consumption of these products has potentially reached a plateau.

Stakeholders may eye to infuse funds in Alaska and Louisiana as the former is said to fish out about one million pounds of seafood in 2018, while the latter remained second largest seafood processing state. Louisiana is likely to gain popularity as an investment hub following the surge in demand for premium seafood outlets and shifting consumer preference towards seafood. Fishermen in these states have focused their attention towards catching high yield seafoods, including crab, lobsters, salmon, crab, oyster, tuna and alligator.

Prawns and shrimps are expected to garner major revenue through 2026, with marine water culture area contributing around 90% of the demand for crustacean.

Leading industry players are contemplating expanding their portfolios by injecting funds in lobster products. The Northeasternmost U.S. state—Maine—and the Atlantic Provinces of Canada are arguably the largest producers of lobsters. It is worth noting that the annual export value of lobsters in the U.S. is pegged at over 50 mn pounds, with Canada, Spain, Italy and France becoming the major markets for the crustacean products.

American lobster has been bolstering commercial value of all fisheries in the U.S. amid facing the heat from the ecological and environmental changes. Stakeholders have been concerned about the soaring ocean temperature that is rising unabated above the optimal thermal range, thereby derailing survivability and reproduction of lobsters.

In a bid to offset the downsides, established companies and startups are vying to streamline supply chain of consumer products, e-commerce will remain invaluable in the process to achieve the potential target.

Stakeholders are counting on New York, Texas, California and Pennsylvania that have registered the highest U.S. crustacean market share in 2019. Upsurge in discretionary income and soaring awareness pertaining to health upsides from crustacean have set the benchmark for the robust growth projection.

Well-established companies are touted to rev up production capacity and focus on boosting supply chain process. Some of the leading players profiled in the report are United Seafood Company, Boston Lobster Company and RDM Aquaculture, LLC.

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