Addressing the Seafood Supply and Demand Gap: The Rise of Alternative Proteins

As the global demand for protein surges and the seafood supply faces an imbalance, the alternative protein market is emerging as a potential solution. While plant-based seafood holds a competitive edge in terms of pricing compared to beef, overcoming consumer resistance remains a significant challenge.

Historically, the alternative protein market has centred around meatless versions of traditional meats such as pork, chicken, and beef. Factors such as lower production costs, capital improvement plans, and scalability have contributed to the growth of this sector. However, with a noticeable disparity in the supply and demand of seafood, alternative sources in the seafood category are gaining attention.

In 2022, the market for plant-based fish was valued at over $800 million and is expected to exhibit a 5.5% compound annual growth rate from 2023 to 2032, according to data from Global Market Insight. Despite this growth, the diversity within the seafood category presents unique challenges. Unlike other protein sources, seafood comprises various species consumed globally in significant quantities, making it distinct from alternatives like plant-based chicken.

The tuna market, ranking as the third-largest in annual production, faces challenges related to overfishing and complex aquaculture production. The demand for different tuna species, including albacore, bluefin, and premium tuna steaks, introduces variations in both price and quality expectations from consumers. Strategic decision-making for players entering the alternative-seafood market must account for these nuances, as highlighted in the report.

Konscious Foods, led by French chef Yves Potvin, has ventured into the alternative seafood space with the introduction of a plant-based sushi line at Whole Foods. The product range includes nigiri and poke bowls crafted from clean ingredients such as konjac plant, pea fiber, Jasberry rice, organic red quinoa, and organic fruits and vegetables. Good Catch, the inaugural vegan seafood brand in 2021, was acquired by Wicked Kitchen in 2022 to bolster product innovation.

Reducing production costs to align with current consumer spending on animal-based products is a prevalent theme in the plant-based sector. Konscious Foods and the wider alternative seafood industry face the challenge of achieving cost competitiveness. Notably, the attractiveness of higher-end seafood species for alternative producers, given their more achievable target prices, positions the alternative seafood market as a competitive player against traditional meat.

The plant-based seafood sector, however, encounters a substantial hurdle in terms of consumer acceptance. Regional ties to seafood, particularly in areas synonymous with lobster fishing, coupled with the distinctive flavors and characteristics of seafood varieties like crab, eel, and whitefish, present obstacles to scaling alternative seafood products. Overcoming these challenges will be essential for the continued growth and success of the alternative seafood industry.