Fish and Seafood Markets in the US Industry Market Research Report from IBISWorld has Been Updated
As families and individuals tightened their budgets, the volume of fish and seafood sold dropped significantly during the recession in favor of less expensive protein sources, such as chicken, pork and beef; the recessionary conditions also affected the quality of purchases. For these reasons, industry research firm IBISWorld has updated a report on the Fish and Seafood Markets industry in its growing industry report collection.
Los Angeles, CA (PRWEB) January 27, 2013
Three broad factors that drive the Fish and Seafood Markets industry include levels of household disposable income, per capita seafood consumption, seafood prices and general population growth. “Historically, the quantity and quality of fish and seafood have driven sales of fish and seafood in related markets,” says IBISWorld industry analyst Josh McBee, but the development of the Fish and Seafood Aquaculture industry (IBISWorld report 11251) have brought supplies closer to consumer demand. Previously, variability in the cycle of fish caught determined pricing and supply at the retail level, but aquaculture produces a consistent supply of seafood similar in size and quality, thus tempering the industry’s volatile nature. As such, over the five years to 2012, IBISWorld estimates industry revenue fell at an annualized rate of 1.2% to $2.1 billion.
During the past few years, falling household wealth has negatively affected the Fish and Seafood Markets industry. As families and individuals tightened their budgets and reduced expenses, consumption trends have changed in a number of ways. Most importantly, the volume of fish and seafood sold dropped significantly in 2008 and 2009 in favor of less expensive protein sources such as chicken, pork and beef. “The negative effects of the recession reduced the quality of purchases as well,” says McBee. “Purchases of higher-quality seafood have declined strongly as Americans substitute quality fresh fish with more frozen, canned or other processed varieties.” Industry profitability (earnings before taxes and interest) has taken a plunge as lower sales of value-added products squeezed industry margins. In response to poor conditions and squeezed profit, seafood markets have been reducing staff sizes to reduce wage expenses.
In 2012, the industry rebounded slightly, with per capita consumption of fish turning around and driving revenue recovery of 1.4%. As household income levels improve through 2017, IBISWorld forecasts industry revenue to increase at an annualized rate of 1.2% to $2.2 billion. Also by 2017, employment and wages are projected to rebound to prerecession levels. IBISWorld estimates that nonemployer establishments (i.e. those that lack paid employees besides the owner) account for a little more than half of the industry. Most other fish and seafood markets employ fewer than 10 people. In fact, data provided by the US Census suggests that about 70.0% of fish and seafood markets that have paid employees employ between one and four people, illustrating that the bulk of operations are small. Over the next five years, the structure of this industry will likely remain static, with a limited number of markets undertaking acquisitions. For more information, visit IBISWorld´s Fish and Seafood Markets in the US industry report page.
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IBISWorld industry Report Key Topics
Fish and seafood markets primarily retail fresh, frozen and cured fish and seafood items such as tuna, salmon, lobster and shrimp. Operating within the retail sector, products are sold at various independent markets, delicatessens, fishmongers and butcher shops. Fish and seafood markets operating as part of a supermarket are excluded from this industry, as are online sales.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
About IBISWorld Inc.
Recognized as the nation´s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.
For the original version on PRWeb visit: http://www.prweb.com/releases/prweb2013/1/prweb10363220.htm