How businesses can meet growing interest in alternative seafood

Exploring demand drivers and growth strategies for the alternative seafood sector

With global seafood demand surging, plant-based, cultivated, and precision-fermented seafood products offer sustainable solutions. These alternatives can play a key role in addressing food security concerns and reducing the strain on marine ecosystems.

Understanding consumer demand

Interest in alternative seafood is on the rise. According to the 2023 Smart Protein Project survey, 42% of European consumers find plant-based seafood appealing, while 43% would consider purchasing it. Options produced through cellular agriculture are also gaining traction. In the survey, cultivated seafood appealed to 35% of respondents, and 38% said they would consider purchasing it in the future – promising figures considering that products are not yet available in most regions. The survey also found that plant-based tuna and salmon are two of the ‘most missed’ plant-based products in Europe, giving great insight into consumer desires.¹

Consumers are motivated by several key factors:

1. Taste and texture: For consumers switching from conventional seafood, products must meet familiar sensory expectations. According to the Smart Protein report, taste is a top priority for consumers choosing plant-based proteins. Studies indicate that 78% of consumers would try plant-based seafood if they were confident in its taste and texture, established by flavor messaging.²
2. Health benefits: Alternative seafood appeals to health-conscious consumers seeking safe, nutrient-dense options without contaminants like mercury. Particularly in Asia, where seafood is a dietary staple, the assurance of no heavy metal contamination boosts interest in these products. Plant-based seafood options can also deliver omega-3s and other nutrients traditionally found in fish, enhancing their appeal.
3. Environmental impact: Sustainability-minded consumers are drawn to alternative seafood’s potential to mitigate overfishing, protect marine habitats, and reduce plastic waste.³ As one-third of global fisheries exceed biological limits, ⁴ alternative seafood offers a viable, eco-friendly option to help meet demand while preserving ocean ecosystems.

Market growth and regional trends

The alternative seafood sector has shown resilience and growth, even amid challenges in the plant-based market. Between 2019 and 2022, the plant-based seafood category saw a 40% increase in pound sales, standing out as one of the few plant-based segments to maintain upward momentum.⁵ Globally, consumer interest in plant-based fish rose from 24% to 34% between 2021 and 2022, a 10-point increase that outpaced similar rises for plant-based meats and egg alternatives.⁶ Meanwhile, in Europe, new research shows that the value of plant-based seafood sales grew by 10% between 2022 and 2023 to 42 million euros. In the same period, unit sales grew by 6%, and sales volume remained steady.⁷ Globally, the appeal for alternative seafood is greatest among younger, educated, and higher-income consumers. It’s also high in Asian markets, where seafood is a significant part of the food culture. A Value Market Research report projects that the global plant-based seafood market will attain a compound annual growth rate (CAGR) of 43.5% through 2032, highlighting significant expansion potential, especially in regions with high seafood consumption.⁸

Overcoming industry barriers

Despite strong consumer interest, the alternative seafood market is valued at a fraction of the USD 401 billion traditional seafood market.⁹ Key challenges include:

• Price parity: Alternative seafood remains about 77% more expensive than conventional options.¹⁰ Achieving price parity is critical for accessibility and encouraging regular consumption.
• Production capacity: Limited manufacturing infrastructure constrains the industry, with high production costs and reliance on contract manufacturers. Investments in scalable production methods and new facilities are essential to meet demand and improve cost efficiency.
• Consumer perceptions of processing: Some consumers view alternative seafood as ‘overly processed’ or artificial. Addressing these concerns through transparent communication, education, and messaging around the health and environmental benefits of these products can help shift perceptions.

Opportunities and innovations in alternative seafood

With global seafood demand set to increase by 30% over the next decade,¹¹ the alternative seafood sector has a pivotal role to play in meeting this demand sustainably. Advances in food technology, such as precision fermentation, are enhancing product quality, making it possible for plant-based and cell-cultured options to closely mimic traditional seafood flavors and textures. Innovations in animal-free omega-3s also bolster the nutritional profiles of alternative seafood products, making them comparable to conventional options.

Localized product offerings further broaden the appeal of alternative seafood. Products that replicate regional dishes – such as fish and chips in Europe or fish curries in Asia – can better resonate with local consumers. Strategic partnerships within the industry, such as Nestlé’s collaboration with Corbion for algae-based ingredients, are accelerating technological advancements and enabling companies to meet specific regional and cultural tastes.

Alternative seafood also strengthens supply chain resilience, as it doesn’t rely on wild fish populations or specific geographic conditions. This flexibility in sourcing raw materials reduces supply chain vulnerabilities and enhances food security compared to conventional seafood. Additionally, the ability to produce alternative seafood consistently, anytime and anywhere ensures a more reliable, year-round supply to meet growing demand.

The future of seafood

The alternative seafood industry is poised for transformative growth, offering solutions to address environmental concerns and the increasing global demand for seafood. To succeed, the sector must continue to innovate in four critical areas: taste, affordability, accessibility, and clear sustainability messaging. By meeting taste expectations and achieving price parity, companies can position alternative seafood as a mainstream option. Engaging consumers with informative campaigns on health benefits and environmental impact will further strengthen adoption.

With continued advancements in food technology and partnerships, alternative seafood has the potential to be a key contributor to a sustainable global food system. Now is the time to capitalize on these opportunities.

Actionable insights for food industry professionals

ProVeg makes the following recommendations for businesses looking to optimize sales of alternative seafood products:

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1. Evolving appetites: an in-depth look at European attitudes towards plant-based eating, (2023). European Union’s Horizon 2020 research and innovation programme (No 862957). Available: https://smartproteinproject.eu/wp-content/uploads/Smart-Protein-European-Consumer-Survey_2023_extended.pdf. Accessed 2024-10-24.
2. What U.S. consumers want in alternative seafood products, (2021). The Good Food Institute, Available at: https://gfi.org/blog/alt-seafood-consumer-research/. Accessed 2024-11-07.
3. What do Asian consumers want? (2022) GFI. Available at:   https://gfi-apac.org/industry/what-do-asian-consumers-crave-in-alternative-seafood/. Accessed 2024-11-07.
4. Overfishing Is Out of Hand, Vegan Seafood Presents a More Ethical, More Sustainable Alternative, (2021). vegNews. Available at:  Overfishing Is Out of Hand, Vegan Seafood Presents a More Ethical, More Sustainable Alternative  | VegNews. Accessed: 2024-11-07.
5. 2022 Plant-Based State of the Industry Report. (2023). Good Food Institute. Available: https://gfi.org/wp-content/uploads/2023/01/2022-Plant-Based-State-of-the-Industry-Report-1-1.pdf. Accessed 2024-10-24.
6. Plant-Based Fish & Seafood: Mar 2023 Data Compilation, (2023). Innova Market Insights. Sent to ProVeg International in data partnership 2023-03-08.
7. Plant-based retail sales data for six European countries: 2021-early 2024, (2024). Good Food Institute. Available: https://gfieurope.org/plant-based-sales-data-2023/. Accessed 2024-10-24.
8. Plant-based seafood market, (2024). Value Market Research. Available at: https://www.valuemarketresearch.com/report/plant-based-seafood-market. Accessed 2024-11-07.
9. Getting Consumers To Care About Fishes, (2024). Faunalytics. Available at: https://faunalytics.org/getting-consumers-to-care-about-fishes/. Accessed 2024-10-24.
10. State of the industry report, (2023). GFI. Available at: https://gfi.org/wp-content/uploads/2024/04/2023_State-of-the-Industry-Report-Plant-based-meat-seafood-eggs-and-dairy.pdf. Accessed 2024-11-07.
11. Short-term projection of global fish demand and supply gaps, (2017). FAO. Available at: http://www.fao.org/3/a-i7623e.pdf. Accessed 2024-10-24.