Trading down in the seafood sector April 2009
Seafood is an industry with a relatively strong income elasticity of demand, particularly due to the comparative premium value of the many products as well as the high exposure to food service. On average, demand is contracting in most major markets. The industry is very heterogeneous, however, and each market niche and species needs to be analysed separately to ascertain the impact of the recession and credit crunch: whether a product is a traditional seafood species in a certain market or considered exotic; whether it is consumed as a centre of the palate meal; purchased at retail level or food service; sold in frozen or fresh or value added form; and other consumption parameters influencing the ultimate effect of the recession.
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