By all measures the global seafood industry is huge, generating over $110 billion in sales in 2001 on 128.8 million metric tons of harvested product (FAO, 2002). It employs over 35 million people worldwide in production, processing and distribution. All other industries of comparable size have been the focus of marketing scholars, programs and associations. Why, then, has the seafood industry been overlooked? As a commodity, it may not be as interesting as goods and services, but it is a tasty topic nonetheless.

Global trade in seafood has increased by an average of four percent per year for the past decade, reaching $55.2 billion in 2001 (FAO, 2002). Consumers in every country of the world, even the landlocked 44, consume seafood. It is clearly a topic of global importance, and for us, of regional importance. New Bedford, Massachusetts is the number one U.S. seafood port in terms of the dollar value of landed catch. Much of our regional economy is related to the seafood industry, including commercial fishing, aquaculture, processing, distribution and consumption (tourism).

The Challenges of Seafood Marketing

What are the challenges associated with seafood marketing? From a product standpoint, it is a commodity that once harvested has a shelf life of seven days. This perishability factor was addressed in the past by drying, salting, smoking, canning or pickling. Today these options still exist, but have been expanded to freezing, flash-freezing, vacuum packing and dehydrating. Other product issues include regional preferences for seafood selection, preparation, quality and consistency. In addition, there is a seasonality factor to consider:  some seafood isn’t available on a year round basis. Finally, the biggest issue facing North America and Europe is sourcing. Given dwindling commercial seafood harvests and aggressive government regulation designed to reduce commercial harvests, how can processors and consumers expect sufficient supply of seafood to meet demand. To date, aquaculture and mariculture have been the answer, but can farming provide sufficient supply to alleviate the gap created by dwindling commercial harvests?

Place issues include processing, the structure of distribution systems, the use of agents and brokers, the efficiency of seafood auctions and sourcing. Sourcing is emerging as one of the most pressing research issues as both the U.S. and European Union are enacting legislation to reduce the commercial fishing catch. Many small, family-operated, commercial fishing vessels are being forced out of business because of government regulations/intervention. Some of the most profitable seafood businesses are those that vertically integrate to control or own their supply chain and distribution network. As government regulation increases, countries that specialize in aquaculture realize bigger profits. Norway, Scotland and Chile are large producers of farm-raised salmon and have seen their sales increase exponentially. Different retail formats for seafood exist worldwide. Where do consumers purchase their seafood and why? Finally, some of the largest trade shows in the world are held in this industry – and have already received some research attention (see Hansen, 1996).

Seafood accounts for nearly fifteen percent of all protein consumed worldwide (FAO, 2002). It is a major source of protein for developing countries with coastal access. Interestingly, this is because of the low cost of seafood in developing countries relative to the cost of other sources of protein. Why, then, is seafood so expensive in developed countries? What are the profit standards for each level of the distribution chain? Are seafood auctions an effective and/or efficient means of initiating the price determination of the seafood that we consume? What is the price elasticity for seafood in developed countries? Do the alleged health benefits outweigh consumers’ tendencies to maximize utility (i.e., are we willing to pay more or a premium price for health food)?

Promotional issues for seafood provide other opportunities for research. A seafood buyer for a regional grocery chain claims that he can predict sales volumes of seafood based on the weekly grocery store flyer distributed via local newspapers. According to him, the store is able to “manipulate” consumers in the short-run using price as a stimulus. This allows the grocery chain to rapidly move product, to capitalize on the seasonality of some offerings and to predict the movement of larges sums of perishable product. Does this relationship exist in developing countries where wet markets are the norm for seafood purchase? In the U.S., much has been written of the health benefits of consuming seafood. It is interesting to note that the industry hasn’t yet banded together for the benefit of exploiting this positive press. Most of the other major sources of protein have a unified presence in the media: the beef industry, the poultry industry and the pork industry.

Lack of Research from a Marketing Perspective

To date, little research exists in mainstream marketing journals using the seafood industry as the topic of investigation. Marketing academicians have abandoned the field to resource economists. The question is why? The research that does exist emanates from northern Europe, most notably from Norway, Denmark and Scotland. Until recently, James A. Young of the University of Stirling has been the lone voice in marketing research in seafood marketing. The banner has passed to Svein Ottar Olsen of the University of Tromso, who has four publications on seafood marketing in mainstream marketing or international business journals over the past two years (Honakanen, Olsen and Myrland, 2004; Toften & Olsen, 2003; Olsen, 2002; Olsen & Olsson, 2002).

Given the niche appeal of seafood marketing, one wouldn’t expect an overwhelming number of research articles on the topic. However, by our estimation, the area remains under-researched and the gap between the research that is published and the research that is needed is appealing. Funding for research in seafood marketing exists. Both the European Union and the U.S. are investing in research in this area. With little effort, last summer we received two grants to investigate seafood-marketing topics. And the topic has worldwide appeal – developing countries are investing in the development of their seafood industries as a means of generating exports.

Call for Action

Marketers need to reclaim the domain of seafood marketing research from resource economists. It is a global industry of major importance, especially for developing countries who view seafood marketing as a means of sustainable economic development. In an effort to stimulate mainstream research in this area, a session on seafood marketing has been planned for next summer’s 5th Biennial Joint Academy of Marketing/American Marketing Association Conference in Dublin, Ireland. Please plan to join us at that conference to discuss research opportunities in seafood marketing. We guarantee good food and great beverages!

FAO (2002). FAO Annual Report: The State of World Fisheries and Aquaculture 2002. February
20, 2003, Rome, Italy.

Hansen, Kare (1996), “The Dual Motives of Participants in International Trade Shows: An Empirical Investigation of Exhibitors and Visitors with Selling Motives,” International 
Marketing Review, Vol. 3, No. 2, pp. 39-53.

Honkanen, Pirjo, Svein Ottar Olsen and Oystein Myrland (2004), “Preference-based Segmentation: A Study of Meal Preferences among Norwegian Teenagers,” Journal of
Consumer Behaviour, Vol. 3, No. 3, pp. 235-250.

Olsen, Svein Ottar (2002), “Comparative Evaluation and the Relationship between Quality, Satisfaction, and Repurchase Loyalty,” The Journal of the Academy of Marketing
Science, Vol. 30, No. 3, pp. 240-249.

Olsen, Svein Ottar  and Ulf H. Olsson (2002), “Multientity Scaling and the Consistency of Country-of-Origin Attitudes,” Journal of International Business Studies, Vol. 33, No. 1, pp. 149-167.

Toften, Kjell and Svein Ottar Olsen (2003), “Export Market Information Use, Organizational  Knowledge, and Firm Performance: A Conceptual Framework,” International Marketing Review, Vol. 20, No. 1, pp. 95-110.