UK fish group Young’s has forecast that the domestic market for fish will continue to grow, in spite of price inflation of around 5%.
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In its latest review of the market, Young’s said rising global demand, coupled with more stringent fisheries management regimes, would continue to put pressure on seafood pricing.
However, the company does not expect rising prices to dampen consumer demand in the UK, with both value and volume sales of fish continuing to grow. Young’s now puts the total UK fish market at around GBP2.2bn (US$4.5bn).
Even though tighter regulatory regimes are putting pressure on prices, Young’s points out that the stricter regimes are removing some of the customary volatility from the market.
“Seafood inflation itself is actually losing some of its characteristic volatility as stronger fisheries management regimes kick in and the market starts to diversify across a wider range of species,” said Young’s commercial director Jim Cane. “Some firming of prices is actually to be welcomed as it demonstrates there is improved control on illegal fishing and the elimination of ‘black fish’ [caught illegally outside quota] from the marketplace.”
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By GlobalDataOut in the market, Young’s sees no sign of rising consumer interest in fish petering out. “Consumers have really got the message about the natural health benefits of seafood and so far rising prices have failed to dent their confidence in seafood,” Cane added.
However, Young’s also pointed out that underlying inflationary factors, namely rising ingredient and packaging costs, were now having a major impact on price inflation. These factors are now beginning to overtake the influence of fish raw material on end product pricing, the company said.
“Global factors would seem to suggest that we probably all have to get used to paying more for our food in the future,” says Cane. “In that respect seafood is no different to the wider marketplace – but we do have the benefit that consumers have exceptional confidence in seafood as one of the most valuable elements of the modern diet.”
