U.S. Food Retail Sales Growth Weakens in August: Inflation Pressures Drive Consumer Savings Mindset, Seafood Sales Plummet

According to a new report released by Circana, a Texas-based market research company, the growth of the food retail industry in the United States remained weak in August, and the average consumer has not yet shaken off the economic downturn. Total sales of food and beverages in the United States rose just 2.3 percent in August from a year earlier, while volume growth was 0.6 percent, suggesting inflation of about 1.6 percent. Since 2019, the average price of food in the United States has increased by 35 percent.

Anne-Marie Roerink, founder of Circana, noted that current trends have led to a reduction in dining consumption, with consumers paying more attention to price and cost-saving purchasing strategies. The growing problem of food insecurity also reflects ongoing economic pressures, prompting consumers to adopt a more cautious and cost-conscious attitude when shopping.

While the decline in eating out has helped the retail sector, consumers are taking a more frugal approach to food shopping, with price becoming a key factor. Food convenience, health and sustainability continue to influence consumers' purchasing decisions. In addition, the back-to-school season has increased the demand for ready-to-eat foods.

In the seafood sector, sales of chilled salmon have declined, while frozen salmon sales have increased. Among frozen seafood, shrimp sales are the highest, but prices continue to fall. One of the bright spots in August was an increase in sales of canned and packaged seafood.

Roerink predicts that spending patterns will undergo some changes as back-to-school season and fall get underway, with Halloween and falling temperatures among the reasons. U.S. consumers are taking more shopping trips than they did during the pandemic, and growth in retail sales will depend on how much each purchase is maximized, while the holidays remain an opportunity to drive premium merchandise and retail sales. With restaurant prices rising and the job market slowing, consumers are now more inclined to spend at home. In August, the price of frozen fish in the United States increased by 0.5% year on year, while the price of frozen shellfish fell by 1.4% and the price of frozen seafood fell by 2.0% year on year. The price of shelf-stable products declined the most year-on-year, at 5.8%, while the increase over the past three years has reached 6.0%.

In August, U.S. chilled seafood sales were $807 million, down 2.2 percent from a year ago, with volume down 2.4 percent. Frozen seafood sales were $739 million, down 4.2% year over year, and volume was down 2.3% year over year. Shelf-stable seafood sales were $330 million, up 0.2% and volume was up 6.3%, indicating that consumers are responding to economic challenges by purchasing more affordable and storable seafood.

Among chilled seafood, salmon, crab, shrimp, cod and tilapia are the best-selling products, but the volume and value of these products are showing a year-on-year decline.

Among frozen seafood, sales of shrimp, tilapia and cod showed a downward trend, with frozen tilapia sales down as much as 10.4% year-on-year, while frozen salmon and pollock sales increased.