Supermarket Perimeter - January 2024 - 57

" Customers have cut back on shellfish in recent months, despite
lower prices on crab and near record low shrimp prices. Shrimp, crab
and lobster are primarily impulse purchases and considered nonessential, "
Anderson said.
" Because of crab, shellfish had a very strong first half of the year, but
in the second half, volume and dollars were down, " confirmed AnneMarie
Roerink, principal at 210 Analytics, during the Elanco-sponsored
webinar, " U.S. Retail Seafood Sales Q3 2023. "
Roerink was surprised by the drop in crab and shellfish sales because
overall seafood inflation has " subsided considerably, " over the past
year, particularly compared to total food and beverage inflation, which
jumped 7.5% in the third quarter of 2023.
However, at an average price per pound of $9.19 for fresh seafood,
prices are " significantly higher " than those of the three biggest animal
proteins - chicken at $2.99 per pound on average, pork at $3.21 per
pound and beef $6.44 per pound on average in November, Roerink said.
Additionally, monthly tracker research by Kansas State University
found a decreased Willingness-to-pay (WTP) for all five beef, pork and
chicken items, according to Roerink. That hesitancy will undoubtedly
impact demand for seafood, she said.
Only 15% of those surveyed by KSU indicated their household
finances are better than last year, " leading to an ongoing emphasis on
price in the purchase decision, " she said.
Inflation's impact
Overall inflation - including higher housing and energy costs -
remains a concern among Americans. The Consumer Price Index for
All Urban Consumers (CPI-U) increased only a slight 0.1% in November
on a seasonally adjusted basis, but rose 3.1% for the year, according to
recent data from the U.S. Bureau of Labor Statistics.
Overall food costs increased 2.9% in November, compared to
November 2022. Food at home realized the larger increase at 5.3%
compared to 1.7% at home.
" The November CPI demonstrates that the inflation rate for food-athome
continues to head in the right direction for American consumers,
dropping to 1.7 percent on a year-over-year basis, " said Andy Harig, vice
president of tax, trade, sustainability and policy development for FMI -
The Food Industry Association. " But even as inflation gets back on par
with historical averages, consumers must remain flexible and tactical
with their purchasing decisions to get the greatest value as we head
into the holiday season. "
The U.S. Department of Agriculture is predicting that overall food
inflation should slow to about 3% in 2024. The agency expects grocery
food prices to rise about 1.6% and restaurant food prices should
increase 4.3%.
However, the " resiliency of the consumer is being tested " by a
number of factors beyond inflation and interest rates, wrote Jack
Kleinhenz, chief economist for the National Retail Federation, in the
organization's December Monthly Economic Review.
Excess liquidity built up during the pandemic is shrinking and access
to credit has become more expensive as banks have become more
cautious, with both curbing the purchasing power fueled by job and
wage gains, he wrote.
Gross domestic income - which goes beyond the value of products
supermarketperimeter.com
JANUARY 2024 - 57
produced to include wages, rent, interest and corporate profits earned
during production - rose only 1.5% in the third quarter, adjusted
for inflation, following 0.5% in the second quarter, which shows the
economy is slowing but not halted, according to Kleinhenz.
However, the US economy is on track to end 2023 with vigorous
growth for the year, Kleinhenz said.
" A strong labor market, rising wages and access to excess
savings have helped spending continue despite inflation and higher
interest rates. "
No one can accurately predict how the overall economy will perform
in 2024, Anderson said, but it " certainly won't be booming. " Consumer
confidence is low, so discretionary spending - especially on shellfish -
will likely remain lackluster, according to Anderson.
Value-added seafood will continue to grow
Despite concerning sales numbers in fresh and frozen seafood,
prepared seafood items - including sushi, seafood salads and many
other value-added items - performed better than many items in the
fresh seafood case in the latter months of 2023. That trend is expected
to continue into this year.
Sales of seafood appetizers, for example, surged nearly 210% in
November, according to Circana. Sales of most other prepared seafood
items sold via delis dropped in November, but analysts expect strong
growth in the near future.
" I expect deli prepared foods [including sushi] to continue to increase
for seafood in 2024, " DuBois said. " I don't have an economic crystal
ball, but unemployment is low, people are spending money and the
economy is reasonably strong. "
Prepared seafood sales have been
growing in seafood and deli for the
retailers that put in the effort. Ready-tocook
and ready-to-eat seafood appeals to
busy shoppers and restaurant customers
afraid to prepare seafood at home. "
Chuck Anderson, Certified Quality Foods
http://www.supermarketperimeter.com

Supermarket Perimeter - January 2024

Table of Contents for the Digital Edition of Supermarket Perimeter - January 2024

Supermarket Perimeter - January 2024 - Intro
Supermarket Perimeter - January 2024 - 1
Supermarket Perimeter - January 2024 - 2
Supermarket Perimeter - January 2024 - 3
Supermarket Perimeter - January 2024 - 4
Supermarket Perimeter - January 2024 - 5
Supermarket Perimeter - January 2024 - 6
Supermarket Perimeter - January 2024 - 7
Supermarket Perimeter - January 2024 - 8
Supermarket Perimeter - January 2024 - 9
Supermarket Perimeter - January 2024 - 10
Supermarket Perimeter - January 2024 - 11
Supermarket Perimeter - January 2024 - 12
Supermarket Perimeter - January 2024 - 13
Supermarket Perimeter - January 2024 - 14
Supermarket Perimeter - January 2024 - 15
Supermarket Perimeter - January 2024 - 16
Supermarket Perimeter - January 2024 - 17
Supermarket Perimeter - January 2024 - 18
Supermarket Perimeter - January 2024 - 19
Supermarket Perimeter - January 2024 - 20
Supermarket Perimeter - January 2024 - 21
Supermarket Perimeter - January 2024 - 22
Supermarket Perimeter - January 2024 - 23
Supermarket Perimeter - January 2024 - 24
Supermarket Perimeter - January 2024 - 25
Supermarket Perimeter - January 2024 - 26
Supermarket Perimeter - January 2024 - 27
Supermarket Perimeter - January 2024 - 28
Supermarket Perimeter - January 2024 - 29
Supermarket Perimeter - January 2024 - 30
Supermarket Perimeter - January 2024 - 31
Supermarket Perimeter - January 2024 - 32
Supermarket Perimeter - January 2024 - 33
Supermarket Perimeter - January 2024 - 34
Supermarket Perimeter - January 2024 - 35
Supermarket Perimeter - January 2024 - 36
Supermarket Perimeter - January 2024 - 37
Supermarket Perimeter - January 2024 - 38
Supermarket Perimeter - January 2024 - 39
Supermarket Perimeter - January 2024 - 40
Supermarket Perimeter - January 2024 - 41
Supermarket Perimeter - January 2024 - 42
Supermarket Perimeter - January 2024 - 43
Supermarket Perimeter - January 2024 - 44
Supermarket Perimeter - January 2024 - 45
Supermarket Perimeter - January 2024 - 46
Supermarket Perimeter - January 2024 - 47
Supermarket Perimeter - January 2024 - 48
Supermarket Perimeter - January 2024 - 49
Supermarket Perimeter - January 2024 - 50
Supermarket Perimeter - January 2024 - 51
Supermarket Perimeter - January 2024 - 52
Supermarket Perimeter - January 2024 - 53
Supermarket Perimeter - January 2024 - 54
Supermarket Perimeter - January 2024 - 55
Supermarket Perimeter - January 2024 - 56
Supermarket Perimeter - January 2024 - 57
Supermarket Perimeter - January 2024 - 58
Supermarket Perimeter - January 2024 - 59
Supermarket Perimeter - January 2024 - 60
Supermarket Perimeter - January 2024 - 61
Supermarket Perimeter - January 2024 - 62
Supermarket Perimeter - January 2024 - 63
Supermarket Perimeter - January 2024 - 64
Supermarket Perimeter - January 2024 - 65
Supermarket Perimeter - January 2024 - 66
Supermarket Perimeter - January 2024 - 67
Supermarket Perimeter - January 2024 - 68
https://digital.supermarketperimeter.com/sosland/sp/supermarket-perimeter-june-2024
https://digital.supermarketperimeter.com/sosland/sp/supermarket-perimeter-may-2024
https://digital.supermarketperimeter.com/sosland/sp/supermarket-perimeter-april-2024
https://digital.supermarketperimeter.com/sosland/sp/supermarket-perimeter-march-2024
https://digital.supermarketperimeter.com/sosland/sp/supermarket-perimeter-february-2024
https://digital.supermarketperimeter.com/sosland/sp/supermarket-perimeter-january-2024
https://digital.supermarketperimeter.com/sosland/sp/supermarket-perimeter-december-2023
https://digital.supermarketperimeter.com/sosland/sp/supermarket-perimeter-november-2023
https://digital.supermarketperimeter.com/sosland/sp/supermarket-perimeter-october-2023
https://digital.supermarketperimeter.com/sosland/sp/supermarket-perimeter-september-2023
https://digital.supermarketperimeter.com/sosland/sp/supermarket-perimeter-august-2023
https://digital.supermarketperimeter.com/sosland/sp/supermarket-perimeter-july-2023
https://digital.supermarketperimeter.com/sosland/sp/supermarket-perimeter-june-2023
https://digital.supermarketperimeter.com/sosland/sp/supermarket-perimeter-may-2023
https://digital.supermarketperimeter.com/sosland/sp/supermarket-perimeter-april-2023
https://digital.supermarketperimeter.com/sosland/sp/supermarket-perimeter-march-2023
https://digital.supermarketperimeter.com/sosland/sp/supermarket-perimeter-february-2023
https://digital.supermarketperimeter.com/sosland/sp/supermarket-perimeter-january-2023
https://digital.supermarketperimeter.com/sosland/sp/supermarket-perimeter-december-2022
https://digital.supermarketperimeter.com/sosland/sp/supermarket-perimeter-november-2022
https://digital.supermarketperimeter.com/sosland/sp/supermarket-perimeter-october-2022
https://digital.supermarketperimeter.com/sosland/sp/supermarket-perimeter-september-2022
https://digital.supermarketperimeter.com/sosland/sp/-supermarket-perimeter-august-2022
https://digital.supermarketperimeter.com/sosland/sp/supermarket-perimeter-july-2022
https://digital.supermarketperimeter.com/sosland/sp/supermarket-perimeter-june-2022
https://digital.supermarketperimeter.com/sosland/sp/supermarket-perimeter-may-2022
https://digital.supermarketperimeter.com/sosland/sp/supermarket-perimeter-april-2022
https://digital.supermarketperimeter.com/sosland/sp/supermarket-perimeter-march-2022
https://digital.supermarketperimeter.com/sosland/sp/supermarket-perimeter-february-2022
https://digital.supermarketperimeter.com/sosland/sp/supermarket-perimeter-january-2022
https://digital.supermarketperimeter.com/sosland/sp/-supermarket-perimeter-december-2021
https://digital.supermarketperimeter.com/sosland/sp/supermarket-perimeter-november-2021
https://digital.supermarketperimeter.com/sosland/sp/supermarket-perimeter-october-2021
https://digital.supermarketperimeter.com/sosland/sp/supermarket-perimeter-september-2021
https://digital.supermarketperimeter.com/sosland/sp/supermarket-perimeter-august-2021
https://digital.supermarketperimeter.com/sosland/sp/supermarket-perimeter-july-2021
https://digital.supermarketperimeter.com/sosland/sp/supermarket-perimeter-june-2021
https://digital.supermarketperimeter.com/sosland/sp/supermarket-perimeter-may-2021
https://digital.supermarketperimeter.com/sosland/sp/supermarket-perimeter-april-2021
https://digital.supermarketperimeter.com/sosland/sp/supermarket-perimeter-march-2021
https://digital.supermarketperimeter.com/sosland/sp/2021_02_01
https://digital.supermarketperimeter.com/sosland/sp/2021_01_01
https://digital.supermarketperimeter.com/sosland/sp/2020_12_01
https://digital.supermarketperimeter.com/sosland/sp/2020_11_01
https://digital.supermarketperimeter.com/sosland/sp/2020_10_01
https://digital.supermarketperimeter.com/sosland/sp/2020_09_01
https://digital.supermarketperimeter.com/sosland/sp/2020_08_01
https://digital.supermarketperimeter.com/sosland/sp/2020_07_01
https://digital.supermarketperimeter.com/sosland/sp/2020_06_01
https://digital.supermarketperimeter.com/sosland/sp/2020_05_01
https://digital.supermarketperimeter.com/sosland/sp/2020_04_01
https://digital.supermarketperimeter.com/sosland/sp/2020_03_01
https://digital.supermarketperimeter.com/sosland/sp/2020_02_01
https://digital.supermarketperimeter.com/sosland/sp/2020_01_01
https://digital.supermarketperimeter.com/sosland/sp/2019_12_01
https://digital.supermarketperimeter.com/sosland/sp/2019_11_01
https://digital.supermarketperimeter.com/sosland/sp/2019_10_01
https://digital.supermarketperimeter.com/sosland/sp/2019_09_01
https://digital.supermarketperimeter.com/sosland/sp/2019_08_01
https://digital.supermarketperimeter.com/sosland/sp/2019_07_01
https://digital.supermarketperimeter.com/sosland/sp/2019_06_01
https://digital.supermarketperimeter.com/sosland/sp/2019_05_01
https://digital.supermarketperimeter.com/sosland/sp/2019_04_01
https://digital.supermarketperimeter.com/sosland/sp/2019_03_01
https://digital.supermarketperimeter.com/sosland/sp/2019_02_01
https://digital.supermarketperimeter.com/sosland/sp/2019_01_01
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