For generations, the commercial fishing industry has been synonymous with worry, fear and trepidation.
Every time you turn around there is yet another proverbial crisis looming on the horizon: tariffs, warming waters, cooling waters, depleted stocks, price and market fluctuations, unfair quotas, bizarre conservation and regulatory measures, processor versus harvester spats and the list goes on and on.
The constant, revolving door of doom is enough to weigh heavily on anyone’s nerves. This is why, every so often, it is a healthy practice to step back from the day-to-day industry grind and look at things from a macro level, instead of a micro perspective.
Back in the summer of 2017, The Navigator Magazine undertook such a top tier exercise with the all-important, multi-billion-dollar lobster industry.
Eight years ago, after taking a 30,000-foot overview of this critical industry, it was determined that record-setting lobster landings had been the catalyst for driving the fishery in the northeastern Atlantic.
Catches on both sides of the border were sustaining an almost uninterrupted surge in abundance for more than a decade. By 2015, U.S. and Canadian harvests had nearly doubled — adding up to a combined volume of 157,000 metric tonnes (346 million pounds) with a value of (U.S.) $1.48 billion.
In eastern Canada, lobster landings had increased from just over 54,000 metric tonnes in 2006 to nearly 93,000 tonnes in 2016.
All surveys by both U.S. and Canadian regulatory bodies left no doubt that there had been a real and dramatic increase in lobster abundance, notably in the waters off Maine and southwest Nova Scotia.
Jump ahead to present day and there are currently concerns over climate change and resultant warming ocean conditions and more storms, as well as lower catch rates. There are always going to be obstacles in our domestic lobster industry. But what about the global overview? Where specifically is this industry headed?
Once again, lets take a few steps back and see what the procrastinators are predicting for where the lobster industry is headed. And for all you armchair Grinches out there, it is actually looking positive.
The latest global forecast for lobster comes from a report by Polaris Market Research entitled Lobster Market Share, Size, Trends, Industry Analysis Report, By Species (American, Spiny, Rock, European); By Weight; By Product Type; By Distribution Channel; By Region; Segment Forecast, 2023 – 2032. Yes, it is indeed a mouthful but offers detailed insight into current lobster market dynamics and provides analysis on future growth.
Polaris Market Research pointed out that the global lobster market size was valued at USD $7.78 billion in 2023. They are predicting that the lobster industry is going to grow to USD $17.07 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 9.13 per cent during 2023 – 2032.
This enthusiastic forecast can only bode well for the lobster harvesters and processors in Atlantic and Eastern Canada.
The report outlined that “as more people around the world adopt healthy diets and lifestyles, there has been an increasing demand for high-quality seafood products, including lobster. The growing world appetite for fish, the increasing demand for healthy seafood products and advances in transportation and logistics have all contributed to the growth of the lobster market. The global requirement for fish is predicted to nearly quadruple by the end of 2050 as a result of rising income and rising population. As these trends continue, it is likely that the lobster industry will continue to expand, with new markets opening around the world.”
The report’s authors state that as the global economy has grown and incomes have risen, there has been an increase in the consumption of high-end seafood such as lobster.
“This trend has been driven by increased disposable income and a desire for luxury food items. This will further fuel the growth of the market in coming years.”
Other Polaris Market Research lobster market report highlights included:
- American lobster segments are anticipated to grow at a faster rate owing to high demand and sustainable fishing practices. As well, 0.5 – 0.75- pound segments are expected to witness larger market share owing to the affordability, versatility, health benefits and increased availability.
- Whole lobster segments are projected to experience a significant revenue share due to the high price point and premium status.
- The food service segment is expected to grow at a higher growth rate owing to the increasing demand from restaurants and diversification of menus.
- North America is expected to have both a higher growth rate and larger revenue share due to the presence of major seafood exporters.
- Europe registered the second largest growth rate in the study period owing to strong
demand and growing imports. - The global players include Boston Lobster, Clearwater Seafoods, Supreme Lobster, Tangier Lobster and Thai Union Manufacturing.
All of these points paint a bright future for lobster harvesters in the region.
“American lobster segments are projected to experience a faster growth rate for the growth in the study period. These species are highly prized for their succulent meat and there is a high demand for them in the U.S., Canada and other markets. This demand is driven by consumersʼ preference for the taste, texture and quality of American lobsters. The American lobster industry has adopted sustainable fishing practices, including size limits, trap limits and escape vents to ensure the long-term health and viability of lobster populations. This has helped to maintain a steady supply of lobsters, which has further fueled demand,” the report stated.
And finally, in this age of U.S. and Chinese seafood tariff uncertainty, the report predicts that the European region will have the largest growth rate for the lobster market.
“There is a growing demand for lobster in Europe, driven by a rising interest in seafood and a preference for high-quality and sustainable products. The growth of the middle class in developing countries in Europe is also driving demand for luxury seafood, including lobster. The growth of the lobster market in Europe is partly driven by the increasing imports of fish into the region. As Europeans become more health-conscious, there has been a growing demand for high-quality seafood products, including lobster. The increasing demand for lobster in Europe is expected to lead to increased imports and contribute to the growth of the market.”
