Domestic price of fish and other seafood

IBISWorld expects the domestic price of fish and other seafood to increase by 1.7% in 2024-25 to 138.4 index points. Consumers typically view seafood as a healthier alternative to other meat products. Growing demand for healthy food has favoured seafood consumption and extended consumer expenditure on it. According to ABARES, Tuna and rock lobster have recently gained popularity. The limited supply of live lobster exports from North America, especially in Asian markets, is driving prices higher. Further pushing up prices is Australia's persistently high inflation rate, exacerbated in 2024-25 by wage costs, high energy prices, migration and supply chain disruptions stemming from the Ukraine conflict and tension in the Middle East, increasing the cost of imported goods, including seafood.

Seafood consumption has increased over the past five years as people become more health conscious. Consumers have increasingly opted to purchase fish and other seafood as they are leaner sources of protein than red meats, like beef and lamb. They are also high in omega-3 fatty acids, which are generally regarded as beneficial for heart health and brain function. This inclination has been a major reason for growing seafood prices.

Seafood prices have grown steadily in the last five years, though at varying levels. The pandemic was a volatile period for the industry. Price increases during the pandemic were attributed to several factors. Reduced production and tighter supplies of specific seafood like Salmon led to higher prices, especially as local demand remained strong. Additionally, the digital transformation of trading platforms, like remote bidding at seafood auctions, helped preserve or even increase, in some cases, seafood sales during the lockdowns. Building on this was government intervention during this period whereby the government reclassified agricultural (including fisheries) workers as essential and provided financial support through mechanisms like the International Freight Assistance Mechanism to keep exports flowing. This ensured the industry's economic stability in critical periods. As the supply chains and trade activity returned post-pandemic, especially in 2022-23, it put upward pricing pressure on domestic seafood through high consumption as restaurants opened back up. IBISWorld expects the domestic price for fish and other seafood will rise by a compound annual rate of 1.8% over the five years through 2024-25.