Millennials have once again targeted a classic 20th-century pantry item. With sales plummeting by nearly 50% over a generation, it’s evident that the conventional format of canned tuna is no longer sustainable. This leaves the three dominant companies in the tuna market—StarKist, Bumble Bee Foods, and Chicken of the Sea International—struggling in a contracting market. While these giants account for 80% of canned tuna sales, the entire industry has been affected by declining demand. This trend should not come as a surprise, especially considering the broader movement towards convenience. In 2016, the USDA reported that half of consumers’ food budgets were spent on items that are quick to prepare and consume. A 2017 study by the NPD Group indicated that snack foods consumed during main meals now represent 24% of all snack food consumption, an increase from 21% five years prior. However, canned tuna often misses the mark in this expanding category.
In response to this shift and the waning interest in canned tuna, the industry is adapting. Last year, StarKist launched single-serving pouches of tuna in flavors appealing to millennials, such as Thai Chili Style, Jalapeno, Hot Buffalo Style, Sriracha, and Tapatio. Since the introduction of these pouches, the company has reported an annual sales increase of approximately 10%. While StarKist enjoys a favorable response to its new packaging, smaller, more agile companies like Wild Planet Foods and Safe Catch are capturing market share from the big three by promoting their tuna as more sustainable and of higher quality. According to Nielsen data cited by The Wall Street Journal, smaller brands, excluding private labels, commanded 6.3% of the market in October, a significant rise from 3.7% in 2014.
However, the convenience of pouches comes at a cost: increased waste. While millennials are generally more environmentally conscious than previous generations, this packaging format often prioritizes convenience over sustainability, which could ultimately harm companies in the long run. StarKist could consider developing eco-friendly or reusable packaging to alleviate the negative consequences of this demand for convenience.
As the tuna category pivots its products to better match consumer preferences for innovative flavors and hassle-free meals, there may be a silver lining in the perception of canned tuna as retro. Tuna might find a place in restaurants and menu items aiming to evoke the tastes of America’s past. Yet, this could prove challenging, as evidenced by the decline of other products that millennials have shunned, such as American cheese.
In a bid to remain relevant, another promising avenue for the big tuna companies could be partnerships with meal kit services seeking ingredients with broad appeal that can facilitate easy-to-prepare, perfectly portioned meals. StarKist has already collaborated with Kroger’s Home Chef meal kit service to include its yellowfin tuna pouches in kits starting in 2019.
Moreover, with the increasing interest in health, particularly in nutrients like calcium and magnesium, brands could also highlight these benefits. For instance, Kirkland’s tuna products, which are known for their quality, could leverage this nutritional aspect while promoting sustainability. In summary, the canned tuna industry must innovate and adapt to the evolving preferences of consumers, aligning convenience with sustainability if it hopes to thrive in the future.