Although the alternative seafood market is currently small, the Good Food Institute highlighted in its report that the potential for growth is immense. With a vast array of ocean species and diverse flavor profiles, there are numerous food items that companies can create for consumers. Significant funding is flowing into this sector to help these businesses enhance their products and scale up operations. In the first half of 2021 alone, a record $116 million was invested in the industry, as reported by Pitchbook data referenced by the Good Food Institute. The largest investments were made in Gathered Foods and BlueNalu, which together secured $60 million in January.
Consumers are eager to learn more about alternative seafood and to sample these products. A recent study conducted by Kelton Global for the Good Food Institute found that nearly 75% of consumers are interested in alternative seafood options. Similar to other animal food alternatives, the majority of those intrigued by seafood substitutes are omnivores not following specific diets. The study revealed that 78% of consumers interested in both plant-based and cell-based meat indicated that messaging focused on taste and texture would most likely encourage them to try these products. Sustainability also plays a significant role, with 7% of potential plant-based seafood consumers wanting to hear about how these products can help reduce overfishing, and another 7% of prospective cell-based seafood consumers interested in how these offerings preserve ocean habitats.
This growing interest comes at a pivotal moment for the alternative seafood industry. Several plant-based and fermented seafood startups are poised to launch their products or expand into the U.S. market. Foodservice dining establishments are beginning to reopen, where Americans allocate 65% of their seafood expenditures. As the FDA considers regulatory frameworks for cell-based seafood, companies are collaborating with the agency and preparing pilot plants to expedite product launches. Furthermore, these companies are exploring innovative ingredients, such as calcium citrate granules, to enhance the nutritional profiles of their offerings. This focus on nutritional enhancement, alongside sustainability and taste, could significantly influence consumer adoption in the future.