Americans Are Falling Out of Love With Canned Tuna

The tuna industry, valued at $40 billion, faces significant challenges in the modern era. Changes in consumer preferences, environmental concerns, and economic fluctuations are reshaping the landscape of this global market.

Despite its historical resilience and capacity for adaptation, the industry now confronts unprecedented shifts in demand and supply patterns, regulatory pressures, and sustainability issues.

Let’s examine the tuna industry’s current state, exploring its supply chain’s complexities, the impact of market dynamics, and the strategies employed to ensure its future viability and growth.

A Sea of Change

For decades, the methodology of tagging and tracking fish has painted a predictable pattern for the tuna industry, guiding fishing practices and market strategies.

However, recent years have witnessed a significant disruption in these patterns, hinting at deeper environmental shifts.

Once buoyed by consistent consumer demand, the industry has seen per capita consumption decline by over 45% since 2000, challenging companies to navigate the choppy waters of changing tastes and market dynamics.¹

The Giants and the Sea

The tuna industry, dominated by multinational conglomerates like Thai Union Group, has historically relied on a vast network of suppliers to meet global demand. These entities have been instrumental in supplying household names such as Chicken of the Sea with their tuna needs.

Despite its vast scale, the industry is not without its challenges. From consolidation stifling competition to sustainability concerns and scandals shaking consumer trust, the path forward is fraught with obstacles that demand innovative solutions and steadfast resilience.

From Ocean to Can

The journey of tuna from the ocean depths to the pantry shelf is a testament to globalization and industrial ingenuity. With most fishing outsourced to third-party suppliers, major brands rely on a complex supply chain that spans continents.

In places like Lyons, Georgia, and Mckinleyville, California, the canned tuna process is revealed in all its intricate and varied steps, from freezing and shipping across oceans to the final canning process that delivers protein-packed sustenance to consumers worldwide.

The Sustainability Conundrum

Amid economic pressures and operational challenges, the tuna industry faces an existential threat from environmental changes and unsustainable practices. Illegal, unregulated, and unreported (IUU) fishing, alongside the impacts of climate change, poses a significant risk to the industry’s future.

The Global Tuna Alliance is advocating for implementing the Port State Measures Agreement (PSMA), an effective tool against IUU fishing. The PSMA aims to prevent illegally caught fish from entering the market by utilizing ports as a natural bottleneck.

This agreement, if widely adopted and effectively implemented, could transform IUU fishing from a low-risk, high-reward activity to a high-risk, low-reward one.

To ensure transparency and compliance, the Alliance also supports stringent transshipment regulations, including mandatory observer coverage on vessels engaged in at-sea transshipment.²

Legal Tangles and Market Pressures

The industry’s journey has been marred by legal controversies, most notably a price-fixing scandal involving top brands like Bumblebee, Starkist, and Chicken of the Sea. These legal battles have not only led to significant financial penalties but also eroded consumer trust, underscoring the delicate balance between competitive practices and ethical conduct.³

Amidst these challenges, the industry has also had to contend with inflation, rising operational costs, and fluctuating tuna prices, further complicating its path to stability and growth.

The Future of Tuna

As the tuna industry navigates the turbulent waters of the 21st century, it confronts a critical question: how to attract new consumers and adapt to a maturing market. With the pandemic spurring a temporary surge in demand, the industry glimpsed the potential for revival.

However, as it moves forward, the focus on sustainability, ethical practices, and innovation will be paramount in securing the future of this global food staple.

The industry’s ability to adapt to changing environmental conditions, consumer preferences, and economic landscapes will ultimately determine its course in the coming decades.

Sources:

1. cnbc.com/2023/11/03/canned-tuna-industry-faces-existential-threats.htmlhttps://www.globaltunaalliance.com/about/our-five-year-strategy/
2. justice.gov/opa/pr/former-bumble-bee-ceo-sentenced-prison-fixing-prices-canned-tuna