Seafood Processing and Distribution

The US seafood processing and distribution industry consists of about 650 processors with annual revenue of about $9 billion and about 2,500 distributors with annual revenue of about $12 billion. Many companies are involved in both industry segments. Major companies include Ocean Beauty Foods, Red Chamber, Trident Seafoods, and the US division of Japan's Maruha Nichiro Holdings. The industry is fragmented: the 50 largest processors account for about 45 percent of segment revenue and the 50 largest distributors account for about one-third of segment revenue. This industry includes the processing and wholesaling of both wild-caught and farm-raised seafood. Commercial fishing and aquaculture (fish farming) are covered in separate industry profiles.COMPETITIVE LANDSCAPEDemand is driven by trends in fish consumption. The profitability of individual companies depends on operational efficiencies. Large companies often enjoy the advantages of vertical integration and have economies of scale in purchasing and marketing. Small companies can compete effectively by specializing in niche markets. The industry is capital-intensive: average annual revenue per employee is $225,000 for a typical processing facility and $500,000 for a typical seafood wholesaler. PRODUCTS, OPERATIONS & TECHNOLOGYMajor products include frozen fish (30 percent of processing revenue); frozen shellfish (20 percent); fresh fish and shellfish (15 percent); and canned seafood (15 percent). Other products include industrial goods like fish meal and fish oil.Important frozen fish products are groundfish (cod, haddock, pollock, and whiting) that is either battered ...