A recent report titled ‘The next wave: Alternative-seafood solutions’ highlights the urgent need for finding substitutes for seafood due to impending shortages. The report reveals that approximately 85% of fisheries have reached their limits, and the restrictions on fish farming make it difficult to meet the growing demand, which is expected to rise by 14% in the next seven years.
McKinsey’s analysis identifies shrimp, tilapia, tunas, salmonids, and lobster as prime candidates for replacement by alternative seafoods. The challenging nature of farming tuna, leading to the reliance on wild-caught fish, makes it particularly appealing for alternative production.
The report cites cultivated, fermentation-based, and plant-based products as the most promising alternatives to traditional seafood. These options offer similarities to seafood, have a history of high investments, and are ready for the market.
One significant advantage of alternative seafoods is their lower carbon footprint. They can be produced locally, and the report indicates that tuna alone has a retail-level carbon footprint of 0.8 to 0.9 kilograms of CO₂ per kilogram. Anders Milde Gjendemsjø, associate partner at McKinsey, highlights the competitive advantage of seafood over meat in terms of pricing. Premium cuts of bluefin tuna can sell for as much as $200 a pound, making it easier for alternatives to match the price compared to ground beef, which typically sells for $4.99 a pound. Additionally, alternative seafoods are greener to produce, offer the benefits of omega-3s without high mercury levels, and are not limited by fishing quotas or farming licenses.
According to the report, plant-based alternative seafoods face fewer regulations and lower market entry barriers. In the US, they have already achieved a price range of $12-20 per pound. Moreover, cultivated products grown from fish cells have attracted $100m of investment in the US and are potentially the closest in taste, texture, and nutrition to real fish.
Tom Brennan, partner at McKinsey, emphasizes that alternative seafoods can contribute to the sustainable growth of the industry, alleviate pressure on fisheries, and expand access to proteins. However, reducing production costs to match those of fish and replicating the wide variety of taste and texture pose significant challenges. Innovative advancements in taste, nutrition, and cost are vital for achieving wider distribution and reducing the strain on marine and freshwater ecosystems.
