Fish Focus

UK SEAFOOD PROCESSING SECTOR ECONOMIC PERFORMANCE AND STRUCTURE 

Fish Focus

UK Seafood Processing Sector Economic performance and structure  

By Tony Mackay

The UK seafood processing industry continues to demonstrate resilience, but beneath strong headline growth lies a more complex and challenging economic picture.

Tony Mackay

According to the latest data produced by Seafish, the industry generated an estimated £5.8 billion in turnover in 2023, with operating costs of £4.9 billion and operating profits of £893 million. This represents a profit margin of around 13% of turnover, a figure broadly in line with the wider UK private sector.

Strong growth, weaker profitability

Over the five-year period from 2019 to 2024, turnover increased by an impressive 81%, equating to an annual average growth rate of approximately 20%. However, operating profits rose by only 29% over the same period—just over 7% annually.

This divergence raises an important question: why has profitability lagged so far behind revenue growth?

The answer appears to lie in a combination of rising costs and constrained consumer demand. While processors have increased prices, they have not been able to pass on the full extent of cost increases to customers.

Economic pressures and consumer trends

Recent and forecast UK economic growth remains modest. GDP increased by 0.9% in 2024, with an estimated 1.4% growth in 2025, and forecasts of around 1.1% for 2026. Against this backdrop, real earnings have declined and household spending has been under pressure.

The seafood sector may be performing slightly below these already subdued averages. Changing consumption habits are also playing a role. In particular:

These trends present both challenges and opportunities for processors.

Cost pressures and global disruption

Analysis from IBISWorld highlights the scale of external pressures facing the industry. The report notes that:

“Domestic demand conditions have been bleak, as the rising cost-of-living squeeze raised inflationary pressures and weakened many households’ ability to afford seafood products.”

In addition, the energy crisis—triggered in part by Russia’s invasion of Ukraine—significantly increased production costs for fishers, which were then passed along the supply chain.

Processors have therefore faced a difficult balancing act: raising prices to protect margins while operating in a market where demand is highly price-sensitive. As IBISWorld observes, this has resulted in subdued profit levels despite rising revenues.

Scale and competition

Industry structure also plays an important role. Larger companies benefit from economies of scale, enabling them to reduce unit costs and invest in product innovation.

The three largest UK seafood processors by turnover are:

These figures underline the scale at the top end of the industry and the competitive pressures faced by smaller operators.

Processing sites: structure and trends

Seafish data also provides valuable insight into the composition of the processing sector. The latest breakdown of processing sites by type is as follows:

Mixed processors dominate the sector and typically handle multiple species groups. Most process demersal fish and salmonids, with a significant proportion also handling pelagic species and shellfish.

While the total number of processing sites has fluctuated in recent years—falling from 380 in 2016 to around 336 in 2025—these changes are unlikely to reflect a true contraction in capacity. Instead, they are more plausibly explained by mergers, acquisitions, and survey variations.

Geography of processing

The geographical distribution of processing sites reflects not only landing locations but also the importance of imports and aquaculture.

In 2023, UK seafood supply comprised:

This heavy reliance on imports—particularly from countries such as Norway, China, Iceland, Vietnam and the Netherlands—helps explain why processing is not confined to traditional fishing ports.

By region, processing sites are distributed as follows:

Key concentrations include North East Scotland, East Yorkshire and North Lincolnshire, and the Highlands and Islands.

Interestingly, while numbers have declined slightly in England and Scotland, there have been small increases in Wales and the Northern Isles.

Employment and regional importance

Seafish estimates that the industry supports a substantial number of jobs, measured in full-time equivalents (FTEs):

These jobs are particularly significant in rural and island communities, where seafood processing remains a cornerstone of local economies.

Conclusion

The UK seafood processing sector has delivered remarkable growth in turnover over recent years, but this has not translated into equivalent gains in profitability.

Rising costs, weak consumer demand, and structural shifts in consumption patterns continue to shape the industry. At the same time, consolidation and scale advantages are becoming increasingly important competitive factors.

Despite these challenges, the sector remains a vital component of the UK food economy—supporting employment, particularly in remote areas, and adapting to a rapidly changing market landscape.

Source Seafish Processing Survey 2025

Main Image © Seafish

Read the latest copy of the Seafood Processors review InFocus here