Lobster Market Experiences US Tariff Impact | CAGR of 9.4%

Overview

New York, NY – April 28, 2025 – The global Lobster Market is experiencing strong growth, driven by increasing demand for high-quality seafood and expanding culinary trends. In 2024, the market was valued at USD 7.5 billion, but it is projected to nearly double, reaching USD 18.4 billion by 2034, growing at a steady compound annual growth rate (CAGR) of 9.4% from 2025 to 2034.

American Lobster led the global lobster market with a 57.8% share, prized for its rich flavor, tender texture, and culinary versatility. Frozen lobster dominated in 2024, holding a 68.7% market share due to its long shelf life, ease of transport, and year-round availability. Hard-shell lobsters commanded a 76.3% share in 2024, valued for their firm texture, higher meat yield, and durability during transport. Food service captured a 63.4% share in 2024, driven by demand from hotels, restaurants, cruise lines, and catering for premium dining experiences.

US Tariff Impact on Lobster Market

India’s seafood exporters face challenges as the US imposes a 26% tariff on imports, affecting shrimp shipments. The new tariff could impact trade, especially with Southeast Asia, and raise competition from Ecuador, a major exporter to the US. Hit by the US tariff of 26%, India’s seafood exporters and farmers are analysing the impact of the new tariff regime by a country that has been their biggest export destination for the last many years.

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The seafood exports to the US were valued at USD 2.54 billion in FY24, out of India’s total exports of USD 7.38 billion. Frozen shrimp continues to be the principal item exported to the USA, with a share of close to 92%. The bulk of the country’s seafood exports to the US is ‘Vannamei Shrimp’, and in FY24, over 41% of India’s shrimp exports went to America, which was by far its largest market.

Key Takeaways

• The Lobster Market is projected to grow from USD 7.5 billion in 2024 to USD 18.4 billion by 2034, at a CAGR of 9.4%.
• American Lobster leads with a 57.8% share, prized for its flavor and sourced mainly from North Atlantic waters.
• Frozen lobster dominates with a 68.7% share, favored for shelf stability and global trade efficiency.
• Hard-shell lobsters hold a 76.3% share due to superior meat yield and transport durability.
• Supermarkets and Hypermarkets capture 41.9% share, offering convenience and reliable cold storage.
• Foodservice drives 63.4% demand, with lobster as a premium menu staple in restaurants and hotels.
• North America holds a 48.4% share, valued at USD 3.6 billion, supported by strong consumption and logistics.

Analyst Viewpoint

Investment opportunities shine through the growing global appetite for premium seafood, with North America, particularly the U.S. and Canada. The surge in demand for frozen lobster and hard-shell varieties reflects consumer preference for convenience and quality, opening doors for investments in cold chain logistics and sustainable aquaculture. Emerging markets like Asia-Pacific, especially China, are hungry for luxury seafood, driven by rising middle-class incomes.

China’s recent decision to resume Australian lobster imports signals untapped export potential. However, risks loom large as climate change disrupts lobster habitats, causing supply volatility, while strict regulations, like fishing quotas, can squeeze margins. Consumer insights reveal a shift toward health-conscious and eco-aware choices.

Lobster’s appeal as a lean protein packed with omega-3s aligns with wellness trends, boosting its popularity in fine dining and retail-ready-to-eat products. Supermarkets and hypermarkets cater to urban shoppers seeking convenience, while foodservice channels thrive on lobster’s premium allure in restaurants and hotels. In Europe, EU policies enforce strict sourcing standards, and regional variations in fishing laws complicate global trade.

Report Scope

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Key Market Segments

By Species

• American Lobster led the global lobster market with a 57.8% share, prized for its rich flavor, tender texture, and culinary versatility. Harvested from Maine to Cape Hatteras, North Carolina, it is managed across seven Lobster Conservation Management Areas under the Atlantic States Marine Fisheries Commission, with NOAA Fisheries and state collaboration. Fishing primarily uses pots and traps, with some gillnets, trawls, and hand harvesting by divers.

By Product Type

• Frozen lobster dominated in 2024, holding a 68.7% market share due to its long shelf life, ease of transport, and year-round availability. It addresses seasonality and perishability challenges, making it ideal for global trade, especially in Asia-Pacific and the Middle East. Restaurants, hotels, and retail chains favor frozen lobster for reduced spoilage and logistics costs. Advances in freezing technology have enhanced quality, boosting consumer trust and online sales.

By Type

• Hard-shell lobsters commanded a 76.3% share in 2024, valued for their firm texture, higher meat yield, and durability during transport. Preferred in North America and Europe for fine dining and processing, they withstand handling and cooking better than soft-shell varieties. In 2025, demand is projected to remain robust, driven by foodservice and frozen product manufacturers seeking consistent quality.

By Distribution Channel

• Supermarkets and hypermarkets led in 2024 with a 41.9% share, offering convenience, variety, and reliable quality through robust cold storage. Attractive packaging, ready-to-cook options, and promotions drive sales in urban areas. In 2025, their dominance is expected to grow with expanded seafood sections and rising middle-class spending. Partnerships with certified suppliers ensure sustainable sourcing, appealing to eco-conscious consumers.

By End-Use

• Foodservice captured a 63.4% share in 2024, driven by demand from hotels, restaurants, cruise lines, and catering for premium dining experiences. Lobster’s flavor and versatility make it a menu favorite. In 2025, growth is anticipated from tourism, dining-out trends, and large-scale events. Many foodservice providers use frozen or pre-cooked lobster for cost efficiency and consistent quality. As urban populations and culinary preferences expand, foodservice will remain the primary driver of global lobster consumption.

Regional Analysis

• North America led the global lobster market with a 48.4% share, valued at approximately USD 3.6 billion. This dominance stems from strong domestic consumption, advanced cold chain logistics, and a deep-rooted seafood culture in the United States and Canada. The U.S., particularly Maine, drives the region’s success, fueled by demand from foodservice, luxury dining, and retail seafood products. Maine’s sustainably harvested American lobster enhances the region’s supply value and authenticity.
• Canada’s Marine Stewardship Council (MSC)-certified fisheries and U.S. Fishery Management Plans reinforce sustainability, aligning with consumer demand for traceable, eco-labeled seafood, boosting sales of fresh and frozen lobster. North America is poised to retain its market lead, supported by consistent production and growing trade agreements. Emerging markets in Asia and the Middle East offer new export opportunities, particularly for Canada, leveraging robust infrastructure, high-quality supply, and strong export networks.

Top Use Cases

• Premium Seafood in Fine Dining: Lobster is a sought-after delicacy in upscale restaurants, enhancing menus with its rich flavor and luxurious appeal. Its high protein and low fat content make it a preferred choice for health-conscious consumers.​
• Online Direct-to-Consumer Sales: Companies like Maine Lobster Now have capitalized on e-commerce, offering fresh lobsters delivered nationwide. This model caters to consumers seeking restaurant-quality seafood at home, expanding market reach beyond traditional retail.​
• Export to Asian Markets: Asian countries, particularly China, are significant importers of lobster. Online platforms like Gfresh facilitate direct trade, connecting global suppliers with Chinese buyers, thereby increasing market accessibility and demand.​
• Lobster Aquaculture: Vietnam has developed a robust lobster farming industry, particularly for spiny lobsters. This aquaculture sector ensures a steady supply of lobsters, meeting both domestic and international demand, and supports local economies.​
• Sustainable Fishing Practices: Initiatives in regions like Maine focus on sustainable lobster harvesting to protect marine ecosystems. These practices ensure the long-term viability of lobster populations and align with growing consumer preference for ethically sourced seafood.

Recent Developments

Clearwater Seafoods

• Clearwater Seafoods, a leading global supplier, has expanded its sustainable lobster sourcing, focusing on Marine Stewardship Council (MSC) certifications. They recently launched new premium lobster products for Asian markets, including ready-to-cook options. The company also invested in traceability tech to ensure ethical sourcing.

Douty Bros

• Douty Bros, a key lobster distributor, enhanced its processing facilities to meet rising U.S. demand. They introduced vacuum-sealed lobster meat for retail and foodservice, improving shelf life. The company also partnered with local fishermen to boost supply chain efficiency.

East Coast Seafood Group

• East Coast Seafood Group expanded its live lobster exports to Europe and Asia, leveraging e-commerce platforms. They introduced AI-driven logistics for fresher deliveries and partnered with chefs to promote lobster-based dishes in high-end restaurants.

Geraldton Fishermen’s Co-operative

• Australia’s Geraldton Fishermen’s Co-op increased lobster shipments to China post-trade restrictions. They adopted blockchain for transparency and launched eco-friendly packaging to reduce environmental impact.

Supreme Lobster

• Supreme Lobster expanded its frozen lobster offerings, targeting retail chains. They introduced value-added products like lobster tails and claws in easy-prep formats, catering to home cooks.

Conclusion

The Lobster Market is experiencing robust growth, driven by increasing consumer demand, particularly in emerging markets like China and India. Advancements in sustainable aquaculture practices and technological innovations in processing are enhancing supply chain efficiency and product quality. However, the industry faces challenges such as environmental changes affecting lobster populations and fluctuating market prices. Despite these obstacles, the market’s expansion prospects remain strong, with opportunities for businesses to capitalize on the growing preference for premium seafood products.

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