Soaring prices put Britons off fish as fillet costs jump a third, Hilton Foods says

Britons are buying less fish as rising costs and supply constraints push seafood prices sharply higher, Hilton Foods said, with the price of a white fish fillet rising by more than a third over five years.

The FTSE 250 food supplier, which produces private-label products for retailers including Tesco, told investors it has seen weaker demand for seafood and is responding by sourcing different species and pursuing ‘‘product reformulation’’ to limit price rises for shoppers. The company linked the surge in seafood prices to large cuts in fishing quotas that have reduced available catch and contributed to double-digit inflation in some categories.

UK food inflation has been running ahead of overall consumer price inflation. The Institute of Grocery Distribution forecast food inflation at 5.1% in August, following an Office for National Statistics figure of 4.9% for July. Industry analysts and suppliers have pointed to a mix of weather-related crop damage, global supply-chain disruption and rising labour costs as drivers of the higher grocery bills.

Heatwaves, droughts and floods both domestically and overseas have affected crop yields and increased costs for ingredients, while global logistics pressures have added to expense for producers. In the United Kingdom, statutory rises in the national minimum wage and an earlier increase in employer national insurance contributions have also lifted labour costs for farmers and supermarkets, factors retailers and suppliers say have been passed on to consumers.

Hilton Foods said the seafood price rises have been particularly pronounced. White fish fillet prices have risen by more than 30% over the past five years, the company noted, and it has moved to diversify the species used in its products and to alter recipes where possible to keep pack prices competitive.

Retailers that rely on private-label supply chains face a balancing act between preserving margins and maintaining affordable prices on shelf. Hilton Foods’ comments highlight pressure across the grocery sector, where shoppers are increasingly sensitive to price changes and may trade down or switch categories in response to persistent inflation.

Retail and food-industry groups have warned that continued cost pressures could lead to further product reformulation, changes in portion sizes, or more frequent promotional activity as retailers seek to protect market share. Suppliers have also signalled that quota changes and ecological management of fish stocks will remain a constraint on supply until catch levels recover or alternative sourcing expands.

Consumers, meanwhile, are encountering higher prices across a broad range of groceries. Industry forecasts point to the possibility that food inflation will remain elevated relative to general inflation for the near term, as firms absorb higher input costs and adjust supply chains.

Hilton Foods’ investor update underscores the challenges for Britain’s grocery market: constrained supply in key categories, weather- and logistics-driven cost rises, and rising labour expenses. How retailers and suppliers manage those pressures will shape both prices and product availability for shoppers in the coming months.