The U.S. oyster industry has experienced significant developments in production, market dynamics, and economic impact. A new NOAA Technical Memo explores trends in oyster production, market potential, and growth opportunities. The report also identifies challenges such as price declines, market disruptions, and highlights the need for improved data collection and reporting. The analysis aims to provide a foundation for strategic decisions toward a sustainable and thriving oyster industry in the coming decade.
Findings indicate the market has evolved regionally, with distinct oyster species and flavor profiles shaping consumer preferences. Restaurant oyster prices adjusted for inflation have remained relatively stable over the past decade, averaging around $3.33 per oyster in 2024 dollars, though recent consumer experiences suggest that price increases in major cities may be dampening demand.
We gathered oyster production and farm-gate value information from every U.S. coastal state engaged in private and public oyster harvest. The best available data indicate that U.S. production peaked in 2017 at over 722 million single oysters but declined due to environmental events and the COVID-19 pandemic. Production rebounded post-pandemic but has not fully recovered to pre-pandemic levels; however, data quality issues are apparent and restrict the ability to perform a robust evaluation. Forecast models predict production growth over the next decade, reflecting growers’ plans to expand.
Approximately 10% of U.S.-farmed oysters are exported, mainly to Canada, Hong Kong, and other Asian markets; however, access to the European Union remains limited due to regulatory barriers. Oyster imports have doubled in five years, with Canada, Mexico, and South Korea as major suppliers.
Interviews with experts in the oyster production, processing, and distribution sectors were also conducted, and revealed varied growth trajectories across regions, with some producers facing market ceilings. Experts believe that demand drivers include price, quality, food safety, consumer preferences, and storytelling about origin and sustainability. Experts state that consumer preference favors smaller oysters for raw consumption, with growing interest in value-added products. Seasonal demand fluctuations and the dominance of restaurant consumption channels create vulnerabilities. Furthermore, press coverage of food safety issues can severely impact demand, even when human health risk is minimal. Marketing and education efforts are limited by resource constraints but are critical for growth.