Lobster Pricing Experiences Significant Declines Amid Market Saturation

Lobster pricing continues to tumble as sellers look to redirect volumes that had traditionally gone to China. According to Undercurrent News, live lobster markets are reacting negatively to an increased supply and ongoing tariff uncertainties. During week 19 of 2025 (May 5-11), prices for frozen lobster tails and meat have also seen a downturn as sellers aim to clear out inventories before new stock arrives.

Live Lobster Market Overview

In week 19, US wholesale lobster prices dropped by approximately $1 per pound for smaller sizes, while medium and larger sizes saw a slightly smaller decrease. “Lobsters are dropping like a stone,” commented a buyer who noted this significant price drop since the prior week.

The decline this week was less severe than in week 18, with sources suggesting that buyers believe prices may be stabilizing. This perception has encouraged processors to stock up, with many buyers replenishing their live lobster inventories for long-term storage.

The ongoing price slide can be attributed to a surplus of Canadian supply combined with weaker domestic demand, exacerbated by complicated export conditions due to tariffs. While the US can import lobster from Canada without tariffs, exporting to China has proven challenging. Multiple sources confirm that the US export market to China is currently “dead” because of Beijing’s retaliatory tariffs.

Coldwater Tails and Meat Pricing

Similar weakness is observed in the coldwater tails market, where sellers with inventory are making aggressive price cuts to move products ahead of the new season. The most considerable decreases occurred in smaller-sized tails, notably the 3-4 ounce and 5-6 ounce categories, which dominate the North American market.

Last year, the US and Canada shipped a combined total of 24,270 metric tons of live lobster worth $501 million to China. As a result, more lobster tails are expected on the market this year. Price declines continue due to the same underlying market fundamentals that are affecting frozen tails. Sellers remain flexible in pricing, aiming to adjust in response to the uncertain trade landscape.

Warmwater Tails Market Insights

The warmwater tails market is also experiencing softness as it adjusts ahead of the Brazilian season. Concerns around tariff risks after a recent 90-day pause are growing, particularly as the trade flow remains uncertain. Importers aim to mitigate excess inventory post-US Mother’s Day (May 11), prompting a push to move supplies now.

As the lobster market navigates these challenges, sellers and buyers alike are seeking to balance inventory levels while adapting to shifting trade dynamics.

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