Assessing the Feasibility of Using Value-Added Products to Reduce Seafood Waste in Hawai‘i
Partner organization: Conservation International
Team members: Kang Zhang (Robotics Engineering’ 25), Morgan Polinski (Biomedical Engineering ’25), Nick Sloan (Mechanical Engineering’25), Sander Coscia (Management Engineering ’25)
Download the team’s final presentation.
Seafood waste presents a substantial financial burden for the seafood industry in Hawaiʻi. In particular, fish waste disposal costs are the “greatest concern” for all the seafood dealers and processors throughout the state and “a critical cost issue for their business.” Fisheries and wholesalers spent an estimated $820,000 in 2014 combined to dispose of fish waste on the island of O‘ahu alone. Given inflation, the rising cost of fuel, and considering Hawaiʻi’s five other islands, the seafood waste disposal cost only increases. It is now estimated that well over $1 million is spent annually. This trend underscores the importance and urgency of a sustainable fish waste management solution to alleviate the economic pressure on Hawaiʻi’s fishing industry.
Most Hawaiian seafood distributors who handle fresh, local seafood incur significant operational costs when disposing of fish waste through fish disposal companies. There is great interest in finding optimal utilization for this waste. However, seafood is highly perishable, and the byproducts are discarded due to limited space, a lack of demand, difficulty with processing, and a lack of cross-sector connections and collaborations. Creating additional value-added products from seafood, such as processed or specialized products, will increase the overall value generated for Hawaiʻi’s seafood producers. Investing in developing new types of value-added seafood products for the market may increase revenues and profitability. It can help maximize the economic benefits of Hawai‘i’s seafood industry.
This report analyzes the potential benefits, challenges, and market opportunities associated with fish leather and broth production, focusing on applications within the local Hawaiian market. Through an in-depth feasibility and market analysis, these products can effectively create value from waste. We investigated sourcing, market, branding, and scalability strategies to develop a clear path for introducing these products in the local Hawaiian market. Throughout our research, we interviewed experts across the United States, Japan, New Zealand, and Canada. The findings of this report demonstrate the considerable potential for both fish leather and broth within the local Hawaiian market, offering avenues to mitigate waste and generate increased value.
Fish leather is a promising avenue to create value through fish waste. It offers several advantages over traditional leather materials, including its unique texture, durability, and sustainability. These characteristics make fish leather desirable for new entrepreneurs and established businesses to incorporate into their product lines. It poses as an attractive product for environmentally conscious consumers and the fashion industry searching for innovative materials. The fish leather market in Hawai‘i is small and new. With the global demand for sustainable and exotic materials, we believe fish leather has a significant market potential. Hawai‘i’s strong culture, which is tied to its local fisheries, suggests that there will be strong support for fish leather. Many artisans, artists, and businesses are interested in naturally tanning and utilizing fish leather for their products, such as wallets and fishing gear, and were encouraged by the positive feedback on fish leather products from friends and customers.
The tanning stage represents the most challenging aspect of producing fish leather at scale, but efficient tanning and processing techniques lead to higher-quality fish leather. Tanning the fish skins with natural tannins and dyes is essential for the environment, while using chemicals like chromium harms the tanners and the environment. Proper sourcing practices and eco-friendly production address and combat the concerns of sustainability. As the industry grows, increasing the scale of fish leather production introduces a few challenges. Keeping the skin under the proper condition and ensuring a consistent quality of leather across batches are among some of the concerns.
Leather makers should source fish skins from Honolulu fish markets as most wholesalers, such as Nico’s Fish Market at Pier 38 and Pier 38 Fish Market, are willing to donate fish skins at no cost. This reduces the financial and logistical burden of starting a fish leather-making company, making fish leather a feasible business endeavor.
In researching fish broth, we focused on understanding its nutritional benefits and identifying challenges and opportunities for its incorporation into the market. The nutritional analysis determined that fish broth offers essential vitamins, minerals, and Omega-3 when enriched with vegetables. We believe the nutritional values of fish broth should be used as a competitive advantage when marketing it as a sustainable and healthy alternative to existing broths. However, our research also uncovered potential challenges to adopting fish broth in Hawaiʻi. These include existing culinary traditions involving dashi powder, cultural barriers, established cuisines, and quality control. Despite existing products and Hawaiʻi’s small fish broth market potential, steps can still be taken to reduce fish waste through fish broth by creating fish broth packets and adopting new practices.
In summary, this report highlights the significant potential of fish leather and broth as value-added products in the leather and culinary industries. Fish leather offers an innovative and sustainable material in the fashion industry, offering an environmentally conscious substitute and social benefits for all stakeholders in the supply chain. Since Hawaiʻi is one of the most abundant fisheries in the world, the state stands at a unique advantage to leverage this emerging trend. Artisans can diversify their products and increase their market size and revenue while contributing to sustainable practices in the fashion industry. Similarly, the increased adoption of fish leather can alleviate the financial burdens associated with fish waste disposal for seafood wholesalers. Fish broth holds potential for culinary innovation. Utilizing fish byproducts represents an opportunity to reduce fish waste while providing nutrient-rich broth and broth-based dishes. This approach not only supports environmental sustainability but also offers economic advantages to local fisheries and restaurants. Hawaiʻi, being an abundant fishery, has the resources and motivation to position itself as a rapidly growing value-added fish product market.