Menhaden have repeatedly been listed as one the nation's most important commercial fisheries species in terms of quantity. Total menhaden landings (Gulf of Mexico and Atlantic) in 1998 were 1.7 billion pounds (816,467 mt) valued at $103.8 million. Preliminary Atlantic menhaden landings in 1999 totaled 416 million pounds (188,662 mt) with an estimated ex-vessel value of $33.2 million.

Native Americans may have used menhaden for fertilizer before the European settlement of North America. Colonists soon recognized the value of whole menhaden for fertilizer, and local seine fisheries gradually developed from New York to Maine. Farmers applied 6,000 to 8,000 fish per acre. The use of whole fish as fertilizer continued into the nineteenth century. Union soldiers returning home from North Carolina and Virginia after the Civil War provided anecdotal reports on the abundance of menhaden in Chesapeake Bay and coastal North Carolina, sparking interest in a southern fishery, which soon developed.

The menhaden oil industry began in Rhode Island in 1811. It has grown steadily, with significant mechanization, including boilers for rendering raw fish and presses for removing oil. Oil was initially used for fuel and industrial processes, while the remaining solids (scrap) were used for fertilizer. Numerous small factories were located along the coasts of the northeastern states. However, their supply was limited to fish that could be captured by the traditional shore-based seines. In 1845, the purse seine was introduced, and an adequate supply of raw material was no longer a problem. By 1870, the industry had expanded southward, with several plants in the Chesapeake Bay and North Carolina areas.

The industry gradually developed during the late 1800s and early 1900s. During this period the number of factories and vessels varied with the supply of menhaden. The principal use for the scrap was fertilizer, with different companies each producing their own formulation. A small amount of scrap was used to feed cattle and chickens.

The primary use of menhaden changed from fertilizer to animal feed during the period following World War I. Scientists described the uses of menhaden during the late 1920s as follows: "... much is being used in mixed feeds for poultry, swine, and cattle and the amount going to fertilizer is steadily decreasing. Menhaden oil is used primarily in the manufacture of soap, linoleum, water proof fabrics, and certain types of paints.

Following World War II the industry grew rapidly, reaching peak production during 1953-62. Sharp declines in landings thereafter resulted in factory closings and fleet reductions through the 1960s and into the early 1970s. Since that time, the menhaden industry has experienced major changes in processing capacity, resource accessibility, and access to new product markets.

Nine menhaden reduction plants on the Atlantic coast closed permanently during the 1980s while two new operations began. In 1990, five reduction plants with 37 vessels processed Atlantic menhaden for fish meal and oil. In the United States, land-based plants are currently located at Beaufort, North Carolina and Reedville, Virginia. An IWP (Internal Waters Processing) venture operated in Maine state waters during 1988-92. Menhaden have also been caught off the coast of Maine and transported to a reduction plant in Blacks Harbour, New Brunswick, Canada. Most Atlantic states, however, remain open to menhaden fishing.