Inflation concerns controlled much of consumer behavior when it came to poultry and meat in retail in 2023, Anne-Marie Roerink, Principal, 210 Analytics LLC, shared during “The Power of Meat 2024: An In-Depth Look at Meat Through the Shopper’s Eyes” at the 2024 Annual Meat Conference.
Now in its 19th year, the Power of Meat report provides valuable insights into how consumers behave in retail. The December 2023 survey included 1,730 shoppers from throughout the U.S.
The pressure on today’s pocketbook is real
“I imagine for some of you, last year was not the best year on record,” she said. In 2023, shoppers bought less due to inflation, high credit card levels and depleted savings.
These financial worries were coupled with concerns about the rising prices of meat and poultry.
However, coming into 2024, consumers are feeling more optimistic about prices.
Plant-based meat declined
While inflation woes impacted meat and poultry in retail, it had a more significant impact on plant-based meat. Household penetration declined to less than 7%.
In Europe, the narrative around plant-based meat is changing, as price parity is becoming more important. Expect to see these changes come to the U.S. shortly, Roerink said.
Gen X, Boomers control meat dollar sales
Generation X and Baby Boomers spent the most dollars in the meat department in retail in 2023, followed closely by millennials.
But, when it comes to chicken, millennials are the big spenders. This is also the demographic most interested in sustainable packaging, she added.
Younger generations are more likely to purchase meat and poultry in a supercenter as opposed to a grocery store. Club stores have also seen a lot of growth.
Nobody is buying on price alone
Despite worries about price, it is not the only metric consumers are using when purchasing poultry and meat.
“There’s a real focus on AND right now,” said Roerink.
In other words, price and nutrition, price and organic, price and sustainability. The list goes on.
Meals remain home-centric
If there’s a silver-lining to COVID-19, this is it, Roerink explained.
Consumers shifted to at home dining during the pandemic, where they realized it is more economical and healthier than eating out.
To continue to succeed in 2024, retail needs to emphasize the value of a home-cooked meat and optimize meat across all meal occasions. Shoppers are also increasingly interested in recreating the shopping experience at home.
