Economically, times are bad and getting worse for the U.S. consumer. As a versatile, low-cost protein, chicken can shine in this environment.
As part of the 2022 Chicken Marketing Summit in Braselton, Georgia, Jennifer Bartashus, a senior analyst at Bloomberg Intelligence, examined life for consumers in 2022 and explained what it means to the chicken industry.
Inflation and recession
U.S. shoppers, already harried by years of COVID-19 and the economic shudders of the past two decades, are in for another rough spell.
According to Bloomberg metrics, in July 2022, consumer confidence was lower than it was during the 2008 recession, due to run-away inflation affecting the price of nearly everything and looming fears of another recession.
Bloomberg projects inflation will exceed 10% in 2022 and will not moderate until the middle or end of 2023. It also projects a “100% chance” of recession no later than the middle of 2024.
Bartashus said this means shoppers' discretionary spending will fall and they’ll eat more meals at home. This is an opportunity for the chicken industry and retailers to underscore the value of chicken relative to other proteins and introduce product variety to attract new consumers.
Digital trends
The COVID-19 pandemic forced American shoppers to use more digital ordering and home delivery options. Those changes stuck and shoppers will continue to order food and buy groceries online but they won’t stop shopping in the store, either.
Currently, shoppers prefer to purchase non-perishable items online, but digital ordering of refrigerated and frozen food is steadily increasing, too.
For the chicken industry, Bartashus said these trends indicate that additional resources should be spent on working with retailers to create demand for weekly and monthly purchases of chicken.
Shoppers face a daily dilemma of what to eat for dinner. By working together on fresh and frozen meal solutions, the industry and retailers can frame chicken as an affordable, quick solution to the problem.
Taste preferences
Chicken can capitalize on growing interest in local foods and can reach new consumers by integrating trendy flavors.
Bartaschus said consumers can’t definitively define local food, but they know they like it. Bloomberg’s data shows 52% of consumers think local perishables are of higher quality, 49% believe they’re fresher and last longer and 42% are willing to pay more for local foods.
This is an opportunity for chicken, she said, because consumers can accept something processed more than 100 miles away as local if its properly marketed. Chicken isn’t grown everywhere, but it is processed in the most densely populated areas of the U.S.
Additionally, diners want something new. Bloomberg data said 57% of consumers are seeking new flavors to make their everyday proteins more exciting. Bartashus said this is a great opportunity for chicken to integrate new flavors into marinades, coatings and sauces.
Today’s most in-demand flavors include classics and novelties. Shoppers still want traditional flavors like fajita- or Cajun-spiced meats, but increasingly desire heat. Southern regional specialty Nashville hot chicken continues to gain ground along with exotic flavors like the hot peri-peri pepper used in Portuguese and Southern African cuisine.
Attend the 2023 Chicken Marketing Summit
The 2023 Chicken Marketing Summit will be held at Hotel Effie Sandestin in Miramar Beach, Florida on Monday, July 31 – Wednesday, August 2, 2023. Serving a unique cross section of the chicken supply chain, Chicken Marketing Summit explores issues and trends in food marketing and consumer chicken consumption patterns and purchasing behavior.
Submit your free nomination for Chicken Marketer of the Year.
For more information and to attend, visit: www.wattglobalmedia.com/chickenmarketingsummit/.
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