NASHVILLE — How can retailers win consumer dollars in the meat department when everything is so “stupid expensive?” The authors of the 2024 Power of Meat study sought to answer that question first by shedding light on reasons consumers are pessimistic about the broader economy and strategies meat and poultry retailers can leverage to meet consumers’ needs beyond price.

The Power of Meat study was conducted by 210 Analytics on behalf of FMI – the Food Industry Association and the Meat Institute’s Foundation for Meat and Poultry Research and Education and is made possible by Cryovac a division of Sealed Air. Anne-Marie Roerink, principal of 210 Analytics, presented findings from the 19^th edition of the annual study during a general session at the Annual Meat Conference (AMC) in Nashville held March 17-20 at the Gaylord Opryland Hotel and Resort.

Meat remains the biggest revenue generator among the fresh departments at retail with $99 billion in sales, 98.2% household penetration and 48 purchases per year. However, data cited from Circana, MULO+ showed meat department prices rose 2.1% in 2023, below the rate of total food and beverage inflation (+5.9%). Consequently, the sustained impact of several years of inflation caused shoppers to buy products on sale and adapt the amount (54%), type (45%), cut (43%) and brand (40%) of meat and poultry they purchased, the Power of Meat study said.

Inflationary pressure felt by consumers materialized in the meat department as shoppers bought meat less frequently and bought less per purchase — dollar sales were flat (0.1%) and pound sales decreased 1.0% year-on-year, according to Circana MULO+.

According to data cited from Circana, Generation X (the smallest of the generations) accounts for the greatest proportion of sales at 32%, while Boomers buy meat most frequently at 53 times per year. Millennials spend the most money at nearly $17 per meat purchase.

“It is a pattern that we are seeing across the entire store because one thing is for certain, the pressure on America’s pocketbook is real,” Roerink said. “If we compare today’s food and beverage prices to those seen in 2019, people are spending 32% more on food and beverages than they were prior to the pandemic.

“They’ve used credit cards to supplement what they make. They’ve depleted the savings that they had. We also know that in March, about this time last year, those additional SNAP benefits ran out. Student loans are due again. So, there’s a lot of pressure in the pocketbook and all that is resulting in the patterns that we’re going to talk about today.”

Patterns emerging from consumers’ shopping and meal choices show 43% of Americans cutting back on restaurant meals. And meat eaters who are buying restaurant meals less often, 75% said they try to recreate restaurant-type meals at home.

“As price conscious shoppers look for ways to continue enjoying their favorite proteins, they are cooking more at home and including meat in everything from new recipes found online to their favorite comfort meals and holiday feasts,” said Rick Stein, vice president of Fresh Foods for FMI — The Food Industry Association. “With shoppers including meat in nearly 87% of home-cooked meals every week and looking to meat to make occasions special, the opportunities to provide great choice, taste and value continue to grow.”

Winning strategies

Beyond price though, longer-term demographic trends present an opportunity to align product assortment, marketing and merchandising with changing purchase patterns, according to the study.

For example, Gen X (the smallest of the generations) accounts for the greatest proportion of sales at 32%.

“If we dig even deeper and we do the same exercise based on the different generations that are in the marketplace, you see that the big money makers right now are Gen X,” Roerink said. “Even though it’s a small generation, they’re very much punching above their weight given the fact that they are very likely to have families as well as the income to match.”

Boomers remain an important demographic for meat and poultry retail because they buy meat most frequently — 53 times per year.

“Boomers are in our stores quite a bit,” Roerink said. “They don’t spend as much as the other generations while they’re in the store but look at their number of trips at 53 times per year compared to just 40 times per year (for millennials).”

And Millennials spend the most money per meat purchase, according to Circana data.

“That means each and every time millennials are in the store, we need to make sure that those purchases count,” Roerink said.

Retailers can optimize trips and units sold per trip by leveraging consumers’ acceptance of case-ready meats which have reached record highs. Based on findings from this year’s Power of Meat study,  Roerink recommended that retailers consider pack size variety, freezer-ready packaging, secondary displays and cross-merchandising.

Additionally, a majority of consumers (91%) surveyed for the Power of Meat study said they can be persuaded to spend a little more on meat and poultry. Top reasons given for spending more include holidays, special occasions and entertaining friends and family.

This trend emphasizes the need to optimize sales during primary holidays like Thanksgiving and secondary occasions such as anniversaries and birthdays while recognizing traditions are changing.

“A cut or kind of meat/poultry consumers deem healthier, a preferred pack size or brand, and convenience can also prompt them to splurge a little,” according to the study.

Building on perceptions of health and nutrition, seven in 10 consumers believe meat is an overall healthy choice that provides fuel and essential nutrients, and 83% of meat shoppers consider at least one “better-for” attribute when buying meat. However, consumers also are interested in portion size variety and suggestions for nutritious choices without sacrificing taste or paying more. The Power of Meat study found that, compared to 2008, “…  ‘protein’ is a more desirable package callout while fewer consumers are focused on fat, sodium, cholesterol and saturated fat when buying meat and poultry.”

Consumers continue to favor brands that can tell the story of where the meat and poultry comes from. The meat and poultry industry has done an excellent job of this as 55% of consumers said they feel good about animal welfare practices in the United States, up from 43% in 2020.

Shopping for meat and poultry is a balancing act between money, time, nutrition, taste and meal occasion for consumers. Convenience is important but price takes precedence for shoppers trying to manage tight household budgets. The solution for a majority (87%) of consumers is meals that mix prepared foods and scratch-cooked items. But price has become a headwind to that trend.

The Power of Meat study said that “While most consumers spend less than 30 minutes preparing dinner, they purchased value-added that is typically sold at a price premium less often. This resulted in value-added meat and poultry sales being down across most proteins in 2023 for the first time in years.”

As for younger meat and poultry shoppers, retailers need to meet them where they are, and for millennials and Gen Z that means social media platforms.

“Gen Z draws meal inspiration from TikTok, YouTube and Instagram, whereas Boomers rely on routine meals, family/friends and recipe websites,” the study said. “This shows the importance of providing meal inspiration across platforms and closing the gap between inspiration and purchase.”

Finally, price and promotions are important to consumers, but taste will keep them coming back and buying meat.

“Help shoppers create meals they want to make again: 92% of shoppers agree the meat/poultry can be a great price, but if it did not taste good, they will not buy it again,” the study concluded. “Emphasize quality and taste and provide relevant tips by preferred cooking appliances. Air fryers are now the number three appliance in preparing meat and poultry, behind the stove and oven.”