WICHITA, KAN. — Understanding the habits of meat consumers remains crucial to Cargill’s North American Protein’s daily work, as it processes insights and data.
Hans Kabat, president of Cargill’s North American protein business, helps lead the outlook of the company’s annual Protein Profile and how it can incorporate many of its understandings into the business.
When first discussing the profile, Kabat explained why this document is valuable to all meat business stakeholders.
“We invest in this because we really want to help primarily our customers understand where consumers are at, what is happening in technology and bring also some of our proprietary category insight to our customers,” Kabat said of the Protein Profile.
An important category Cargill continues to examine is value-added products to learn more about the underlying trend.
Kabat said consumers are interested in convenience right now, particularly in the case-ready area of the meat department, where certain products are seasoned and marinated.
He also pointed out that the growth in convenience does not mean tastelessness and uninterestingness.
“They’re also interested in having maybe a new experience or replicating an experience they’ve had at a restaurant. That is another part of this — it’s mixing taste, global flavors, convenience and then understanding the different types of convenience that our consumers want.”
Even though some consumers have switched to digital ordering, Kabat noticed that when he was in its retail and foodservice customers’ stores, they spent a lot of time and attention on their spaces to capture people’s attention.
“Whether it’s foodservice or retailers, our big customers and our small customers are just so focused on making sure that the experience when you walk into their store or restaurant is the absolute best it can be,” he said.
Kabat feels that the Protein Profile allows the company to focus on a few trends and innovation efforts for their customers while providing them with information and data.
“Our customers have to have a feel of where their consumers are at, on where the markets are going and we want to be in that very lively discussion,” he added.
According to the Protein Profile, Cargill’s numbers showed that 15% of all meal occasions are heat-and-eat. Retailers are also taking note of this trend, with 82% of respondents saying it increases space for fresh-prepared grab-and-go meals.
Digital ordering remains another dimension of the market Cargill tracks closely with a 161% increase in the practice since 2019.
Another trend the food company continues to track is the gradual shrinking of households. In its Protein Profile findings for 2024, Cargill said that 64% of households are one or two people, up from 46% in 1970.
Providing multicultural offerings under its “Connecting Cultures and Cuisines” keeps driving interest in new food categories. Throughout the country, global cuisines have started to become comfort food for Gen Z and millennial consumers.
The data from the report showed that 48% of millennials and 58% of Gen Z consumers ate globally inspired food in the past week. It also showed that 61% of consumers are interested in Latin cuisine.
Kabat mentioned the investment and expansion of Cargill’s Rumba Meats brand.
Another trend was the “redefining value” section, particularly how people are replacing the restaurant experience.
“We try to get underneath that word value and figure out what consumers are really looking for and we learn that from the marketplace,” Kabat said.
He explained that value can sometimes mean moving from a whole muscle beef cut into a ground product. Other times it can mean the experience of the product and if consumers are willing to keep buying premium products to keep up with their lifestyle.
With inflation still at the top of consumers’ minds, Cargill continues seeking ways to help stretch grocery dollars nationwide. The company explained that it wants to give consumers the right product while they are conscious about what they are buying.
“We have a role to play of providing nutritious and affordable protein for a large number of folks,” Kabat said.
About 90 million people a day are fed through the Cargill Protein North American business using parts of its 46 facilities.
“Value for us is always on our minds and we are constantly looking for ways across the entire value chain that our plants are a part of how do we keep our final customer and consumer in mind,” he said.
The company also mentioned that pricing strategies should be explored on both ends of the spectrum, including cost-effective proteins and extra-special products for those looking to recreate a restaurant experience at home.
Kabat mentioned that the quality of the products Cargill has needs to come through clearly especially since protein is an essential building block of life.
“It literally is the power that gets us through our days, builds muscle and gives us power,” Kabat said of protein. “We find that people are ready to spend money on the nutritious products that we’ve got.”