In the past year, there has been a significant surge in meat sales, with 96% of surveyed shoppers expressing a willingness to spend more on meat and poultry, particularly during special events and holidays, as per the latest Power of Meat report by FMI — The Food Association. While price continues to be a key factor influencing meat purchases, grocers can differentiate themselves by emphasizing quality, in-store experiences, and nutritional or production claims that also impact consumer decisions.
The growing interest among customers in the meat department, especially around convenient meal solutions, indicates a plethora of opportunities for innovation and marketing in this space, particularly in value-added and deli-prepared meat and poultry offerings, according to FMI.
Data insights from FMI’s report reveal that meat department sales reached a record $104.6 billion in the previous year, positioning meat as the largest department in terms of sales. Both meat and poultry sales experienced growth in terms of revenue, units, and volume, attributed to an increase in shopping frequency among U.S. consumers.
Fresh meat sales outperformed processed meat sales, with fresh meat showing above-average gains. The report also highlights a shift towards larger package sizes in both meat categories. Demographically, older consumers, higher-income shoppers, and households with children were identified as the top meat shoppers, indexing above average.
Innovative strategies employed by standout grocers in the industry include focusing on meaty foodservice options like those offered by SpartanNash, which revamped its Family Fare grocery chain to include expanded foodservice offerings, showcasing proteins like flank steak and chicken, and convenient meal solutions that are both affordable and quick to prepare.
Grocers like Whole Foods Market are prioritizing quality standards in their meat departments by emphasizing humane animal-raising practices and sustainability. By broadening their quality standards and increasing transparency through third-party certifications, Whole Foods aims to expand its assortment of meat products while building customer trust.
As consumer interest in health and wellness grows, grocers have the opportunity to integrate protein messaging in their meat and poultry marketing efforts, focusing on attributes that cater to health-conscious consumers. By emphasizing the role of protein in a balanced lifestyle and providing transparency in sourcing and animal welfare practices, grocers can drive meat purchases among discerning consumers.
To cater to evolving consumer preferences, grocers should offer time-saving recipes, value-added flavors, and high-quality cuts of meat to engage shoppers. Education and information play a crucial role in building consumer confidence to experiment with new recipes and cuts of meat, ultimately leading to increased meat consumption and customer loyalty.
In conclusion, the meat industry is witnessing a surge in sales and consumer interest, presenting grocers with ample opportunities for innovation and differentiation. By focusing on quality, convenience, transparency, and education, grocers can tap into the growing demand for meat and poultry products, driving sales and customer satisfaction in the competitive retail landscape.
