The impact of the economy and higher prices for meat and poultry products are making a significant difference for consumers at the meat case.
February 22, 2012
The impact of the economy and higher prices for meat and poultry products are making a significant difference for consumers at the meat case. Price has taken on an ever-greater role in the meat purchasing decision process, as price per pound has solidified its number-one ranking as the most important decision factor for consumers, while total package cost is now the second most important decision factor, surpassing product appearance, according to the seventh annual Power of Meat study. The study, conducted by 210 Analytics, was commissioned jointly by the American Meat Institute (AMI) and the Food Marketing Institute (FMI) with sponsorship by Sealed Air’s Cryovac Food Packaging Division.
For the first time, the share of shoppers simply opting to buy less (and thus spend less) equaled the share using lists, coupons, and other saving measures. In terms of meat and poultry, dollar sales increased by 2.5%, but volume sales decreased by 5.3% as a result of inflation across proteins. Consumer focus on price and value is further underscored by the growing share of shoppers engaging in pre-trip research and planning meals around promotions. However, an even greater share compares prices while in the store. The end result is greater shopper flexibility to adjust purchases to spend less.
Private-brand meat and poultry remains popular. However, rather than an outright preference, it is better defined as a greater willingness to purchase private brands. This led to an increase in the share of “switchers”—shoppers who do not have a preference for national or private brand, but choose based on other factors, predominantly price.
Despite economic pressures, natural and organic meat and poultry experienced an uptick in the number of buyers over the past year to 24% of shoppers. Additionally, 90% of shoppers predict they will buy about the same (70%) or more (20%) next year.
Meat and poultry play an important role at the American dinner table, with chicken and beef making up the largest share of purchases. The fresh category continues to be much larger than the heat-and-eat and ready-to-eat categories, but the latter continue to show signs of strength for the convenience-oriented shopper. Another area of growth is marinated meat and poultry, with an increasing share of shoppers preparing their own mixes or purchasing marinades or spice mixes along with the meat/poultry.
Press release