Source: Lisa M. Keefe, MEATINGPLACE, 2/23/16

Changes in shopping habits that consumers made during the recession have continued long after the economic downturn officially ended, and these shifts represent both opportunity and barriers to success, said Anne-Marie Roerink, principal and founder of 210 Analytics LLC, which conducted the 11th annual Power of Meat study and presented the major findings at the Annual Meat Conference here.

The Food Marketing Institute and North American Meat Institute today unveiled the report, conducted by 210 Analytics in partnership with The Cryovac Brand, a part of Sealed Air’s Food Care Division.

For example, 60 percent of shoppers made changes during the recent recession in what, where, when and how they buy their beef, pork, poultry and other proteins, and continue to adjust their shopping trips to account for shifts in price and currency exchange rates. Of those, 60 percent are spending the same amount but on fewer or different items, 25 percent are simply spending less, and 15 percent are spending more, whether it’s on more product or better quality, or in premium-priced items such as heat-and-eat options.

“They never returned back to that set purchase” habit that was fairly static in the years leading up to the downturn in 2008, Roerink said. “That change is driving performance in the meat department.”

Sales in the meat department overall are up 2.5 percent, a rate of growth that outpaces many other departments in the store. Performance varied greatly among different types of meat, however: Conventionally raised and processed meat, which comprise most of the sales, saw sales increase 3.8 percent (while volume fell slightly), and value-added goods increased 6.4 percent in sales (also on lower volume). Natural and Organic, however, rose 23.5 percent and 31.5 percent, respectively, albeit on much smaller numbers overall.

The majority of shoppers—more than eight in 10—affirmed the important role that poultry and meat play as sources of protein and other key nutrients in a healthy, balanced diet. However, the millennial generation of consumers were less likely to feel food intake is an essential part of health or that meat and poultry are important in a balanced diet.

A key decision factor appears to be younger consumers’ connection to digital sources of information and their desire for transparency and traceability in all their food purchases, the survey found.

“Meat and poultry remain shoppers’ go-to source for protein and essential nutrients,” said NAMI President and CEO Barry Carpenter, in a news release about the study. “The industry is working hard to respond to consumer demands for transparency, and is continuing to offer a variety of convenient, flavorful and nutritious fresh and processed products to an increasingly diverse consumer base, particularly with regards to millennial shoppers, whose influence is growing at retail.” 

While inclusion of meat and poultry as a portion of a home-cooked dinner remained steady at 3.7 times per week, shoppers changed their purchasing patterns slightly and sought more variety in their dinner lineups, with upticks in pork, lamb, value-added and meat alternatives. Convenience meats, which include heat-and-eat, ready-to-eat and value-added products, also experienced sales growth, particularly among millennial shoppers, who seek flavorful, fast and easy meal solutions.  

“The meat department is a deciding factor for any grocery shopper, as evidenced by 27 percent of shoppers switching outlets when purchasing fresh meat or poultry compared with where they purchase the majority of their groceries,” said Rick Stein, vice president of fresh foods at FMI.  “The research underlines how food retailers have an enormous opportunity to combine the knowledge and skills of the neighborhood butcher with the creativity and flavor inspiration of a culinary chef to earn loyalty, grow sales and differentiate.”

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