August 15, 2024 – The US meat and poultry market is a powerhouse, with no expectations of slowing down over the next few years. Here we will take a comprehensive look at the current state of the market, exploring key consumer trends, product launches, and innovation opportunities.
Consumer Insights in the Meat and Poultry Market
US consumer preferences for meat and poultry are evolving, driven by factors such as health consciousness, sustainability concerns, and a desire for convenience.
Meat cuts have remained the most purchased subcategory of meat and poultry products, above deli meats and ready-made meat products. Nearly 6 in 10 consumers eat meat cuts at least twice a week; especially true for Generation X consumers. Additionally, nearly half of consumers eat deli meats two or more times a week.
Taste remains a primary driver of meat and poultry consumption, with more than half of consumers citing this as the top reason for choosing these products. Boomers are especially likely to be motivated by taste.
Consumption has remained consistent for the majority of consumers, with 76% maintaining their previous year’s levels. Younger generations are more likely to have increased their intake of meat and poultry, compared to Boomers and Generation X. Cost, flavor, and freshness are key influencers for purchasing decisions. High protein, real ingredients, and product safety are additionally top influencers of purchases.
Supermarkets are the dominant purchase location for meat and poultry, and dinner and lunch are the primary consumption occasions, with younger consumers also incorporating snacking occasions.
Meat and Poultry Market Trends
US meat sales have steadily grown over the last five years. Additionally, meat market research from Innova predicts a 4% CAGR growth rate in sales over the next five years. Beef accounts for over half of sales, followed by pork, chicken, and turkey. However, chicken has the highest per capita consumption, followed by beef, pork, and turkey. Per capita meat consumption in the US is also expected to increase over the next five years, continuing the trend of the past five years.
Companies and Brands in the Meat and Poultry Market
Private label holds the largest share of meat and poultry sales, accounting for 18% of the market. Following private label, Hormel and Tyson Foods are the leading brands.
Hormel Foods, a global branded food company, focuses on driving growth in its core business and expanding its international presence. The company is known for its iconic brands, including SPAM, Jennie-O, and Applegate.
Tyson Foods, one of the world’s largest food companies, is a leader in protein production, with operations in beef, pork, chicken, and prepared foods. The company says that it is committed to sustainable practices and innovation in protein.
Regarding product launches, JBS leads the category, representing 11% of launches over the past year. Ahold Delhaize, a private label, is the next most active launcher of meat products, with 8%.
Product Launch Trends in the Meat and Poultry Market
The meat and poultry sector has experienced a notable shift in new product launch trends. After facing slowed launch counts across various subcategories since 2019, primarily attributed to the pandemic’s impact, the industry is showing signs of recovery. While launch numbers haven’t fully rebounded to pre-pandemic levels, all subcategories’ launch rates have been increasing over the past year.
Clean label and free-from claims are increasingly prominent, indicating a growing consumer preference for transparency and natural ingredients. No additives/preservatives, and gluten-free are the two most common free-from claims on meat and poultry launches.
Protein claims are also becoming more popular in the meat and poultry category, with 22% of products launched containing this claim. Low/no/reduced fat is seen on 7% of products, and lactose-free is seen on 3%, as is low/no/reduced sodium.
Pork, chicken, and beef are the most popular ingredients in new product launches, with pork notably growing over the past five years.
Flavors are less popular in the meat and poultry category compared to others, with nearly 6 in 10 launches being unflavored. The most popular flavors are smoked, Italian, chili, barbecue, and hardwood smoked.
What’s Next in the US Meat and Poultry Market?
The meat and poultry market is poised for continued growth, presenting opportunities for innovation. Key factors influencing future trends include budget concerns, health-conscious consumers, and the growing demand for protein.
Many consumers cite budget concerns influencing their purchasing rates of meat and poultry. Manufacturers can cater to budget-conscious households with value-oriented offerings while simultaneously innovating premium products for discerning consumers seeking high-quality experiences.
Consumers care about the health properties of meat and poultry. Brands highlighting protein content on packaging and developing lower-fat, cholesterol-reduced products will likely resonate with health-conscious consumers.
Finally, the popularity of chili flavors presents an opportunity for manufacturers to innovate with unique chili varieties, particularly for younger consumers seeking flavor variety.
This article is based on our report, “Now & Next in Meat & Poultry in the US.” If you are interested in reading this report, feel free to request a demo.
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