According to a recent Nielsen study and a report from Progressive Grocer, consumers are beginning to choose higher quality and cost meats over more inexpensive, lower quality products.
2018 data shows an increase in year-over-year dollar sales of 3.1% paired with a decrease in volume of 1.5% It seems consumers are paying more for less in the meat department. What are consumers getting for their extra cash? An increase in fresh meat sales, paired with an increase in sales of meat alternatives. Much of the spike in alternative meat sales is coming from the frozen section.
The growth in the fresh meat section was driven by marked gains in chicken sales, with beef becoming less popular across the board. Organic meat sales gained a healthy 5.8%, while offering a $1.18/lb. premium over conventional products, on average.
These figures align with broader consumer trends, showing a gradual transition towards more sustainable and organic products. The growth of alternative meats in particular is primed to accelerate, as formulas are perfected and brand names like Beyond Meat and Impossible become household names.
Supermarkets that offer full service meat departments are seeing benefits from their investments. The majority of groceries polled feature a professional butcher and offer full-service, often to-order meat products. Specialty cuts that come with a friendly word of advice on preparation and cooking help consumers try new dishes.
The combination of greater reliance on butchers and fresh meat products, and frozen meat alternatives seems to be coming into style. Perhaps consumers see a trade off of frozen convenience for something better for the planet and their own health. Contrast this trend with inexpensive products like ground beef becoming less popular.
The improved sales in alternative meats warrant close examination. Some grocers are responding by actually stocking “fresh” alternative meats like the Beyond Burger in the meat service case. Non-animal protein power is expanding throughout the outer aisles as well as the frozen section. Savvy marketers, grocery buyers, and CPG innovators would do well to keep an eye on this trend and make their alternative meat move soon.
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