Demand for Meat Accelerated to $50.5B in 2019

The trend toward moderation is stronger than elimination when it comes to meat, according to findings of the 15th annual Power of Meat report from FMI—The Food Industry Association and the Foundation for Meat & Poultry Research & Education.

The report explores consumption trends, sales growth and consumer preferences, and it finds that demand for meat is accelerating, with $50.5 billion in sales in 2019.

The top 10 findings from the report can be found here.

“The Power of Meat is a thorough examination of consumer behavior and reflects the value of meat and poultry to retailers,” said Julie Anna Potts, president and CEO of the North American Meat Institute. “The survey affirms the ongoing work of the industry to improve trust in animal protein is welcomed by consumers and useful to retailers.” 

Photograph courtesy of FMI

Anne-Marie Roerink, principal with San Antonio-based 210 Analytics, presented the Power of Meat 2020 data at the Annual Meat Conference, noting that “98% of households buy meat from the meat department in grocery stores.” Meat department sales are strong in dollars and volume, driven by beef and chicken, and spending per household increased, she added.

When it comes to meat consumption, moderation is far more popular than elimination, with flexitarians (12%) looking to reduce their animal protein through smaller portion sizes and/or a day without meat/poultry.

The report also dove into consumer interest in topics such as production claims and sustainability. Nearly half (49%) believe that animal agriculture does not have negative impacts on the planet if done properly. However, the belief that it does have negative impacts is higher among younger generations, showing the opportunity and importance of consumer education.

However, in consumer interviews, Roerink said this year's research revealed that many trusted their retailers to provide products that are humanely sourced, and look to retailers more than brands to provide that information. It was also interesting, she said, the number of consumers who said they didn't want to know about how the animals were raised because they assumed it would be "bad" and they would feel guilty. However, trade associations state the opposite is true when it comes to animal welfare.

To go along with animal welfare, Roerink found that consumer sentiment when it came to claims like grass-fed or humanely-raised didn't necessarily have a huge impact on consumers, at least for the older generations. One consumer was quoted as saying, "I don't need claims because I trust who I buy from."

Rick Stein, VP of fresh foods for FMI, also touched on how meat-shopper consumption patterns are shifting. “One of the most compelling story lines in the analysis is that 83% of shoppers purchase specific cuts of meat and they are eating smaller portions, but with total volume sales up slightly, that means they are eating less more often,” he said.

The report found that nearly one-third (32%) of consumers would like to have single portion packaged meat options. However, Roerink also noted that value packs are once again gaining in popularity. “No one is winning on size,” she said. “It's all about offering variety.” She referenced the success of the in-store bakery has had in selling both single-serve sweets and party-size products. “They are selling big by selling small,” she noted.

Meat brands continued to benefit from being a preferred purchase among younger shoppers, but 2019 was a strong year for private brands (up 12.3%). Shoppers say they want to hear from brands about nutrition (58%), food safety practices (57%), animal care practices (46%) and the brand’s environmental impact (40%).

The Power of Meat was conducted by 210 Analytics and made possible by Cryovac, a division of Sealed Air.