USA: Meat department sales shift to value-focused channels

Published 2024년 1월 22일

Tridge summary

In 2023, inflation led to 55% of consumers seeking more sales and deals, leading to a shift in shopping habits, including exploring store brands and switching stores. This has impacted supermarkets, which have seen a 3% loss over three years. Food and beverage prices increased by 1.7% in December 2023 compared to the previous year, with a total annual increase of 6.1%. Despite mild inflation in the meat department, sales declined as consumers bought meat less frequently. Whole bird turkey sales increased, but smoked ham and processed meat sales weakened. The market may see a delay in demand increase even when prices drop due to the impact of inflation.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

Inflation continued to take the headlines in most of 2023, with consumer’ concern driven by the cumulative impact of several years of rising prices in many areas of life. This has 55% of shoppers looking for sales and deals more often, according to the year-end Circana survey among primary grocery shoppers. Other frequently applied measures include cutting back on non-essentials, exploring store brands, clipping coupons and a number of store-related moves. The survey found that nearly three in 10 shoppers include more value-focused retailers into their store rotation, 18% shop more grocery stores to get the best deals and another 18% have switched stores altogether. This has led to substantial channel shifting when comparing the share of meat department dollars in 2023 versus the channel share distribution in 2019. According to Circana, supermarkets have lost 3 percentage points over the past three years. The shift resulted in gains for many other channels, including club, ...

Source: Provisioner