Corporate Profiles - 2023 - 32

GRAIN-BASED FOODS
Meat and Poultry
Downward drift in per capita consumption
er capita disappearance of red meat (beef, lamb and pork) and
poultry (chicken and turkey) is projected to fall 1.3% to about
223 lbs in 2024 from about 226 lbs forecast in 2023, according
to the Economic Research Service of the US Department of
Agriculture. Total per capita disappearance of red meat and poultry
was 226.8 lbs in 2022.
Contributing to the decrease in per capita disappearance have been
tightening beef supplies due to cattle herd contraction, higher prices
related to inflation and shifting consumer purchasing patterns to more
value-based products.
P
Meat and poultry market weakness during the past year also may
be seen in the Food Business News Industry Meat and Poultry Sector
Stock Index, which declined 22% from 22,199.61 at the market
close on Sept. 8, 2022, to 17,179.81 at the market close on Sept. 7,
2023. The Meat and Poultry Stock Sector Index is computed based on
the weekly closing price of several publicly traded companies within a
category. Companies that comprise the Meat and Poultry index include
Tyson Foods, Inc., Hormel Foods Corp., JBS SA and Pilgrim's Pride Corp.
Contributing to the decline were US consumers focusing on value
in terms of price, convenience and other attributes, according to the
Power of Meat report published by the North American Meat Institute
and FMI - The Food Industry Association, produced by the market
research company 210 Analytics and released during the first half of
this year.
The top drivers of meat purchase decisions were product quality and
appearance followed by price per pound and total package price, the
report said. Beef was the biggest seller in fresh formats, followed by
chicken. In processed meats, bacon and pre-packaged lunch meat were
top sellers.
Seventy-six percent of the consumers surveyed for the Power of
UNITED STATES
red meat and poultry production and disappearance
PRODUCTION
million lbs
2020
Beef
Pork
Broilers
Turkeys
27,174
28,303
44,583
5,743
2021
27,948
27,675
44,899
5,558
2022
28,291
26,996
46,206
5,222
2023* 2024**
25,165
27,335
47,310
5,650
26,941
27,159
46,694
5,578
Total red meat
and poultry 106,078 106,328 107,469 107,129 106,200
Source: US Department of Agriculture
PER CAPITA DISAPPEARANCE
retail lbs
Beef
Pork
Broilers
Turkeys
Total red meat
and poultry
2020
58.1
51.7
95.8
15.7
224.1
2021
58.9
51.1
96.5
15.3
224.8
2022
59.1
51.1
98.9
14.6
226.8
2023* 2024**
57.6
49.8
53.8
49.8
100.1
15.5
225.9
100.6
15.6
222.9
*forecast **projected
Meat report said they changed the amount, type, cut and brand to save
money as well as changed the retailer they bought from.
Shifts in retail channel choices also were driving changes in the
meat and poultry dollar distribution, according to the report. Data
from the market researcher Circana showed demographic and inflationary
forces resulted in a loss of share for traditional grocery from
42.8% of meat and poultry sales in 2019 to 40.3% in 2022. Supercenters,
clubs and online outlets, all over indexed and gained in share,
the report said.
Convenient product attributes played a role in attracting consumers.
The popularity of value-added meat and poultry products rose
significantly in 2022, according to the Power of Meat report. Purchases
of pre-marinated, pre-cut or pre-seasoned meat increased,
with 73% of shoppers saying they " sometimes or frequently " bought
the products in 2022, up from 60% in 2020. Fifty-five percent of
Americans reported using some or mostly semi- or fully prepared
foods in their dinner preparation compared to 45% who cook mostly
from scratch.
BREAKING DOWN THE MEAT CONSUMER
Research conducted by Midan Marketing, a firm focused solely on
marketing meat companies and products, identified how different consumer
groups have evolved following the COVID-19 pandemic and as
inflation has pushed prices higher. Since the pandemic, five new meat
and poultry consumer segments have emerged, according to the company's
Meat Consumer Segmentation 3.0 report.
" We conducted research throughout 2020 and 2021 to understand
how the pandemic was changing meat consumers, " said Michael Uetz,
co-founder and principal at Midan. " As things began to return to normal,
we were excited to repeat our Meat Consumer Segmentation
32 \ October 2023
Milling & Baking News * Food Business News * Baking & Snack * Meat+Poultry * Dairy Processing * Pet Food Processing
Corporate Profiles
INDUSTRY REVIEW: meat and poultry
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Corporate Profiles - 2023

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