Rising costs aren’t stopping beef shoppers from buying.

Beef remains a resilient choice for shoppers, even in the face of rising prices. Despite a 6.1% average price increase in the 52 weeks ending April 21, 2024, beef volume sales only dropped by 0.5%, according to Circana, a market research firm based in Chicago. This shows that beef continues to dominate the meat department, accounting for 53.7% of meat dollar sales, marking a 1.5% increase from the previous year.

“Beef is at a fairly high historical price, but people are still highly engaged with it,” said Chris DuBois, executive vice president of Circana’s protein practice. While eating beef at home is more expensive, it remains relatively affordable compared to dining at restaurants.

According to Tom Barnes, CEO of Category Partners LLC, shoppers are still willing to buy beef despite the higher prices, with the primary justification being its taste. “People love beef because it tastes great,” Barnes said. Ground beef, in particular, remains popular. Despite a 6.4% price rise for ground beef, bringing its cost to $5.02 per pound, volume sales grew by 1.4%. “That’s a significant feat in this market,” DuBois added.

The convenience of ground beef also plays a crucial role in its popularity. Consumers can easily use, freeze, and reuse ground beef in a wide range of recipes, making it a versatile choice for many households.

Summer Grilling Season Boosts Beef Sales

Beef sales are expected to remain strong in the coming months, particularly with the summer grilling season around the corner. Historically, summer grilling has accounted for 29% of yearly beef pound sales and 30% of dollar sales since 2020, according to the National Cattlemen’s Beef Association (NCBA). In fact, 96% of consumers plan to grill over the summer, and budget considerations will likely be top of mind.

To further stimulate beef sales, retailers can focus on offering value-added options such as pre-marinated or pre-seasoned meats, Barnes suggests. These convenience-focused products appeal to shoppers who are seeking both convenience and flavor. Additionally, retailers can upsell beef by highlighting premium cuts, leveraging consumers’ visual preferences in a category that isn’t as price-sensitive.

Grinds in Other Meat Categories Also Gaining Popularity

Ground meats are gaining traction across other protein categories as well. Ground chicken, for instance, saw a notable 11.2% increase in volume sales, spurred by a 1.6% price decline. Similarly, ground pork volume sales grew by 8.1%, and ground turkey sales rose by 4.3%, even as prices fluctuated.

While overall meat prices rose by 0.9% over the last year, retailers can still “steal” business from restaurants by emphasizing the cost benefits of preparing a meat-centered meal at home. DuBois pointed out that eating at home is significantly cheaper, with an average meal costing four times less than dining out.

Cross-Merchandising and Shopper Engagement

Merchandisers can also encourage beef purchases through effective cross-merchandising displays that provide meal solutions, DuBois said. Shoppers appreciate convenience, and presenting them with ideas for complete meals, such as pairing beef with side dishes, can drive sales. In-store tactics like showcasing images of cooked meats, online videos, and providing cooking tips can further engage consumers.

Challenges Ahead with Rising Costs

Although beef remains popular, continuing inflation is expected to make meat merchandising increasingly difficult. Many consumers may start to opt for cheaper protein options if prices continue to rise. However, offering a range of pricing options, including value-tier cuts, can help retailers navigate this challenge and retain customer interest.

Higher beef prices are primarily driven by smaller herds, rising demand, and increasing operating costs. In response, retailers can support consumers by offering money-saving coupons, promotional ads, and providing meal suggestions that highlight the value of cooking at home.

Retailers such as Seattle-based PCC Community Markets are adapting to these rising costs by working with beef partners to secure steady supply and better pricing. By ensuring a consistent supply of high-quality beef and offering multiple price tiers, retailers can continue to meet consumer demand despite the increasing costs.

In conclusion, while beef prices are rising, shoppers continue to buy into the category, showing that taste, convenience, and value remain key drivers in the ongoing popularity of beef.