Category Update: Meat Sales See Gradual Increase

Grocery price inflation showed signs of slowing, according to research from Circana and 210 Analytics. This brought modest growth across most grocery categories, reflecting a shift in consumer spending patterns.

The average price per unit across multi-outlet stores, including supermarkets, club stores, mass merchandisers, and more, rose by 0.9% in the four weeks ending January 28 compared to the same period in 2023. Perishable department prices decreased by 0.3%, while dry groceries saw a 2% increase. Despite this slowdown, 93% of consumers surveyed expressed concerns about high grocery prices, according to Anne-Marie Roerink, president of 210 Analytics.

Meat Sales See Incremental Gains

Meat sales experienced slight growth as prices stabilized. Total dollar sales climbed 2.5% year-over-year in January, reaching $6.6 billion. Fresh meat performed particularly well, with a 3.7% rise in dollar sales, offsetting a slight 0.1% dip in processed meat sales.

Fresh turkey led the category, with dollar sales up 6.4% and volume up 7.8%. Fresh beef also saw gains, with dollar sales increasing 6.4%, driven by inflation, as volume grew by just 0.6%. Turkey breast had an especially strong performance, aligning with consumer health-focused New Year’s resolutions.

Produce and Deli Departments See Shifts

Fresh produce dollar sales rose 1% year-over-year, reaching $5.8 billion. While unit sales dropped 0.3%, larger pack sizes led to a 0.7% volume increase. Vegetables saw price declines in January due to deeper promotions.

The deli department also posted gains, with a 1.3% increase in dollar sales, reaching $3.5 billion. Deli-prepared foods were a standout, as cost-conscious shoppers sought convenience. Prepared meats, soups, and desserts saw double-digit growth, positioning deli-prepared options as popular restaurant alternatives.

Challenges in Seafood and Frozen Categories

Seafood struggled, with both fresh and frozen categories seeing declines in dollar and pound sales due to high price points. Fresh seafood averaged $9.26 per pound, significantly higher than chicken, pork, or beef.

Frozen foods presented a mixed picture. Categories like pizza and baked goods performed well, while others saw price deflation. Overall, frozen food prices increased 5.4% on a 52-week basis but were nearly flat month-over-month.

Consumer Trends and Retail Opportunities

With inflation continuing to impact grocery spending, consumers are shifting their focus to value-driven options. Retailers can capitalize on this by emphasizing affordable, convenient, and health-oriented products. Additionally, categories like meat, deli-prepared foods, and sustainable seafood offer opportunities for targeted promotions to meet evolving shopper preferences.