IRI Finds More Meals at Home, but Fewer Meat Purchases

According to a report from IRI and 210 Analytics, U.S. consumers increased the share of meals prepared at home in August, coinciding with a rise in COVID-19 cases across the country. The share of meals cooked and eaten at home rose to nearly 80%, up from 76.6% in July. This marked a reversal after months of declining at-home meal preparation. Additionally, the number of consumers dining in restaurants dropped slightly to 48% in August, down from a pandemic high of 50% in July.

Changes in Shopping Behavior

Amid the COVID-19 surge, there was a slight uptick in online grocery shopping, reversing the previous trend where more consumers were opting to shop in-store. The research indicated that this shift in shopping preferences could impact sales in certain categories. For example, some impulse buy items, like desserts and morning bakery goods, saw a decrease in sales in August, likely due to being skipped during online grocery trips.

Meat Sales and Price Increases

While consumers were cooking more meals at home, meat purchases showed signs of weakness, particularly with the rising retail prices of meat. The average price per pound for meat and poultry climbed steadily in 2021, reaching $4.31 in August, compared to $3.89 in the first quarter. Despite this, dollar sales of fresh meat were up 3.9% year-over-year, and 18.3% higher compared to 2019. This was attributed to consumers spending more on meat, despite purchasing less by volume. Fresh pork, chicken, and beef all saw dollar sales increases, with fresh beef seeing a significant 21% growth on a two-year comparison.

Notably, while some meat categories, like beef, chicken, and pork, saw gains in dollar sales, the volume of meat purchased declined year-over-year for several categories, including beef, chicken, pork, turkey, and lamb.

Impact of Inflation on Consumer Spending

The report noted the impact of inflation on meat prices, with beef and veal wholesale prices up over 59% year-over-year in August. This contributed to an overall 8% rise in the prices for meat, poultry, fish, and eggs. Despite inflationary pressures, the demand for groceries and at-home meal solutions remained strong, with retail grocery holding its ground amid evolving consumer behaviors and price increases.

Outlook

While the pandemic’s resurgence prompted some small shifts in consumer behavior in August, the changes were less significant than those seen in 2020 or earlier this year. Grocery shopping continues to maintain a strong position, especially as consumers continue to prioritize at-home meal preparation, driven by a combination of convenience, cost-effectiveness, and ongoing concerns about the pandemic.