Category Update: July Meat Sales Rise 7.3% Driven by Holiday Spending

According to the latest category reports from 210 Analytics and Circana. A calendar shift this year allowed for greater sales during July 4th celebrations, occurring in the first week of July instead of being split between late June and early July as in the previous year, noted Anne-Marie Roerink, principal at 210 Analytics. “July was a very strong month for the meat department, especially in fresh meat,” she stated.

Fresh beef and pork were the leaders in this growth, posting dollar sales increases of 11.3% and 10.2%, respectively. While a 2.3% inflation rate played a role, most fresh meat categories saw mid-single-digit increases in pound volumes, contributing to an overall 4.9% rise in the meat department. Fresh chicken, the second-largest fresh meat category after beef, saw a 4.7% increase in dollar sales and a 4.1% rise in pounds sold.

Processed meats also had a strong performance in July, driven by frankfurters and dinner sausages, with overall dollar sales up by 4% and pound sales growing by 2.5%. Ground beef, chicken, and turkey similarly enjoyed significant sales increases in both dollar and pound metrics. This growth has been further supported by a shift away from restaurant dining, particularly among lower-income consumers, according to Roerink.

Deli Department Performs Well
The supermarket deli department continued to show positive results, with overall dollar sales rising by 3.9%. This growth was particularly driven by deli entertaining and deli prepared items, which grew by 8.2% and 5%, respectively. Deli cheese, especially specialty varieties, also saw strong sales, with both dollar and pound figures increasing by 3.6% compared to last year. However, deli meats lagged behind, experiencing declines of 1.8% in both dollar and pound sales. Service deli meats, which make up more than half of deli meat sales, had a tough month with a 4.6% drop in dollar sales, while pre-sliced deli meats managed a modest gain of 1.5%.

Perimeter Bakery Sees Gains
The perimeter bakery department also posted sales increases, aided by summer cookout essentials like buns and rolls, which recorded an 8.4% rise in dollar sales year-over-year. Baked goods such as cakes, cookies, donuts, muffins, and croissants also showed growth in both dollars and units. Overall, the perimeter bakery achieved a 2.2% increase in sales for both dollars and units during the month.

Fresh Produce Grows by 3.4%
Consumer demand for fresh produce surged in the first week of July and remained robust throughout the month, with overall sales up by 3.4% in both dollars and units. Fresh fruit, particularly cherries, grapes, avocados, and mandarins, drove a 4.6% increase in dollar sales. Fresh vegetables also saw dollar sales growth of 2% and a 4.3% rise in pounds sold, with tomatoes, lettuce, onions, cucumbers, carrots, and broccoli all posting gains. Deflation in potatoes caused a dollar sales drop of 7.7%, even as pound volume rose by 7.8%. Similarly, while dollar sales of fresh corn increased by 0.8%, pound sales surged by 20.1% compared to the previous year.

Frozen and Seafood Sales Struggle
Overall, the frozen department saw a slight increase of 1.8% in dollar sales to $6.8 billion, alongside a 2.1% rise in unit sales, though deflation affected several categories. Frozen processed meats stood out with a notable 12.1% increase in dollar sales. In contrast, sales of frozen meals—the largest category in the department—fell by 0.4% in dollars despite a 0.7% rise in unit sales. Desserts, however, experienced dollar sales growth of 1.7% alongside a 2.3% increase in unit sales.

Other frozen categories, such as fruits, vegetables, meat/poultry, and baked goods, showed sales gains for the month. In contrast, seafood and beverage sales declined in both dollars and units. Seafood sales overall were hampered by deflation, with fresh seafood prices dropping by 1% in July, along with declines of 2.2% for frozen seafood and 4.2% for ambient seafood. However, lower prices contributed to a rise in pound volumes, with fresh seafood pound sales up by 0.7% and ambient seafood up by 6%. In terms of dollar sales, fresh seafood declined by 0.2%, frozen seafood fell by 3.5%, while shelf-stable seafood increased by 1.5%.