Meat Retailers Benefit from Bargain-Hunting Shoppers

With the prices of many fresh meat varieties on the decline, meat retailers are seeing a significant increase in sales, as consumers flock to bargains on chicken, pork, and turkey. For the 13 weeks ending October 8, the average price of fresh chicken dropped 5.1%, contributing to a 2.7% increase in volume sales, according to Circana, a market research firm. Similarly, pork and turkey prices fell by 1.4% and 1.6%, respectively. However, beef prices increased by 6.3% due to smaller herd sizes, although volume sales fell by just 2.7%.

The rise in popularity of ground meats is also noteworthy. Volume sales for ground chicken, turkey, and pork grew 13%, 6.4%, and 1%, respectively, with price reductions of 3%, 3.6%, and 0.7%. Ground lamb sales saw a strong 8.4% growth, with a notable price drop of 8.6%. Ground beef, which makes up 42.1% of the beef sector’s dollar sales, experienced only a minor 0.5% sales decline, despite a 6.7% price increase.

One of the key factors driving the rise in ground meat sales is their versatility. Consumers can incorporate ground meats into a variety of recipes, making them an attractive option for quick and convenient meals. Retailers can boost sales by placing different types of ground proteins in a single display, making it easier for customers to shop and discover new recipe ideas. Chris DuBois, Circana’s executive vice president of protein, suggests that such displays create a platform for new meal inspirations, encouraging consumers to purchase more.

For retailers, highlighting the decline in meat prices can further drive traffic to the meat department. DuBois points out that shoppers are accustomed to high prices in grocery stores, but lower prices for chicken, pork, and turkey—along with declines in lamb prices—present an opportunity to offer great value. “Suddenly, we are back to prices from a few years ago, but it hasn’t trickled into the consciousness of consumers yet,” he explains.

Retailers can leverage this by using meat case signage to compare the cost of a home-cooked meal to dining out, emphasizing the savings consumers can achieve by cooking at home. According to a 2023 Circana consumer survey, 95% of respondents said that price is just as important as it was last year when purchasing fresh chicken. Since 82% of consumers eat chicken at least once a week, maintaining competitive prices is critical.

Offering promotions like one-day sales, meal discounts, and private-label options can also attract price-conscious shoppers. Anne-Marie Roerink, president of 210 Analytics, suggests that rather than focusing solely on price, retailers should offer deals that balance value and convenience. By tapping into shoppers’ desire for great deals, meat retailers can continue to capitalize on the growing demand for affordable, high-quality meats.