Meat Sales Jump 7.3% in July, Driven by Holiday Spending Surge

In July 2023, consumer spending on meat surged dramatically, with total sales reaching $8.1 billion, a 7.3% increase from the previous year. This strong performance is attributed in part to calendar shifts, which led to an earlier spike in July 4th celebrations and grilling purchases compared to the split sales seen in June and July of 2022.

Fresh Meat Sales Lead the Charge

Fresh meat was a standout category in July. Fresh beef and pork saw impressive dollar sales increases of 11.3% and 10.2%, respectively. Even though inflation contributed (around 2.3%), sales volume also rose in the mid-single digits for many fresh meat categories, with overall volume up by 4.9%.

Fresh chicken, the second-largest fresh meat category after beef, posted a 4.7% increase in dollar sales, along with a 4.1% rise in pounds sold.

Processed meats, including frankfurters and dinner sausages, also performed strongly, with 4% growth in dollar sales and 2.5% growth in pound sales. Additionally, ground beef, chicken, and turkey all showed solid growth in both sales dollars and volume.

Deli Sales Continue to Shine

The deli department maintained its positive momentum in July, recording a 3.9% increase in dollar sales. Sales in the deli entertaining category grew by 8.2%, while deli-prepared items rose by 5%. Specialty cheese was a highlight, with both dollar and pound sales increasing by 3.6%.

However, deli meats lagged behind, experiencing a slight decline of 1.8% in both dollar and pound sales. Service deli meats, which make up over half of deli meat sales, were down 4.6%. On the other hand, pre-sliced deli meats posted a 1.5% increase in dollar sales.

Fresh Produce Sees Strong Performance

Fresh produce saw a notable rise in July, with overall sales increasing by 3.4% in both dollars and units. Fresh fruit was a strong driver, with double-digit sales increases in cherries, grapes, avocados, and mandarins, leading to a 4.6% growth in dollar sales.

Fresh vegetables also performed well, with a 2% gain in dollar sales and a 4.3% increase in pounds sold. Tomatoes, lettuce, onions, cucumbers, carrots, and broccoli all posted gains in both sales and volume. However, the potato category experienced some deflation, with a 7.7% decrease in dollar sales despite a 7.8% increase in volume.

Frozen and Seafood Categories Face Deflationary Pressures

While the frozen department as a whole saw a modest 1.8% increase in dollar sales, some categories were affected by deflation. Frozen processed meats were a standout, with sales up 12.1%.

Frozen meals, the largest category within the frozen department, experienced a slight decline in dollar sales, down 0.4%, despite a 0.7% increase in units sold. Other frozen categories, such as fruits, vegetables, meat/poultry, and baked goods, posted gains, though seafood and beverages experienced declines in both dollars and units.

Seafood overall struggled with deflation. Fresh seafood prices were down 1% in July, and both frozen seafood (-3.5%) and ambient seafood (-4.2%) saw price reductions. However, pound sales were buoyed by lower prices, with fresh seafood up 0.7% in volume and ambient seafood seeing a 6% volume increase. Despite the increase in volume, dollar sales for fresh seafood were down 0.2%, while frozen seafood dropped by 3.5%, although shelf-stable seafood saw a 1.5% increase in dollar sales.

Conclusion

July was a strong month for the meat and fresh produce categories, driven by seasonal celebrations and increased grilling. However, while frozen and seafood categories faced challenges due to deflation, overall supermarket sales, including deli and bakery, continued to show positive growth. The shift away from restaurant dining also bolstered grocery sales, with consumers continuing to prioritize home-cooked meals and grilling at home.