The Meat Institute and Amcor hosted a consumer-focused webinar on June 26, checking in on consumer trends and evaluating the role of sustainability in the meat industry. Speakers for the webinar included Melissa Rodriguez, principal at Circana, and Keya Peterson, VP strategy and sustainability for Amcor.
The webinar focused on three key topics: how the last five years have impacted consumer shopping habits, what that evolution means for protein, and the influence of sustainability in the meat industry.
Rodriguez noted how much the last five years have changed the industry as a whole. Price increases have driven sales since 2019, but volume has not caught up to pre-pandemic levels.
Income is not meeting inflationary pressures, leading to consumers changing how they shop. To adjust, consumers are going to the store more and buying less.
Though inflation has actually come down, it does not feel that way to the consumer. Income is not matching prices, and other living costs continue to rise, leading 76% of consumers to say they have seen price increases recently, with 52% seeing “shrinkflation” in the store.
Consumer sentiment about the economy is grim, with 94% of households concerned about inflationary impact for food, and 70% worried about staying within budget. Young consumers — age 34 and younger —expect their financial situation to decline over the next year.
Although inflation is cooling, the impact is not, and consumers are having to adjust their spending habits accordingly. Over the last four years, traditional grocery dollar share has declined 3%, falling from 41% to 38%. This is the result of consumers increasing their number of trips and seeking out deals and discounts through other channels.
Sustainability is increasingly impacting the protein industry and consumer purchasing decisions. In fact, 90% of consumers care about sustainability. Though Millenials are a huge driver behind this trend, sustainability is becoming more important across generations.
Sustainable products have been performing very well in the marketplace, with sustainability-marketed products growing two times faster than conventionally marketed products since 2017. Though sustainability-marketed products typically have a higher price point, consumers are willing to pay for product attributes they care about.
The main issue the industry has with sustainability, particularly for protein producers, is the lack of a definition. What does sustainability really mean? While most consumers define sustainability through environmental and economic impact, 74% of consumers think sustainability is defined by social impact, or doing good in the community.
Still, producers are prioritizing sustainable practices and claims, and it's paying off. Since 2017, new products at retail are increasingly marketed toward sustainability, and consumers are taking notice. Seventy percent of consumers will try a product if the producing company has sustainable practices. Consumers are also increasingly seeking out stores that specifically carry sustainable products or showcase sustainable practices.
Still, 55% of consumers say that sustainability does not impact where they shop. As younger consumers continue to gain spending power, though, that percentage is likely to decrease.
The full webinar is available to view here.
