Grocery & CPG

Meat Sales Slide on Price, but Quality and Assortment Offer a Fix

Beef loin volume fell 7% while prices rose 13.2%, Circana reports. Retailers can counter cost concerns with merchandising built on quality, assortment, convenience and meal solutions.

Meat Sales Slide on Price, but Quality and Assortment Offer a Fix
Meat Sales Slide on Price, but Quality and Assortment Offer a Fixyooperann / Openverse

Beef loin volume sales fell 7% and ribeye volume declined 4.4% for the 52 weeks ending July 12, even as average prices climbed 13.2% and 8.8%, respectively, reports Circana, a Chicago-based market research firm.

Those numbers define the challenge facing meat merchandisers: cost remains a crucial factor in meat department activity. But retailers can blunt price's influence by responding to shopper interest in freshness, assortment, convenience, meal ideas and service, said Anne-Marie Roerink, president of 210 Analytics LLC, a Chicago-based market research and marketing strategies firm and author of The Power of Meat 2026 report. FMI—The Food Industry Association, the Meat Foundation and the Meat Institute, all based in Arlington, Va., jointly published the report.

Merchandising strategies should reflect the fragmented base of meat shoppers, Roerink said. "Some consumers seek premium steaks, others prioritize affordability, while younger shoppers often look for convenience, globally inspired flavors and ready-to-cook options," she said. "It is often the same person looking for all these things, at different times, and during different occasions."

Ongoing sector trends demand attention as well. Roerink pointed to growing shopper interest in high-protein selections and ease of preparation. "Retailers should expect continued growth in marinated products, seasoned offerings, meal kits and heat-and-eat solutions as consumers seek to save time without sacrificing quality," she said.

Generational change adds another layer. As millennials (born between 1981 and 1996) and Gen Z (born between 1997 and 2012) replace older generations as the primary grocery decision makers, retailers should prepare for different expectations around flavor exploration, digital engagement, sustainability and value, Roerink said.

"Value will remain defined by more than price," she said. "Even in a cautious economy, consumers continue demonstrating that they are willing to pay for products that deliver quality, convenience and confidence."

Ground beef proves the point. Unit sales of the best-selling beef segment rose about 1.5% over the last year despite an average price increase of roughly 12%, Circana reports.

Meal planning presents another merchandising opportunity. Chris DuBois, Circana senior vice president and perimeter practice leader, noted that 87% of consumers prepare all dinners at home and 58% say meat is a top priority to cook and eat at home. "Shoppers want help in getting package sizes right and having fresh high-quality products," he said.

Technology, including AI, will increasingly shape meat merchandising, forecasting and personalization, Roerink said. "Retailers that combine shopper insights with better data will make smarter assortment and promotional decisions," she said.

For meat departments facing continued price pressure, the playbook is clear: compete on quality, assortment and convenience, not price alone.

Source: Supermarket News

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Marcus Bennett

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News editor covering consumer brands and retail at Target Marketing.

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