Animal Welfare: Issues and Opportunities in the Meat, Poultry, and Egg Markets in the U.S.

Apr 10, 2017
224 Pages - Pub ID: LA15221043
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Animal Welfare: Issues and Opportunities in the Meat, Poultry, and Egg Markets in the U.S.  

About half of U.S. consumers are satisfied that animals raised for food are treated appropriately under current practices and regulations, and only in five either somewhat or strongly disagree that food animals are treated appropriately. Nonetheless, well over half of U.S. consumers are more concerned about animal welfare, specifically as it relates to the food supply, than they were just a few years ago. 

In this groundbreaking report, Packaged Facts charts the new challenges and opportunities for retail marketers of meat, poultry, eggs, and related products and menu items. These opportunities include:
  • marketing on animal-welfare related practices;
  • shoring up product claims and terminology;
  • leveraging the links between animal welfare and product healthfulness, safety, clean label, and sustainability;
  • catering to the flexitarian trend; and
  • seizing M&A and institutional investor opportunities based on progressive commitment to food animal welfare.
Marketplace analysis draws heavily on proprietary Packaged Facts survey data on consumer attitudes, purchasing patterns, and product choice motivators. Importantly, the rising interest in animal welfare is in part an outgrowth of increased concerns about the safety of the food supply, and a growing conviction that food animals raised in healthier circumstances will yield meat, poultry, and dairycase products that are higher quality across the board: safer, healthier, more nutritious, and even more flavorful. 

U.S. consumers have many concerns about how farm animals being raised, including handling (and slaughtering), housing, feeding, and antibiotic use. Correspondingly, the number of companies engaging in animal welfare advances and announcing plans to meet new standards has reached critical mass. Food companies at every level of the production and delivery spectrum, aware of both consumer and investor concerns, are taking significant steps to improve the quality of life of the animals in their supply chains. In addition to humanitarian concerns, corporate decisions to engage progressively in animal welfare issues is grounded in the mandate to be competitive in a changing marketplace and among a new generation of Millennial and Gen Z consumers. 

Scope and Methodology 

Animal Welfare: Issues and Opportunities in the Meat, Poultry, and Egg Markets
 examines marketing and product opportunities for retail and foodservice marketers stemming from changing consumer attitudes and escalating concerns about food animal welfare. The report also examines the role of federal and state government agencies in setting animal welfare guidelines, and the increasing role of animal welfare organizations, especially those that offer certification to animal protein marketers. The analysis draws on proprietary Packaged Facts consumer data gathered through a National Consumer Survey of 2,000 adults conducted in February-March 2017, along with Simmons Research and other syndicated and industry data. Information on company activities around food animal welfare, as well as related activities of government and non-governmental organizations, was gathered from an in-depth review of corporate, trade, and government websites; food industry media; and other sources.
CHAPTER 1 EXECUTIVE SUMMARY
ANIMAL WELFARE ISSUES
REGULATORY ENVIRONMENT
ANIMAL WELFARE ORGANIZATIONS
MARKETER ACTIONS
CONSUMER VIEWS
THE EMERGING ANIMAL WELFARE ENVIRONMENT
INSIGHTS AND OPPORTUNITIES
Opportunity 1—Marketing on animal-welfare related claims and attributes
Opportunity 2—Shoring up product claims and terminology
Opportunity 3—Leveraging the link between animal welfare and product healthfulness
Opportunity 4—Leveraging the link between animal welfare and product safety
Opportunity 5—Leveraging the link between animal welfare and sustainability
Opportunity 6—Incorporating animal welfare into corporate transparency practices
Opportunity 7—Catering to the flexitarian trend
Opportunity 8—M&As around animal welfare credentials
Opportunity 9—Responding to institutional investor pressures
Opportunity 10—Responding to influence of animal rights movement
CHAPTER 2 ANIMAL WELFARE ISSUES
KEY POINTS
ANIMAL WELFARE AND ANIMAL RIGHTS
OMNIVORE’S CHOICES
The Vegetarian/Vegan Option
Influence of Celebrities
The Media Environment
ANIMAL WELFARE AS HOT ISSUE
Animal Welfare Movement Reaching Critical Mass
Consumer Studies Confirm Growing Concerns
Is Organic Meat Healthier?
Packaged Facts Survey Data on Animal Welfare and Healthy Food Relationship
Consumer Questioning of Agricultural Product Safety
Figure 2-1 In the last few years, are you paying more attention to the product claims or nutritional information for any of the following? (percent of U.S. adult grocery shoppers)
Levels of Consumer Concern About Antibiotics, Growth Hormones, and GMOs
WORLD ORGANIZATION FOR ANIMAL HEALTH’S FIVE FREEDOMS
FOUR KEY AREAS OF CONCERN
HANDLING
Slaughter
Beak Trimming and/or Debeaking
Disbudding
Castration
Transportation
Litter Management
Sleep Periods
Other Issues
FEEDING FARM ANIMALS
Grazing/Free-Range/Grass-Fed
Illustration 2-1 Proliferation of Grass-Fed Beef Brands
HOUSING
Group Housing Alternative
Poultry Housing
Cage-Free
Free-Range Facing Challenges
Cage-Free a Top Animal Welfare Trend
Illustration 2-2 Proliferation of Egg Brands Highlighting “Cage-Free”
Illustration 2-3 Proliferation of Egg Brands Highlighting “Free Range”
ANTIBIOTICS AND OTHER DRUGS
School Food Focus Certified Responsible Antibiotic Use (CRAU)
Illustration 2-4 Proliferation of No Antibiotics Ever Chicken Brands
Chain Reaction II Report
ANIMAL WELFARE AND SUSTAINABILITY
Sustainability a Top Issue for 2017
Definition of Sustainability
Developing “Regenerative Agriculture”
CHAPTER 3 REGULATORY ENVIRONMENT
KEY POINTS
U.S. REGULATORY FRAMEWORK
UNITED STATES DEPARTMENT OF AGRICULTURE (USDA)
Agricultural Marketing Service (AMS)
National Organic Program (NOP)
USDA Process Verified Program (PVP)
Illustration 3-1 USDA Process Verified Shield
New GMO Labeling Law Exempts Foods from Animals
Animal and Plant Health Inspection Service (APHIS)
USDA Animal Care
Food Safety and Inspection Service (FSIS)
Humane Methods of Slaughter Act
New Poultry Inspection System and Good Commercial Practices
Food and Drug Administration (FDA)
FDA Requires rbST Claims to Be Accompanied by Disclaimers
Agencies With Regulatory Functions Related to FDA’s
RECENT ANIMAL-WELFARE ACTIVITIES BY FEDERAL AGENCIES
Humane Handling
ANTIBIOTIC USE
FDA Completes Voluntary Phase-out of Antibiotic Use in Food Production
GAO Calls for More Oversight of Antibiotic Use in Food Animals
Recommended Actions
Illustration 3-2 Antibiotic Resistance, from the Farm to the Table
VERIFICATION, STANDARDS, AND COMPLIANCE
USDA Rule Fortifies Welfare Standards for Organic Livestock and Poultry
Illustration 3-3 Organic Livestock and Poultry Practices Rule: Provisions, Costs, Benefits, and Timeline
ISO’s New Animal Welfare Management Specs Streamline Global Trade
New USDA Accreditation Program Will Ease Transition to Organic
FSIS Issues Guidelines for Making Animal Raising Label Claims
Animal Protection Group Derides FSIS Label Standards as Deceptive, “Industry-Friendly”
USDA Upgrades PVP to Reinforce Transparency, Accountability
Illustration 3-4 USDA Process Verified Program, from Farm to Market
LITIGATION
Court Rejects Lawsuit Seeking “Production Method” Labeling on Egg Cartons
Animal Rights Advocates Argue Label Reform Is in the Public Interest
Agencies Cite Insufficient Evidence as a Factor in Denying Labeling Petition
Animal Welfare Institute Sues USDA for Non-Response to Rulemaking Petition
RECENT ANIMAL-WELFARE ACTIVITIES BY U.S. STATES
Groundbreaking Massachusetts Referendum Opposing Extreme Confinement Passes by 3-1 Margin
Facilitates Legal Action Against Whistleblowers
Oklahoma Voters Reject “Right to Farm” Amendment to State Constitution
Federal Judge Rules Idaho “Ag-Gag” Law Unconstitutional
CHAPTER 4 ANIMAL WELFARE ORGANIZATIONS
KEY POINTS
ADVOCACY AND WATCHDOG GROUPS
American Humane (www.americanhumane.org)
American Society for the Prevention of Cruelty to Animals (www.aspca.org)
Animal Protection and Rescue League (www.aprl.org)
Animal Welfare Institute (www.awionline.org)
Compassion in World Farming (www.ciwf.com)
Compassion Over Killing (www.cok.net)
Cornucopia Institute (www.cornucopia.org)
Farm Animal Rights Movement (farmusa.org)
Farm Sanctuary (www.farmsanctuary.org)
Faunalytics (https://faunalytics.org)
Food Animal Concerns Trust (foodanimalconcerns.org)
Humane Society of the United States (www.humanesociety.org)
Last Chance for Animals (www.lcanimal.org)
Mercy for Animals (www.mercyforanimals.org)
National Animal Interest Alliance (www.naiaonline.org)
People for the Ethical Treatment of Animals (www.peta.org)
United Poultry Concerns (www.upc-online.org)
CERTIFYING ORGANIZATIONS
Benefits of Certification
Certification Process
Farm Animal Welfare Certification Guide
Animal Welfare Approved (animalwelfareapproved.us)
Illustration 4-1 American Welfare Approved Logo
Illustration 4-2 Certified Grassfed by AGW Logo
Illustration 4-3 Certified Non-GMO by AGW Logo
Certified Humane Raised and Handled (certifiedhumane.org)
Illustration 4-4 Certified Humane Raised & Handled Logo
Animal Welfare: Issues and Opportunities in the Meat, Poultry, and Egg Markets in the U.S.
April 2017 © Packaged Facts v
Global Animal Partnership (www.globalanimalpartnership.org)
Illustration 4-5 Global Animal Partnership Logo
Illustration 4-6 Certification Requirements of Global Animal Partnership’s 5-Step Animal Welfare Rating
Program for Selected Species
American Grassfed Association (www.americangrassfed.org)
Illustration 4-7 American Grassfed Certification Logo
American Humane Certified
Illustration 4-8 American Humane Certified Logo
Marine Stewardship Council (https://www.msc.org)
Illustration 4-9 Certified Sustainable Seafood MSC Logo
Illustration 4-10 MSC Fisheries Standard
Illustration 4-11 MSC Chain of Custody Standard
FOOD INDUSTRY ASSOCIATIONS
American Association of Meat Processors (www.aamp.com)
National Cattlemen's Beef Association (www.beefusa.org)
National Chicken Council (www.nationalchickencouncil.org)
U.S. Poultry & Egg Association (www.uspoultry.org)
CHAPTER 5 MARKETER ACTIONS
KEY POINTS
Business Benchmark on Farm Animal Welfare
Food Marketing Institute
National Council of Chain Restaurants
FOOD MANUFACTURERS
AyrshireFarm (www.ayrshirefarm.com)
Campbell Soup
Illustration 5-1 Campbell’s Well Yes Chicken Noodle Soup
Cargill
Conagra Brands
Country Archer
Illustration 5-2 Country Archer Meat Sticks
Dean Foods
General Mills
Grupo Bimbo
Hillandale Farms
Hip Chick Farms
Illustration 5-3 Hip Chick Farms Organic and Gluten Free Chicken Meatballs
Hormel Foods
Kellogg
Kraft Heinz
LonoLife
Ilustration 5-4 LonoLife K-Cup Beef Bone Broth
Lorissa’s Kitchen
Illustration 5-5 Lorissa’s Kitchen Products
LoveTheWild
Illustration 5-6 LoveTheWild Barramundi with Mango Sriracha Chutney
Lower Foods
Maple Hill Creamery
Maple Leaf Foods
Mars
Mondelez Foods
Nestlé
Niman Ranch
No Evil Foods
Illustration 5-7 No Evil Foods Vegan Meat Alternatives
Perdue Farms
Perky Jerky
Illustration 5-8 Perky Jerky Black Label 100% Grassfed and Antibiotic-Free Beef Jerky
Pilgrim’s Pride
Ritter Sport
Illustration 5-9 Ritter Sport Vegan Chocolate Bars
Smithfield
Snacklins
Teton Waters Ranch
Illustration 5-10 Teton Waters 100% Grassfed Beef Franfurters
Thanasi Foods
Illustration 5-11 Duke’s New Brisket and Steak Meat Snacks
The New Primal
Illustration 5-12 The New Primal Snack Mates
Tyson Foods
Illustration 5-13 Tyson Foods Open Prairie Natural Angus and Natural Pork
Unilever
Illustration 5-14 Breyers Non-Dairy Frozen Desserts
Illustration 5-15 Ben & Jerry’s Non-Dairy Frozen Desserts
Verde Farms
Illustration 5-16 Verde Farms Grassfed Beef Ribeye Steak
West Liberty Foods
White Oak Pastures
Wild Zora Foods
Illustration 5-17 Wild Zora Pork and Vegetable Bars
FOODSERVICE
A&W Food Services of Canada
Arby’s
Blossom Du Jour
Boston Market
BurgerFi
Chick-fil-A
Chili’s
Chipotle Mexican Grill
Dairy Queen
Darden Restaurants (Olive Garden)
Denny’s
DineEquity, Inc.
Domino’s Pizza
Dunkin’ Donuts
Einstein Bros. Bagels
Jack in the Box
Little Caesars
McDonald’s
Panera Bread
Illustration 5-18 Panera Bread Advertisement for “Food You Can Trust”
Papa John’s
Pizza Pizza
Illustration 5-19 Pizza Pizza Chicken Products Raised Without Antibiotics
Quiznos
Restaurant Brands International (Burger King/Tim Hortons)
SeaWorld
Sonic Corp.
Starbucks
Subway
Wendy’s
Yum! Brands
RETAILERS
Albertsons
Costco
Food Fight!
Kroger
Publix
Rabbit Food Grocery
Safeway
Target
Trader Joe's
Walmart
Whole Foods
Farmers Markets and Online Sales
FOOD AND INGREDIENT SUPPLIERS
Aramark
Brandt Beef
Compass Group
Essentia
Impossible Foods
Ocean Harvest Technology
Sodexo
Sysco Corporation
FACILITATORS
ADVERTISING ANIMAL WELFARE ACTIONS
Illustration 5-21 Hardee’s/Carl’s Jr. Grassfed Hamburger Television Ad
CHAPTER 6 CONSUMER VIEWS
KEY POINTS
ASPCA Survey Shows Substantial Consumer Concern About Animal Welfare
American Humane Society Also Shows Major Consumer Concern
Cargill Survey Shows Consumer Concerns Over Pig Diets
SIMMONS DATA ON THE VEGETARIAN CONSUMER
Vegetarians Still a Small Minority of Consumers
Income and Education Influence Vegetarianism More Than Gender
Foodies and Budget Watchers Have Higher Vegetarian, Meat Alternatives Propensity
PACKAGED FACTS SURVEY DATA ON CONSUMER ATTITUDES AND PURCHASING PATTERNS RELATED TO ANIMAL WELFARE ISSUES
Over a Third of Consumers Buying Organic and Natural Products
Figure 6-1 In the last 30 days, have you bought packaged food and beverage products with any of the
following product claims?, 2017 (percent of U.S. grocery shoppers)
Figure 6-2 In the last 30 days, have you bought packaged food and beverage products with any of the
following product claims?, 2017 (percent of U.S. grocery shoppers)
Understanding of Key Animal Welfare Terms Is Mixed
Figure 6-3 How clear to you is the meaning of the following product claims?, 2017 [selected claims/attributes related to animal welfare issues] (percent of U.S. grocery shoppers)
Few Avoid Meat, Poultry, or Eggs
Figure 6-4 Do you avoid eating any of the following?, 2017 (percent of U.S. adults)
Figure 6-5 In the last few years, have you cut back on eating any of the following?, 2017 (percent of U.S. adults)
Protein Most Important Ingredient Looked for on Nutrition Panel
Figure 6-6 When choosing meat or poultry products to buy, is any of the following nutritional panel information most important to you?, 2017 (percent of U.S. grocery shoppers)
Significant Increases for Plant-Based Alternatives
Figure 6-7 In the last few years, are you eating more of any of the following?, 2017 (percent of U.S. adults)
Half of Consumers Confident About Standards for Food Animal Treatment
Majority See Humane Treatment of Food Animals as Issue for Society
Animal Welfare Concerns Are Important to Many Meat and Poultry Shoppers
Figure 6-8 Have you purchased any of these types of red meat items in the past 30 Days?, 2017(percent of shoppers who purchased red meat within last 30 days)
Figure 6-9 When you buy grass-fed/pasture-raised beef, what product characteristics are mostimportant to you?, 2017 (percent of shoppers who purchased grass-fed/pasture-rasied beef within last 30 days)
Figure 6-10 Have you purchased any of these types of chicken products in the past 30 Days?, 2017(percent of shoppers who purchased fresh chicken in last 30 days)
Figure 6-11 When you buy cage-free/free-range/pasture-raised chicken, what product characteristics are most important to you?, 2017 (percent of shoppers who purchased cage-free/free-range/pastureraised
chicken within last 30 days)
Local Sourcing an Important Factor in Animal Welfare Related Purchases
Consumers Will Pay More for Humane, Safe, Healthy Meat, Poultry
Animal Welfare Attributes in Purchasing of Fresh Eggs
Figure 6-12 Within the last 30 days, have you bought any of the following type of eggs products?,2017 (percent of grocery shoppers who purchased fresh eggs within last 30 days)
Figure 6-13 When you buy cage-free, free-range, or pasture-raised eggs, what product characteristics are most important to you?, 2017 (percent of shoppers who purchased cage-free/free-range/pastureraised eggs within last 30 days)
CHAPTER 7 THE EMERGING ANIMAL WELFARE ENVIRONMENT
KEY POINTS
CONSUMERS, MARKETERS, REGULATORS, AND ENVIRONMENT ALL PLAY A ROLE
It’s the 21st Century
Conflating Animal and Human Health
The Expanding Consumer Base
M&A to Advance Animal Welfare
Investors Exert Pressure
The Demand for Transparency
FACTORS THAT COULD RESTRAIN HUMANE PRODUCT MARKET
Rise of Plant-Based Protein
Impact of Climate
Reduced Government Support
LONG RANGE PROSPECTS
Animal Welfare Areas in Need of More Attention
Tremendous Growth of Organic Expected to Continue
Animal Protein Companies Address Sustainability
Meat From the Laboratory

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