Branded Refrigerated Meats and Meals: U.S. Market Trends

Published: August 15, 2014 - 132 Pages

Table of Contents

  • Executive Summary
    • Scope of Report
    • Methodology
    • Market Trends
      • Product Categories Covered
      • Multiple Factors Drive Higher Meat Prices
      • Marketers Look to Build Brand Identity with Natural, Convenient Products
      • Overall Market Tops $25 Billion
        • Table U.S. Retail Sales of Refrigerated Meals and Meat, 2009-2013 (millions of dollars, percent)
      • Sales of Refrigerated Meals and Meat Projected to Top $31 Billion by 2018
        • Table Projected U.S. Retail Sales of Refrigerated Meals and Meat, 2013-2018 (millions of dollars, percent)
    • Competitive Trends
      • Competitors Seek Diversification Through Acquisitions
      • Tyson Acquisition of Hillshire Brands Top Example
      • Companies Focus on Social Media
    • Product Trends
      • "Convenient," "Healthy," and "Creative/New" Are Watchwords
      • Products Not Just One or the Other
    • Retail and Foodservice Trends
      • Despite Challenges, Supermarkets Remain Main Retail Grocery Channel
        • Table Food-at-Home Sales by Type of Outlet, 2000-11
        • Table "Where Do You Usually Buy Meat Within a Store?," 2014 (percent of U.S. adults)
      • Challenges to Supermarkets
      • Away-From-Home Food Sales Continue Long Period of Growth
        • Table Sales of Food-At-Home Vs. Away-From-Home, 1960-2011
      • Burgers and Bacon Fuel Foodservice Meat Sales
    • Consumer Trends
      • Table "Compared to a Few Years Ago, Are You Eating Meat (Beef, Pork, Lamb, etc.) More or Less Often?," 2014 (percent of U.S. adults)
  • Market Trends
    • Key Points
    • The Market
    • Market Trends
      • Multiple Factors Drive Higher Meat Prices
      • Weather
      • Drought in the U.S.
      • Growing Global Demand
      • International Economic and Political Tensions
      • U.S. vs. Other Nations
      • Meat Prices Increasingly an Issue
      • Dollar Sales Outpace Unit and Volume Sales
        • Table IRI-Tracked Sales of Refrigerated Meals and Meat, 2012-2013 (dollar, unit, and volume sales and percent change)
    • Health Concerns Mix With Pricing Issues
    • Disconnect Between Health and Food Safety
    • Increasing Importance of Branding
    • Organic Meat Opportunities Grow
    • Demand for Natural
    • Demand for Convenience Grows
    • Market Size
      • $23 Billion in Mass-Market Refrigerated Meals and Meat Sales in 2013
        • Table IRI-Tracked Sales of Refrigerated Meals and Meat Categories, 2012-2013 (millions of dollars, percent)
    • Overall Market Tops $25 Billion
      • Table U.S. Retail Sales of Refrigerated Meals and Meat, 2009-2013 (millions of dollars, percent)
      • Refrigerated Breakfast Meats Largest Segment
      • Refrigerated Breakfast Meats
        • Table U.S. Retail Sales of Refrigerated Breakfast Meats, 2009-2013 (millions of dollars, percent)
      • Refrigerated Luncheon Meats
        • Table U.S. Retail Sales of Refrigerated Luncheon Meats, 2009-2013 (millions of dollars, percent)
      • Refrigerated Meat
        • Table U.S. Retail Sales of Refrigerated Meat, 2009-2013 (millions of dollars, percent)
      • Refrigerated Dinner Sausage
        • Table U.S. Retail Sales of Refrigerated Dinner Sausage, 2009-2013 (millions of dollars, percent)
      • Refrigerated Frankfurters
        • Table U.S. Retail Sales of Refrigerated Frankfurters, 2009-2013 (millions of dollars, percent)
      • Refrigerated Lunches
        • Table U.S. Retail Sales of Refrigerated Lunches, 2009-2013 (millions of dollars, percent)
      • Refrigerated Entrees
        • Table U.S. Retail Sales of Refrigerated Entrees, 2009-2013 (millions of dollars, percent)
      • Refrigerated Meat Pies
        • Table U.S. Retail Sales of Meat Pies, 2009-2013 (millions of dollars, percent)
    • Market Forecast
      • Sales of Refrigerated Meals and Meat Projected to Top $31 Billion by 2018
        • Table Projected U.S. Retail Sales of Refrigerated Meals and Meat, 2013-2018 (millions of dollars, percent)
    • Pork Up, Beef Down
      • Virus Disrupts Industry
      • CPI Increases for Meat Top All Categories
        • Table Changes Forecast in Food Price Indexes, 2014 (millions of dollars, percent)
    • Locavore Movement May Shift Sales Away from Supermarkets
    • More Retail Options
    • Impact of Sustainability
    • Can the World Go Meatless?
  • Competitive Trends
    • Key Points
    • Diversification Through Acquisition
    • Focus on Hillshire Brands
      • Hillshire Targets Pinnacle
    • Targeting Hillshire
      • Tyson Steps In
      • Reactions to the Acquisition
      • Efforts to Block Deal
      • Aftermath of the Acquisition
    • Compelling Rational Behind Acquisition Trend
      • Defense Goes Unspoken
    • Acquisition Activity at All Levels
      • Private Label Opportunities Pursued
      • Hormel Looks to Other Protein Sources
    • Partnerships Also an Option
      • Partnering to Create New Company
      • Joint Ventures Continue to Thrive
    • Going Public
    • Sustainability as a Competitive Position
    • Advertising and Promotional Trends
      • Focus on Social Media
    • Advertising Through Social Media: Old Wine in New Bottles
      • Building Brand Awareness
      • Traditional Efforts Transferred to Social Media
    • Interactive Relationship Is Heightened
      • Table Hot Dog and Sausage Brands: Facebook Likes and Twitter Followers
      • Opportunities for Building Brand Awareness Have Multiplied
    • Mining Social Media: Ball Park Franks
      • Ball Park's Social Media
      • Ball Park on Facebook
      • Ball Park on Twitter
      • Ball Park on Instagram
      • Ball Park Video Ads on YouTube
    • Traditional Promotional Activities Are Ongoing
      • Feeding the Hungry
    • Multiplying Brand Opportunities
    • Taking It On the Road
  • Product Trends
    • Key Points
    • "Convenient," "Healthy," and "Creative/New" Are Watchwords in Branded Refrigerated Meals and Meat
      • Products Not Just One or the Other
      • Price/Value An Ongoing Concern
    • The Convenience Trend
    • Convenience With Quality
      • Convenience, Quality, and Variety: Hormel REV Snack Wraps
      • Foodservice Continues to Make It Easier
    • The Health Trend
      • Healthy, Higher Quality Products Sought
        • Table Level of Agreement with Statement: "I Regularly Buy More Healthful Meat Items," 2014 (percent of U.S. adults)
        • Table Level of Agreement with Statement: "I Regularly Buy Higher-Quality Meat Items," 2014 (percent of U.S. adults)
      • Eliminating Antibiotics
      • No Action on Antibiotics Required From FDA
      • Aiming to Please the Concerned Consumer
      • For Many, Natural Equals Healthy
      • No Firm Definition of "Natural"
      • Should "Natural" Be Banned?
      • Kosher Products Perceived as Higher Quality
      • Combination Products Coming On
      • The All Poultry Replacement
      • Chipotle Sticks to Healthy
      • Venison Tops Poultry
    • The Creativity Trend
      • Artisanal a Key Term
      • Hand-Crafted Instead of Artisanal
      • Smoking on Fire
      • The Better Burger Movement
      • Ethnic Specialties Fit the Creative Bill
      • Raising the Bar for Traditional Products
      • Hormel Improves on Bacon
      • Despite Innovations, Some Traditions Hold Strong
      • Co-Branding Trend Still Strong
    • On the Horizon: Future Trends
      • Veal Is Hot
    • Return of LFTB
    • Long Range Product Developments
      • Cultured Meat
      • Maximizing Meat Production Through Technology
      • Packaging Technology Will Contribute
  • Retail and Foodservice Trends
    • Key Points
    • Retail Sales of Refrigerated Meals and Meat
      • Despite Challenges, Supermarkets Are Main Retail Grocery Channel
        • Table U.S. Food-at-Home Sales by Type of Outlet, 2000-11
      • Sales Focused at Top
    • Supermarkets Have Been Key Channel for Meat Purchases
      • Table Overview of U.S. Retail Meat Sales by Channel, 2012
    • Refrigerated Meat Case Is Visited Most Frequently
      • Table "Where Do You Usually Buy Meat Within a Store?", 2014 (percent of U.S. adults)
      • Table Level of Agreement with Statement: "I Regularly Buy Raw Meat From the Refrigerated Meat Department," 2014 (percent of U.S. adults)
      • Plain, Unseasoned Meat Favored Over Seasoned, Further Prepared Meat
        • Table "What Types of Raw Meat Do You Usually Buy from the Refrigerated Meat Case?," 2014 (percent of U.S. adults)
      • Millennials May Be Drivers of Store Brands
      • Some Consumer Momentum for Seasoned, Further Prepared Meat
        • Table Level of Agreement with Statement: "I Am Buying More Seasoned/Further Prepared Raw Meat From the Meat Case These Days," 2014 (percent of U.S. adults)
      • Good Support for Quality of Deli Meat
        • Table Level of Agreement with Statement: "Deli Department Meats Tend to be Higher in Quality," 2014 (percent of U.S. adults)
        • Table Level of Agreement with Statement: "I Regularly Buy Meats From the Deli Department/Counter," 2014 (percent of U.S. adults)
      • Skepticism About Quality of Packaged Luncheon Meats
        • Table Level of Agreement with Statement: "Packaged Luncheon Meats Tend to be Lower in Quality," 2014 (percent of U.S. adults)
        • Table Level of Agreement with Statement: "I Regularly Buy Packaged Luncheon Meats," 2014 (percent of U.S. adults)
    • Challenges to Supermarkets
      • Challenge From Other Channels
      • Change Is Slow
        • Table "Compared to a Few Years Ago, Are You Buying Meat (Beef, Pork, Lamb, etc.) in Grocery Stores More or Less Often?," 2014 (percent of U.S. adults)
    • Supermarkets Fight Back with Convenience Offerings
      • Focus on Meal Solutions for Convenience and Individualization
      • Emphasis on Convenience May Shrink Supermarkets
    • Foodservice Trends for Refrigerated Meals and Meats
      • At Home vs. Away-From-Home Food Sales
        • Table Sales of Food-At-Home Vs. Away-From-Home, 1960-2011
        • Table Food Away From Home as Share of Total Household Expenditures for Food, 1970-2012
      • Impact of Recession
      • Current Economy Leads to Retail/Foodservice Convergence
      • On the Retail Side
      • On the Foodservice Side
      • Foodservice Activities In-House
      • Burgers and Bacon Fuel Foodservice Meat Sales
      • New Foodservice Companies Appeal to Foodies
      • Meat: Better at Home or Away?
  • Consumer Trends
    • Key Points
    • Meat Remains Major Protein Source
      • Table "Compared to a Few Years Ago, Are You Eating Meat (Beef, Pork, Lamb, etc.) More or Less Often?," 2014 (percent of U.S. adults)
    • Health, Price, Taste, and Safety Among Top Consumer Issues
    • Pricing Importance Trends Up as Economy Crawls
      • Table Level of Agreement with Statement: "I Regularly Buy Lower-Cost Meat Items," 2014 (percent of U.S. adults)
      • Table Level of Agreement with Statement: "I Regularly Buy Meat Items That Are On Sale," 2014 (percent of U.S. adults)
    • Strong Upward Trend for Consumer Concerns Over Meat Health Benefits
      • Research Studies Drive Consumer Awareness
    • Concerns About Food Safety Expanding
      • Table Level of Agreement with Statement: "I Worry About the Use of Antibiotics and Hormones in Meat," 2014 (percent of U.S. adults)
      • Table Level of Agreement with Statement: "I Worry About the Preservatives and Additives in Meat," 2014 (percent of U.S. adults)
      • Table Level of Agreement with Statement: "I Worry About the Use of GMOs (Genetically Modified Organisms) in Meat Feed," 2014 (percent of U.S. adults)
      • Table Level of Agreement with Statement: "I Seek Out Meat From Animals Raised More Humanely," 2014 (percent of U.S. adults)
    • Health Factors Influence Local Sourcing Movement
      • Table Level of Agreement with Statement: "I Seek Out Meat from Local Sources," 2014 (percent of U.S. adults)
      • Natural and Organic Products Also Sought
        • Table Level of Agreement with Statement: "I Regularly Buy Meat Items that Are Labeled Natural or Organic," 2014 (percent of U.S. adults)
    • Taste Is Tops
      • Local Meats Identified as Quality
    • Consumers Seek Protein Alternatives
    • Focus on Hispanic Consumers
      • Table Hispanic Population of the U.S., 2000-2020 (in thousands)
      • Table Food Expenditures by Hispanic Consumer at Grocery and Other Food Stores, 2007-2012 (in million $)
      • Table Projected Growth in Expenditures by Hispanic Consumer Units on Food in Grocery and Other Food Stores, 2013-2018 (in million $)
      • Hispanics Concerned about Source and Safety of Meat and Poultry
        • Table Concerns About Source and Safety of Meat and Poultry: Hispanic vs. All Food Shoppers, 2014
      • Seasoned/Further Prepared Meats and Poultry Favored
      • Latinos Spend More on All Types of Meat, Poultry and Seafood
        • Table Average Annual Expenditures by Type of Meat: Hispanic vs. All Consumer Units, 2012
      • Hispanic Food Shoppers Say No to Hamburger Patties, Yes to Steak
        • Table Types of Meat Used in Last 7 Days: Hispanic vs. All Food Shoppers, 2014 (percent of those using any meat in last 7 days)
      • Specialty Meats Appeal to Spanish Dominant Food Shoppers
        • Table Types of Meat Most Preferred by Hispanic Food Shoppers: By Level of Acculturation, 2013-14
    • Focus on Millennials
      • Table Millennials as Percent of Total U.S. Population, 2012-2030 (number in millions and percent)
      • Who Are Millennials?
      • Millennials Seek Value
      • Millennials Are Foodies

Abstract

Branded Refrigerated Meats and Meals: U.S. Market Trends

As Americans return more proteins to center plate of their meals, the time is right for a revival of branded meats and meals sold in the refrigerated cases of supermarkets. Packaged Facts’ report, Branded Refrigerated Meats and Meals: U.S. Market Trends, examines the trends and factors that are influencing the market for these products, which has become a $25 billion industry.

One such factor is the rise of meat prices in the U.S., owing to weather, international economic and political tensions, and growing global demand. So how do marketers offset price increases? One way is through branding, as that offers a competitive advantage in what, for a long time, has been a commodity market. Branding is also a key component in the development of convenience products targeted to a consumer market stretched thin in terms of time or ability to cook.

Branded Refrigerated Meats and Meals: U.S. Market Trends also reports on the role natural and organic products can play in this market. They’re increasingly in demand, and those who can afford to pay more are showing a willingness to do so for what are perceived as better-for-you products. Looking ahead, it will be increasingly important for marketers to offer meat from sustainable sources.

With the vast majority of Americans continuing to choose meat and meat-based products as their main protein source, Packaged Facts estimates the overall sales of refrigerated meals and meat to approach $31 billion by 2018. Consumers will continue to diversify the retail outlets where they shop to include more locally sourced products as well as products that are perceived to be healthier.

Scope and Methodology

Branded Refrigerated Meats and Meals: U.S. Market Trends products sold through all types of retail outlets, including supermarkets, discount stores and supercenters, warehouse clubs, and mass merchandisers, as well as convenience stores, drugstores, health and natural food stores, dollar stores, farms and farmers markets.

Market estimates within this report were based on both public and syndicated data sources. Packaged Facts has analyzed available sales and trend data, together with information pertaining to those products that move through unmonitored outlets, to estimate the total size of the market for branded refrigerated meals and meat.

Primary data sources include:
  • SymphonyIRI sales tracking through U.S. supermarkets and grocery stores, drugstores, and mass merchandisers (including Target, Kmart, and Walmart) with annual sales of $2 million or more.
  • U.S. Census Bureau retail food sales data from the Economic Census surveys, annual retail channel sales, non-employer statistics.
  • U.S. Bureau of Economic analysis annual estimates for consumer spending by food type
  • Major food and beverage retailer annual reports for individual retailer sales
  • Publicly available data from other industry sources including trade associations and publications
The consumer demographics analysis was developed using data from the Experian Marketing Services, Fall 2013 Simmons NCS Adult Study 12- Month. Base: Population.

Packaged Facts also draws on a proprietary national online consumer survey conducted in April/May of 2014.

Information on new product introductions was derived from examination of the retail milieu and from relevant trade, business, and government sources, including company literature and annual reports

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