After the first half of 2024 concluded, the market research company Midan Marketing, cited by MeatPoultry, released an update on trends, exploring how consumer trend predictions from December have materialized so far.

Inflation Continues to Affect the Market

Price remains the most important factor for consumers as inflation continues to impact the market. According to the Consumer Price Index from May 2024, consumer prices rose by 3.3% from a year ago, on an adjusted basis. Meanwhile, food prices increased by 2.1%.

"Although these statistics indicate that inflation is technically decreasing, it is difficult to reconcile this with the ongoing sticker shock at the grocery store; shoppers continue to feel the pressure on their wallets," said Midan Marketing.

Inflation affects more than just retail prices; rising prices at quick-service restaurants make "drive-thru dining" a luxury for some, the report says. Over the past 10 years, prices at quick-service restaurants have increased by an average of 60%.

According to a survey by Lending Tree, three out of four consumers typically eat fast food at least once a week, but 62% say they are eating out less due to rising prices.

As consumers begin to gravitate towards more home-cooked meals, retailers and processors can market the value of their products to attract consumer attention.

Key Roles

Midan's research reveals that decision-making in the case of meat involves more than just price. Midan found that, although price is at the forefront of the value equation for beef, other attributes such as quality, brand, claims, nutrition, and sustainability also play a key role.

One claim that is rapidly gaining momentum is "Certified Regenerative Organic," which saw a 39% increase in unit growth year-over-year by the end of 2023. However, sales of other sustainability-related certifications have started to decline, Midan noted. Sales of organic products decreased by 4%.

Not only is the popularity of certain claims changing, but so is consumer understanding of sustainability-based claims.

A Shift

Previously, in a 2021 study, Midan found that consumers primarily associated sustainably raised meat with animal welfare and only secondly with environmental issues.

However, Midan's 2023 research revealed a shift in understanding, as now nearly a third of meat consumers said they primarily associate sustainable meat and poultry with environmental issues such as lower impact, reduced resources, and higher consciousness.

Consumers still refer to welfare issues, but these are no longer at the top of the list.

Midan's Meat Consumer Segmentation 3.0 research found that sustainability enthusiasts represent a group of consumers who prioritize sustainability when buying meat and are willing to pay more for products that support sustainability.

Only 17% of consumers surveyed at that time fell into this group. (Photo: Dreamstime)