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Grocers can bolster category interest and activity by educating customers on the wide range of protein options.
Many consumers are still indulging in traditional bacon despite the health implications, while launches of products with better-for-you claims as well as convenience-oriented pre-cooked options are contributing to category expansion.
While the meat department remains one of the top reasons customers shop at supermarkets — with total sales of more than $45 billion, according to Nielsen Total Food View — it is also a segment that increasingly faces a challenging environment.
Along with the cultural pressure of consumers considering healthier eating, buying for smaller households and dining out with greater frequency is the emergence of fast-growing plant-based meat alternatives. Education may be the most effective way for retailers to counter these threats.
More than 85% of U.S. households bought some form of sausage over the last year and dollar and volume growth were up for both the dinner and breakfast segments, according to research from IRI, a Chicago-based market research firm.
But with the large base of Millennials and other younger shoppers increasingly seeking more stimulating and healthier varieties, it is becoming crucial for merchandisers to expand and enhance their product lines if they are to grow or even maintain activity.
During grilling season, retailers need to promote a range of traditional and value-added products. Retailers can spur greater sales by offering wide arrays of value-added meats for grilling, which responds to shoppers’ strong interest in convenience while also enabling supermarkets to leverage higher margin products.
Retailers are adjusting their merchandising strategies for health-oriented meat and poultry selections.
Value-added meats are becoming an increasingly powerful supermarket magnet for shoppers — and revenue. By offering selections from recipes that operators typically prepare in-store or at central locations, retailers are seeking to simplify meal preparation for time-pressed and convenience-oriented consumers while generating higher rings. And interest in the options is escalating.
Aggressive marketing will enable meat merchandisers to better counter the greater presence of plant-based alternatives.
Ground poultry has the potential for generating significantly greater meat department activity, but obstacles to expansion remain.
More than 90% of consumers surveyed purchased chicken at grocery store in past six months.
As a growing base of consumers is seeking seafood identified as sustainably sourced, retailers ranging from Whole Foods to Publix and more are heavily promoting those products in their seafood sections — with some making the whole department sustainable.
Fresh salmon is a top seller in supermarket seafood departments, and promoting its health benefits can boost sales higher.
