Author: Mintel Group Ltd.
Last saved by: HTTP server

Red Meat - US - December 2008

SCOPE AND THEMES
What you need to know
Definition
Data sources
Sales data
Consumer data
Abbreviations and terms
Abbreviations
Terms
EXECUTIVE SUMMARY
Challenges abound
Foreign trade helps U.S. suppliers sell more
Restaurants compete for shrinking food dollars
Declines in 2005 set market back for years
Economy and food budgets shrink
Changing health trends affect both amount and type of red meat demand
Recalls keep beef in the news
Beef packing consolidation continues and draws fire
FDM frozen and refrigerated red meat
Innovations benefit producers and consumers
Consumer usage and preparation of red meat
Consumer purchasing and knowledge
Consumer attitudes toward meat
Black respondents’ views on beef differ from whites’ and Hispanics’
Hispanics hold “greener” views on meat
INSIGHTS AND OPPORTUNITIES
Emphasize tenderness in beef
Promote the cost savings of pre-seasoned, marinated, and convenience meats
Remind consumers of the “hidden costs” of eating out to encourage home cooking
Liven up circulars offering meals for under $10
If you want natural and organic red meat, eat at home
The price is right for pork
FAST FORWARD TRENDS
 SIMPLICITY AND CONVENIENCE
What it’s about
What we’ve seen
Implications
 TRADING UP, TRADING DOWN, TRADING OVER
What it's about
What we've seen
Implications
MARKET SIZE AND FORECAST
Key points
Diet trends, food safety concerns affect sales
Figure 1: Total U.S. sales and forecast of red meat, at current prices, 2003-13
Figure 2: Total U.S. sales and forecast of red meat, at inflation-adjusted prices, 2003-13
Wal-Mart sales
COMPETITIVE CONTEXT
Key points
Prices influence choice of meat
Figure 3: Protein sources’ retail and wholesale prices, 2003-09
Per capita consumption of beef on the decline, while pork rises slightly
Figure 4: Per capita red meat consumption, 2006 and 2008
Geopolitical matters impact foreign trade activity
Red meat imports on the decline due to labeling requirements and low supply
Figure 5: Beef and veal imports, 2005-07 and January-September 2007 and January-September 2008
Exports struggling to top pre-2003 levels
Figure 6: Beef and veal exports, 2005-07 and January-September 2007 and January-September 2008
Import levels of Mexican pork in jeopardy
Figure 7: Pork imports, 2005-07 and January-September 2007 and January-September 2008
Relations with Mexico and Russia have potential to affect pork exports
Figure 8: Pork exports, 2005-07 and January-September 2007 and January-September 2008
Restaurants and retail competing for food dollars
Competing with a meatless lifestyle
SEGMENT PERFORMANCE
Key points
Market has yet to recover from 2005 setback
Figure 9: U.S. sales and forecast of red meat at current prices, by segment, 2003-13
Figure 10: U.S. sales of red meat, by segment, 2006 and 2008
SEGMENT PERFORMANCE—BEEF
Key points
BSE setback and recalls continue to hamper growth
Muscle cuts slightly outweigh ground beef
Price increases drive sales
Figure 11: U.S. sales and forecast of beef, 2003-13
SEGMENT PERFORMANCE—PORK
Key points
Lower demand and prices
Several new natural pork lines introduced
Figure 12: U.S. sales and forecast of pork, 2003-13
SEGMENT PERFORMANCE—OTHER MEATS
Key point
Lunchmeat gains dampened by mutton/goat/game declines
Figure 13: U.S. sales and forecast of other meats*, 2003-13
RETAIL CHANNELS
Introduction
Key point
Supercenters grab share from supermarkets
Figure 14: U.S. retail sales of red meat, fish, and poultry, by retail channel, 2006 and 2008
RETAIL CHANNELS—SUPERMARKETS AND SPECIALTY FOOD STORES
Key points
The $10 meal
Promoting private label meat
Figure 15: U.S. sales of meat, fish/seafood, and poultry at supermarkets and specialty food stores, 2003-08
RETAIL CHANNELS—SUPERCENTERS AND WAREHOUSE CLUBS
Key points
Strong sales for low price destination
Dinners under $10 and daily meal suggestions online
Supercenters downsize
Figure 16: U.S. sales of meat, fish/seafood, and poultry at supercenters and warehouse clubs, 2003-08
RETAIL CHANNELS—PACKAGED RED MEAT ONLY
Key point
Share smaller but growth in mass channels still evident
Private labels versus case ready in refrigerated meat section
Figure 17: FDMx sales of packaged red meat, by retail channel, 2006 and 2008
Figure 18: FDMx sales of packaged red meat at food stores, 2003-08
Figure 19: FDMx sales of packaged red meat at drug stores and mass merchandisers, 2003-08
MARKET DRIVERS
Key points
Economy tightens food budgets
Figure 20: Seasonally adjusted unemployment rate, 16 years and older, by month, 2000-08
Beef recalls affect more than beef
Demand for natural and organic meat drives pricing
LEADING COMPANIES
Key points
Consolidation of beef industry continues
Shortages of kosher beef
High feed prices making meat production unprofitable
 MAJOR SUPPLIERS
Tyson Foods Inc.
Cargill Meat Solutions
Smithfield Foods
Swift & Company
 NATURAL AND ORGANIC PRODUCERS
Coleman Natural Foods
Laura’s Lean Beef
Niman Ranch
BRAND SHARE—FDMX SALES OF REFRIGERATED AND FROZEN PACKAGED MEAT
Introduction
Key points
Recalls affect largest FDM supplier
Natural suppliers’ sales jump
Mid- and value-priced branded frozen meats grow
Figure 21: FDMx brand sales of refrigerated and frozen packaged meats in the U.S., 2007 and 2008
BRAND QUALITIES
Key points
Bubba Burger
INNOVATION AND INNOVATORS
New cuts of beef with catchy names lure cash-strapped consumers
Angus comes to private label
Gluten-free
Uncured increasingly appearing
ADVERTISING AND PROMOTION
Key points
Message: Red meat as a luxury
Figure 22: Omaha Steaks television ad, 2007
Figure 23: Certified Angus Beef television ad, 2008
Message: If it’s not quick, at least it’s easy to prepare
Figure 24: H.E.B Fully cooked Brisket television ad, 2007
Message: Red meat can be healthy
Figure 25: Yama Beef television ad, 2008
Message: New cuts mean steak is still an option even when money’s tight
USAGE
Key point
Despite rising prices, red meat is a key part of most diets
Figure 26: How often red meat/poultry/fish/seafood are eaten, by type, September 2008
Dollar and value menus may beat out cooking burgers at home
Figure 27: Incidence of household use of red meat, by household income, April 2007-June 2008
Consumers shy away from cooking trial and error with expensive cuts
Figure 28: Types of red meat eaten, at home vs at restaurants, September 2008
Older adults more likely to include red meat in their meals at home, but not when dining out
Figure 29: Average number of meals eaten per month that include red meat, at home vs at a restaurant, by gender, age, race/Hispanic origin, region and presence of children, September 2008
HOW MEAT IS PREPARED
Grilling is preparation of choice for beef
Figure 30: How red meat/poultry/fish/seafood is prepared, by type, September 2008
Men prefer the grill and the microwave for preparation
Figure 31: How beef is prepared, by gender, September 2008
Older consumers more likely to prefer their meat medium rare
Figure 32: Preferences for red meat doneness, by age, September 2008
PURCHASE AND CONSUMPTION
Female shoppers suffer sticker shock
Figure 33: Purchase and consumption behaviors regarding red meat, by gender, September 2008
Younger consumers need to see the benefits of eating red meat
Figure 34: Purchase and consumption behaviors regarding red meat, by age, September 2008
Celebrity tie-ins may help to educate consumers
Figure 35: Purchase and consumption behaviors regarding red meat, by household income, September 2008
ATTITUDES AND MOTIVATIONS
Older consumers least confident in safety of food supply
Figure 36: Attitudes regarding red meat and food safety, by age, September 2008
Chicken cited as posing greatest risk of causing illness
Figure 37: Attitudes and opinions regarding red meat/pork in comparison to other meat types, September 2008
RACE AND HISPANIC ORIGIN
Key points
Whites significantly more likely to use beef
Figure 38: Incidence of household use of red meat, by race/Hispanic origin, April 2007-June 2008
Black respondents’ preference for oven cooking may be tied to quality of meat
Figure 39: How beef is prepared, by race/Hispanic origin, September 2008
Black respondents much more likely to prefer their meat “well done”
Figure 40: Preferences for red meat doneness, by race/Hispanic origin, September 2008
Hispanics more open to meat alternatives
Figure 41: Purchase and consumption behaviors regarding red meat, by race/Hispanic origin, September 2008
Black respondents not convinced that red meat is a healthy option
Figure 42: Attitudes regarding health, diet and red meat, by race/Hispanic origin, September 2008
Black respondents least likely to doubt safety of food systems
Figure 43: Attitudes regarding food safety and environmental concerns, by race/Hispanic origin, September 2008
CLUSTER ANALYSIS
The Simply Red
Who they are
Opportunity
Big Reds
Who they are
Opportunity
Light Reds
Who they are
Opportunity
Cluster characteristics
Figure 44: Red meat clusters, September 2008
Figure 45: How often red meat is eaten, by cluster, September 2008
Figure 46: How red meat is prepared for home consumption, by cluster, September 2008
Figure 47: Attitudes regarding red meat, by cluster, September 2008
Figure 48: Types of red meat typically eaten at home, by cluster, September 2008
Figure 49: Types of red meat typically eaten at restaurants, by cluster, September 2008
Figure 50: Preferences regarding beef preparation, by cluster, September 2008
Figure 51: Purchase and consumption behaviors regarding red meat, by cluster, September 2008
Figure 52: Attitudes regarding diet, health and red meat, by cluster, September 2008
Cluster demographics
Figure 53: Red meat clusters, by gender, September 2008
Figure 54: Red meat clusters, by age, September 2008
Figure 55: Red meat clusters, by household income, September 2008
Figure 56: Red meat clusters, by race, September 2008
Figure 57: Red meat clusters, by Hispanic origin, September 2008
Cluster methodology
IRI/BUILDERS—KEY HOUSEHOLD PURCHASE MEASURES
 CONSUMER INSIGHTS—RED MEAT
 FRANKFURTERS
Household purchase activity
Brand map
Figure 58: Brand map, selected brands of frankfurters, buying rate, by household penetration, 2007*
Brand leader characteristics
Key purchase measures
Figure 59: Key purchase measures for the top brands of frankfurters, by household penetration, 2007*
 OVERVIEW OF REFRIGERATED MEAT/POULTRY PRODUCTS PURCHASES
 REFRIGERATED UNCOOKED MEATS
Household purchase activity
Brand map
Figure 60: Brand map, selected brands of refrigerated uncooked meats, buying rate, by household penetration, 2007*
Brand leader characteristics
Key purchase measures
Figure 61: Key purchase measures for the top brands of refrigerated uncooked meats, by household penetration, 2007*
 OVERVIEW OF LUNCHEON MEATS PURCHASES
 REFRIGERATED SLICED LUNCHMEAT
Household purchase activity
Brand map
Figure 62: Brand map, selected brands of refrigerated sliced lunchmeat, buying rate, by household penetration, 2007*
Brand leader characteristics
Key purchase measures
Figure 63: Key purchase measures for the top brands of refrigerated sliced lunchmeat, by household penetration, 2007*
 REFRIGERATED NON-SLICED LUNCHMEAT
Household purchase activity
Brand map
Figure 64: Brand map, selected brands of refrigerated non-sliced lunchmeat, buying rate, by household penetration, 2007*
Brand leader characteristics
Key purchase measures
Figure 65: Key purchase measures for the top brands of refrigerated non-sliced lunchmeat, by household penetration, 2007*
APPENDIX: IRI/BUILDERS PANEL DATA DEFINITIONS
IRI Consumer Network Metrics
APPENDIX: OTHER USEFUL CONSUMER TABLES
Household consumption of red meat
Figure 66: Incidence of household use of red meat, by age, April 2007-June 2008
Attitudes regarding health, diet and red meat
Figure 67: Attitudes regarding health, diet and red meat, by age, September 2008
Attitudes regarding red meat and the environment
Figure 68: Attitudes regarding red meat and environmental concerns, by age, September 2008
APPENDIX: LAMB AND MUTTON IMPORTS/EXPORTS
Lamb
Figure 69: Lamb imports, 2005-07 and January-September 2007 and January-September 2008
Figure 70: Lamb exports, 2005-07 and January-September 2007 and January-September 2008
Mutton
Figure 71: Mutton imports, 2005-07 and January-September 2007 and January-September 2008
Figure 72: Mutton exports, 2005-07 and January-September 2007 and January-September 2008
APPENDIX: TRADE ASSOCIATIONS

This report is supplied in accordance with Mintel's terms and conditions.  
© Mintel Group Ltd.