Inflation takes a big bite out of the meat dollar in August

Consumers are feeling the pain and making changes to their restaurant engagement and grocery purchases, a survey of grocery shoppers suggests.

 

By Anne-Marie Roerink, National Provisioner

Sep 14, 2022

 

Food inflation remains extremely high and consumers are feeling the pain. They are making changes to their restaurant engagement as well as their grocery purchases, according to the August IRI survey of primary grocery shoppers.

 

·         When purchasing groceries, 85% of consumers shopped in person. Online shopping was near equally divided between click-and-collect (9%) and home delivery (6%). Delivery is more prevalent among Gen Z and younger Millennials, at 13%. Shoppers are not expecting a major change in their in-person versus online shopping: 4% expect they will buy all groceries online in the next few weeks and months, while 66% believe they will buy all groceries in person. The estimates among the remaining 30% range from expecting to buy most groceries to only some online.

·         81% of American households bought at least one restaurant meal in August, with the highest restaurant penetration among Gen X, at 85%. Takeout continues to be big, with 54% having ordered meals to go. Half of American households have eaten restaurant food on premise. Additionally, 20% have ordered from a restaurant for home delivery. Home delivery is much more popular among Gen Z and younger Millennials, at 31%. This means that restaurant meals are not off the table, but consumers are more strategic about when they eat out and what they order.

·         Spending continues to be affected by out-of-stocks, with shoppers mentioning examples ranging from carbonated drinks to eggs, milk and chicken. At the same time, when items are available for purchase, 42% stock up on staples out of concern for rising prices or the item being unavailable next time they shop. This may bring further imbalance to an already strained system and has prompted some retailers to re-instate purchase maximums on items such as chicken breasts once more.

·         89% of consumers remain worried about the elevated gasoline prices and 94% are concerned about food inflation. They list examples from departments across the store as being significantly more expensive. The list is led by eggs, but includes meat, produce, milk, snacks, paper products and more. Eight in 10 shoppers (78%) are making changes to their shopping choices due to increased prices. The most popular money-saving measure is looking for sales/deals more often (50%), followed by cutting back on non-essentials (41%), looking for coupons and buying store-brand items more often (31%, each). Despite the high gasoline prices, 15% switched some of their shopping to a lower-cost retailer and/or visit multiple stores to get the best deals. This cherry-picking behavior may be driven by 53% of consumers reporting that fewer of the items they are looking for are on sale and 50% feel that items are not discounted as much as they used to be.

·         IRI sales data corroborates this shifting in channel choices with traditional supermarkets having lost share this year in favor of value-based formats, including clubs and supercenters.

 

Prolonged supply chain, labor, transportation and weather challenges in combination with a sharpening consumer reactions to the high food inflation is resulting in an ever-changing nature of the marketplace, IRI, 210 Analytics and Marriner Marketing continue to team up to bring the latest trends and analysis relative to meat department sales, including fresh and processed items.

 

Inflation insights ...

 

Meat sales August 2022 ...

 

Assortment ...

 

Fresh meat by protein ...

 

Processed meat ...

 

Grinds ...

 

What’s next? ...

 

more, including tables, chart    

https://www.provisioneronline.com/articles/113350-inflation-takes-a-big-bite-out-of-the-meat-dollar-in-august