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Diving Briefs:
- Despite the constant consumer concerns about inflation, the Food Meat Department was elastic in 2024, according to the newly released FMI of the Food Industry Association. Fresh state report.
- In 2024, meat sales increased most of all fresh food categories, and according to the Circana data cited in the report, it increased by 4.7% to $ 105 billion. Agricultural products rose almost 4% to $ 93 billion.
- According to the FMI, FOODSERVICE used the retailer guests as a major differentiation factor, achieving record sales of $ 56 billion last year, the FMI pointed out.
Dive Insights:
As grocery stores strengthen their surrounding sales, the meat department appears as a category of shoppers in economic difficulties.
In the meat department, shoppers spent more money and bought more items last year. The report pointed out that the average expenditure is $ 16.12 per visit. The FMI says this statistics are evidence of the main role of meat in leading the loyalty of shopping among groceries.
In the meat department, inflation may have changed consumer purchases, but worrying about higher prices could not push shoppers. Instead, consumers have shifted to other meat, brand and channel cuts and devised at higher costs. The FMI said that the grocery store can use new flavors to consume transparency, environmentally friendly options and less protein options for less processed protein options.
The FMI has made a large number of meat purchases in the store, making it an area where online sales can be used more innovation. The Trade Group also mentioned inconsistency with local sourcing. 68%of the retailers surveyed provided local meat assortment, but only 46%said they were effective. These results suggest that groceries may require more powerful storytelling or clearer value suggestions to help consumers connect with these options.
Meanwhile, food service continues to gain momentum in the grocery industry as the unit and dollar sales of food services increased last year. According to the FMI, signature items such as Roti Cerie Chicken, Sandwich and Pizza are causing a trip to the food service department, FMI pointed out.
Food points are said to continue to invest in the department. According to the report, more than two-thirds (68%) of food retailers plans to increase the amount of space assigned to food services such as the freshly prepared Grab-DO option.
The status of the Fresh Report was derived from the 2025 edition of FMI’s The Food Retailing Industry Speak and “Power of” category reports and Circana data.
