Poultry - US

• How much concern is there about food safety?
• How much interest is there in packaging options like recipe labels or individual-sized chicken portions?
• Which marketing claims do respondents look for when shopping and what would they like to see?
• Which kinds of value added poultry products are popular with consumers and which ones have room to expand?
• How do poultry consumers differ from each other and how does their interest in new products differ?

SCOPES AND THEMES

What you need to know

Definition

Data sources

Sales data

Consumer survey data

Abbreviations and terms

EXECUTIVE SUMMARY

Market at a glance

Packaged poultry sales are meeting consumer needs

Highly fragmented market lead by Tyson and private labels

Supermarkets eclipse other outlets in the poultry market

Incidence and frequency highest among under-35s and households with kids

Opportunity to create value added poultry appealing those over age 55

Poultry has status with consumers

Consumers choose poultry in part based on claims made, and manufacturers are listening

Ethnic consumers of poultry products

MARKET SIZE AND FORECAST

Key points

Higher food costs put a small dent in poultry consumption in 2006-08

Value added private label is key for future growth

Figure 1: Total U.S. retail sales of poultry, at current prices, 2003-13

Figure 2: Total U.S. retail sales of poultry, at inflation-adjusted prices, 2003-13

Wal-Mart sales of frozen poultry

COMPETITIVE CONTEXT

Key points

Figure 3: Poultry consumption, 2006-08

Figure 4: Protein sources’ retail and wholesale prices, 2004-09

Market saturation makes growth a challenge

Figure 5: Going up: Chicken as a percentage of overall meat, poultry and fish consumption, 1960-2003

Poultry consumption is flat although turkey could grow

OVERALL SEGMENT PERFORMANCE

Key points

Figure 6: Sales of poultry, segmented by type, 2006 and 2008

SEGMENT PERFORMANCE—CHICKEN PARTS

Key points

Ethnic flavors

Affordable organic

Figure 7: Sales of chicken parts, 2003-13

SEGMENT PERFORMANCE—WHOLE CHICKEN

Key points

Consumers like the value, but could use help with what to do with a whole chicken

Figure 8: Sales of fresh and frozen whole chicken, 2003-13

SEGMENT PERFORMANCE—OTHER POULTRY

Key points

Precooked convenience more appealing

Figure 9: Sales of other poultry, 2003-13

AN IRI SNAPSHOT—FDMX PACKAGED POULTRY SALES

Key points

Figure 10: FDMx sales of poultry, segmented by type, 2006 and 2008

PROCESSED FROZEN POULTRY

Key points

New formats for “other poultry” spurs market gain

Easy preparation spurs growth for chicken

Figure 11: FDMx sales of processed frozen poultry, segmented by type, 2003-08

IQF FROZEN POULTRY

Key points

More eating occasions increases consumption

Figure 12: Per capita consumption of turkey, 1970-2007

Innovation needed for future growth

Figure 13: FDMx sales of IQF poultry, segmented by type, 2003-08

REFRIGERATED POULTRY

Key points

Figure 14: FDMx sales of refrigerated poultry, segmented by type, 2003-08

RETAIL CHANNELS

Introduction

Key points

Convenience channels can stimulate sales through single-serve selection

Figure 15: U.S. retail sales of red meat, fish, and poultry, by retail channel, 2006 and 2008

RETAIL CHANNELS—SUPERMARKETS

Supercenters and warehouse clubs stealing share

Merchandising convenient solutions is key to future growth

Figure 16: U.S. supermarket sales of red meat, fish, and poultry, at current and constant prices, 2003-08

RETAIL CHANNELS—NATURAL CHANNEL/SPINS

Figure 17: Natural product supermarket retail sales of poultry, at current and constant prices, 2006-08

Natural channel sales of poultry by organic

Figure 18: Natural product supermarket retail sales of poultry, by organic, 2006-08

MARKET DRIVERS

Key points

Consumers look for purity claims when shopping

Figure 19: Attitudes towards packaging, hormones, and avian flu, by gender, September 2008

Figure 20: Important marketing attributes for poultry, September 2008

Economic challenges lead to more meals at home

Figure 21: Average price of meal for a family of four at selected restaurant types, 2005-07

Figure 22: Food sales at home and away from home, 2005-07

Private label growing faster than average in FDMx

LEADING COMPANIES AND BRAND SHARE

Key points

Market leader Tyson losing share

Cargill climbing the ranks

Private label—the second largest “brand”

Figure 23: Manufacturer sales of poultry in the U.S., 2007 and 2008

Figure 24: New product introductions of poultry in the U.S., 2003-08

BRAND QUALITIES

Perdue targets mom with dinner time solutions

Foster Farms offers wellness-oriented buyers peace of mind

Traditional burger stops target chicken market

INNOVATION AND INNOVATORS

Strong move to increase claims on the label

Figure 25: Top claims for new poultry products, 2003-08

Products for time-constrained consumers

Purity claims gaining momentum

ADVERTISING AND PROMOTION

OVERVIEW

Building the brand

Barber Foods Stuffed Chicken Breasts

Figure 26: Barber Foods, Wife rescues husband from refrigerator coma, 2008

Tyson

Figure 27: Tyson, Family stands on chairs & thanks mom, 2008

Brand differentiation

Foster Farms Chicken

Figure 28: Foster Farms, Arkansas is the opposite of California, 2008

Figure 29: Foster Farms, Chickens get car towed/New tagline, 2008

Solutions in the kitchen

Perdue

Figure 30: Perdue, Jim & family confronts woman about roasterphobia, 2008

Figure 31: Perdue, Jim reads Goldilocks book, 2008

CONSUMERS TALK ABOUT POULTRY VS. BEEF, PORK AND SEAFOOD

Figure 32: Incidence and frequency of eating poultry vs. beef, pork and seafood, September 2008

Figure 33: How meat is prepared, by type of meat, September 2008

Figure 34: Views about poultry vs. beef, pork and seafood, September 2008

CONSUMPTION OF CHICKEN OR TURKEY IN THE PAST WEEK

Figure 35: Consumption of chicken or turkey in the past week, by age, September 2008

CONSUMPTION OF CHICKEN OR TURKEY AT HOME

Figure 36: Consumption of chicken or turkey at home in the past week, by age, September 2008

CONSUMPTION OF CHICKEN OR TURKEY AWAY FROM HOME

Figure 37: Consumption of chicken or turkey away from home in the past week, by age, September 2008

PLACE WHERE CHICKEN OR TURKEY IS EATEN AWAY FROM HOME

Figure 38: Place where chicken or turkey is eaten away from home, by age, September 2008

ATTITUDES TOWARDS PACKAGING, HORMONES AND AVIAN FLU

Figure 39: Attitudes towards packaging, hormones, and avian flu, by age, September 2008

ATTITUDES TOWARDS VALUE ADDED PRODUCTS

Rotisserie chicken

Other value added poultry

Figure 40: Attitudes towards value added products, September 2008

Figure 41: Attitudes towards value added products, by age, September 2008

RACE AND ETHNICITY

Figure 42: Consumption of chicken or turkey in the past week, by race/ethnicity, September 2008

Figure 43: Consumption of chicken or turkey at home in the past week, by race/ethnicity, September 2008

Figure 44: Place of purchase of chicken or turkey eaten at home, by race/ethnicity, September 2008

Figure 45: Consumption of chicken or turkey away from home in the past week, by race/ethnicity, September 2008

Figure 46: Place where chicken or turkey is eaten away from home, by race/ethnicity, September 2008

Figure 47: Attitudes towards packaging, hormones, and avian flu, by race/ethnicity, September 2008

Figure 48: Important marketing attributes for poultry, by race/ethnicity, September 2008

Figure 49: Attitudes towards value added products, by race/ethnicity, September 2008

APPENDIX: OTHER USEFUL CONSUMER TABLES

Incidence and frequency of poultry consumption

Figure 50: Frequency of eating poultry vs. beef, pork and seafood, by gender, September 2008

Consumption of chicken or turkey in the past week

Figure 51: Consumption of chicken or turkey in the past week, by income, September 2008

Figure 52: Consumption of chicken or turkey in the past week, by children in the household, September 2008

Place of purchase for chicken or turkey eaten at home

Figure 53: Place of purchase of chicken or turkey eaten at home, by age, September 2008

Figure 54: Place of purchase of chicken or turkey eaten at home, by income, September 2008

Figure 55: Place of purchase of chicken or turkey eaten at home, by region, September 2008

Figure 56: Place of purchase of chicken or turkey eaten at home, by children in the household, September 2008

Consumption of chicken or turkey away from home

Figure 57: Consumption of chicken or turkey away from home in the past week, by income, September 2008

Figure 58: Consumption of chicken or turkey away from home in the past week, by region, September 2008

Place where chicken or turkey is eaten away from home

Figure 59: Place where chicken or turkey is eaten away from home, by children in the household, September 2008

Attitudes towards value added products

Figure 60: Attitudes towards value added products, by children in the household, September 2008

APPENDIX: TRADE ASSOCIATIONS