The Fresh Meat Market in the U.S.: Beef, Chicken, Pork, Turkey and Lamb in Retail and Foodservice

Meat is one of the most dynamic commodities in the United States today. This is primarily due to the trend of adding value to livestock through organic, grass-fed, free-range and other farm practices, as well as the growing trend to brand customer-ready meat.

The Fresh Meat Market in the U.S.: Beef, Chicken, Pork, Turkey and Lamb in Retail and Foodservice provides in-depth analysis of the five leading meat categories—beef, chicken, lamb, pork and turkey—sold through retail and foodservice channels.

Looking at total U.S. meat dollar sales, the data for 2007 to 2008 displays the impact of the economy on meat purchases. From 2007 to 2008, chicken, often considered the affordable meat, experienced a 6.7% increase in dollar sales, while beef barely showed any growth. However beef is still the leader in a $142 billion market.

For retail, market size (current and projected) and composition data are provided for the five uncooked meat categories, as well as the numerous value-added positionings in which they compete. Scanner data allows for brand rankings and market share analysis. This report also examines the competitive landscape throughout the foodservice channel: suppliers and distributors of uncooked meat, branding trends, menu positionings and more.

Consumer usage data on meat, in general, and meat by category, as well as consumer opinions towards branding and value-added positionings is included. Other topics covered include regulatory, food safety, market drivers, trends in new products and marketing trends.

The report also provides profiles of the following marketers and producers: Tyson Foods, Inc., Cargill Meat Solutions, Smithfield Foods, Inc., JBS Swift & Co., Sysco Corp., Pilgrim’s Pride Corp., OSI Group LLC, National Beef Packing Co., LLC, Perdue Farms Inc., Hormel Foods Corp., along with several smaller but notable players such as Agri Beef Co., LLC, Albert’s Organics, Châtel Farms, Frontier Meats, and Tallgrass Beef Co.

Chapter 1: Executive Summary

The Products in This Report

Retail

Foodservice

Items Beyond the Scope of This Report

An Overview of Meat Packing and Packaging

Case-Ready Packages

Portion Control Packs

The Trend in Branding

Marketing Terms Used on Labels

Who Regulates U.S. Meat?

Standards for Meat Products

Grades for Meat Products

What’s on the Label?

Making Meat Labeling Mandatory

Mandatory Country-of-Origin Labeling Now in Effect

The Market

Total U.S. Meat Market Is Valued at $142.3 Billion in 2008

• Table 1-1: Total U.S. Meat Sales by Type, 2004-2008 (in billions of dollars)

Retail Sales Dip in 2008

• Figure 1-1: Total U.S. Retail Meat Sales, 2004-2008 (in billions of dollars)

Foodservice Dollar Sales Stay High Because of Price Increases

• Figure 1-2: Total U.S. Foodservice Meat Sales, 2004-2008 (in billions of dollars)

Future Growth Is Slow and Steady

• Table 1-2: Projected Total U.S. Meat Sales by Type, 2008-2013 (in billions of dollars)

Global Meat Trading

Imports

• Figure 1-3: Global Imports of Major Meats, 2004-2009 (in million tons)

Exports

• Figure 1-4: Global Exports of Major Meats, 2004-2009 (in million tons)

U.S. Meat Exports

• Figure 1-5: U.S. Exports of Major Meats, 2004-2009 (in million tons)
  
• Figure 1-6: U.S. Exports of Major Meats, percent share, 2008 (preliminary by USDA)

The Marketers

Meat Marketer Overview

Varied U.S. Marketers

Acquisitions and Consolidations

JBS Wants More U.S. Beef

Meyer Natural Angus Gets Laura’s and Coleman

Butterball Leaves ConAgra and Is Now a Joint Venture

China Invests in U.S. Pork

Flying the Coup

Pilgrim’s Pride Feels Shame

Tyson Wants to Grow

Kosher Complications

Top-10 U.S. Meat Marketers Based on 2007 Figures

• Table 1-3: Top-10 U.S. Meat Marketers, 2008

The Retail Scene

Shopping Options Are Plentiful

Supermarkets and Mass Merchandisers Carry the Most Meat

Conventional Supermarkets Are all About Meat

• Figure 1-7: Share of U.S. Retail Meat Sales, by channel, 2008

Self-Serve Refrigerated Meat Case

• Figure 1-8: Share of U.S. Retail Self-Serve Refrigerated Meat Sales, by variety, 2008

The Butcher Counter Is Mostly Seafood

• Figure 1-9: Share of U.S. Retail Butcher-Counter Refrigerated Meat Sales, by variety, 2008

The Foodservice Channel

Slow Times in Foodservice

Where Foodservice Operators Get Their Meat

Where Do the Distributors Get Their Meat?

Meat Promotions and Cost-Savings Tactics

The Consumer

Consumer Overview

USDA Consumption Data

Per Capita Consumption Overview

• Table 1-4: U.S. Per Capita Consumption of Meat (boneless, trimmed), 1996-2006 (By variety, in pounds consumed per person)

New Products and Trends

Where Opportunities Exist

Livestock and Processing Claims

Branding

Minimal Ingredient Addition

Cut Variation

Case-Ready Packaging

Overview of New Product Trends

Chapter 2: The Products

Key Points

Products in This Report

Scope of the Report

Retail

Foodservice

Items Beyond the Scope of This Report

Methodology

Primary Research

Secondary Research

From Livestock to Meat

What Is Livestock?

Meat Categories

Beef

• Figure 2-1: U.S. Beef Cuts

Premium Varieties of Beef

Chicken

Lamb

• Figure 2-2: U.S. Lamb Cuts

Pork

• Figure 2-3: U.S. Cuts of Pork

Premium Varieties of Pork

Turkey

Livestock Marketing

Supply Chain

• Figure 2-4: U.S. Meat Supply Chain

Product Packaging and On-Pack Descriptors

Meat Packing Plant—Politically Correct for Slaughterhouse

Case-Ready Packages

Lid-Sealed Trays

An Ode to Overwrap

Individual Servings for Portion Control

The Trend in Branding

Marketing Terms Used on Labels

Basted, or Self-Basted

Certified

Certified Humane

Cooking Instructions

Enhanced

Ethical

Free Range or Free Roaming

Fresh Poultry

Grass-Fed

Natural

Naturally Raised

Never Ever 3

Organic

Oven Ready

Value-Added

Applying Livestock Practices to Make Claims

Regulatory Agencies

Who Regulates U.S. Meat?

Standards for Meat Products

Grades for Meat Products

• Table 2-1: Beef Quality Grades
  
• Table 2-2: Lamb Quality Grades

Pork Quality Grades

Poultry Quality Grades

What’s on the Label?

From Voluntary to Mandatory

Why the Change?

More Proposed Ruling Specifics

Country-of-Origin Labeling

COOL Loop Holes

A Walk Through Time

Other Exemptions

Costs Involved

COOL’s Impact on the Canadian Meat Industry

Canadians Are Not Taking the Changes Quietly

Livestock Classifications Under COOL

USDA Holds Hearing on Irradiation of Beef

Heard at the Meeting

USDA Scientists Help Improve Beef Safety

There Will Be Change with USDA Leadership

FDA Takes First Step in Approving Genetically Engineered Meat

Clones vs. Genetically Engineered

Consumer Groups Question Completeness

Product Safety

The Ins and Outs on Meat Recalls

Identifying Adulterated and Misbranded Meat

Three Classes of Recalls

Largest Beef Recall in History

AMI’s Statement

USDA Beefs Up Efforts

Recalls that End In Closure

Lessons to Be Learned

The Topps Scenario

The Nebraska Beef Recall

A Troublesome Past

Whole Foods Goes Into Damage Control

Are You Prepared for a Product Recall?

Sampling of Meat Recalls

• Table 2-3: A Sampling of Meat Recalls, 2008

Action Steps to Prevent Meat Recalls

Traceability Is Necessary for Meat Safety

Traceability Technological Advancements

Making Inspection Reports Readily Available

Naming Names

Chapter 3: The Market

Key Points

Total U.S. Meat Market Is Valued at $142.3 Billion

On a Global Basis

Pricier Meats Show Greatest Drop, While Chicken Booms

• Figure 3-1: Total U.S. Meat Sales, 2004-2008 (in billions of dollars)
  
• Figure 3-2: Total U.S. Meat Sales by Type, 2004-2008 (in billions of dollars)
  
• Table 3-1: Total U.S. Meat Sales by Type, 2004-2008 (in billions of dollars)

Retail Sales Dip in 2008

• Figure 3-3: Total U.S. Retail Meat Sales, 2004-2008 (in billions of dollars)
  
• Figure 3-4: Total U.S. Retail Meat Sales by Type, 2004-2008 (in billions of dollars)
  
• Table 3-2: Total U.S. Retail Meat Sales by Type, 2004-2008 (in billions of dollars)

Foodservice Dollar Sales Stay High Because of Price Increases

• Figure 3-5: Total U.S. Foodservice Meat Sales, 2004-2008 (in billions of dollars)
  
• Figure 3-6: Total U.S. Foodservice Meat Sales by Type, 2004-2008 (in billions of dollars)
  
• Table 3-3: Total U.S. Foodservice Meat Sales by Type, 2004-2008 (in billions of dollars)

Market Composition

Beef Is More than Half of All Meat Dollar Sales

• Table 3-4: Total U.S. Meat Sales by Type and Channel, 2008 (percent share)
  
• Figure 3-7: Total U.S. Meat Sales by Type, 2008 (percent share)

Extra Data on Foodservice Beef and Chicken Sales

Pork and Turkey Driven by Retail Sales; Chicken by Foodservice

• Figure 3-8: Total U.S. Retail Meat Sales by Type, 2008 (percent share)
  
• Figure 3-9: Total U.S. Foodservice Meat Sales by Type, 2008 (percent share)

Share of Retail Merchandising Space

• Figure 3-10: Total U.S. Retail Share of the Self-Serve Refrigerated Case, 2008 (percent share)

Butcher Counter Mostly Non-Meat

• Figure 3-11: Total U.S. Retail Share of the Butcher Counter, 2008 (percent share)

A Closer Look at Refrigerated Retail Beef Sales

• Figure 3-12: Total U.S. Refrigerated Retail Beef Sales by Cut, 2008 (percent share)

Chicken at Retail Is All About Breasts

• Figure 3-13: Total U.S. Refrigerated Retail Chicken Sales by Cut, 2008 (percent share)

Pork at Retail is Mostly Chops

• Figure 3-14: Total U.S. Refrigerated Retail Pork Sales by Cut, 2008 (percent share)

Gobbling Up Turkey

• Figure 3-15: Total U.S. Refrigerated Retail Turkey Sales by Cut, 2008 (percent share)

Projected Growth

Future Growth Is Slow and Steady

• Figure 3-16: Projected Total U.S. Meat Sales, 2009-2013 (in billions of dollars)
  
• Figure 3-17: Projected Total U.S. Meat Sales by Type, 2009-2013 (in billions of dollars)
  
• Table 3-5: Projected Total U.S. Meat Sales by Type, 2009-2013 (in billions of dollars)

Retail Sales Will Be Strongest for Poultry

• Figure 3-18: Projected Total U.S. Retail Meat Sales, 2009-2013 (in billions of dollars)
  
• Figure 3-19: Projected Total U.S. Retail Meat Sales by Type, 2009-2013 (in billions of dollars)
  
• Table 3-6: Projected Total U.S. Retail Meat Sales by Type, 2009-2013 (in billions of dollars)

Foodservice Dollar Sales Strong Due to Inflated Menu Prices

• Figure 3-20: Projected Total U.S. Foodservice Meat Sales, 2009-2013 (in billions of dollars)
  
• Figure 3-21: Projected Total U.S. Foodservice Meat Sales by Type, 2009-2013 (in billions of dollars)
  
• Table 3-7 :Projected Total U.S. Foodservice Meat Sales by Type, 2009-2013 (in billions of dollars)

Imports and Exports: A Global Overview

Global Imports

• Figure 3-22: Global Imports of Major Meats, 2004-2009 (in thousands of tons)
  
• Figure 3-23: Global Imports of Meat by Type, 2004-2009 (in thousands of tons)
  
• Table 3-8: Global Imports of Major Meats, by Type, 2004-2009 (in millions of tons)

Global Exports

• Figure 3-24: Global Exports of Major Meats, 2004-2009 (in thousands of tons)
  
• Figure 3-25: Global Exports of Meat by Type, 2004-2009 (in thousands of tons)
  
• Table 3-9: Global Exports of Major Meats, by Type, 2004-2009 (in millions of tons)

U.S. Meat Exports

• Figure 3-26: U.S. Exports of Major Meats, 2004-2009 (in thousands of tons)
  
• Figure 3-27: U.S. Exports of Meat, by Type, 2004-2009 (in thousands of tons)
  
• Table 3-10: U.S. Exports of Major Meats, by Type, 2004-2009 (in thousands of tons)
  
• Figure 3-28: U.S. Exports of Major Meats, 2004-2009 (percent share of global exports)
  
• Figure 3-29: U.S. Exports of Major Meats, by Type, 2004-2009 (percent share of global exports)
  
• Table 3-11: Global Exports of Major Meats, by Type, 2004-2009 (percent share of global exports)
  
• Figure 3-30: U.S. Exports of Major Meats, percent share, 2008 (preliminary by USDA) (percent)
  
• Figure 3-31: U.S. Exports of Beef and Veal, percent share, 2008 (preliminary by USDA) (percent)
  
• Figure 3-32: U.S. Exports of Pork, percent share, 2008 (preliminary by USDA) (percent)
  
• Figure 3-33: U.S. Exports of Poultry, percent share, 2008 (preliminary by USDA) (percent)

Category-by-Category Export Overview

Beef Export Forecast

About the European Union Ban on Beef with Hormones

Pork Export Forecast

Poultry Export Forecast

Chapter 4: The Marketers

Key Points

Meat Marketer Overview

Varied U.S. Marketers

Threats Marketers Face

Comments from Meat Authorities

The American Lamb Board

American Meat Institute

National Cattlemen’s Beef Association

National Chicken Council

National Pork Board

National Turkey Federation

Financial Headliners

Big Beef Shake-Up

But . . . It Does Not Look Like the JBS Acquisition will Happen

The Smithfield Deal Gets Done

What if the JBS-National Beef Deal Ever Happens?

Branded Beef Consolidations

Turkey Consolidations

Pork Processing Education

Chicken Challenges

Poultry Stock Plummets

Growing Globally

Kosher Complications

Leading U.S. Meat Marketers

Top-10 Based on 2007 Figures

• Table 4-1: Top-10 U.S. Meat Marketers, 2008

And Then There Were Three

• Table 4-2: Top-Five U.S. Beef Marketers, 2008

Could Three Become Two in Chicken?

• Table 4-3: Top-Three U.S. Chicken Marketers, 2008

Moving Up in the Lamb Business

• Table 4-4: Top-Three U.S. Lamb Marketers, 2008

Pork Practicalities

• Table 4-5: Top-Three U.S. Pork Marketers, 2008

Thankful for the Turkey

• Table 4-6: Top-Three U.S. Turkey Marketers, 2008

Marketers in FDM

Refrigerated Brands Challenging to Track

• Table 4-7: IRI-Tracked Retail Sales of Refrigerated Meat, 2004-2008 (in millions of dollars)

Small, Newer Players Show Double-Digit Growth

Tyson Sales Data Extremely Misleading

Frozen Sales Data Too Encompassing

• Table 4-8: IRI-Tracked Retail Sales of Frozen Meat, 2004-2008(in millions of dollars)

Cargill Shines in the Freezer

Innovative Burgers Are Flanders’ Strength

A Detailed Look at the Top 10

Background on the Leaders

Certified Angus Beef

Competitive Profile: Tyson Foods, Inc., Springdale, Arkansas

Company Overview

Strategically Positioned for Success

Update on Business Ventures

Changes in Beef Business

Converting By-Products Into High-Margin Initiatives

Safety First

Tyson Fresh Meats

Vertically Integrated Chicken Business

Beef and Pork Operations

True Value Grid

Getting to Number-One Gets Chronicled

Tyson Today

Don Tyson Speaks to the Press

Immediate Acquisition Plans

Brazil

China

India

Exiting Canadian Beef Industry

Labeling Controversy

Investing in Research and Development

Innovations Beyond Fresh Meat

Environmental Upgrades

New Wastewater Pre-Treatment Center

Converting Animal Fat to Fuel

No Matter Your Success, Be Prepared for a Product Recall

Product Promotion

Competitive Profile: Cargill Meat Solutions, Wichita, Kansas

Company Overview

Investing in the Branded Beef Business

From Down Under

For Hispanic Consumers

Antibiotic-Free Pork

Newly Branded Beef Value Cuts

Case-Ready Ground Beef

Environmental Certification

Investment in Meat Science and Meat Tracking

Value-Added Meat Acquisitions

Competitive Profile: Smithfield Foods, Inc., Smithfield, Virginia

Company Overview

Growth Through Acquisitions and Joint Ventures

Confirming its Financial Situation

The Farmland Foods Connection

Saying Good-Bye to Beef

Activity Overseas

Sara Lee European Meats

Sealing the Deal in Spain a Few Days Later

Delays in Romania

COOL Labeling Plans in Place

Competitive Profile: JBS Swift & Co., Greeley, Colorado

Company Overview

Becoming a Part of JBS

Taking Over Smithfield Beef

Competitive Profile: Sysco Corp., Houston, Texas

Company Overview

Most Meat Offerings Are Beef

Certified-Sustainable Beef

Competitive Profile: Pilgrim’s Pride Corp., Pittsburg, Texas

Company Overview

Commitment to Chicken

Exiting Turkey Business

Irony in the Making

Pilgrim’s Financial Woes

Here’s What’s Happening

Closing Down Shop

Competitive Profile: OSI Group LLC, Aurora, Illinois

Company Overview

Beyond Meat

Competitive Profile: National Beef Packing Co., LLC, Kansas City, Missouri

Company Overview

Who is U.S. Premium Beef?

Growth Through Acquisition

How Did Farmland’s Beef End Up at National Beef?

Expanding Westward

Stop Right There: You Can’t Be Sold

Competitive Profile: Perdue Farms Inc., Salisbury, Maryland

Company Overview

Many Divisions and Units

Vertical Integration

How Does Perdue Raise its Poultry?

Protecting its Flocks

Selective Breeding

Investing in the Environment

Competitive Profile: Hormel Foods Corp., Austin,
Minnesota

Company Overview

Lowering Expectations for Fiscal 2008

Culinary Arts

New Plant in America’s Heartland

Idea and Innovation Center in China

A New Web Site for Jennie-O

Committed to Hispanic Consumers

Up and Comers

Small Players, Big Plans

Agri Beef Co., LLC, Boise, Idaho

Albert’s Organics, Inc., Bridgeport, New Jersey

Châtel Farms, a brand of FPL Food, LLC, Augusta, Georgia

Frontier Meats, Fort Worth, Texas

Tallgrass Beef Co., LLC, Sedan, Kansas

Movers and Shakers

Building a Name in Meat

Meyer Natural Angus, Loveland, Colorado

Creekstone Farms, Arkansas City, Kansas

Foodcomm International, Palo Alto, California

Maverick Ranch Natural Meat, Denver, Colorado

Niman Ranch, Alameda, California

Chapter 5: Retail

Key Points

Retail Distribution Methods

The Rising Cost of Fuel

Economic Impact on Retailers

The Retail Scene

Shopping Options Are Plentiful

Mass Merchandisers Carry the Most Items Overall

Where Are Consumers Shopping for Groceries?

How Do They Shop for Meat?

Selecting a Primary Store

Fewer Retailers Have Butchers Available for Fresh Meat to Order

If Primary Store Is a Supermarket, Most Consumers Buy Their Meat There

Reasons Why Supermarket Shoppers Have Gone to a Butcher Shop

The Supercenter Shopper Does Not Always Buy Meat There

Few Need a Butcher Shop

Location for Overall Retail Meat Sales

• Table 5-1: Share of U.S. Retail Meat Sales, by channel, 2007-2008 (percent)
  
• Figure 5-1: Share of U.S. Retail Meat Sales, by channel, 2008 (percent)

The Leading Retailers

Getting Your Product in with the Leaders

• Table 5-2: Top-Five U.S. Supermarket Chains, dollar sales and number of stores, 2007 or fiscal 2008, depending on chain (in billions of dollars)
  
• Table 5-3: Top-Five U.S. Mass Merchandiser or Club Store Chains That Sell Meat, dollar sales and number of stores, 2007 or fiscal 2008, depending on chain (in billions of dollars)

The Meat Department

The Current Economy

Beef

Pork

Poultry

Discounted Meat Quality

Meat Merchandising

Retailers’ Marketing and Promotion Programs

Costco

Price Chopper

Publix GreenWise Market

Stew Leonard’s

Target

Weis Markets

Whole Foods

Yoke’s Fresh Market

Retailers Win When Their Meat Appeals to Ethnic Groups

Food City

R-Ranch

Retail, Plus Mail Order

Marketing a Private Line

Mail Order and Farmers’ Markets for Local Meats

Composition

A Peak at the Self-Serve Refrigerated Meat Case

• Figure 5-2: Share of U.S. Retail Self-Serve Refrigerated Meat Sales, by variety, 2008 (percent)

The Butcher Counter Is Mostly Seafood

• Figure 5-3: Share of U.S. Retail Butcher-Counter Refrigerated Meat Sales, by variety, 2008 (percent)

Comparative Pricing

Meat Prices Vary Significantly by Retailer and Label Terms

A Note on Aldi

Value-Added: Marinated/Seasoned Meat

• Table 5-4: U.S. Retail Marinated/Seasoned Meat Prices, 2008 (price per pound)

Beef

• Table 5-5: U.S. Retail Branded Beef Pricing Comparison, Jewel, 2008 (price per pound)
  
• Table 5-6: U.S. Retail Beef Pricing Comparison, branded vs. unbranded, Jewel, 2008 (price per pound)

Angus Beef

• Table 5-7: U.S. Retail Angus Beef Pricing Comparison, Jewel vs. Strack & Van Til, 2008 (price per pound)

Ground Beef

• Table 5-8: U.S. Retail Ground Beef Prices, 2008 (price per pound)

Chicken

• Table 5-9: U.S. Retail Chicken Prices, boneless and skinless breasts, 2008 (price per pound)
  
• Table 5-10: U.S. Retail Chicken Prices, drumsticks, 2008 (price per pound)
  
• Table 5-11: U.S. Retail Chicken Prices, ground, 2008 (price per pound)
  
• Table 5-12: U.S. Retail Chicken Prices, whole, 2008 (price per pound)

The Club Store Price Advantage

Multi-Packs and Family-Size Products

• Table 5-13: Club Store vs. Supermarket Prices for Select Meat Products, 2008 (price per pound)

Butcher Shop: Paulina Meat Market

• Table 5-14: U.S. Retail Beef Prices at Butcher, Paulina Meat Market, Prime vs. Select, 2008 (price per pound)

Chapter 6: Foodservice

Key Points

Status of the Foodservice Industry

Calculating Restaurant Performance Index

What the Future Holds

Suggestions for Operators

Operator Strategies

General Restaurant Trends

Eating Healthy

Going Green

Food To Go

Ordering Options

Distributors

Where Foodservice Operators Get Their Meat

Leading Distributors

• Table 6-1: Top-Five U.S. Foodservice Distributors, dollar sales, 2007 (in billions of dollars)

Where Do the Distributors Get Their Meat?

From the Cow: What Number-One Distributor Sysco Offers

Beef

Specialty Steaks

Veal

Sysco Offers Certified-Sustainable Beef

Foodservice Chains

Top-25 Restaurant Chains

• Table 6-2: Top-25 U.S. Restaurant Chains that Buy Raw Meat, Ranked by dollar sales, 2007 (in billions of dollars)

Top-10 Contract Chains

• Table 6-3: Top-10 U.S. Contract Chains that Buy Raw Meat, dollar sales, 2007 (in billions of dollars)

Aramark Is the Largest Contract Chain in the States

• Figure 6-1: U.S. Contract Chains that Buy Raw Meat, Percent share, 2007(percent)

What’s Hot on Menus

Internet Chef Survey

Appetizers

• Table 6-4: Trends in Appetizers, By Chef Ranking, 2007 (percent)
  
• Table 6-5: Trends in Entrée Salads, By Chef Ranking, 2007 (percent)

Entrées/Main Dishes

• Table 6-6: Trends in Entrées/Main Dishes, By Chef Ranking, 2007 (percent)

Ethnic Cuisine

• Table 6-7: Trends in Ethnic Cuisine, by Chef Ranking, 2007 (percent)

Preparation Methods

• Table 6-8: Trends in Preparation Methods, By Chef Ranking, 2007 (percent)

Particular Meat Usage Trends

Angus and Kobe/Wagyu for Distinction

Grass-Fed on the Menu

Selling Ethical

Selling Ethical Brands

• Figure 6-2: Chipotle Print Ad: “Our Taste in Meat Is Exceptional.”

Extreme Hamburgers Innovations

Using the Whole Pig

The Art of Butchery

Turkey: Not Just for Thanksgiving

Mixed Grills

All-You-Can Eat Promotions

Chapter 7: The Consumer

Key Points

USDA Consumption Data

Per Capita Consumption Overview

• Table 7-1: U.S. Per Capita Consumption of Meat (boneless, trimmed), By Variety, 1996-2006 (in pounds consumed per person)

Simmons Consumer Survey

Trends in Meat Usage

• Table 7-2: U.S. Households Using Meat in Past Six Months by Variety and Cut, 2004-2008 (percent)

Who Favors and Resists Beef

Hamburger

Roasts, Steaks and Other Cuts

• Table 7-3: Household Demographics Indexed by Beef Cut, Index, 2008

Consumer Attitudes and Opinions Towards Beef

• Table 7-4: Consumer Attitudes and Opinions that Favor or Resist Beef, By Cut, Index, 2008

Who Favors and Resists Chicken

• Table 7-5: Demographics that Favor and Resist Chicken by Cut, Index, 2008

Consumer Attitudes and Opinions Towards Chicken

• Table 7-6: Consumer Attitudes and Opinions that Favor and Resist Chicken by Cut, Index, 2008

Who Favors and Resists Pork

• Table 7-7: Demographics that Favor and Resist Pork by Cut, Index, 2008

Consumer Attitudes and Opinions Towards Pork

• Table 7-8: Consumer Attitudes and Opinions That Favor and Resist Pork by Cut, Index, 2008

Who Favors and Resists Turkey

• Table 7-9: Demographics that Favor and Resist Turkey by Cut, Index, 2008

Consumer Attitudes and Opinions Towards Turkey

• Table 7-10: Consumer Attitudes and Opinions that Favor and Resist Turkey by Cut, Index, 2008

Who Favors and Resists Lamb and Veal

Lamb

Veal

• Table 7-11: Demographics that Favor and Resist Other Meat, Index, 2008

Consumer Attitudes and Opinions Toward Lamb and Veal

• Table 7-12: Consumer Attitudes and Opinions that Favor and Resist Other Meat, Index, 2008

More Consumer Meat Trends

Looking at Meat Through Consumers’ Eyes

Nutritional Concerns Are High

Opinions Regarding Nutrition Info on Meat Packaging

How and Where Consumers Shop for Meat

Shopping for the Best Price

Full-Service vs. Butcher Counter

Interest in Branding Increases

The Power of Organic and Natural Meat

The Organic Meat Consumer

Organic Pricing

Chicken Is the Most Popular Organic Meat

General Organic Food Facts

Organic in Foodservice

Big Organic Research on Organic Shopping

• Table 7-13: U.S. Organic Meat and Poultry Buyers: Where They Shop for Organic Products, Percent share, 2008 (percent)

What’s For Dinner?

Amount and Frequency of Meat Purchases

Factors Influencing Behavior

Meat Leads as Indulgent Food, Especially in Foodservice

Indulgence Is Foodservice Fare

Proteins Top List of Indulgent Foods

Price Does Matter

Consumers Are More Likely to Indulge at Dinner Time

Where Consumers Splurge on Indulgent Meats

They Are Willing to Pay For It, Too . . . Just Not as Often

Food Orders: What, When and Where

The Hispanic Consumer

• Figure 7-1: Projected U.S. Population and Hispanic Population Growth, percent growth, 2005-2015 (percent)

Hispanic Purchasing Power

Hispanic Population Attitudes

The Term Hispanic Is Not All-Encompassing

National Origins Are Very Diverse, But Mexico Rules

• Figure 7-2: U.S. Hispanic Population Breakdown by Country of Origin, percent share, 2000 (percent)

Who Are These “Other Hispanics” Coming to the United States?

Flavor Preferences by Country of Origin

The Hispanic Household

Hispanic Eating Patterns

Meat Preferences

Simmons Hispanic Meat User Highlights

• Table 7-14: Hispanic Simmons Indices for Meat, by Variety and Cut, Index, 2008

Lack of Consumer Awareness

Opinions on Grass-Fed Beef

Consumers on Food Safety

Safe Food Preparation

Chapter 8: New Products and Trends

Key Points

Opportunities: Innovation Trends

Trend: Livestock and Processing Claims

Natural

Organic

Claims Meats Make

• Figure 8-1: Share of U.S. Retail Meat with a Natural Claim, percent share, 2008 (percent)
  
• Figure 8-2: Share of U.S. Retail Meat with an Organic Claim, percent share, 2008 (percent)

Meat Varieties Making Claims

• Table 8-1: U.S. Retail Meat with a Natural Claim by Variety, percent share, 2007 vs. 2008 (percent)
  
• Figure 8-3: Share of U.S. Retail Meat with a Natural Claim, by Type, percent share, 2007 vs. 2008
  
• Table 8-2: U.S. Retail Meat with an Organic Claim by Type, percent share, 2007 vs. 2008 (percent)
  
• Figure 8-4: Share of U.S. Retail Meat with an Organic Claim by Type, percent share, 2007 vs. 2008 (percent)

Trend: Branding

Types of Brands

Why Brand Meat?

Brands Meats Make

• Table 8-3: U.S. Retail Meat Carrying a Brand by Brand Type, percent share, 2007 vs. 2008 (percent)
  
• Figure 8-5: Share of U.S. Retail Meat Carrying a Brand by Brand Type, percent share, 2008

Meat Varieties that Brand

• Table 8-4: U.S. Retail Meat with a Brand by Type and Brand Type, percent share, 2007 vs. 2008 (percent)
  
• Figure 8-6: Share of U.S. Retail Meat with a Brand by Type and Brand Type, percent share, 2008 (percent)

Trend: Minimal Ingredient Addition

Enhanced

Value-Added

• Figure 8-7: Share of U.S. Retail Meat with Minimal Ingredient Addition, percent share, 2008 (percent)
  
• Table 8-5: U.S. Retail Meat with Minimal Ingredient Addition by Ingredient Added, percent share, 2008 (percent)
  
• Figure 8-8: Share of U.S. Retail Meat with Minimal Ingredient Addition by Type of Meat and Ingredient, percent share, 2008 (percent)
  
• Figure 8-9: Share of U.S. Retail Meat with Minimal Ingredient Addition by Type, percent share, 2008 (percent)

Value-Added Convenience

Trend: Cut Variation

Trend: Case-Ready Packaging

• Figure 8-10: Share of U.S. Retail Meat in Case-Ready Packaging, percent share, 2008 (percent)
  
• Figure 8-11: Share of U.S. Retail Meat in Case-Ready Packaging, by Variety, percent share, 2008 (percent)

Portion Control

How to Get Case Ready

New Products

Overview of New Product Trends

Going for Local Livestock

Adding More Value to Pork

Air-Chilling Technology

First to Use DNA TraceBack

Cargill’s Meat Solutions

Antibiotic-Free Pork

Newly Branded Beef Value Cuts

Case-Ready Ground Beef

• Figure 8-12: Meadowlands Farms Ground Beef

Co-Branding Flavorful Additions

More Flavorful Offerings

New Roast Options

• Figure 8-13: Farmland Steamship Fresh Pork

Nutrition Wise Pork

Foodservice Convenience

When Times Are Tough . . . You Can Still Order Meat

Menuing Tools for Operators

Best New Product Award

All-Natural Chicken

Sub Brands and New Products

A New Look

Innovations with Hispanic Flair

Carniceria Hormel

• Figure 8-14: Carniceria Hormel

Nuestro Rancho

Rosa Mexicano

Not-So Common Meats

Retailers Grow Store Brand Offerings

Supervalu’s Wild Harvest

• Figure 8-15: Wild Harvest Ground Beef

Fresh & Easy—Fresh and Frozen Burgers

• Figure 8-16: Fresh & Easy Beef Patties

H-E-B’s Value-Added Offerings

• Figure 8-17: H-E-B Seasoned Pork Tenderloin

Raley’s Beefs Up Its Store Line

Trader Joe’s Expands Meat Offerings

Sam’s Choice Now Includes Angus

No Name Grows Presence in Freezer

• Figure 8-18: No Name Steaks

Trumping Up Beef

Gourmet Burgers

A Different Kind of Philly Beef

Maverick Ranch Adds Variety

• Figure Figure 8-19: Backyard Grill

Farmland Puts Pork Between the Bun

Organic Beef Burger

Vidalia Onion Burgers

• Figure 8-20: Vidalia Onion Bros. Burgers

Appendix: Industry Resources

AssociationsBoards

Government Departments

Meat ProcessorsMarketers

PublicationsWebsites