Demand for Beef and Prepared Deli Meats Surges Amid Consumer Focus on Quality and Convenience
Despite widespread economic uncertainty, fresh foods, particularly beef and prepared deli meats, have seen robust growth as consumers prioritize high-quality and convenient meal options, according to a recent Circana webinar.
The fresh foods sector has become one of the fastest-growing industries in grocery, with beef emerging as a top-performing category.
Joanna Parker, principal II and team lead for fresh foods at Circana, noted that the fresh foods category has surpassed many others as a pivotal driver of grocery sales.
“Beef is number one among all consumer buying categories across retail,” Parker said, highlighting the category’s 8% growth in dollar sales this year, which now totals nearly $3 billion.
Since 2019, fresh beef has generated $12 billion in sales, with meat department revenues increasing by $104 billion over the same period.
Prepared Deli Meats Gain Popularity
Prepared deli meats also experienced significant growth, with a 10% increase in dollar sales over the past year, ranking 15th among all dollar-generating food categories.
This surge reflects consumer demand for ready-to-eat meal solutions. Overall, deli-prepared foods now account for 60% of total grocery spend in the deli category.
Fresh Fruits See Growth, Boosted by SNAP Access
Fresh fruit sales have also risen, thanks in part to increased accessibility through the Supplemental Nutrition Assistance Program (SNAP).
This segment experienced a 5% growth in dollar sales, surpassing $1.5 billion. Social media trends have contributed to increased demand for berries, melons, grapes, and cucumbers, with berry sales alone growing by 29% since 2019.
Retailers Adapting to Consumer Preferences
To capitalize on these trends, retailers are leveraging data-driven strategies to balance value, quality, and convenience.
Investments in e-commerce platforms and digital nutrition services have become essential in meeting the growing demand for fresh food and online grocery shopping.
The fresh foods sector’s continued growth underscores the enduring appeal of high-quality, convenient options, even in challenging economic conditions.
This trend presents significant opportunities for brands and retailers to strengthen consumer loyalty while adapting to evolving market dynamics.
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