Key findings from the July Meat Demand Monitor report show an increase in consumers’ willingness to pay for meat compared to June. Both retail and food service demand demonstrated strength, with food service experiencing a particularly notable improvement.
Glynn Tonsor, Kansas State University professor of agricultural economics, describes this as “meat having a moment,” highlighting the continued popularity of protein consumption.
Tonsor shared results of the July report providing insights into the current state of meat demand across beef, pork and chicken on a recent AgriTalk with Chip Flory.
Taste Trumps Other Considerations
The conversation focused on the dynamics of meat purchasing. Tonsor says that taste and freshness are the primary drivers of consumer choices, outranking price as the most important factors. While environmental concerns, origin traceability and animal welfare claims matter to a niche market (10-20% of consumers), the majority of Americans prioritize eating experience over other considerations.
“For the typical American … taste and freshness carry the day, and importantly, those factors are more important than price,” he says. “So, price matters. No economist can tell your price doesn’t matter, but it’s actually outranked by taste and freshness.”
Taste and freshness regularly are identified in the Meat Demand Monitor as the most common factors on deciding whether or not to buy a meat protein item.
Price Sensitivity Varies
“We have not found new consumer resistance to price,” Tonsor says.
He emphasizes that ground beef price trends are more critical to monitor as an economic indicator compared to premium steak prices. High-end cuts like ribeye steaks are less affected by price fluctuations, primarily purchased by higher-income consumers who are less concerned about incremental price increases. In contrast, ground beef remains more sensitive to pricing, which is a key concern for many consumers and producers.
“The folks buying a ribeye steak... are much more likely to be higher income and a little bit less sensitive,” he explains.
Economic Uncertainty Hasn’t Dampened Protein Consumption
The current economic landscape presents both opportunities and challenges. Despite macroeconomic challenges like inflation and limited consumer financial improvement meat demand has held up well. Consumers are still prioritizing protein purchases, particularly in retail channels.
Tonsor says only 19% of consumers reported improved financial conditions in July, with 81% indicating stable or worsening financial situations. According to Tonsor this metric is crucial because consumers who feel financially secure are more likely to purchase multiple meat protein meals and spend more on food service.
He highlights several macro-economic concerns or challenges that loom on the horizon:
- Ongoing tariff uncertainties
- Recent upticks in inflation
- Growing unemployment concerns, particularly among younger workers
Trends in Pork
Tonsor portrays pork as a competitive protein with potential for growth, actively working to improve its market position through marketing efforts and maintaining strong consumer appeal.
“The pork industry is trying to keep up with the beef demand story that we’ve had for a few years,” Tonsor says.
The pork industry recently launched a new marketing campaign: “Taste What Pork Can Do.” He points out pork owns the breakfast market with bacon and sausage.
Protein Purchasing Outlets
Tonsor explains consumption varies by meal type. Consumers continue to rely primarily on traditional grocery stores for at-home protein purchases, with different protein types dominating various meal occasions.
For more details on channel specific consumption data, maps and state summaries, check out the Meat Demand Monitor.
Ongoing Market Monitoring is Crucial
The Meat Demand Monitor serves as a critical tool for understanding consumer behavior, providing insights for producers, retailers, and industry stakeholders. By tracking willingness to pay across different market segments, it offers a comprehensive view of protein consumption trends.
Tonsor’s analysis suggests that while caution is warranted, the meat industry continues to demonstrate robust consumer interest and potential for growth.
Meat demand shows resilience despite economic uncertainties. Tonsor notes that while he has maintained a pessimistic outlook throughout the year, the market has consistently performed well.
“It’s very clear beef demand has been good, and it’s mixed or good for the other proteins,” Tonsor summarizes. “But it’s not clear to me that there’s a challenge in any of them.”
