Red Meat - US - December 2007

Table of Contents

• Scope and Themes
• What you need to know
• Definition
• Data for this report
• Abbreviations and terms
• Abbreviations
• Terms
• Executive Summary
• A bumpy ride for red meat sales
• Consumers turn away for safety and health reasons
• Natural and organic continue to flourish
• Trends lean towards ethnic cooking, convenience and case-ready products
• Trade is rocky as well
• Supermarkets dominate, yet are losing share
• The red meat consumer
• The future of red meat
• Fast Forward Trends
• Universal Uncertainty
• Clarity of Health Claims
• Branded Protein
• Instant Gratification
• Spontaneity, Emotion and Immediacy
• Red Meat for the Return of the Manly Man
• Market Drivers
• Beef consumption shows a slight rebound
  • Figure 1: Per capita meat and seafood consumption*, in pounds, 2003, 2005 and 2007
• Chicken a cheaper choice in an economic downturn
  • Figure 2: Price of beef, pork and chicken, 2001-06
  • Figure 3: Average U.S. city price per pound of ground chuck, ground beef and pork chops, 2001-07
• Beef Value Cuts (BVC) -- a way to retain the budget minded beef lover
• Red meat feels the heat: bad press about its safety
• Food safety issues and meat recalls
  • Figure 4: Red meat recalls, 2007
• Studies look for links between red meat and cancer
• "Vegetarian lifestyles"
  • Figure 5: Reasons for being vegetarian or vegan, April 2007
  • Figure 6: New vegetarian product claims, 1998-2007
• Interest in organic and all natural beef remains healthy
  • Figure 7: Sales of organic meats, at current and constant prices, 2002-07
  • Figure 8: Opinions about organic food and drink, by respondents who purchased or did not purchase organic food in the past year, July 2007
• Beef gets gourmet attention
• Restaurants--competing for home-cooked meals, but inspiring cooks
  • Figure 9: Sources of evening meals, June 2006
• Restaurant recalls
• Market Size and Trends
• Market size
  • Figure 10: Total U.S. retail sales of red meat, at current and constant prices, 2002-07
• Market trends
• Ethnic cooking
  • Figure 11: Opinions about home cooking, Hispanics, April-May 2006
  • Figure 12: Purchases of ethnic foods in past six months, by type of ethnic food, July 2007
• Heat-and-eat meat and ready-to-cook complete meals
• Natural and organic
  • Figure 13: New product releases by claims of no additives/preservatives, all natural and organic in GNPD for meat products, 1998-2007
• Packaging and labeling trends
• Case ready
• Country of origin labeling
• Nutritional and cooking information labeling
• Product preservation
• Packaging for foodservice
• Environmentally friendly shipments to retail
• Market Segmentation
• Introduction
• Red meat
  • Figure 14: Sales of red meat, segmented by type, 2005 and 2007
• Beef
  • Figure 15: Sales of beef, at current and constant prices, 2002-07
  • Figure 16: Market share of dollar sales of beef cuts, 2007
• Pork
  • Figure 17: Sales of pork, at current and constant prices, 2002-07
• Other meat
  • Figure 18: Sales of other meat, at current and constant prices, 2002-07
• Supply Structure
• Foreign trade
• Beef and veal
  • Figure 19: Beef & veal imports, 2005 and 2006 and January-September 2006 and January-September 2007
  • Figure 20: Beef & veal exports, 2005 and 2006 and January-September 2006 and January-September 2007
• Pork
  • Figure 21: Pork imports, 2005 and 2006 and January-September 2006 and January-September 2007
  • Figure 22: Pork exports, 2005 and 2006 and January-September 2006 and January-September 2007
• Lamb & mutton
  • Figure 23: Lamb & mutton imports, 2005 and 2006 and January-September 2006 and January-September 2007
  • Figure 24: Lamb & mutton exports, 2005 and 2006 and January-September 2006 and January-September 2007
• Major manufacturers and brands
• Conventional manufacturers
• Tyson Foods
• Cargill Meat Solutions
• Smithfield Foods
• Swift & Company
• Natural and organic manufacturers
• Coleman Natural Foods
• Laura' s Lean Beef
• Niman Ranch
• Advertising and Promotion
• Beef
• Pork
  • Figure 25: Advertising clip, Cargill pork
• Lamb
• Retail Distribution
• Supermarkets are fighting back to regain market share
• As the world' s largest retailer, moves made by Wal-Mart are closely monitored by the competition
• On-site visits reveal market diversity
• Trader Joe' s
• Costco
• Aldi
• Dominick' s
• Dollar General
• Whole Foods Market
• Sunflower Market
• Organic and natural meat at retail
  • Figure 26: Purchase venues for organic foods and beverages, 2006 and 2007
• Supermarkets embracing private label meat
• Private label natural, heat-and-eat, and RTE meat meals feature prominently
• Targeting Hispanic shoppers
• The Consumer
• Summary
• Beef
• Lamb, veal and pork
• Premium beef
• Meat attitudes
• Consumption of meat, fish and poultry
  • Figure 27: Meat, fish, poultry eaten in the past 7 days, May 2006-June 2007
  • Figure 28: Meats eaten regularly (at least once a month), September 2007
  • Figure 29: Meats eaten regularly (at least once a month), by household income, September 2007
  • Figure 30: Meats eaten regularly (at least once a month), by race/ethnicity, September 2007
  • Figure 31: Meats eaten regularly (at least once a month), by number of people in the household, September 2007
  • Figure 32: Meats eaten regularly (at least once a month), by region, September 2007
• Cooking methods
  • Figure 33: Cooking methods, by type of meat, September 2007
  • Figure 34: Cooking methods used for ground beef, by gender, September 2007
  • Figure 35: Meats cooked on the grill, by household income, September 2007
• Types of beef eaten and how it is prepared
  • Figure 36: Types/cuts of beef eaten in past 7 days, May 2006-June 2007
  • Figure 37: Preference for rare, medium or well done beef, September 2007
  • Figure 38: Preference for rare, medium or well done beef, by gender, September 2007
  • Figure 39: Preference for rare, medium or well done beef, by age, September 2007
  • Figure 40: Preference for rare, medium or well done beef, by race/ethnicity, September 2007
• Willingness to pay premiums for certain types of meat
  • Figure 41: Willingness to pay a premium for certain types of meat, September 2007
  • Figure 42: Willingness to pay a premium for certain types of meat, by household income, September 2007
  • Figure 43: Awareness of what "angus beef" and "kobe beef" mean, by gender and household income, September 2007
• Attitudes regarding shopping for and preparing red meat
  • Figure 44: Attitudes regarding shopping for and preparing red meat, September 2007
• Interest in and experience with exotic meats
  • Figure 45: Interest in and experience with exotic meats, September 2007
• Future and Forecast
• Future trends
• "Green" red meat is "in"...
• Demand outpaces supply for organics
• The eco-impact
• Humanely treated animals
• ...yet this leads to a need for more stringent regulation
• Global protein demand grows
• A booming Hispanic population
  • Figure 46: Population by race and Hispanic origin, 2002-12
• Market forecast
• Red meat market
  • Figure 47: Forecast of total U.S. retail sales of red meat, at current and constant prices, 2007-12
• Beef
  • Figure 48: Forecast of sales of beef, at current and constant prices, 2007-12
• Pork
  • Figure 49: Forecast of sales of pork, at current and constant prices, 2007-12
• Other meat
  • Figure 50: Forecast of sales of other meat, at current and constant prices, 2007-12
• Forecast factors
• Appendix: Trade Associations