Key Takeaways:
- Despite ongoing consumer concerns about inflation, the meat departments of grocery stores showed resilience in 2024, as reported by FMI — The Food Industry Association in their recently released State of Fresh report.
- In 2024, meat sales saw the highest growth among all fresh food categories, increasing by 4.7% to reach $105 billion, based on Circana data cited in the report. Following closely behind was produce with a nearly 4% boost, reaching $93 billion.
- Foodservice also experienced record-breaking sales of $56 billion last year, as retailers leveraged this department as a key differentiator, catering to consumer needs for convenience, value, and variety, according to FMI.
Insights:
As grocery stores enhance their perimeter sales, the meat department emerges as a standout category that has retained customers despite economic challenges, noted FMI.
In the meat departments, shoppers increased their spending and purchased more items compared to the previous year. On average, shoppers spent $16.12 per visit, showcasing the crucial role of meat in fostering shopper loyalty at grocery stores, as highlighted in the report.
Although inflation may have influenced consumer behavior in the meat department, concerns about higher prices did not deter shoppers. Instead, consumers opted for different meat cuts, brands, and channels to manage increased costs. FMI suggests that grocers can attract more consumers by offering new flavors, transparent sourcing practices, environmentally friendly options, and leaner, less processed protein choices.
FMI highlighted that a majority of meat purchases occur in-store, indicating room for innovation in online sales. The report also pointed out a disparity in local sourcing: while 68% of surveyed retailers offer local meat selections, only 46% find them effective. This suggests that grocers may need to improve their storytelling or clarify the value of local options to resonate with consumers.
Furthermore, foodservice is gaining traction in the grocery industry, with both unit and dollar sales increasing last year. Popular items like rotisserie chicken, sandwiches, and pizza are driving traffic to foodservice departments, according to FMI.
Retailers express their intent to continue investing in the foodservice department, with 68% planning to expand the space dedicated to fresh-prepared grab-and-go options, as highlighted in the report.
The insights from the State of Fresh report are derived from FMI’s The Food Retailing Industry Speaks and “Power of” category reports for 2025, along with Circana data.