Key to meat industry growth rooted in trust
With the US meat market projected to grow throughout the next few years because of the rise in popularity of private label and frozen products, brands will need to establish themselves as reliable and trustworthy, according to a new report from Canadean.
The report, “Consumer and Market Insights: Meat Market in the US,” which will be published this month, the US meat market is projected to grow at a compound annual growth rate of 1.7 percent, rising from $68 billion in 2013 to $84 billion by 2018.
“Consumers are showing less brand and product loyalty, switching to alternatives they see as providing better value for money,” said Safwan Kotwal, Canadean analyst. “Although fresh meat continues to sell well, processed foods have been growing in popularity over the past decade due to their affordability and convenience. Fresh meat manufacturers must ensure that they keep the price of their meat competitive in order to continue to appeal to value-conscious consumers.”
However, Canadean says consumers have trust issues with private label meat which manufacturers must address.
“Global meat scandals have tightened the screw on this market, leaving consumers angry and somewhat confused, leading to demand for greater transparency,” Kotwal said.
Canadean says a display of credible food certifications on the package can enhance the consumer’s perception of the product as being of better quality.