Lunch Meat - US - May 2012
Sales in the $12.6 billion lunch meat category grew by only 1.8% in 2011 (only 0.2% when adjusted for inflation). The slowed growth is likely due to a slowdown in volume sales due to product price increases, a failure of new product innovation to resonate with consumers, and an improving economy that has consumers seeking other food options. Category saturation ensures a robust consumer base (lunch meat of some form is eaten in 94% of respondent households). However, usage has seen no growth among households over the past few years. In fact, 32% of respondents to Mintel’s custom consumer survey were buying less pre-packaged or deli counter meat at the start of 2012 than previously.
Future sales growth will require increasing usage frequency in these households, along with the development of higher price point items that will help raise the bottom line. The category is hurt by an impression that the products within it are overly processed. Room exists for manufacturers to position and effectively promote products as natural, premium offerings that consumers would seek out in place of prepared goods (47% of lunch meat eaters would eat more lunch meat if it was less processed looking and tasting).
Throughout this report, Mintel will address key issues facing the category, including:
- How is lunch meat, which proved fairly recession-proof, faring amid signs of an improving economy?
- What have lunch meat manufacturers done, in terms of the latest innovation, to generate interest among consumers?
- How are lunch meat manufacturers addressing the health and quality concerns/demands of consumers and how effective have they been at addressing this with consumers?
- What can manufacturers of sliced and non-sliced lunch meat do to compete against the deli counter, which accounts for the greater portion of lunch meat sales?
- As consumers shop in a expanding universe of retail formats, what can traditional food retailers do to attract and retain lunch meat buyers?
- Have private label manufacturers been able to capitalize on the challenging economic environment to get consumers to shift from name brands to store brands?
- What role does household income, gender, race/Hispanic origin, and other demographic factors play in lunch meat sales performance?
- What kind of marketing strategies and tools are manufacturers using to connect with their target audiences? How aggressively are marketers incorporating social media and other online initiatives as a way of staying relevant to a younger audience that has much different media patterns than previous generations?
- What are the key market drivers driving and deterring lunch meat’s fortunes, and how can manufacturers and retailers manage these factors to maximize sales opportunities?
What you get
This market report provides in-depth analysis and insight supported by a range of data. At the same time, introductory and top-level content is provided to give you an overview of the issues covered.
Mintel provides a range of market information, frequently through the category level, including market size and forecasting, complete with market drivers that illustrate the forces that shape a category or market.
Mintel's proprietary consumer research provides our analysts with the attitudinal and behavioral data used to provide valuable insight to topical issues.
Mintel provides overviews of the top brands and manufacturers, and uses consumer research to explore attitudes and reactions to brands, as well as insight into what will resonate with consumers.
Market reports provide appendices of data to support the research and insight produced. Our tables of data are easily manipulated and downloadable to support your research needs and covers factors from consumer attitudes to market forecasts.
* This is a sample representation of the report layout and does not reflect the research included in this report.
Why buy from us?
Our reports will provide you with market data, consumer research and competitive intelligence to succeed in your market.
Buy now and you'll have instant access to the information you need to make the right decisions.
Find out what's next in the markets that matter to you: where opportunities lie and what challenges you will face.
A business Superbrand, Mintel is a source you can trust. We have been defining and refining the Market Intelligence mix since 1972.