CONSUMER R E P O R T The National Cattlemen’s Beef Association (NCBA), as a contractor to the Beef Checkoff, is continually tracking trends, monitoring issues, and surveying the general landscape that has the potential to impact the food industry. NCBA does this through a variety of tools, most notably by conducting consumer and market analysis, funded by the Beef Checkoff, while also scanning secondary research resources. Across the food landscape we continue to see some pandemic dynamics that existed in 2020 continue to play out, while also seeing signs of other behaviors reverting back to some degree to prepandemic norms. This article will touch on a variety of topics including the current state of consumers and beef, e-commerce, meat substitutes and sustainability. The Current State of Consumers and Beef
Consumer Comfort Apr-21 52%
53%
55%
Jul-21
54% 43%
41%
38%
39%
43%
38%
The retail and foodservice industries are beginning to show signs of moving back in the direction they were in prior to the pandemic, although there are still substantial gaps between what is traditionally seen. A typical year for fresh beef results in about 39 percent of volume being sold at retail, and 61 percent of volume at foodservice, whereas in 2020 this shifted to 45 percent and 55 percent respectively. When we look at the data through mid-July of this year, results are coming closer to 2019 than 2020, with 41 percent of fresh beef volume going to retail. Even with signs of shifting back, fresh beef at retail continues to show strong growth compared to 2019, particularly in dollars sold (+20 percent).2
One of the main reasons behind the continued elevated retail sales is that consumers, during this last year and a half, adapted to eating at-home more often. In fact, 74 percent of consumer meals are still being cooked at home1. This has decreased compared to 2020, but still provides evidence for the potential of retail to hang on to some of the share it gained over the last year, at least through the rest of 2021. E-Commerce
Online Grocery Ordering Sitting Inside at a restaurant
Attending/Hosting gathering (under 10 people)
Attending/Hosting gathering (10+ people)
Attending events (sports, etc.)
Traveling by airplane
Source: Summer Grilling and Comfort, Dynata Platform, April 2021
Before diving into specifics, it is important to understand the current consumer mindset. For many, there is still apprehension when it comes to comfort level engaging in activities out of the household. Most notably, less than half of the population is comfortable participating in larger gatherings, events and travel. While this has improved since the onset of the pandemic, it is going to take time for many consumers to get back to “normal” behaviors. It is hard to pinpoint an exact timeframe when this will happen; however, consumers who are not comfortable claim it will be at least six, if not 12 months before they plan to engage in several activities, most notably travel and larger gatherings/events.1
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NATIONAL CATTLEMEN CATTLEMEN
63%
actively ordering groceries online
41%
are
ordering fresh beef +18% compared to May 2020
An area that continues to see tremendous opportunity and growth in the marketplace is e-commerce. Online retail sales increased in the second quarter of this year by more than $19 billion year over year and continue to be above the prepandemic levels.3 Asking consumers directly, 63 percent said they are actively ordering groceries online, with almost half stating this behavior will remain one of their shopping tools into the future. 3
Source: State of Consumer Survey, Dynata Platform, July 2021
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DIRECTIONS 2021
