1H 2021 Sees High Prices but Continued High Demand by Meatingplace Editors
This item is contributed by Anne-Marie Roerink of 210 Analytics LLC, based on her research.
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eat prices are once more a big topic of discussion, but inflation is not isolated to meat. Food prices in both the retail and restaurant settings are seeing significant price increases. In June, food prices overall were up 2.2 percent year over year, according to the Bureau of Labor Statistics (BLS). This is on top of the 3.4 percent increase in 2020. June saw much bigger price increases in the restaurant world (+4.0 percent) than at retail (+0.7 percent). BLS is forecasting continued inflation of between 1.5 percent and 2.5 percent in 2021. Consumers are well aware of the inflationary conditions. According to the June IRI survey of primary shoppers, 81 percent feel prices are much (32 percent) or somewhat (49 percent) higher than before COVID-19. This has resulted in a total of 84 percent being somewhat (56 percent) or very (28 percent) concerned about food cost inflation. Stores’ promotional decisions, merchandising and price perceptions are likely to grow more important as a result. IRI and 210 Analytics analyzed the meat department performance in the first and second quarters along with the month of June deep dive. The report is made possible by Marriner Marketing.
Price per volume Across all measured meat and poultry items in the IRI universe, both fixed and random weight, the average price per pound volume stood at $3.89 in the first quarter of 2021 and rose to $4.08 in the second quarter. This constitutes an increase of 4.8 percent and 2.3 percent, respectively, versus the first and second quarters of 2020. However, prices were much higher in 2020 already amid supply constraints. When comparing first and second quarter prices to 2019, the increases were 8.7 percent and 13.3 percent, respectively. Both fresh and processed meat prices were up. www.marketingandtechnology.com/ repository/webstories/webst51479.png
no surprise that the meat department could +16.7 percent. not match those numbers in the first half of www.marketingandtechnology.com/ this year, but they are not far off, either. In repository/webstories/webst51480.png the first quarter, the meat department genThe same pattern holds true for volume erated $19.5 billion, up 0.4 percent from sales. While volume sales were down in the 2020’s astounding numbers. In the second first and second quarters of 2021 when quarter, meat sales totaled $20.1 billion, compared to 2020, volume sales remained which was off 9.7 percent but included the elevated when compared with the 2019 peak buying period of 2020. That averages pre-pandemic normal. First quarter pound to first-half-of-the-year dollar sales being sales were up 7.9 percent and second down 5 percent versus year ago. However, quarter sales increased 2.6 percent over when compared to the pre-pandemic 2019 2019. Meat is still much in demand in 2021, normal, meat sales remain elevated, at compared to pre-pandemic.
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Midyear 2021 Results March, April and May 2020 meat sales broke one record after another. It comes at
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