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High Hopes for Meat Snacks Despite Price Increases

Meat snack growth prospects look high for 2022.

According to Packaged Facts, retail sales of meat snacks will rise by 12% in 2022.

In the 52 weeks ending Jan. 1, 2022, meat snack dollar sales soared by 19.5% to $1.96 billion, based on Nielsen Total U.S. Convenience data, which is a jump from the previous year’s 11.4% increase.

Price increases will play a role in 2022 due to continued supply chain issues hitting meat snacks and most food categories as they did in 2021, noted Cara Rasch, research analyst, food & beverage at Packaged Facts.

At Beaverton, Ore.-based Plaid Pantry, which operates 107 locations, large bags of meat sticks are growing in popularity despite price increases.

“These retails are increasing as well,” said Mike Nelson, senior category manager at Plaid Pantry, in reference to the meat stick large bags. “But we seem to be able to price those a little lower than their jerky counterparts.”

However, based on Nielsen data, meat-andcheese combo sales saw the biggest boom in the category at c-stores overall, with sales reaching $111 million at a 26.1% increase over last year.

Meat Snack Sales Soar

Total meat snack sales at convenience stores increased by 19.5% to $1.96 billion in the 52 weeks ending Jan. 1, 2022. Meat-and-cheese combo sales saw the largest increase of the meat snack category.

Description

Meat snacks

Latest 52 Wks W/E 01/01/22 Latest 52 Wks YA W/E 01/02/21

Current 1-Year % Change Current 1-Year % Change

$1.96 B 19.5% $1.64 B 11.4% Jerky $766 M 23.2% $621 M 15.3% Meat and cheese combo $111 M 26.1% $88.0 M 18.4% Nuggets + tenders $14.3 M 9.4% $13.1 M -0.4% Remaining form $6.23 M 17.4% $5.31 M -24.7% Remaining meat combo $745,058 -20.3% $934,585 -48.5% Sticks $773 M 17.1% $660 M 12.4% Steak + kippered + bar $294 M 15.1% $255 M 0.9%

Source: NielsenIQ, Total U.S. Convenience data for the 52 weeks ending Jan. 1, 2022 and Jan. 2, 2021

Nelson saw price increases in large bag sizes, which has slowed their growth, though they continue to sell. However, this has given the chance for small-sized bag sales to receive a boost.

“We’ve done very well with Stryve Biltong and Vacadillos Carne Seca during the second half of last year. I’m hoping that will conSeca during the second half of last year. I’m hoping that will continue growth this year,” Nelson said, citing additional popular items. tinue growth this year,” Nelson said, citing additional popular items.

According to Rasch, better-for-you meat snack sales have been According to Rasch, better-for-you meat snack sales have been growing at a faster rate in the market than overall meat snacks. growing at a faster rate in the market than overall meat snacks.

“Better-for-you and premium meat snacks such as grassfed, clean “Better-for-you and premium meat snacks such as grassfed, clean label, paleo/keto, plant/meat blends and plant-based meat alternalabel, paleo/keto, plant/meat blends and plant-based meat alternatives are seeing a number of new product introductions,” she said. tives are seeing a number of new product introductions,” she said.

However, not every c-store sustains a market for better-for-you However, not every c-store sustains a market for better-for-you products. products.

“I don’t think meat alternatives will work too well in our market. At “I don’t think meat alternatives will work too well in our market. At least, I haven’t seen any of them really work yet,” said Nelson. He least, I haven’t seen any of them really work yet,” said Nelson. He remains positive that some healthier options could become popular remains positive that some healthier options could become popular in the future, nevertheless. in the future, nevertheless.

Nelson believes that if prices can maintain for a length of time, Nelson believes that if prices can maintain for a length of time, anything is possible for the meat snack category in 2022. Despite anything is possible for the meat snack category in 2022. Despite price increases, supply issues and no promotional funding, “the price increases, supply issues and no promotional funding, “the category didn’t move backward,” Nelson said. “The sky is the limit!” category didn’t move backward,” Nelson said. “The sky is the limit!”

Salty Snack Sales

Rise as Habits Evolve

Salty snack demand has rebounded at convenience stores after facing sales dips early in the pandemic when store visits declined.

Indeed, total salty snack sales rang in at just over $6 billion, rising by 12.1%, for the convenience store channel during the 52-week period ending Dec. 26, 2021, per IRI.

Within the salty snack category, potato chip sales topped $1.8 billion, an 11.7% rise for the period, with leading brands including Lay’s, Ruffles, Pringles, Herr’s and Utz. Tortilla/tostada chips saw sales of just under $1.3 billion, a gain of 14.8%.

‘Other’ salted snacks saw sales rise to nearly $894, up 9.4%. Pretzel sales topped $285 million, a 19.4% increase. Ready-to-eat popcorn/caramel corn saw sales of just under $249 million, up 10.1%. Pork rind sales totaled almost $212 million, a 3.5% increase, per IRI.

“Sales continue at a decent pace,” noted Mike Jackson, category manager with Baltimore-based High’s stores.

Sales of take-home-size packages, which were popular at the height of the pandemic, have slowed slightly for the 54-store chain.

With vendor supply issues and service levels varying, Jackson advised, c-stores must stay on top of issues with out-of-stocks from both their wholesalers and direct-store-delivery vendors.

“Make sure you try to rotate products, and if a particular item continues to have supply issues, that you substitute another item in its place,” Jackson recommended. “You cannot sell a product that is not there. Make more frequent adjustments to planograms to keep up with issues arising from prolonged out of stocks.”

EVOLVING SNACK HABITS

Snacks now play a central role in most consumers’ daily lives, but they are less culturally rooted as a type of occasion compared to meals, which are defined by strongly established ideals, norms and rituals, according to David Wright, senior manager of marketing for The Hartman Group Inc., a food and beverage strategy firm based in Bellevue, Wash.

“With the continuing health crisis brought about by the COVID-19 pandemic, snacks have taken on a more visible and prominent role in consumers’ lives, as many stay at home more often and adjust their consumption habits,” Wright said. “Changes brought about by the pandemic have led to evolving snacking habits for consumers over the past year that involve more careful planning and stocking of snacks to have inside the house.”

Salty snacks top the list of all snack types consumed, he noted, with 76% of consumers reporting they consume them at least weekly, followed closely by consumption of fresh fruits and vegetables as snacks.

Roughly 71% said they consume those at least weekly.

“Among consumers who say they’ve changed how they snack today compared to a year ago,” Wright explained, “33% say they are seeking out salted snacks more often, and 50% say they are seeking out fresh fruits and vegetables as snacks more often.”

Snack Sales Rebound

The salty snack category saw large gains with dollar sales of $6.09 billion, up 12.1% for the 52 weeks ending Dec. 26, 2021, per IRI. Potato chips led the category with $1.85 billion in dollar sales during the same period, up 11.7% compared to the previous year.

Description Dollar Sales Unit Sales Price Per Unit

Current 1-Year % Change Current 1-Year % Change Current 1-Year Change

Salty snacks

$6.09 B 12.1% 2.72 B 6.6% $2.24 $0.11 Potato chips $1.85 B 11.7% 861 M 6.5% $2.14 $0.10 Tortilla chips/tostada chips $1.29 B 14.8% 534 M 8.7% $2.42 $0.13 Other salted snacks (no nuts) Cheese snacks $894 M 9.4% 397 M 5.5% $2.25 $0.08 $856 M 9.4% 381 M 3.4% $2.25 $0.12

Corn snacks (no tortilla chips) Pretzels

Ready-to-eat popcorn/ caramel corn $452 M 18.9% 195 M 13.9% $2.32 $0.10 $285 M 19.4% 128 M 12.6% $2.23 $0.13 $249 M 10.1% 112 M 2.0% $2.23 $0.17