Consumer Processed Meat Trends
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1 Per Capita Lbs /25/2015 Consumer Processed Meat Trends Total U.S. Meat Consumption Beef Pork Chicken Turkey Fish / Shellfish 20 KEVIN MYERS, PH.D., HORMEL FOODS CORPORATION 10 0 Year USDA Data th RECIPROCAL MEAT CONFERENCE NPD Group Top 10 Items we Consume: onational Eating Trends Survey Data: Poll of 2,000 households annually 14 day diary of consumption Demographic makeup of U.S. population 1. Sandwiches 5. Carbonated Soft Drinks 2. Fruit 3. Vegetables 4. Milk 6. Coffee 7. Potatoes 8. Salty Snacks 9. Juice 10. RTE Cereal Source: The NPD Group s National Eating Trends service, Year Ending Feb 2014, In-Home and Away-From-Home Consumption; Excludes Water and Additive/Ingredient Consumption 4 Top 10 Items 10 yrs. ago: Sandwiches - Overall * 1. Sandwiches 2. Carbonated Soft Drinks 3. Vegetables 4. Milk 5. Fruit 6. Coffee 7. Potatoes 8. Juice 9. RTE Cereal 10. Salty Snacks Source: The NPD Group s National Eating Trends service, Year Ending Feb 2014, In-Home and Away-From-Home Consumption; Excludes Water and Additive/Ingredient Consumption Source: The NPD Group/National Eating Trends; Data for year-ending February 2014 * % of Total Sandwiches 5 1
2 Sandwiches In-Home/Away * * Sandwiches In Home * * Source: The NPD Group/National Eating Trends; Data for year-ending February 2014 * % of Total Sandwiches Source: The NPD Group/National Eating Trends; Data for year-ending February 2014 * % of Total Sandwiches Growing Protein Trends What do you usually look for on the Nutrition Facts label? Percentage of Adults Saying Protein Protein Protein is a valued nutrient 86% of consumers strive to consume protein daily. Vegetables Protein Fruit Fiber Calcium Vitamin C 19% 36% 35% 31% 28% 63% 64% 51% 51% 54% 55% Vitamin D 63% Whole grains 22% 52% Vitamin A 14% 58% Iron 14% 56% Should Be Part Of Each Meal/Snack Should Come From Some Source Every Day Good fats 52% Antioxidants 52% Omega-3 13% 51% Source: The NPD Group s Bi-Weekly Dieting Monitor, Annual Averages; N= ~31,200 Adult Respondents More Vegetarians? The data do not support the belief that more Americans are becoming vegetarians. Percent of Individuals Consuming Animal Protein In-Home At Least Once in Two Weeks Meals are Changing Percent of In-Home Meals that include Animal Meat 33% 32% 31% 31% *Note this is as a percent of 30% 31% 31% all meals, main meals and 29% 30% snacks throughout the day. 29% 28% 28% 27% 27% 27% 28% 27% 28% 28% 27% 27% 27% 27% 27% 27% 27% 26% 26% 26% 26% 26% '84 '85 '86 '87 '88 '89 '90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 Source: The NPD Group s National Eating Trends database, Years Ending Feb. '84 '85 '86 '87 '88 '89 '90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 11 Source: The NPD Group s National Eating Trends database, Years Ending Feb. 12 2
3 Meat is less Center of Plate Meat as an Ingredient 45% 44% Beef/Pork/Poultry/Seafood Percent of In-Home Main Dishes at Supper as a Piece of Meat/Poultry/Seafood ANNUAL EATINGS PER CAPITA OF TOTAL IN-HOME MEAT AS AN INGREDIENT 43% 42% % 41% 41% 40% 40% 39% 39% 39% 38% 37% 37% 38% 38% 37% 37% 38% 38% 37% 37% 37% 36% 36% 36% 36% 35% 35% % '84 '85 '86 '87 '88 '89 '90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 14 Source: The NPD Group's National Eating Trends service, Years Ending Feb Source: The NPD Group/National Eating Trends/Combined; data for year ending February Restaurant Generational Shift Year Olds Annual Meals Purchased at a Restaurant per Person Year Olds 50+ Year Olds Source: The NPD Group s CREST database; Years ending Feb. 15 Top Ten Trending Restaurants 1. Chipotle 2.Jersey Mike s 3. Jimmy John s 4. Firehouse Subs 7. Wing Stop 8. Tim Horton s 5. Noodles Source: The NPD Group s CREST Service; Only chains with annual sample of 300+ customer visits are included 9. Krispy Kreme 6. Buffalo Wild Wings 10. Longhorn Steakhouse Average Meal Cost Better for You is not Growing Average Cost of Restaurant Meal per Person* Average Cost of Meal Made In-Home per Person** Number of Products Consumed per Person per Day with Label Indicating a Health Benefit Includes all eating of products labeled as: Reduced Fat Low Calorie Diet Light Reduced Cholesterol Reduced Sodium Caffeine Free Sugar Free (added in 2000) Fortified (added in 2000) Organic (added in 2005) Low Carb (added in 2005) Whole Grain (added in 2005) *Source: The NPD Group s CREST service, Years Ending Feb. ** Source: Calculation based on information from The NPD Group s National Eating Trends service, Census Bureau, and USDA ERS '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 14 Source: The NPD Group s National Eating Trends service, Years Ending Feb. 18 3
4 GMO Concerns Organic Products How concerned are you that Genetically Modified Foods pose a health hazard in the foods you might eat in the next month? Percentage of Adults Expressing Any Level of Concern Source: The NPD Group s Bi-Weekly Foods Safety Monitor; Annual Averages; N= ~14,000 Adult Respondents/year Source: USDA ERS using data from Nutrition Business Journal, 2013 * Estimated Clean Label Initiatives Clean Label? lists 'unacceptable' ingredients in its foods Highlights Commitments to Simple Ingredients.. remove all artificial flavors and colors from nationally available pizzas Removing artificial ingredients and colors Removing all GMO ingredients Removing all artificial colors, flavors and preservatives. What does Clean Label mean? othere is no USDA definition oeach company defines differently operception of consumers: Health influencing Better for my family Better for the environment Are they willing to pay more? Who is Clean Label Consumer? oconcerned about their health oworry about chemicals in foods oprefer Natural products owide income demographic oorganic - trends younger 4
5 Changing Trends - Millennials Millennial Generation onow outnumber Baby Boomers oethnic Diversity osocial Media savvy ochanging food purchases Fast Casual Restaurant growth Snacking Cooking at Home Fresh, Clean Label growth oby 2020 Millennial CPG spending will grow by 70% Value Consumer Median Income o48% of household make <$50K/yr Dollars $58,000 $56,000 $54,000 $52,000 $50,000 $48,000 $46,000 $44,000 US Census Data all households Value Consumer o48% of household make <$50K/yr. otrade-offs for this consumer Rent vs. food Healthcare vs. food Empty calories vs. nutrition Living paycheck to paycheck oaffordable protein is important Food Safety olisteria monocytogenes and E.coli O157:H7 can grow in products without inhibitors (even natural and organic items!) othe move to clean label ingredients cannot allow shortcuts to food safety! onew research into food safety ingredients and technology is proceeding quickly 5
6 Thank you! 6
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