CONSUMER BEEF INDEX REPORT SEPTEMBER, 2017
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1 CONSUMER BEEF INDEX REPORT SEPTEMBER, 2017
2 BACKGROUND AND OBJECTIVES The Consumer Beef Index (CBI), initially developed in late 2006, has been used since then by the beef checkoff program to: Track changes in consumers perceptions of and demand for beef relative to other meat proteins, particularly chicken, its primary competitor. Assess the impact of the beef industry s communications efforts on consumer attitudes and behaviors. Measure the extent to which consumers consider the positive aspects of beef to outweigh the negatives. Monitor the areas of relative strength and potential vulnerability for beef. Provide input for national communication strategies. Serve as a carrier for a limited number of tactical queries, using an ad hoc module of measures traded out each wave. The master CBI database of nearly 24,000 consumer surveys continues to be used for ongoing strategic analyses. 2
3 METHODOLOGY The second 2017 tracking wave was conducted online August 7 th to 19th using the updated CBI survey format (known as the 2.0 platform), with 1,068 consumers: years of age. Nationally representative of the U.S. population, balanced for census profile distributions of gender, age, ethnicity, region and child presence. Not a recent participant in restaurant/food surveys. No household members working in advertising or market research. Consumers year old have been included to better track generational differences between Baby Boomers and younger cohorts. For continuity, however, only the core year old consumers (N=1,002) from this second 2017 wave are included in tracking comparisons to the previous 21 waves. 3
4 2017 CBI Segments Those are not part of Millennials, but are included in the on-going base of year old U.S. consumers tracked since 2007 (Total N = 1,011 in current wave 22). N = % N = 387 OMP Older Millennial Parents Millennials (38%) (12%, N = 141) BTA Broad Target Audience (45%, N = 506) Gen X (26%) Gen X Parents (14%, N = 178) Baby Boomer Parents (7%, N = 71) Baby Boomers (52-65 at 25%) N = 314 N = 252 N = % Total sample of year-old U. S. consumers = 1,068 (On-going base of those (N=1,011), plus the older Baby Boomers (N = 66)) These year-olds are included in generational analyses, but not in the on-going comparisons of those
5 Favorability Toward Beef Buckets Beef Longer-Term Annual Trends Beef Last Two Waves versus Year-Ago Chicken 27% 25% 27% 30% (27%) 29% 31% 30% 27% 31% Bucket 1 Positives strongly outweigh negatives 49% 73% 46% 49% 78% 52% 51% 49% 51% 51% 50% 49% (50%) 80% Bucket 2 Positives somewhat outweigh negatives 44% 18% 17% 15% 14% 16% 14% 14% 17% 15% (16%) 6% 5% 5% 5% 6% 5% 8% 9% 6% (7%) Bucket 3 Negatives somewhat outweigh positives Bucket 4 Negatives strongly outweigh positives 5% 2% Jul Mar 16 Jul 16 Mar 17 Web 2.0 (Previously shown - Web 1.0) Trend for Chicken Total Positives outweigh (B1/B2) - Bucket 1 89% 90% 91% 90% 90% 91% 45% 45% 43% 41% 45% 47% Key: Significant change in longer-term annual trend () and/or in year-ago wave differences () Base: Total (N = 1,000+ per wave) Q.35/36: Considering all you know about beef/chicken, would you say the positives of beef/chicken outweigh the negatives or do the negatives of beef outweigh the positives? favorability by generation 5 Jul 17 2
6 Executive Summary
7 Executive Summary & Conclusions Relative to the first quarter of 2017, and compared to a year ago, the overall landscape for beef and competitive meat proteins remains consistent. General market equity indicators for beef are still favorable. The proportion of U.S. consumers who have beef at least once a month (92%) is strong and stable. Beef continues to be a preferred meal choice either 1 st choice or likely to choose for over two-thirds of consumers (78%). Those who feel the positives of beef outweigh the negatives Buckets 1 and 2 outnumber those in Buckets 3 and 4 by a margin of 4:1. 27% 25% 27% 30% 29% Bucket 1 Positives strongly outweigh negatives 46% 49% 52% 51% 49% Bucket 2 Positives somewhat outweigh negatives
8 Executive Summary & Conclusions Americans love of beef is remarkable and unique in the sense that they increasingly think favorably about this product (positives outweighing the negatives) while simultaneously cutting back on usage. Despite their beliefs about beef s potentially detrimental, long-term health effects (especially relative to chicken), almost none have cut beef completely out of their diets, and most have beef about twice a week. 90% 80% 70% 60% 93% 90% 91% 93% 90% 90% 90% 91% 90% 85% 79% 74% 70% 70% 77% Consume Beef At Least Monthly Agree Beef Is Great Tasting Beef Is 1st Choice/Among Meats Likely To Choose 50% 43% 40% 30% 32% 32% 31% 27% 3+ Beef Servings in Past Week 20% 10% 0%
9 Older Millennial Parents
10 Executive Summary & Conclusions Older Millennial Parents (OMP) continue to have more favorable attitudes about and higher usage of beef than other consumers. More of these consumers value the healthy nutrients in beef, particularly the protein they see as important for their busy, active families. Nearly one-quarter (23%) feel that beef is better than chicken at appealing to everyone in their families, versus only 14% for consumers generally. Millennial parents are also more food involved than other consumers. They cook more frequently, and are more likely to find it fun and an expression of their creativity. Significantly more of them also actively seek information about food. More of these consumers visit foodnetwork.com and allrecipes.com each month than do other consumers. 10
11 Favorability Toward Beef by Segment Attitudes About Beef by Generation Total Millennials (N = 387) OMP (N = 141) Gen X (N = 314) Gen X Parents (N = 178) Baby Boomers (N = 318) BTA (N = 506) Bucket 1 Positives strongly outweigh negatives 31% 25% 30% 4 32% 35% 37% 27% Bucket 2 Positives somewhat outweigh negatives 49% 53% 49% 49% 50% 42% 53% Bucket 3 Negatives somewhat outweigh positives Bucket 4 Negatives strongly outweigh positives 15% 18% 17% 13% 10% 16% 16% 5% 5% 4% 4 6% 6% 5% 4% 4 Base: Total (N = 1,011) Key: Significantly higher/lower than non-segment () Q.35: Considering all you know about beef, would you say the positives of beef outweigh the negatives or do the negatives of beef outweigh the positives? 11
12 Lifestyle Trends Lifestyle Behavior: Past Week Past Month (Net) Used the Internet for research 61% 64% 66% 83% 85% 84% 43% 73% Ate a meal on-the-go 51% 81% 56% 79% 29% 58% 2 Cooked a meal on the BBQ 27% 59% (Seasonal) 29% 61% Total BTA % 67% 2 OMP Cooked a meal for fun 39% 75% 41% 75% Key: Significant change in longer-term annual trend () and/or in year-ago wave differences () and/or higher/lower than non-segment () Base: Total (N = 503), BTA (N = 233), OMP (N = 67) Q.50: For each of the following, select how long it has been since you 12
13 Lifestyle Trends Page 1 of 2 Food and Health Mindsets Agree Completely (Top Box) Strong Agreement (Top 3 Box) Cook meals frequently 26% 26% 31% 55% 56% 64% Willing to try new beef cuts/recipes 19% 21% 20% 45% 49% 53% Feel good about eating beef 20% 18% 20% 45% 42% 48% Seek out new meal ideas 17% 17% 18% 43% 49% 59% Cooking to express creativity 17% 42% 2 17% 45% 15% 52% Total Enjoyment more important than health 13% 13% 12% 40% 40% 42% BTA A meat and potatoes person 17% 15% 13% 39% 39% 45% OMP Key: Significant change in longer-term annual trend () and/or in year-ago wave differences () and/or higher/lower than non-segment () Base: Total (N = 1,011), BTA (N = 506), OMP (N = 141) Q.49: Using a scale of 0 to 10, where a 10 means agree completely and 0 means disagree completely, how much do you agree or disagree with each of the following statements? 13
14 Lifestyle Trends Page 2 of 2 Food and Health Mindsets Pay attention to nutrition Improving lifestyle healthiness Struggling financially Mainly eat natural foods Agree Completely (Top Box) 12% 13% 13% 11% 11% 12% 13% 14% 9% 6% 7% 6% 29% 32% 32% 3 23% 26% 29% Strong Agreement (Top 3 Box) 36% 44% 38% 34% 35% 38% Others seek advice about food/purchases 6% 7% 9% 23% 28% 37% Total Mainly eat organic foods 5% 7% 10% 3 16% 20% 29% BTA Eat on the run almost all of the time 2% 2% 4% 11% 16% 19% OMP Key: Significant change in longer-term annual trend () and/or in year-ago wave differences () and/or higher/lower than non-segment ( ) Base: Total (N = 1,011), BTA (N = 506), OMP (N = 141) Q.49: Using a scale of 0 to 10, where a 10 means agree completely and 0 means disagree completely, how much do you agree or disagree with each of the following statements? 14
15 Eating More/Less Beef
16 Reasons Planning To Consume More Beef Among consumers (14%) who plan to eat more beef % 16% 15% 14% Extremely important Very important Quick and easy meal 35% 77% 2 Prefer the taste of beef 36% 76% The right choice for more occasions Learned new ways to prepare beef 28% 30% 73% 73% 4 15 point gain over past 4 years Better availability of cuts Adding protein to your diet 30% 31% 72% 72% 4 17 point gain over past 4 years More of a family favorite 30% 71% Great prices at stores 33% 71% 4 Discovered new beef recipes 29% 65% Using the grill more often (seasonal driver) 35% 4 65% Lean beef fits a healthy diet 24% 63% Less worried about safety of beef 24% 59% Feeling comfortable with how beef raised 28% 57% Hearing better news about it being healthy 19% 55% Less concerned about the price now 16% 48% Tired of the other meats 14% 46% Base: Those planning to eat more beef (N = 169) Key: Significant change in longer-term annual trend () and/or in year-ago wave differences () Q.38d: As you noted earlier that you plan to eat more beef, how important or what impact does each of the following have on your decision to eat more beef?. 16
17 Reasons Planning To Consume Less Beef Among consumers (18%) who plan to eat less beef % 16% 18% 19% Health reasons 31% Extremely important 3 Very important 66% Limiting fat in diet Other meats seem healthier Limiting cholesterol 36% 36% 32% 3 65% 63% 61% Eating more plant-based protein Concerned about factory farming 31% 31% 55% 54% More worried about safety of beef 24% 44% Too expensive relative to other meat 17% 3 43% More concerned about its price 22% 43% 2 Family member wants to eat less beef 16% 43% 4 ** Prefer other meal options for taste 20% 42% Doctor or Dietitian recommended 21% 40% Federal Dietary Guidelines recommends 14% 38% Hard to digest 17% 37% Discovered new recipes that don t use beef 17% 36% Steak dinner takes too long 11% 30% Using the grill less Preferred beef cuts not available 10% 7% 24% 22% Running out of ways to make beef 8% Base: Those planning to eat less beef (N = 187) Key: Significant change in longer-term annual trend () and/or in year-ago wave differences () Q.38d: As you noted earlier that you plan to eat less beef, how important or what impact does each of the following have on your decision to eat less beef?. ** Exception Profile in progress %
18 CONSUMER BEEF INDEX REPORT SEPTEMBER, 2017
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