Meat is proving to be a most resilient supermarket sector.

Despite an ailing economy, most consumers are not cutting back on protein purchases.

Meat sales were up 3.5 percent in the aggregate October 2008 through January 2009 timeframe compared to the year-earlier period, reports Hoffman Estates, Ill.-based FreshLook Marketing Group.

Almost 4 billion pounds of meat were sold during that span. Beef sales grew up 3.9 percent, pork sales jumped 3 percent and chicken purchases increased 2.4 percent.

“More people—because they are not eating out as much—are shopping the meat case,” says Danette Amstein, principal with Chicago-based Midan Marketing LLC. “All proteins are strong and there is an opportunity for retailers to capitalize by providing consumers with value. Marketing dollars can be used to bring in even more traffic.”

Amstein and Merrill Shugoll, president of Bethesda, Md.-based Shugoll Research, discussed consumer trends at the 2009 Annual Meat Conference in Denver in March. The Washington, D.C.-based American Meat Institute (AMI) and Arlington, Va.-based Food Marketing Institute (FMI) were conference co-sponsors.

The meat department is benefiting from changing shopper buying habits.

Consumers during the October 2008 to January 2009 timeframe increased their purchases of bone-in chicken breast by 12 percent versus the year-earlier period, FreshLook reports.

In addition, sales were up for chicken parts (11.6 percent), bone-in pork roast (6.6 percent) and ground beef (6.1 percent).

Declining segments include boneless pork roast (down 13.6 percent), premium beef roasts (down 1.7 percent) and beef steaks (down 1 percent).

“People are shifting to the less-costly items,” Amstein said. “Convenience is perhaps not as important as a lower ring.”

In a January 2009 on-line survey of 500 adults who are geographically and demographically representative of the U.S. population, two-thirds indicated that they have made changes to their buying behavior during the economic downturn, Midan Marketing and Shugoll Research report.

Evolving shopper behavior also is revealed in the Power of Meat 2009 report, co-published by the AMI and FMI.

In a national on-line survey in November 2008 of 1,059 adults, 51 percent of the consumers noted that they changed their meat purchasing behavior in response to the economy. The respondents have or share primary shopping responsibility and do not consider themselves vegetarian or vegan.

A key factor is the need to stretch the protein dollar.

Seventy-one percent of shoppers who have altered their meat purchasing behavior, for instance, say they are reading grocery flyers more often.

In addition, 55 percent are shopping at less-expensive stores, while 67 percent are buying lower-priced cuts of meat.

The study also found that more consumers are focusing on price per pound rather total package price when making purchase decisions.

In addition, added shoppers are preparing dishes that require less meat, such as pasta meals and casseroles.

“Meat is one of the most expensive items in the basket and people are looking for ways to make it go farther,” says Anne-Marie Roerink, FMI director of research.

Behavior patterns, however, differ among shopper groups.

The Power of Meat 2009 report reveals, for instance, that 62 percent of households with annual incomes of less than $25,000 are purchasing cheaper cuts of meat, while just 18 percent of households with incomes of more than $150,000 are downsizing.

“These demographic differences make it even more imperative for stores to choose the right competitive strategy in the meat department,” the study notes. “For some, this will be quality. For others, this will be price, portion or convenience.”

Despite shifting activity, chicken and beef still remain the most frequently prepared proteins.

Indeed, 84 percent of consumers note that they fix chicken at least once a week. Next is beef (78 percent), pork (52 percent) fish (46 percent), turkey (28 percent), lamb (10 percent) and soy products (12 percent).

Overall, fresh meat is prepared by 78 percent of American households at least once a week, down from 85 percent in 2008.

Contributing to that cutback is greater shopper interest in ready-to-eat and heat-and-eat meals, which typically are less expensive and more convenient. Sales of canned fish, ham and Spam have grown by double digits since the start of the recession, the report notes.

Younger consumers—especially persons between the ages of 25 and 39—are three times more likely to purchase ready-to-eat meat than the general population, the study found. In addition, individuals working full-time are more than twice as likely to buy the proteins.

“The growth in ready-to-eat meat is especially important as it gives the supermarket a chance to market other items to complement the meat,” the report states. “Bags of washed and cut salad, heat-and-eat vegetables or mashed potatoes can be a great way to increase the basket size.”

Price detectives

The greater shopper focus on cost also is making in-store signage an increasingly significant merchandising tool.

Thirty-four percent of shoppers, for instance, indicate that they compare different stores’ meat and poultry prices every time they shop, while 51 percent always compare unit prices of meat within the same outlet, the report notes.

Just 9 percent of shoppers state that they never pay attention to flyers and other materials displaying meat prices, and only 4 percent never compare prices within the same store.

Indeed, respondents ranked price per pound as the most important factor when purchasing meat, followed by product appearance, package size, nutritional content, knowledge of how to prepare, and preparation time required.

In addition, 34 percent of respondents noted that they would buy more meat if the quality improved.

Other factors that would spur added sales are a better variety of items (stated by 23 percent of respondents); more information of where the meat was produced (18 percent); and having nutrition information available (17 percent).