In 2023, the bacon industry in the United States is navigating the challenges of inflation and its impact on consumer purchasing habits. Key insights from the data and analysis provided include:
- Sales and Volume Data: According to Circana OmniMarket Integrated Fresh, bacon sales reached $5.96 billion over a 52-week period ending August 13, with a total volume of over 958 million lbs.
- Fluctuating Market Performance: Anne-Marie Roerink of 210 Analytics LLC notes that describing bacon’s performance in 2023 is complex. While unit sales and pound sales saw an increase in the second quarter (2% and 4%, respectively), a significant deflation of 14.2% during this period led to a dollar decline of 10.8% compared to the previous year.
- Promotional Activity: Retailers have increased promotional activities for bacon, with over 45% of bacon dollars promoted in 2023, up from 34% the previous year.
- Product Variety: Retailers typically carry about 37 different bacon items in a week, an increase from 2022 levels. This variety includes new flavors and options catering to different dietary trends like keto and paleo-friendly bacon.
- Consumer Preferences and Trends: Despite shifts in dietary trends, bacon continues to be popular. There’s a move towards balanced diets with a focus on protein and carb avoidance, but in a less restrictive manner. Bacon brands have adapted to these trends, emphasizing protein content and offering diet-compatible options.
- Packaging and Presentation Innovations: The industry has seen changes in bacon packaging, with a rise in craft bacon varieties and offerings in full-service cases. This includes unique flavors, extra thick cuts, and pre-smoked/cooked options for snacking. Retailers are also combining bacon with other meat and vegetable options.
- Flavor Innovation: Bacon producers are innovating with different flavor profiles, including ranch-flavored, double smoked, jalapeƱo spicy, and extra thick varieties.
- Marketing Strategies: Limited-time offers in restaurants and retail settings are being used to attract consumer interest in unique bacon flavors, even though more common flavors often make up the bulk of sales.
Overall, the bacon category is adapting to economic and consumer trends by expanding its product range, engaging in promotional activities, and aligning with changing dietary preferences.
Reference: https://www.meatpoultry.com/articles/29400-still-booming