Value meat sales grow steadily despite cost concerns
Supermarket private-label value items are performing well in both the red meat and dairy sectors, despite cost-of-living concerns continuing to restrict overall consumer spend.
Products within a specific money saving/value for money supermarket own label range are known as value tier products. These items have performed strongly as trading down continues, as they often represent the cheapest items in supermarkets, according to AHDB.
Value tier products make up only a small part of red meat and dairy volumes, at 7.7% (Kantar, 52 w/e 6th August) and 2.4% respectively (Nielsen, 52 w/e 12th August 2023).
Despite this, value tier volumes have grown in both categories, up by 35.6% year-on-year (YoY) for red meat. Mince was high on the list with sales volumes growing by 179.8% YoY (Kantar, 52 w/e 6th August).
Tom Price, AHDB trainee analyst said: “This YoY growth comes from consumers looking to cut back on spending due to price rises. Price has become more important to consumers, however the data indicates that consumers do not want to fully remove their favourite meat and dairy products from their diet, but instead want to save money by purchasing value tier versions.
“By expanding the number of products on offer in the value tier and making sure this offering is tailored towards staples like mince, sausages and cheese, there is an opportunity to further expand retail sales of red meat and dairy.
“It’s also important to remember that not all retailers currently offer a value tier range, so expanding tiers in all supermarkets could attract more customers. Adequately advertising these value tier ranges in supermarkets and communicating their in-store location to consumers will then ensure value tier products can be found easily.
Tom added: “Consumers care about quality and sourcing credentials even when shopping in the value tier ranges. Shopper focus has shifted away from just low prices, and instead towards value for money and product satisfaction.
“Campaigns such as AHDB’s ‘We Eat Balanced’ messaging help to highlight the exceptional taste and quality of British meat and dairy, and will encourage repeat customers in both premium and value ranges.”