Trends in Meat, Fish, and Poultry Canned, chilled and frozen meat, fish, poultry, and meat substitutes // CONSUMER INSIGHT / CATEGORY BRIEFS 2 Executive Summary About this research
DATAMONITOR'S CONSUMER INSIGHT RESEARCH IDENTIFIES THE GUIDING MEGA-TRENDS AND APPLIES THEM TO CATEGORIES
Marketplace success is heavily contingent upon delivering what the consumer wants, when the consumer wants it, where and how the consumer wants it. In recognition of this, Datamonitor's TrendSights research identifies and interprets the eight consumer mega-trends and 40 sub-trends shaping the future consumer and innovation landscape. These encapsulate the issues that will most affect all facets of corporate strategic planning in the years ahead, ranging from new product development (NPD) to organizational structuring. TrendSights Category Briefs Hot Topics Interpreting how trends and events will shape the future consumer and innovation landscape. Applying Datamonitor's TrendSights framework to determine category-specific issues and implications. Exploring consumer trends in specific regions and markets. Also covers strategy issues. THIS RESEARCH BRIEF APPLIES DATAMONITOR'S MEGA-TREND FRAMEWORK TO THE MEAT, FISH, AND POULTRY CATEGORY
The analysis explores the key issues and implications associated with each of the eight mega-trends in the TrendSights framework. In doing so, it uncovers consumer and innovation insight to outline the key opportunities and threats for the meat, fish, and poultry category. 3 Executive Summary Datamonitor has identified the following opportunities in meat, fish, and poultry innovation Issue Opportunities Ingredients and flavors Keep consumers interested and excited by offering more unusual products such as exotic meats and products with unique flavors, such as vanilla-infused bacon. Enhance the overall sensory experience for consumers by encouraging food pairings such as meat with alcohol. Emphasize and promote product attributes such as "natural" and fresh," and make use of available active and intelligent packaging technologies to improve product freshness and extend shelf life naturally, such as High Pressure Processing (HPP). Invest in rare breeds to present a more premium offering to consumers, who will be willing to pay more for breeds such as Gloucester Old Spot pork and Angus beef. Benefits and positioning Meat, fish, and poultry are commodity sectors with little brand value. It is therefore very important to generate a point of differentiation to get the products to stand out and appeal to consumers, and move it away from being price-led and a "commodity." Private label is at the forefront of successful innovation, creating its own values for meat. Offer products that meet the growing consumer demand for ethically and sustainably sourced products, such as free range pork, higher welfare indoor reared poultry, and responsibly farmed fish. As the global Islamic population increases there are significant opportunities for halal meat and poultry, particularly as Muslim consumers demand the same innovations (e.g. convenience) as seen for non-halal products. Develop products aimed at specific consumer needs, such as gluten-free sausages. Launch snacking products that appeal to younger demographics. Take advantage of the dine-at-home trend by developing more premium options and convenient products that make scratch cooking using meat, fish, and poultry easier. 4 Executive Summary Datamonitor has identified the following opportunities in meat, fish, and poultry innovation Issue Opportunities Packaging Premiumize the look of packaging to make products stand out, particularly within fresh meat, fish, and poultry where private label dominates and products often look very generic. Harness smartphone technology to turn product packaging into an information gateway, offering consumers a narrative "from farm to fork" and complete transparency as to where and how the product was farmed. Produce smaller, single servings and individually portioned packs that help to retain product freshness, in order to take advantage of the growth in single-person households. Invest in sustainable packaging initiatives to reinforce environmental credentials. Merchandising and marketing Use certification logos on-pack to help improve consumer trust in products and market them as ethical, sustainable, or eco-friendly. Provide recipes, cooking advice, and tips to consumers to help those who lack confidence to cook with fresh meat, fish, and poultry at home. Tap into the potential offered by social media in relation to customer engagement, product feedback, and brand narrative.
5 Index Please click on the section of interest
1. INTRODUCTION 06 Definition and scope 07 Datamonitor's mega-trends 10 Applying mega-trends to meat, fish, and poultry 12 2. HEALTH & WELLNESS 16 SWOT analysis 17 Shifting focus on fat 19 Moderating meat intake 21 Brands emphasizing positive health attributes 22 Organics 24 3. SENSORY & INDULGENCE 26 SWOT analysis 27 Fresh and natural 29 Willingness to experiment 31 Alcohol and meat pairing 36 Premiumization 37 Active and intelligent packaging 43 4. INDIVIDUALISM & EXPRESSION 46 SWOT analysis 47 Vegetarianization 49 Customization 53 Make it for me 55
5. SUSTAINABILITY & ETHICS 59 SWOT analysis 60 Ethical production 62 Sustainability 66 6. SMART & CONNECTED 71 SWOT analysis 72 Online engagement 74 7. EVOLVING LANDSCAPES 78 SWOT analysis 79 Migrating influences 81 The rise in single-person households 83 Emerging markets 84 8. EASY & AFFORDABLE 85 SWOT analysis 86 Private label momentum continues 88 Responding to price-conscious consumers 90 Building on strong convenience credentials 93 9. COMFORT & UNCERTAINTY 99 SWOT analysis 100 Back to basics and naturalness 102 Trust and transparency 104 10. CONCLUSIONS 109
6 1. INTRODUCTION BACK TO INDEX NEXT SECTION 7 Meat, fish, and poultry as categorized in Datamonitor's Product Launch Analytics Introduction Shifting consumer priorities present a range of opportunities for innovation
CHANGING CONSUMER PREFERENCES SHAPE AN EVOLVING INNOVATION LANDSCAPE FOR MEAT, FISH, AND POULTRY The meat, fish, and poultry category is evolving in line with consumers' complex and dynamic needs, and product innovation is reflecting this. Producers and manufacturers are seeking to meet growing demand for ethically and sustainably sourced products, while at the same time meeting changing needs in terms of convenience, taste, and health. All of these trends continue to evolve against the backdrop of enduring value consciousness among recession-weary consumers.
VARIOUS MEAT, FISH, AND POULTRY SUB-CATEGORIES ARE COVERED IN THIS ANALYSIS This brief outlines the most important consumer and product trends impacting the meat, fish, and poultry category globally, using Datamonitor's new TrendSights mega-trend framework as a basis to organize the key themes covered. The category, for the purpose of the analysis, comprises meat and meat products, fish and fish products, poultry and poultry products, and meat substitutes. This includes fresh, frozen, canned, and processed products, but excludes ready meals. Source: Datamoni tor's Product Launch Anal yti cs 8 Source: Datamoni tor's Market Data Anal yti cs; *Canned fi sh/seafood, canned meat products, chi l l ed fi sh/seafood, chi lled meat products, del i food, frozen fi sh/seafood, frozen meat products Meat, fish, and poultry* represented $533bn in global spending in 2011 Top 10 markets by value ($bn), 2011 Top 10 markets by per capita expenditure ($), 2011 Market value by category, global, 2011 Fastest growing categories by value, global, 201115f Deli food +5.2% Chilled meat products +3.5% Canned meat products +3.3% Frozen fish/seafood +3.0% Frozen meat products +2.9% China 79.9 Italy 29.1 Japan 54.2 Mexico 26.4 US 43.4 Brazil 26.2 Germany 39.4 Russia 23.2 France 32.8 Spain 21.0 Norway 336 Portugal 182 Switzerland 322 Germany 180 France 280 New Zealand 170 Italy 214 Austria 168 Denmark 190 Belgium 154 Introduction Per capita expenditure is still generally the highest among Europeans, while China, Japan, and the US dominate in terms of market value 9 Introduction New product development is mainly driven by Europe and Asia Pacific
MEAT, FISH, AND POULTRY INNOVATION INCREASED BETWEEN 200910, BUT THERE WAS A MARKED DECLINE IN 2011 Datamonitors Product Launch Analytics captured 5,300 new products launched in 2011. The biggest single proportion of these came in Europe, which represented 51% of all new products. NPD increased in Europe and South and Central America during 200711, signifying an attempt to increase differentiation in the marketplace through innovation. In contrast, NPD has declined markedly in North America, with 12% of new products coming from this region in 2011, compared to 24% in 2007. NPD has remained low in the Middle East and Africa, with just 2% of new products coming from this region in 2011. Source: Datamoni tor's Product Launch Anal yti cs New meat, fish, and poultry products launched globally, by region, 200711 10 Introduction The dynamics giving shape to the global consumer marketplace can be found in the eight mega-trends THE DYNAMICS GIVING SHAPE TO THE GLOBAL CONSUMER AND INNOVATION LANDSCAPE, INCLUDING THE MEAT, FISH, AND POULTRY CATEGORY, CAN BE FOUND AMONG THE EIGHT MEGA-TRENDS
Datamonitor's TrendSights framework recognizes that consumer behavior is best interpreted via an organized "trend hierarchy," whereby each overarching mega-trend comprises a number of trends and sub-trends as conveyed by the visualization presented on the following slide. Understanding the full range of sub-trends, including how they interact to impact multiple sectors and categories, is the most important starting point in guiding trend analysis. HEALTH & WELLNESS People of all ages are more proactively addressing their health in a more holistic and personalized manner. SENSORY & INDULGENCE The driving force behind continually higher expectations of quality, variety, and immersive "consumption experiences." COMFORT & UNCERTAINTY Consumers value safety, tradition, simplicity, and reassurance due to rising stress and uncertainty in their lives and the world around them. SUSTAINABILITY & ETHICS Mounting awareness and concern surround the scale, complexity, and interdependence of shared social and environmental challenges globally. INDIVIDUALISM & EXPRESSION Values that emphasize individuality and self- expression guide confident and empowered modern consumers. EASY & AFFORDABLE Time and money are perceived to be the great scarcities of modern life, and consumers are searching for ways to maximize these limited personal resources. SMART & CONNECTED In a hyper-connected, technology-enabled society, consumers seamlessly integrate the use of multiple technologies in their lives and buying behavior. EVOLVING LANDSCAPES The underlying and mostly dependable socio- demographic and -economic trends impacting consumer societies. 11 12 Health & Wellness Sensory & Indulgence Individualism & Expression Sustainability & Ethics Smart & Connected Evolving Landscapes Easy & Affordable Comfort & Uncertainty THE CATEGORY CONTINUES TO BUILD ON ITS STRENGTHS IN SENSORY & INDULGENCE As consumers express willingness to experiment and try new things, the meat category is responding with an array of more exotic meats such as camel and kangaroo. Freshness is of high importance in the category and as manufacturers seek ways to extend the shelf life of meat products, active and intelligent packaging is being developed and implemented to keep meat fresher for longer.
EVOLVING LANDSCAPES IS OF GROWING IMPORTANCE Evolving Landscapes also holds importance as beef and lamb producers must seek to respond to the growing demand for halal meats as the global Islamic population rapidly expands. While Sustainability & Ethics is a growing issue as many consumers become more concerned about animal welfare and the environment, price still remains a barrier to growth in this mega-trend.
Introduction Red meat: while Datamonitor's TrendSights framework is applicable globally and across sectors, the degree to which each mega-trend impacts the category varies Mega-trend relevance in red meat 13
HEALTH AND WELLNESS HOLDS KEY IMPORTANCE IN THE FISH CATEGORY Health continues to be a driving force in the fish category as it is generally leaner than red meat and poultry, and many species are naturally rich in key nutrients for health such as omega fatty acids. Manufacturers need to find ways to build upon the natural health credentials of the category to encourage more frequent consumption. Sensory & Indulgence is also a key driving force in the fish category, as the wide variety of different species contribute to a multitude of different flavors, smells, and textures that can be cooked in numerous ways to suit consumers own preferences.
THE CATEGORY IS FINDING WAYS TO MAKE FISH EASIER AND MORE CONVENIENT FOR CONSUMERS Many consumers struggle with fresh fish, lacking the skills and confidence to cook with it from scratch. Manufacturers need to respond to this by introducing more convenient products that enable consumers to easily cook fresh fish dishes at home. While Sustainability & Ethics is a growing issue as many consumers become more concerned about the sustainability of fishing, price remains a barrier to growth in this mega-trend.
Introduction Fish: while Datamonitor's TrendSights framework is applicable globally and across sectors, the degree to which each mega-trend impacts the category varies Health & Wel lness Sensory & Indulgence Indivi dualism & Expression Sustainability & Ethics Smart & Connected Evolving Landscapes Easy & Affordable Comfort & Uncertainty Mega-trend relevance in fish 14 Health & Wel lness Sensory & Indulgence Indivi dualism & Expression Sustainability & Ethi cs Smart & Connected Evolving Landscapes Easy & Affordable Comfort & Uncertai nty
HEALTH AND WELLNESS IS A KEY TREND FOR POULTRY As consumers are increasingly concerned about their health, including their intake of fat and calories, many are turning away from red meat towards poultry as it is perceived as leaner, particularly white meat such as chicken breast. This trend presents opportunities for manufacturers to focus on educating consumers and offering poultry as a healthier alternative to red meat, through providing recipes or products that include poultry in place of red meat.
EVOLVING LANDSCAPES AND COMFORT & UNCERTAINTY HOLD SIGNIFICANCE FOR POULTRY Within the poultry category, the Evolving Landscapes, Sensory & Indulgence, and Comfort & Uncertainty mega-trends hold particular importance. As seen in the rise of gourmet junk food outlets, consumers are seeking premium, ethically reared comfort foods such as Southern fried chicken that offer a sense of familiarity and indulgence. Trust & Transparency is also important, as consumers are increasingly seeking better information on the origin and production methods of the products they are eating.
Introduction Poultry: while Datamonitor's TrendSights framework is applicable globally and across sectors, the degree to which each mega-trend impacts the category varies Mega-trend relevance in poultry 15 Introduction The industry needs to understand differences in the shopper decision-making process for meat, fish, and poultry to better inform innovation and marketing strategies Source: adapted from the Meat and Li vestock Commi ssi on, "The Shoppi ng Deci si on Tree," 2002 CORE PROTEINS Bacon Sausages Sliced meats Ground/minced meat Poultry pieces Canned products KEY OCCASION PROTEINS Joints Chops Steaks Whole poultry Fish and seafood Ready meals
Used in everyday family meals. Purchase highly planned/habitual but the meal occasion may not be planned. Common standby products to keep in the freezer. Price and promotions will be highly influential. Purchased with specific meal occasion in mind. The meal occasion will be highly planned but the protein chosen is not. Products are easy to substitute. Product appearance/packaging is highly influential. 16 2. HEALTH & WELLNESS TRENDS IN MEAT, FISH, AND POULTRY PREVIOUS SECTION BACK TO INDEX NEXT SECTION 17 OPPORTUNITIES Educating consumers about healthy cuts of meat, preparation, and cooking techniques (such as steaming). Making consumers more aware of the positive health benefits from consumption of certain meats and fish. Ranges of prepared meat, fish, and poultry that are tailored towards the nutritional needs of different demographics. Health & Wellness SWOT analysis
STRENGTHS
Meat, fish, and poultry contain naturally occurring healthful properties (e.g. high protein, omega-3). Lean choices are readily available for those trying to reduce fat intake. WEAKNESSES
There is a general negative perception among consumers that red meat such as beef and pork is fatty and unhealthy. Processed meats such as bacon and sausages can be high in fat and salt. Lack of cooking skills can lead to fish and meats being prepared and consumed in less healthy ways. THREATS
Rising prices and a difficult economic climate result in consumers choosing cheaper quality, less healthy, and fattier meat products. Growing trend towards meat substitutes and vegetarian foods as consumers try to moderate their intake of meat, fish, and poultry products.
18 Health & Wellness Sensory & Indulgence Individualism & Expression Sustainability & Ethics Smart & Connected Evolving Landscapes Easy & Affordable Comfort & Uncertainty Meat Fish Poultry Health & Wellness Health consciousness is a fundamental driver for new product development
KEY THEMES IN HEALTH & WELLNESS
BRANDS EMPHASIZING POSITIVE HEALTH ATTRIBUTES Consumers are demonstrating a shift in their approach to healthy eating, whereby they are more focused on what to include in their diet as opposed to what to eliminate. As a result, more manufacturers are emphasizing the added nutritional benefits of their products.
MEAT AVOIDANCE Amid health concerns and a difficult economic climate, more consumers are limiting their intake of meat or avoiding it altogether. While this presents significant opportunities for innovation in meat substitute products, it is also an opportunity for meat, poultry, and fish manufacturers to better promote the health benefits associated with consumption of their products.
OPPORTUNITIES IN ORGANICS Concerns over chemicals in food are evident among most consumers, prompting manufacturers to develop purer and more natural varieties of beverages. Organic varieties have benefited significantly because of this.
Mega-trend relevance in meat, fish, and poultry 19 Health & Wellness Consumers are highly influenced by fat content when making food choices
CONSUMERS SEEK NUTRITIONAL SPECIFICS As knowledge increases, a rising proporti on of consumers are becoming more aware of what constitutes a balanced diet. While fat content remains highly influential when it comes to food and beverage choices for over half of consumers, other nutritional components are also influential. Whether a product is low/reduced saturated fat is more influential than the level of trans fats. Consumers are also influenced by the level of salt, carbohydrates, and protein. Despite growing concerns over obesity globally, only a fifth of consumers find a low/reduced calorie claim to be highly influential on their choice. Meat, fish, and poultry can use nutritional claims to inform and attract consumers, particularly in relation to such claims as high protein and low carbohydrate, which are naturally inherent in such products.
FAT-RELATED CLAIMS ARE MORE INFLUENTIAL FOR WOMEN Female consumers are more likely to be influenced by "low fat" or "reduced fat" claims compared to their male counterparts. This was also evident for claims relating to saturated fat and trans fat. This has implications for products specifically targeting women, but also has broader relevance to point-of-sale communication and packaging, given that women are generally the main grocery buyer in the majority of households.
Source: Datamoni tor Consumer Survey, May/June 2011 Consumers who are highly influenced by the following claims when making food and beverage choices, global 20 Source: Datamoni tor's Product Launch Anal yti cs 30% less fat and salt
Argeta Delight Kokosji Namaz Croatia A chicken spread marketed under the brand name Argeta Delight. The product claims to have 30% less fat and salt than the regular version. Extra lean
Fresh & Easy Eat Well Boneless Beef Strips US This private label product is marketed under Fresh & Easys "Eat Well" banner, which stands out to the consumer as a healthier option. It is claimed to be extra lean, 98% fat free, and a good source of iron. "97% fat free"
Ashfield 97% Fat Free Bacon Short Cut Rindless Australia This is a lean back bacon product that is marketed as being 97% fat free. The product is rindless, enabling a lower fat content than regular back bacon. "90 calorie"
Van De Kamp's 100% Whole Fillets 90 Calorie Crunchy Fish Fillets US Marketed as a 90-calorie version of the regular product. They are claimed to have 25% less fat and to be a good source of protein , as well as being free from trans fat. Health & Wellness Manufacturers are meeting demand for lighter and leaner products
21 Source: Datamoni tor Consumer Surveys *Apri l /May 2009; **Jul y/August 2010; Datamoni tors Product Launch Anal yti cs Sainsbury's Lovesoya Quarter Pounders UK Low fat and meat free Pietran Jamon de Cerdo Individual Colombia Goodlife Meat Free Ready Meal Nut Cutlets, Glamorgan Sausage, Root Vegetable Roast UK "Meat free ready meal" Tanka Dogs Buffalo Hot Dogs Heart Healthy US "Heart healthy" buffalo hot dogs Individually portioned packs of ham Health & Wellness Health-conscious consumers are seeking to cut back on the amount of food they consume, including moderating their intake of meat MORE IMPORTANCE IS BEING PLACED ON THE AMOUNT OF FOOD CONSUMERS EAT As an extension of higher attentiveness to the nutritional contents of their food opti ons, consumers are also placing greater importance on meal size, calorie counts, and the amount of meat in their diet. Almost a third of consumers claim that they are trying to limit the amount of meat they consume, particularly as health experts recommend reducing the amount of red meat and processed meats in the diet. Manufacturers are becoming responsive to this with innovative meat free products, smaller portioned meat products, and offering lower fat alternatives to traditional meats. For example, buffalo and bison meats are lower in fat than lean beef, offering good alternatives for consumers who are more conscious about what they are eating and how much.
22 Health & Wellness Consumers are seeking more positive health messages, and product claims that address this are becoming more influential CONSUMERS FOCUS ON THE POSITIVE Messages of healthy eating have traditionally focused on limiting consumption of certain "food villains," for example fat, sugar, and carbohydrates. Not only can such an approach detract from food enjoyment, but the effectiveness of such messages is debatable given the rising rates of lifestyle- related diseases such as obesity and heart disease. Accordingly, consumers express a desire to know what they should be eating in order to live a healthy lifestyle. GROWING INFLUENCE OF "POSITIVE" CLAIMS Food and drink claims relating to the presence of healthful ingredients are becoming increasingly influential. In 2009, for example, just 23% of global consumers said that "added/high omega-3" had either a high or very high amount of influence on their food and drink choices, which rose to 39% in 2011. This illustrates the growing appeal of product claims that focus on the inclusion of certain ingredients, rather than the absence of others. With certain meat, fish, and poultry products being high in naturally occurring nutrients including omega-3 and iron, promoting such claims may help to attract consumers.
Source: Datamoni tor Consumer Surveys, Apri l /May 2009, Jul y/August 2010, and May/June 2011 I am more interested in hearing about what TO eat, rather than what NOT to eat Male Female Consumers who are highly influenced by the following claims when making food and beverage choices, global 23 Source: Datamoni tors Product Launch Anal yti cs EVOLUTION OF PRODUCT CLAIMS Off the back of functional foods and beverages gaining traction among consumers (and the consumer packaged goods industry investing heavily in these types of products in response), the category has experienced a surge of more advanced health claims, going beyond traditional "free from" claims to specific "high in" or "rich in" ingredients.
Within the fish and seafood category, for example, there exists much potential to take advantage of the positive nutriti on trend. For example, packaging for Youngs Fish Cakes includes the claim that the product is "a natural source of omega-3," which is an ingredient that has been scientifically proven to boast a variety of health benefits. Within the meat and poultry categories there are fewer examples of brands using positive health claims on packs to help market food; however, there is plenty of opportunity to expand in this area using claims such as "high in iron" or "high protein." Youngs Fish Cakes UK "Rich in omega-3" Wild West Beef Jerky Honey BBQ UK Tesco Fish Fingers Omega 3 Ireland "Omega-3" in brand name Sofia Patitas de Pollo Bolivia "Good source of protein and five vitamins" "High protein beef snack" Health & Wellness Consumer health expectations continue to rise
24 75% of global consumers are concerned about the impact of chemicals used in everyday consumer products on their health.
Health & Wellness Organic products exhibit potential as consumers express concern about chemicals in food and drinks CHEMICALS IN FOOD ARE A MAJOR CONCERN Precisely three quarters (75%) of global consumers across 20 countries are either somewhat or extremely concerned about chemicals in everyday products. Such concern enhances the profile and appeal of organic products around the world, as they are produced without the use of synthetic fertilizers, pesticides, or chemicals. In relation to meat, fish, and poultry this includes ensuring that only organic animal feed is used, and that animals are kept free from antibiotics and growth- promoting hormones. In addition, there are also strict requirements about the amount of space that animals and birds have access to in order to be certified as organic. LESS THAN HALF ARE HIGHLY INFLUENCED BY ORGANICS While the stated concern over chemicals in food is high, only a minority of global consumers (40%) say that a claim of "certified organic" would have a high or very high amount of influence on their food and drink choices (albeit with pronounced country variations). This disconnect can be explained by a lack of understanding about organic certification, skepticism surrounding organic marketing, and the higher prices associated with buying organic products. For fish there is an ongoing debate as to whether organically farmed fish is any different to wild caught fish, which is also essentially an organic product: the living conditions of wild fish cannot be controlled and therefore they cannot be labeled as organic. Source: Datamoni tor Consumer Survey, May/June 2011 CHINA 67% SOUTH KOREA 58% BRAZIL 53% UK 22% GLOBAL 41% AUSTRALIA 27% Consumers who are highly influenced by "certified organic" claims when making food and beverage choices 25 ORGANIC PRODUCTS STRUGGLE TO GAIN MOMENTUM The proporti on of meat, fish, and poultry product launches that are "organic" remains comparatively low. There was a particular decline in organic product launches in 2010, with just 3.0% of new launches tagged as organic. This rose slightly in 2011, with organic accounting for 3.4% of new launches. However, the proportion of organic launches remains lower than 2007 when almost 5% of new launches were organic. While a high proportion of consumers are displaying concern regarding chemicals in foods and beverages, this decline can be attributed to a reluctance by consumers to pay premiums for organic products, particularly in a difficult economic environment. However, there exists significant potential as consumer awareness of the perceived health benefits of organics improves, but producers are as yet reluctant to make the investment.
Daylesford Organic Aberdeen Angus Beef Burgers UK Wegmans Foods You Feel Good About Organic Farmed Salmon from Ireland US Nikas Viologico Allantika Organic Salami Greece Taza Organic Chicken Drumsticks Egypt New meat, fish, and poultry products tagged "organic" as a proportion of all category launches, global, 200711 Source: Datamoni tor's Product Launch Anal yti cs Health & Wellness Organic products struggle to make significant inroads in meat, fish, and poultry
26 3. SENSORY & INDULGENCE TRENDS IN MEAT, FISH, AND POULTRY PREVIOUS SECTION BACK TO INDEX NEXT SECTION 27 Opportunities
Flavor innovation for processed meats, such as sausages. Rare breeds and exotic meats present opportunities to premiumize. Growing consumer awareness and acceptance of the sensory benefits of scratch cooking.
Sensory & Indulgence SWOT analysis
Strengths
Numerous different varieties of meat, fish, and poultry offer consumers a wide choice of flavors and tastes. The versatility of meat, fish, and poultry in terms of preparation and cooking. Advances in packaging technology enable meat, fish, and poultry to be kept fresher for longer.
Weaknesses
Consumers can lack knowledge about different products and cuts, so are unsure what is best for what purpose, resulting in a poor sensory experience. A perception that frozen and canned products offer inferior quality and taste compared to fresh products.
Threats
Improvements in the quality and choice of meat substitute products. Poorly cooked or prepared meats can negatively affect the texture and taste, putting consumers off. A significant proportion of consumers do not notice new product innovation.
28 Health & Wellness Sensory & Indulgence Individualism & Expression Sustainability & Ethics Smart & Connected Evolving Landscapes Easy & Affordable Comfort & Uncertainty Meat Fish Poultry Sensory & Indulgence Consumers are open to sensory experimentation in meat, fish, and poultry
KEY THEMES IN SENSORY & INDULGENCE
EMPHASIS ON FRESHNESS In considering taste, consumers look favorably on fresh, pure, and natural attributes. While canning and freezing can help to preserve shelf life, active and intelligent packaging techniques are being employed to preserve freshness and shelf life in fresh chilled meat, fish, and poultry products.
WILLINGNESS TO EXPERIMENT Consumers are receptive to new and interesting sensory experiences, while meat, fish, and poultry manufacturers are responding with unique recipes and flavors.
PREMIUMIZATION In the pursuit of a more special consumpti on experience, consumers are gravitating towards products that have been produced using more exclusive, sophisticated production processes or that are from a special breed. Uniqueness and novelty can be i mportant product di mensions in encouraging consumer spend within the category and differentiating from standard product offerings.
Mega-trend relevance in meat, fish, and poultry 29 Chi l l ed 42% Frozen 26% Canned 32% Sensory & Indulgence In relation to taste, consumers look favorably on fresh, pure, and natural attributes TASTE ATTRIBUTES REMAIN A KEY DRIVER OF DEMAND Despite generally rising consumer attentiveness towards value and health, taste inevitably continues to be the predominant driver of demand. The contrast between consumer perceptions of chilled vs frozen meat, fish, and poultry products is significant. Consumers generally perceive that the nutritional quality, freshness, and taste of frozen food are inferior to chilled. Such views have been reinforced by the frozen sectors overwhelming focus on basic products and value-for-money propositions, rather than premium products.
Source: Datamoni tor Consumer Survey, May/June 2011; Datamoni tors Product Launch Anal yti cs Meat, fish, and poultry product launches, by positioning, global, 201011
CHILLED PRODUCTS DOMINATE LAUNCHES IN THE MEAT, FISH, AND POULTRY CATEGORY Just over 40% of product launches in the meat, fish, and poultry category were chilled during 201011. Canned products made up almost a third, with the remaining quarter being frozen products. This indicates a relative lack of innovation in the frozen category, perhaps driven by general negative perceptions over the quality of frozen products quashing consumer demand and stemming product innovation.
Consumers who agree with the following statements about freezing foods, global 30 CONSUMERS PERCEIVE FROZEN FOOD TO BE LESS FRESH A high proportion of consumers are highly influenced by "fresh" claims when purchasing food and drinks; they are demanding the shortest possible time between products being sourced and hitting the shelves. However, 40% of consumers globally believe that freezing food compromises freshness. While consumers have become accustomed to purchasing fish from the freezer aisles, frozen meat and poultry products are still generally perceived as inferior products. It is important that the industry seeks to alter this perception through marketing communication. Source: Datamoni tor Consumer Survey, May/June 2011; Datamoni tor's Product Launch Anal yti cs Shurfresh Frozen Boneless Skinless Chicken Breast US Cumbres Chorizos Frescos Butifarra Chile Sensory & Indulgence Consumers are highly influenced by freshness, and frozen foods are trying to capture this Consumers who are highly influenced by "fresh" claims when buying food and drinks Male Female Bounty Fresh Frozen Chicken Nuggets Philippines "Golden bites of freshness" Publix Fresh Frozen Pink Shrimp US "Fresh frozen" The "Shurfresh" brand name evokes freshness "Chorizos frescos (fresh sausages)" 31 Sensory & Indulgence New product opportunities are spurred by consumers willingness to try new things as well as their exposure to other cultures and tastes MOST CONSUMERS ENJOY EXPERIMENTING WITH FOOD The majority of global consumers state that they like making new things to eat and trying different foods. Females are more likely to express an interest in trying and making new things. The positive message for innovators is that this means that consumers are more receptive to the idea of new flavors and food concepts. This has implications for meat, fish, and poultry in terms of innovation in processed meats, flavored products, exotic species and breeds, and less common cuts of meat and offal. OTHER CULTURES INSPIRE EXPERIMENTATION Willingness to try new things can be driven by various sources, including family and friends, the media, personal fulfillment, and ethnic diversity. Australians are among the most likely to agree (56%) that other cultures have influenced their taste in food, suggesting that new international sources of inspiration for product development are important for directing future innovation direction. Source: Datamoni tor Consumer Survey, May/June 2011; Apri l /May 2009 AUSTRALIA 56% UK 53% US 46% JAPAN 22% GLOBAL 43% FRANCE 34% Consumers who agree with the statement: "My taste in food has changed as a result of exposure to foods from other cultures" Consumers who experiment by trying new food all of the time, most of the time, or occasionally Male Female 32 Sensory & Indulgence Manufacturers are being innovative with new and unusual flavors
Source: Datamoni tor's Product Launch Anal yti cs Muddy Boots Handmade Aberdeen Angus Beef Burgers Cranberry & Camembert UK Launched as a limited edition for the Christmas season from the Muddy Boots brand, this handmade burger product comes in a seasonal Cranberry & Camembert flavor.
Fresh & Easy Let's Grill! Ready- to-Cook Chicken Tequila & Orange US This private-label, refrigerated chicken product is described in package text as boneless, skinless chicken breast slices in a light and fresh tequila and orange marinade. Heston From Waitrose 6 Back Bacon Rashers Vanilla, Tomato Ketchup, Stout & Golden Syrup UK This bacon product is offered in three innovative flavors. The vanilla pack reads: "Because as kids we encounter it in desserts, we think of vanilla as sweet but it's not. It has a delicate, fruity, spicy, and sometimes earthy character, depending on where it's grown." Paquito Jamon Banana, Mint, Pistacho, and Chocolate Spain This range of ham in Spain comprises various different flavor varieties, many of which are innovative in the ham sector. These include traditionally sweet flavors such as bananas, mint, and chocolate. 33 Sensory & Indulgence Case Study: new steak range offers consumers a choice of different flavor profiles to mix and match NEW RANGE ENABLES CONSUMERS TO CHOOSE HOW THEY WANT THEIR STEAK FLAVORED Golden West Food Group launched a new range of marinated steaks in the US under the Certified Angus Beef brand, with a choice of cuts and flavors to mix and match. The concept offers convenience to the consumer as the steaks are pre-marinated, but also offers the chance to experiment with different flavors and less familiar steak cuts.
The choice of cuts available includes flat iron steaks, tri tip, skirt steaks, ball tips, ranch roasts, and sirloin. Each cut is then fused with one of an array of flavors including Classic Steakhouse, Carne Asada, Barbacoa, Four Chilli, Porcini Rosemary with Port Wine Sauce, Honey Bourbon, Jalapeno Lime and Beer, Chimichurri, and Kansas City BBQ. The consumer is able to mix and match between the cuts and the flavors, enabling them to experi ment with different opti ons and have a new sensory experience each time they purchase a product from the Certified Angus Beef marinated range.
Source: Progressi ve Grocer 34 Sensory & Indulgence Case Study: Tuckers Exotic Meats offers consumers a way to experience new and different meats OFFERING A RANGE OF EXOTIC MEATS FROM AROUND THE GLOBE Tuckers Exotic Meats are tapping into consumers willingness to experiment and try new foods by offering a range of exotic meats from around the world to consumers in the UK through street markets and an online shop. While more than half (53%) of UK consumers claim that their taste in food has changed as a result of exposure to foods from other cultures, exotic meats are not widely available in supermarkets. Tuckers therefore identified a niche gap in the market to be filled: the company offers a range of ethically sourced meats including reindeer, llama, wagyu beef, blesbok, impala, zebra, camel, and crocodile. In street markets around London, the company serves hot snacks such as exotic burgers, alongside raw meat, such as steaks, for the consumer to take home and cook.
EMPHASIZING HEALTH BENEFITS AS WELL AS TASTE Tuckers is selling its exotic meats using a health message as well as the sensory experience from trying unusual and interesting meat varieties. Through its website, Tuckers highlights that red meats such as ostrich and springbok contain less fat, calories, and cholesterol than chicken. The company makes the claim that "introducing these meats to your diet can benefit not just your taste buds, but also your waistline."
Source: tuckers-exoti cs.co.uk; Datamoni tors Consumer Survey, May/June 2011 35 Sensory & Indulgence Manufacturers are tapping into the trend for exotic meat products with new product launches Source: Datamoni tor's Product Launch Anal yti cs Lidl Deluxe Reindeer Leg Steaks UK Lidl introduced reindeer meat to the UK in the run-up to Christmas under its premium "Deluxe" label, to tie into the festive theme.
Gold Ostrich Loukaniko Frankfourtis Wild boar, Deer, Ostrich Greece Frankfurter-style sausages in three different exotic varieties: ostrich, wild boar, and deer. Fondue Exotique Meat Assortment Bison, Kangaroo, Ostrich Belgium A mixed fresh exotic meat assortment pack, designed to be used with fondues. The meat includes bison, ostrich, and kangaroo with a mix of paprika, curry, and juliena seasoning.
Gary West Smoked Meat Elk Strips US Strips of smoked elk meat. Elk comes from the deer family, and the meat is leaner and higher in protein than beef or chicken.
36 Sensory & Indulgence Pairing meat, fish, and poultry with alcohol to create an enhanced sensory experience
PAIRING MEAT, FISH, AND POULTRY WITH ALCOHOL The pairing of meat, fish, and poultry with alcohol is not a new concept. Consumers traditionally associate certain wines with different meats, for example red wine for red meat and game, or white wine for chicken and fish. Research by the American Meat Institute found, however, that 39% of consumers would like more help in how to pair the right wine with meat and poultry, indicating a general lack of expertise among consumers. 1 There are also many opportunities for the industry to take the pairing of meat and alcohol further by pairing meats with other alcohol products such as beer, to complement the meal occasion and excite consumers taste buds.
ROBINSONS PRIME RESERVE CRAFT BEER AND STEAK MATCH In the US, Robinsons Prime Reserve, an online meat vendor, created a signature cut of beef, Boston Lager Cut, as the ultimate pairing for Samuel Adams Boston Lager. The lager cut was designed by renowned New York-based butcher Jake Dickson as the ultimate beef pairing for Samuel Adams Boston Lager. It was noted that "the spicy hop flavors and sweet caramel notes in beer actually pair better with bold, flavorful meats than wine does." The lager is said to be ideal to finish the "rich meaty flavor of the cut." The beer and the food work in tandem to create an enhanced sensory experience for the consumer.
Source: robi nsonsprimereserve.com; [1] Ameri can Meat Insti tute, "The Power of Meat," 2012 37 Sensory & Indulgence Differentiation through rare breeds or specialized farming methods is a route to premiumization in fresh meat, fish, and poultry AS CONSUMERS DINE AT HOME MORE, THEY ARE SEEKING INDULGENCE IN PREMIUM PRODUCT OFFERINGS A tightening of discretionary income has driven a rising propensity to dine at home at the expense of eating out. While there has been a rise in demand for budget private label brands, there has also been a surge in demand for products with a premium positioning at higher price points. Fresh meat, poultry, and fish can take advantage of this trend by offering products that differentiate themselves from standard offerings. Brands are responding to demand with more premium offerings alongside products that are positioned to replicate the takeaway and eating out experience. Source: Datamoni tor Consumer Survey, Jul y/August 2011; Datamoni tors Product Launch Anal yti cs Coles Finest Free Range Pork Fillet Steak Australia Waitrose Love Life Line Caught Cod Fillets with Roasted Tomato Marinade UK Male Female RARE ANIMAL BREEDS AND SPECIALIZED PRODUCTION TECHNIQUES CAN BE A ROUTE TO PREMIUMIZATION In a category dominated by private labels, producers must seek to differentiate their products in order to meet consumer demand for indulgence in-home. Products THAT offer the consumer something over and above the standard category offerings can command a premium price point and appear more indulgent to the consumer. This includes higher welfare production (e.g. free range), rare animal breeds (e.g. Gloucester Old Spot pork), provenance, and special farming and fishing methods (e.g. organic, corn-fed poultry, or line-caught fish). Consumers who said that they dine at home more than they used to 38 Sensory & Indulgence Case study: The Rare Breed Meat Company specializes in offering consumers rare and traditional breed meats and poultry SUCCESSFULLY OFFERING RARE AND TRADITIONAL BREEDS AS A POINT OF DIFFERENTIATION In 1995 The Rare Breed Meat Company was founded by Howard Blackwell in Essex, the UK. The company specializes in rare and traditional breed meats, which began with the rearing of Gloucestershire Old Spots pigs and extended into supplying over 15 different breeds of beef, pork, and lamb, as well as specialty poultry, duck, venison, and game products. All meat and poultry is butchered and prepared on-site and sold through specialty retailers including Harrods and Selfridges in London, restaurants, and bistros, and through the companys own farm shop in Essex.
Breeds offered include: Beef Angus, British White, Old Gloucester, Sussex Red, English Longhorn, Red Poll, Shorthorn, Dexter, Belted Galloway, and White Park. Pork Gloucester Old Spot and Blythburgh Free Range. Lamb Local Colne Valley Lamb, Salt marsh Lambs, and Dorset Lambs.
The Rare Breed Meat Company spotted a niche in the market for offering specialty and rare breed meat and poultry, and has built up a successful business around it. This case demonstrates the opportunities there are for premiumization through producing and supplying rare breed meats.
Source: therarebreedmeatcompany.co.uk 39 Sensory & Indulgence Meat plays a vital role in the growing trend for "gourmet junk food"
DEMAND FOR GOURMET JUNK FOOD IS GROWING There is a growing trend towards upmarket, gourmet fast food made from high quality meat and poultry and sold at premium prices. The concept of gourmet junk food is to offer consumers traditi onal favorites like hot dogs, burgers, and fried chicken in a more ethical and sophisticated way. Speaking to The Independent, Simon Anderson, co- founder of London chicken outlet Roost, said that he believes the growing demand for gourmet junk food comes from people wanting to "eat childhood favorites, but, cooked really well, using amazing cuts of meat." Examples include: Bubbledogs An outlet in London offering champagne and hotdogs, to add a level of sophistication to the hotdog eating experience. The menu offers a choice of 10 different hotdogs including the BLT dog, wrapped in bacon and served with truffle mayonnaise and caramelized lettuce. Wishbone Also in London, this restaurant offers free-range fried chicken for ethically minded consumers. Dach and Sons A fast food restaurant in Hampstead offering burgers, hot dogs, and sliders (mini burgers) served alongside craft beer and whiskey, with such innovative sides as bone marrow popcorn.
There are opportunities for packaged goods manufacturers to tap into this trend, offering premium meat and poultry fast food items for in-home consumption, such as gourmet burgers and hotdogs to be cooked at home. Serving suggestions on-pack could recommend wine or beer to be paired with the products to add to the gourmet experience.
Source: The Independent, Jul y 2012 40 NOVEL PRODUCTS APPEAL TO CONSUMERS Trying and experiencing new products is considered important by the majority of consumers. Considering the food category in general, including meat, fish, and poultry, well over two thirds of consumers are keeping their eye out for new products and/or actively monitoring new launches. In addition, over 50% of consumers cite trying new products as being important in creating a feeling of wellbeing. Innovative packaging can be used to enhance the experience for the consumer, for example by using special packaging to give a more premium feel to products. Source: Datamoni tor Consumer Survey, May/June 2011; Datamoni tor's Product Launch Anal yti cs Sausage tablet
Casa Noguera Pecatum Butifarra en Tableta Spain The product is a type of Catalan pork sausage in a tablet form. The bar-like formulation is a new idea for pork sausages and offers a novel consumption experience. Sensory & Indulgence Novelty and unique product innovations can enhance the consumer experience and convey a more premium positioning Jelly seafood shots
Big Prawn Company Shellfish Jelly Shots UK This product is designed along the theme of alcoholic shots, but instead of alcohol they contain cocktail-flavored jellies with shellfish. There are three flavors: Crayfish Margarita, Mussels Bloody Mary, and Prawn Mojito. This offers an innovative way to consume shellfish. Female Male Consumers who keep an eye out for or actively monitor new products in food, global 41 Sensory & Indulgence The BBQ occasion goes hand-in-hand with meat, fish, and poultry and offers opportunities for products that are tailored to this occasion BARBECUING ADDS AN EXTRA DIMENSION TO THE SENSORY EXPERIENCE OF CONSUMING MEAT, FISH, AND POULTRY The barbecue occasion is synonymous with meat, fish, and poultry. The experience of cooking al fresco over hot coals is enjoyed around the globe during the summer months, and adds an additional element to the consumption occasion. The smells, sunshine, and atmosphere associated with barbecues add to the enjoyment of the occasion.
MANUFACTURERS ARE LAUNCHING PRODUCTS SPECIFICALLY AIMED AT THE BBQ OCCASION Grilled meats, fish, and poultry are barbecue staples and manufacturers are producing products that are specifically tailored to this occasion. Marinated meats, gourmet burgers, bumper meat selection packs, and ready-prepared skewered meats are among recent product launches. For example, Almare Seafood in Switzerland launched a new Fisch-Grillpfanne (Fish for Barbecue) product containing an assortment of barbecue-ready fish products including fish skewers and tuna steaks. Tillmans BBQ Me range includes products such as Texas Twisters, which are tender, seasoned minced pork belly spirals on skewers ready for the barbecue.
Source: Datamoni tors Product Launch Anal yti cs Almare Seafood Fisch- Grillpfanne (Fish for Barbecue) Switzerland Coles Grill Barbecue Chicken Skewers Australia Tillman's BBQ Me! Texas Twisters UK Fresh & Easy F&E Let's Grill! Beef Patties US 42 Sensory & Indulgence Case study: premium "boutique" butchers are adding an experiential element to the meat purchasing process for consumers BOUTIQUE BUTCHERS CAN TURN THE MEAT BUYING PROCESS INTO A LUXURY EXPERIENCE A boutique butcher is a term used for a butcher where meat is cut, prepared, and packaged on-site using the whole animal. Boutique butchers may also offer specialty foods made on-site such as homemade sausages and smoked meats. There is significant opportunity for boutique butchers to sit at the premium end of the market, offering specialty meats, cuts from the whole animal (which might not be available in supermarkets and other retailers), expert knowledge, and premium packaging to give a more luxury feel.
BARBECOA IN LONDON IS AN EXAMPLE OF A SUCCESSFUL BOUTIQUE BUTCHERY CONCEPT With windows filled with meat hanging from floor to ceiling, Barbecoa Butchery in London is a prime example of an outlet providing the consumer with an exciting and novel meat purchasing experience. Barbecoa was set up by renowned chefs Jamie Oliver and Adam Perry Lang as a meat-focused restaurant combined with a butchery shop underneath. The butchery ages and dries its own meat, sources all produce from specially selected farms, and also tries to make use of as much of the animals as possible, selling forgotten cuts such as cheeks and trotters alongside more traditional cuts. They even endeavor to prepare products such as sausages to a customers own recipe if requested.
Source: Barbecoa.com/butchers 43 Modified Atmosphere Packaging (MAP) Control s gases i nsi de the packagi ng. A mi x of carbon di oxi de, ni trogen, and/or oxygen i s used, dependi ng on the product. Taint removal Removes i n-pack odours caused by bl ood and moi sture, parti cul arly i n raw products. Hel ps to keep products smel l i ng fresh. Oxygen scavenging Hel ps remove resi dual oxygen from seal ed packagi ng, often used i n conjuncti on wi th MAP. Commonl y used for poul try and processed meat products. ACTIVE PACKAGING Leakage indicators Gas-sensi ng dyes are used i n MAP to moni tor gas l evel s i n packs and detect "sl ow-l eakers." Loss of gas can compromi se product shel f l i fe . Temperature indicators
Used wi thi n the suppl y chai n to control and moni tor the temperature. Hel ps ensure the safety of products reachi ng the consumer. Microbial growth indicators
Used to detect the presence of mi crobi al growth i nsi de packagi ng, whi ch can cause food spoi l age. INTELLIGENT PACKAGING Sensory & Indulgence Active and intelligent packaging methods are being used to preserve the freshness of chilled meat, poultry, and fish products, fitting in with the Fresh & Natural trend Source: Datamoni tor anal ysis; Meat & Li vestock Austral i a, 2000 44 Sensory & Indulgence Case study: active packaging can help to reduce food wastage through retaining product freshness in raw meats ODOR-REMOVING ABSORBENT PAD HELPS TO KEEP MEAT SMELLING FRESH Packaging company Sirane has developed a special absorbent pad for packaged raw meat that removes unpleasant odors that the consumer often perceives as being unfresh. The pads are designed to be used in conjunction with MAP or vacuum-packaged meats. According to the company the odor-absorbent pads absorb vapors and odors from the pack, even when saturated in blood and juices, making the product much more attractive to the consumer. Even where meat is fresh, an unpleasant odor caused by blood and juices can make it appear "off" to the consumer.
CONSUMER RETURNS FELL FOR PRODUCTS USING THE ODOR- ABSORBENT PAD According to Sirane returns are a major issue for vacuum-packed meats, with customers wrongly thinking that the food is off due to unpleasant odors. Initial trials of the pad saw a 9% drop in packaged meat being returned by customers at a supermarket chain in the UK. Such packaging also has positive implications for the environment as it can help to reduce the amount of food wastage.
Source: si rane.com; packagi ngnews.co.uk 45 Sensory & Indulgence HPP technology can help to extend the freshness of cooked meats without the need for additives NOVEL TECHNOLOGY IS BEING USED TO KEEP MEAT PRODUCTS FRESHER FOR LONGER HPP technol ogy involves submerging a packaged product into water inside an enclosed vessel, within which high pressure is exerted. This process, which lasts just a few minutes, kills microorganisms without altering the flavor, texture, or appearance of pre-cooked products. The technology is more suited to cooked meat products such as packaged sliced meats than raw meats because of potential color and texture changes that can affect uncooked products. HPP gives cooked meats a much longer shelf life than traditional preservation methods that often involve chemical preservatives being added to the food.
Source: [1] Datamoni tor Consumer Survey, May/June 2011; Avure.com; Datamoni tors Product Launch Anal yti cs Hormel Natural Choice Deli Meats US REDUCES THE NEED FOR ADDITIVES AND PRESERVATIVES, KEEPING PRODUCTS MORE NATURAL HPP technol ogy not only helps to preserve the freshness of meat, it also reduces the need for added preservatives including salt and lactose. Using HPP there is an opportunity for the manufacture of more natural, minimally processed, ready-to-eat meat products that are additive-free. With 62% of consumers globally concerned about additives in food and drink, 1 such products are likely to be highly appealing. The food industry is also under increasing pressure from government health organizations to reduce the salt/sodium content of foods, and HPP technol ogy can definitely help with this. Some manufacturers have already implemented the technology, such as Hormels Natural Choice deli meats range in the US, which is described on-pack as "100% natural" and "minimally processed." Safer Fresher More natural 46 4. INDIVIDUALISM & EXPRESSION TRENDS IN MEAT, FISH, AND POULTRY PREVIOUS SECTION BACK TO INDEX NEXT SECTION 47 Opportunities
Emphasizing the positive nutritional benefits of meat, poultry, and fish. The growing trend towards vegetarianization creates opportunities for meat substitutes and reduced-meat content products.
Individualism & Expression SWOT analysis
Strengths
Meat, poultry, and fish are very versatile and can be prepared and cooked the way the consumer wants it. Butchers, deli counters, and fishmongers enable the consumer to buy products that are customized to their personal needs and lifestyles.
Weaknesses
Interfering with meat, fish, and poultry products too much (e.g. by adding functional health ingredients) may be viewed as an unnecessary interference by those who value the innate naturalness of these products.
Threats
The rise in consumers choosing to lead a meat-free lifestyle. A potential shift away from generic/conventional meat, fish, and poultry product offerings as consumers seek personalized products.
48 Health & Wellness Sensory & Indulgence Individualism & Expression Sustainability & Ethics Smart & Connected Evolving Landscapes Easy & Affordable Comfort & Uncertainty Meat Fish Poultry Individualism & Expression Brands are addressing the increasingly specific dietary demands of consumers
KEY THEMES IN INDIVIDUALISM & EXPRESSION VEGETARIANIZATION There is a growing trend towards vegetarianization as consumers cut out or reduce thei r meat intake. There has been a rise in meat-free substitute products to appeal to the modern consumer. This is reflective of consumers becoming more aware of the positive impact on the health benefits of reducing meat intake, the growing importance of emerging markets where factors such as religion and traditional eating habits make these products more relevant, and growing ethical considerations in relation to the consumption of meat.
RIGHT FOR ME Meat, fish, and poultry are very versatile products that are easily substitutable and can be cooked specifically the way the consumer prefers it. The way a consumer likes their steak cooked, for example, is a highly personal choice that can significantly affect enjoyment of a meal if not right.
MAKE IT FOR ME Nutriti onal needs also vary significantly depending on gender and lifestyle. Demanding consumers want products that address these needs.
Mega-trend relevance in meat, fish, and poultry 49 Individualism & Expression Consumers are choosing meat-free alternatives for a widening array of reasons, as the vegetarianization trend grows stronger VEGAN AND VEGETARIAN OPTIONS ARE BECOMING MORE RELEVANT While globally less than a third of consumers claim to be influenced by vegetarian or vegan claims, in some countries as much as 70% (India) are highly influenced by such claims. In the case of India this is due to Hinduism being the primary religion, meaning that much of the population eats little to no meat. In the absence of meat, meat replacement products play an important role in adding necessary protein to consumers diet. McDonalds, famous for its hamburgers, has announced plans to open meat-free restaurants in India to cater to the large vegetarian population. 1 Meat replacement products can take the form of meat alternatives (usually vegetable-dense and minimally processed) or meat analogs (faux meat products that are often highly processed to be similar in texture and taste to meat). 2
Source: [1] BBC News, September 2012; [2] Busi ness Insights "Vegetari ani zation Strategi es i n Food and Dri nks," 2012; [3] Data moni tor Consumer Survey May/June 2011; [4] Datamoni tor Consumer Survey, Apri l /May 2009 India 71% China 50% Germany 15% Global 28% US 19% Brazil 40% Consumers who are highly influenced by products that are vegetarian or vegan, 2011 3
"FLEXITARIANISM" IS BECOMING INCREASINGLY POPULAR AS CONSUMERS SEEK TO REDUCE MEAT INTAKE While many consumers may not classify themselves as vegetarian, many are cutting back on meat consumption. This is reflective of growing consumer health awareness, financial constraints due to the economic climate, and ethical considerations in relation to meat consumption. "Flexitarian" is a term for someone who actively chooses to restrain the intake of meat in their diet. Over 30% of consumers globally claim that they are trying to li mit the amount of meat they consume, and so could be classed as flexitarian. 4 There are opportunities for meat, fish, and poultry producers to capitalize on this trend, for example by offering products with a reduced meat content.
Key drivers of vegetarianization 2 Health and wellness Ethical concerns (e.g. animal welfare) Food safety concerns International and national food policy, and public campaigns (e.g. Meat Free Mondays) The cost of meat 50 Individualism & Expression Categorization of meat-free, restrained meat-eating, and meat-eating consumers
Source: Busi ness Insights "Vegetari ani zation Strategi es i n Food and Dri nks," 2012 Meat-free
Onl y eat food and drink from pl ant sources.. Do not eat meat, poultry, fi sh and seafood, eggs, or dai ry. Do not consume meat, fi sh, or poultry but may eat eggs or dairy products. deri ved from animal sources. Consume fish and seafood, but not meat or poul try products. Vegan Vegetarian Pescatarian Restrained meat-eating
Meat eaters who have consciously chosen to permanently reduce the amount of meat in their di et. Passionate about havi ng a di et mainly wi th foods deri ved from plant origin. Occasionally will eat meat, but not routinely.
Short-term followers of a meat-free diet for targeted health reasons. Flexitarian Vegivore Temporary vegetarians Meat-eating
Meat-eaters who eat a mi xture of foods from both animal and plant ori gi n. Meat-eaters whose diet pri marily consists of meat, fish, and seafood. Omnivore Carnivore 51 Individualism & Expression A widening array of meat substitutes are becoming available to meat-free and restrained meat-eating consumers Source: Datamoni tors Product Launch Anal yti cs The Redwood Co Vegi Deli Meat Free Duck Style Pieces UK MEAT ANALOGS MEAT ALTERNATIVES Sophie's Kitchen Vegan Calamari US Veggie Land Veg Mutton Meat Substitute Mal aysia Manna Soya Nuggets Indi a Asda Chosen By You Meat Free Nut Roasts UK Tesco Meat Free Chickpea And Barley Gumbo 350g UK Innocent Veg Pot Caribbean Jerk Curry UK Hilary's Eat Well Veggie Adzuki Bean Burger US 52 Individualism & Expression Public campaigns urging consumers to have a meat-free day each week are gaining traction among consumers MEAT-FREE MONDAYS ARE ENCOURAGING MORE CONSUMERS TO THINK ABOUT THEIR MEAT INTAKE Both the Meatless Monday (US) and the Meat Free Monday (UK) public campaigns have gained traction in recent years, encouraging consumers to refrain from consuming meat for at least one day per week. This could have significant implications on demand for meat, fish, and poultry producers as more consumers seek meat-free alternatives. In July 2012 the US Department of Agriculture (USDA) came under fire from livestock producers for endorsing the Meatless Monday idea, and had to retract their support. 1
Source: [1] New York Ti mes; [2] meatl essmonday.com; [3] meatfreemondays.com MEATLESS MONDAY Meatless Mondays is a public health campaign that started in the US in 2003 to encourage people not to eat meat on Mondays so as to improve their health and help the environment. As well as encouraging individuals to participate, the campaign also asks restaurants, cafeterias, and schools to go meat-free on Mondays. In 2011 50% of consumers in the US claimed to be aware of the Meatless Monday campaign, with around 27% of consumers stating that it has encouraged them to cut back on meat. 2
MEAT FREE MONDAYS Similarly to Meatless Monday in the US, the Meat Free Monday campaign encourages consumers to refrain from eating meat on Mondays. The Meat Free Monday campaign was launched in the UK in 2009 by musician and celebrity Paul McCartney. Rather than health, the campaign puts particular emphasis on going meat-free to help save the planet, improve the welfare of ani mals, and help alleviate world hunger. 3
53 Individualism & Expression Customization enables consumers to tailor their own product just how they like it
CUSTOMIZATION IS IMPORTANT TO CONSUMERS AND CAN BE USED TO CREATE A PERCEPTION OF LUXURY Over half of consumers globally find customization benefits to be important, particularly in a luxury brand. Customization benefits in products may therefore help to establish a more premium positioning in the marketplace. Within meat, fish, and poultry, customization can come in the form of cooking methods and preparation techniques. When a consumer buys a beef steak (either in a restaurant or to take home) they can customize this to their liking depending on whether they prefer it to be cooked rare, medium, or well done. Meat, fish, and poultry are also very versatile and can be prepared to endless different recipes that are customized to the consumers personal tastes.
BUTCHERS, FISHMONGERS, AND DELIS ARE ABLE TO OFFER CONSUMERS PRODUCTS THAT ARE CUSTOMIZED TO THEIR NEEDS Purchasing meat, fish, and poultry over the counter has significant customization advantages over purchasing ready packaged products. Using delis, butchers, and fish mongers, the consumer is able to specify a particular weight and are usually able to ask for it to be prepared a specific way. For example, if a consumer is buying a chicken, they can ask for it to be deboned or portioned if that suits them, while fish can be filleted.
Source: Datamoni tor Consumer Survey, May/June 2011 Consumers who find the following important or very important in a luxury brand, global 54 Individualism & Expression Case study: US companies are offering consumers their own customizable beef jerky snacks over the Internet SLANTSHACK JERKY ALLOWS CONSUMERS TO CUSTOMIZE THEIR OWN BEEF JERKY SNACKS SlantShack Jerky is a small artisan beef jerky producer that offers consumers the opportunity to buy their own customized version of the dried beef snack. The company was formed by a group of entrepreneurial college students in New York and operates via its website, offering "build-your-own" jerky, or consumers can purchase from a selection of readymade varieties.
60 DIFFERENT COMBINATIONS OF JERKY ARE AVAILABLE On the website consumers have several options to choose from, with around 60 possible different combinations possible, providing an array of choices to suit all taste buds. Once the consumer has chosen the pack size they require they are presented with a choice of either traditional beef or a premium organic grass-fed beef. The consumer then chooses a marinade from a choice of three flavors including original, hot and smoky, or a gluten-free option. Following this the consumer can add a rub or glaze from a range of options such as maple syrup glaze if desired. The products are then shipped direct to the consumer. The offer of a customized product fits in with the Made-For-Me trend as consumers seek products made especially for them. SlantShack Jerky is a novel product within the meat, fish, and poultry sector, and showcases how customization can be applied within the category.
Source: sl antshackjerky.com 55 Individualism & Expression Personalization is attractive, particularly if it enhances the nutritional benefit of meat, fish, and poultry products 42% of global consumers say that a claim of customized or personalized would improve their perception of a grocery product. Source: Datamoni tor Consumer Survey, Jul y/August 2010 Consumers who found the following food and beverage concepts and ideas highly appealing, global PERSONALIZED NUTRITION IS HIGHLY APPEALING The idea that a product is customized or personalized is appealing for almost half of consumers, who said that such a claim would improve their perception of a grocery product. However, when applied to a healthy product personalized features are significantly more desirable, with 64% of consumers stating that a food product that is formulated with their specific nutritional needs in mind is either somewhat or very appealing. This captures the manner in which health benefits/considerations can elevate the importance of any given purchase scenario. Offering meat, fish, and poultry products that are packaged so as to offer personalized health benefits to specific consumer groups is an opportunity to be taken advantage of.
56 Individualism & Expression There has been a rise in the volume of new product launches that are tailored towards the nutritional needs of children THE NUTRITIONAL INTAKE OF CHILDREN IS A PERTINENT GLOBAL ISSUE Prevalent worries regarding the nutritional intake of children driven by rising child obesity in the West, and the impact of mass industrialization in developing countries are providing opportunities for industry players. The success of such products is reliant on emphasizing strong health credentials while achieving the right tone with marketing. Over half of parents expressed concern over the nutritional value of the foods they buy for their children.
BRANDS HAVE RESPONDED TO RISING CONCERNS ABOUT NUTRITIONAL SUITABILITY FOR CHILDREN Reflecting these prevalent concerns, brands have sought to bring meat, fish, and poultry products to the market aimed specifically at the nutritional needs of kids. For example, the Eating Right Kids brand has looked to combine nutriti onally healthy product formulations to appeal to parents, while at the same time using cartoon characters on packaging to drive "pester power." The Caviar Kid lunch kit is specially designed to introduce childrens palates to nutrient-rich caviar.
34% 54% 25% 2010 & 2011 Consumers who find food and beverages aimed at children trustworthy (2010) Consumers who are concerned over the nutritional value of the food they buy for their children (2011) Consumers who are concerned over the impact of chemicals used in everyday consumer products on their children's health (2011) "Introduce younger palates to the delicious, nutritional powerhouse: caviar" Source: Datamoni tor Consumer Surveys, Jul y/August 2010 and May/June 2011; Datamoni tors Product Launch Anal yti cs "High in protein" Eating Right Kids Chicken Nuggets Saudi Arabia Caviar Kid Caviar Lunch Kit US 57 Individualism & Expression Food and drink choices are being increasingly influenced by the changing dietary needs of consumers THE INFLUENCE OF ALLERGEN-FREE CLAIMS IS GROWING The proportion of consumers who are highly influenced by "allergen-free" claims has significantly increased, from 21% in 2009 to 41% in 2011. Consumers, even those who do not suffer from food allergies or intolerances, are increasingly aware of the presence of common allergens in food, which in turn is influencing their food and drink choices. While raw unprocessed meat and poultry in themselves are generally free from allergens (with the exception of fish or seafood, which is a common food allergen), processed products such as marinated meats and sausages can often contain allergens such as gluten. ALLERGENS SIGNIFICANTLY AFFECT FOOD CHOICES While around one third of global consumers state that they routinely avoid certain foods or drinks due to allergies or intolerances, this varies markedly by country. Yet, even where such behavior is comparatively infrequent, it is significant that still over a quarter (in Australia, for example) regularly make choices based on their allergies/intolerances. Offering processed meat products that are marketed as free from certain allergens is an opportunity for meat, fish, and poultry manufacturers to cater for the significant proportion of consumers who are influenced by such claims. Source: Datamoni tor Consumer Surveys, May/June 2011 and Jul y/August 2010 India 64% United Arab Emirates 54% UK 22% Global 34% Australia 27% Singapore 45% Consumers who avoid certain food or drinks for allergy or intolerance reasons either most of the time or all the time Consumers who are highly influenced by "allergen-free" claims, global Female Male 58 Individualism & Expression Industry players are being innovative with gluten-free meat, fish, and poultry options
GLUTEN-FREE WILL CONTINUE TO REPRESENT HIGH GROWTH POTENTIAL Gluten-free meat, fish, and poultry products are experiencing healthy growth as brands better service the individual nutriti onal needs of consumers. In marketing, brands face a balancing act between emphasizing this important attribute while at the same time communicating to the consumer that such products are not compromising elsewhere. "Free-from" foods must therefore credibly communicate broader benefits/virtues, rather than simply relying on the ingredients they exclude. Georgia's Choice Gluten Free Chicken Grills, Bites UK Gourmet Tiefkuehlspezialitaeten Gluten free Fisch-Nuggets Germany New products tagged as "gluten free," as a proportion of all new meat, fish, and poultry launches, global, 200711 Flava-Stix Gluten free Australia Handy Gluten Free Crab Cakes US Source: Datamoni tor's Product Launch Anal yti cs 59 5. SUSTAINABILITY & ETHICS TRENDS IN MEAT, FISH, AND POULTRY PREVIOUS SECTION BACK TO INDEX NEXT SECTION 60 Opportunities Sustainable packaging formats that do not compromise product freshness or protection. Educating and informing consumers about the standards of animal welfare involved in production to help alleviate concerns. Encouraging consumers to switch to lesser known, more sustainable fish species such as tilapia and coley. Sustainability & Ethics SWOT analysis
Strengths
Stricter regulations on animal welfare are improving the ethical credentials of the category. Advances in active and intelligent packaging technology reduce wastage levels.
Weaknesses
The energy needed to keep products fresh (refrigeration or freezing). The carbon footprint involved in meat production is under increasing scrutiny. Negative consumer perceptions of animal welfare standards, particularly for frozen, canned, and highly processed meat products.
Threats
The higher costs often associated with ethically aligned products. Depletion of fish stocks through the prevalent use of unsustainable and unethical farming methods.
61 Health & Wellness Sensory & Indulgence Individualism & Expression Sustainability & Ethics Smart & Connected Evolving Landscapes Easy & Affordable Comfort & Uncertainty Meat Fish Poultry Sustainability & Ethics Grocery product choices are increasingly subject to environmental and ethical scrutiny
KEY THEMES IN SUSTAINABILITY & ETHICS
ETHICAL FACTORS ARE OF GROWING IMPORTANCE Consumers are concerned about ethical issues, with animal welfare featuring highly in the case of meat, fish, and poultry. There is increasing demand for higher welfare products, and accredited schemes such as RSPCA Freedom Food are making it easier for consumers to identify and make ethical choices.
SUSTAINABLE FISHING As a result of increased awareness around the sustainability of fishing, consumers are becoming more attuned to the issue and are seeking responsibly and sustainably farmed fish. Consumers are actively switching away from the "big five" fish (salmon, cod, prawns, haddock, and tuna) to lesser known, but more sustainable species.
SUSTAINABLE PACKAGING IS AN IMPORTANT TREND The issue of excess packaging in grocery products continues to gain momentum. Consumers are taking more responsibility for the waste that they accumulate by paying more attention to the amount of packaging that their product choices use. Mega-trend relevance in meat, fish, and poultry 62 32% of global consumers regularly have to throw food away because it has gone past its sell- by/use-by date. Sustainability & Ethics Ethically minded consumers express concern about the production processes involved in food and drink production ETHICAL CONSIDERATIONS ARE VERY IMPORTANT The majority of global consumers claim that environmental or ethical considerations are either important or very important when deciding which products to purchase. As such, there are significant opportunities for meat, fish, and poultry producers to take advantage of these concerns by offering a wider choice of ethically and/or environmentally sound products. Among these concerns are animal welfare standards, carbon emissions involved in livestock farming, the sustainability of fishing, eco- friendly packaging, and food wastage. Source: Datamoni tor Consumer Survey, Apri l /May 2009, May/June 2011 63% of global consumers say that environmental/ ethical considerations are important when deciding which products or services to purchase. FOOD WASTE IS BECOMING AN ETHICAL ISSUE Food waste is becoming a more important issue for consumers as a result of both ethical and financial considerations. Within the category meat, fish, and poultry manufacturers are addressing this issue by developing packaging methods (e.g. modified atmosphere packaging and oxygen scavenging) to help keep foods fresher for longer to extend shelf life and minimize the amount of wastage. Split meat packs such as Marks & Spencers Diced Chorizo (UK) help to minimize food wastage as the consumer only has to open half the pack at a time, keeping the rest fresh for later use.
Marks & Spencer Diced Chorizo split pack UK 63 Consumers who are concerned about the welfare of farmed animals in making food and drinks Female Male Sustainability & Ethics Ethical considerations about the welfare standard of meat and poultry are important to consumers Source: Datamoni tor Consumer Survey, May/June 2011; Datamoni tors Product Launch Anal yti cs Primo Free Range Middle Bacon Australia Ekuzeni Free Range Beef Biltong Sticks South Africa Waitrose Cook's Ingredients Shredded Free Range Duck UK Eberly's Free Range Young Organic Boneless Chicken Breast Singapore THE WELFARE STANDARDS OF MEAT AND POULTRY ARE UNDER INCREASING SCRUTINY Around half of male and almost two thirds of female consumers expressed concern about the welfare of farmed animals in the production of food and drinks. In response to growing consumer concerns about animal welfare, producers are offering a wider choice of higher welfare products to consumers. This includes not only free range, organic, and outdoor-reared products, but also higher welfare indoor-reared products (e.g. Tesco Willow Farm Freedom Foods Chicken). Manufacturers are also offering a greater choice of free range options to consumers, with processed products such as Ekuzeni free range beef biltong sticks appearing alongside fresh free range meat and poultry. 64 THE RSPCA FREEDOM FOOD STANDARD MEETS WITH GROWING DEMAND FOR HIGHER WELFARE PRODUCTS The Royal Society for the Prevention of Cruelty to Ani mals (RSPCA) developed the Freedom Food scheme in 1994 to improve animal welfare standards and offer consumers a welfare choice. The charity says that consumer demand is driving better welfare standards, with chief executive Leigh Grant recently commenting that "consistent consumer demand for Freedom Food products has helped many millions more farm animals have a better life than they did just five years ago." 1 In order for meat, fish, and poultry products to earn the Freedom Food mark they must meet certain standards for animal welfare, which are above standard (lower welfare) farming techniques. With chicken, for example, indoor-reared birds must be given more natural light, space, and enrichment in accordance with RSPCA requirements.
RSPCA FREEDOM FOOD-APPROVED PRODUCTS MAKE IT EASIER FOR CONSUMERS TO CHOOSE BETTER WELFARE WITHOUT THE PREMIUM PRICE TAG One of the major barriers to purchasing higher welfare meat, fish, and poultry is the higher price tag. Free range products, for example, command a premium price tag due to the higher costs involved in production, making them difficult to afford. To meet Freedom Food welfare standards, production costs are not as prohibitive, making the cost to consumers lower than, for example, free range. Sustainability & Ethics The RSPCA Freedom Food scheme in the UK promotes higher animal welfare
Source: [1] RSPCA Freedom Food Impact Report, 2011; rspca.org.uk/freedomfood; Datamoni tors Product Launch Anal yti cs Tesco Willow Farm Chicken Breast Fillets UK Sainsburys Freedom Food Chicken Breast Fillets UK Jamie Oliver Keep It Simple Sausages UK Morrisons Organic Boned Scottish Salmon UK 65 Sustainability & Ethics Case Study: Serious Pig produces premium free-range meat snacks for more ethically minded consumers SERIOUS PIG IS MEETING CONSUMER DEMAND FOR ETHICALLY PRODUCED PRODUCTS Serious Pig is a UK company set up in 2008 with a mission to produce premium quality ethically sourced meat snacks. Products in the range include air-dried snacking salami sticks and snacking ham. The companys ethos focuses on quality and a commitment to animal welfare, with all meat sourced from RSPCA Freedom Food-monitored pigs. The pork used is all free range, farmed in an environment that meets the animals needs in terms of space, food, and water, and, in addition, offers a stimulating environment where the animals are able to exhibit their natural behavior.
Currently available to consumers through specialist and gourmet food retailers and online, the products meet with growing consumer demand for high-welfare ethically sourced meat products. In particular the company is offering a meat snacking product, which is an area where animal welfare has not typically been a focus in the past. According to Datamonitors Product Launch Analytics tool, fewer than 1% of new snacking meat product launches globally during 201011 claimed to be produced from higher-welfare animals.
Source: seri ouspig.co.uk; Datamoni tors Product Launch Anal yti cs
"Today's consumers care about the quality and provenance of their food and are looking for brands that offer them that assurance which is exactly what we deliver with the Serious Pig Snacking Salami range, which is made to an authentic recipe using only the very best free range British Pork."
George Rice, Serious Pig founder 66 Sustainability & Ethics The sustainability of fishing is of growing concern among consumers, as they try to live sustainable and ethical lifestyles THE ISSUE OF SUSTAINABILITY IS HIGHLY IMPORTANT TO THE MAJORITY OF CONSUMERS Three quarters of consumers globally consider living an ethical or sustainable lifestyle to be important. Sustainability is a big issue in the meat, fish, and poultry category as consumers are becoming more aware of the problems. In particular, the depletion of fish stocks as a result of unregulated and unsustainable farming methods is a global problem that the fish industry is under pressure to address. Manufacturers and producers are responding with products made from sustainably sourced fish and are emphasizing this on packaging in response to consumer demand. Source: Datamoni tor Consumer Survey, May/June 2011; [1] Sai nsburys "Our Future Wi th Fi sh," 2012 75% of global consumers say that living an ethical or sustainable lifestyle is important or very important. HUGHS FISH FIGHT CAMPAIGN BROUGHT GLOBAL ATTENTION TO THE PROBLEM Hugh Fearnley-Whittingstall raised global awareness about the issue of sustainable fishing in his widely publicized Hughs Fish Fight campaign, launched in 2011. In particular the campaign raised awareness about the vast amount of wasted fish as dead fish are returned to the sea to overcome fishing quotas. The campaign, including a television series, led to a huge response from retailers and manufacturers, many of which have taken steps to ensure that the fish they sell or manufacture are sustainably sourced to meet with consumer demand. According to a recent study by UK retailer Sainsburys, consumers are switching from the "big five" fish to lesser known but more sustainable fish varieties such as pollack, coley, and tilapia, with sales up by as much as 117% year-on-year. 1
67 Sustainability & Ethics New fish product launches are focusing on sustainability
Source: Datamoni tor's Product Launch Anal yti cs Sainsbury's Taste The Difference Responsibly Sourced Salmon Fillets UK These fresh salmon fillets claim to be "responsibly sourced" and "RSPCA monitored." Bahia Calma Filetes de Merluza de Cola Azul Brazil The packaging for these Blue Tail Hake Fillets states that the product is sustainably fished and features the Marine Stewardship Councils certified sustainable seafood logo. Fish 4 Ever Wild Alaskan Pink Salmon Norway This canned salmon product is claimed to be sustainably fished. The brand name "Fish 4 Ever" is also reflective of the brands commitment to sustainable fishing.
Blue Horizon Wild Surf Burger Pacific Tuna with Teriyaki US These tuna fish burgers are claimed to be made with seafood from sustainably managed fisheries according to on-pack labeling.
68 Sustainability & Ethics The carbon footprint of meat production is under increasing scrutiny
CONSUMERS ARE CONCERNED ABOUT THE ENVIRONMENT Globally, half of consumers claim to be highly influenced by environmentally friendly claims when making food and beverage choices. When looking at specific countries, it is evident that environmentally friendly claims are generally much more influential on consumers in emerging economies such as India, China, and Brazil, compared to consumers in the devel oped world. MEAT PRODUCTION IS ONE OF THE WORST OFFENDERS FOR GREENHOUSE GAS EMISSIONS Intensive livestock production methods, particularly of red meat, are a significant burden on the environment. Much of the environmental impact comes from the harvesting of cereal crops for animal feed, as well as the greenhouse gas emissions excreted from livestock including methane and nitrous oxide. Alternative farming methods such as organic and grass-fed may reduce the environmental impact, making products more appealing to eco-minded consumers. Ecologica de Los Pirineos in Spain is an example of a company that specializes in the production of eco-friendly beef and lamb products, sold under the Roia Ecocarn brand. Source: Datamoni tor Consumer Surveys, May/June 2011 Consumers who state that environmentally friendly claims have a high or very high influence on their food and beverage choices India 76% UK 34% Global 50% US 38% Brazil 66% China 71% Verde Farms Organic Grass Fed Beef Patties US Roia Ecocarn Kids Mini Burguers Spain 69 Sustainability & Ethics Most consumers attest to the need for more environmentally friendly packaging
MOST CONSUMERS ARE MINDFUL OF EXCESS PACKAGING The majority of global consumers (60%) agree that grocery products have too much packaging. Packaging is essential for meat, fish, and poultry products to ensure freshness and food safety and to prevent cross-contamination. The challenge is to develop more eco-friendly packaging that is still able to protect and preserve product freshness. CONSUMERS EQUATE "SUSTAINABLE" TO "RECYCLABLE" OR "MINIMAL" The reduction of unnecessary packaging and recyclability are cited as the most important attributes of "environmentally friendly packaging." However, the capabilities for packaging to be reused or to biodegrade were also highly important, while many cited the type and source of the material as being important. Source: Datamoni tor Consumer Surveys, Jul y/August 2010 and May/June 2011 Consumers who agree that grocery products today have too much packaging, globally How important is the following factor in environmentally friendly packaging?, global 70 Sustainability & Ethics Case study: Waitrose repackaged its fresh meat in a more eco-friendly way
WAITROSE WAS ABLE TO REDUCE PACKAGING BY SWITCHING FROM PLASTIC TRAYS TO BAGS UK-based supermarket chain Waitrose repackaged its fresh meat and poultry offering in an environmental initiative that started in 2010. Traditionally the chain sold fresh meat in a plastic tray format that involved four packaging components: plastic tray, plastic film lid, paper label, and an absorbent paper sheet. The company was able to reduce packaging by over 50% by introducing a more eco-friendly printed flow-wrap format that features just two packaging components: film wrap and an absorbent paper sheet inner sheet. The packaging is puffy with air to help protect the meat along the supply chain.
POSITIVE RESPONSE FROM CONSUMERS The pack format is already used for foods such as bagged salads and crisps, but Waitrose was innovative in being the first major retailer to apply it to fresh meat. According to Andy Boulton, meat buyer for Waitrose, feedback from customers towards the new packs has been "really positive," adding that "they can still buy the same quality meat products but will be mini mizing waste." It is claimed that the format swap saves 9,000 tonnes of packaging waste annually. Initially the new packaging started with ground and diced beef products, but has since extended to other cuts instore, including chicken breasts.
Source: Pack Track; Wai trose.com 71 6. SMART & CONNECTED TRENDS IN MEAT, FISH, AND POULTRY PREVIOUS SECTION BACK TO INDEX NEXT SECTION 72 Opportunities Using smartphone technologies to give consumers the opportunity to obtain realtime information at the point of purchase, such as how and where the animal was reared. Social media can be used as a conversational tool whereby consumers and brands can interact, providing a narrative "from farm to fork" and a forum for brand communication. Meat, fish, and poultry are falling behind the crowd in this regard. Smart & Connected SWOT analysis
Strengths
Consumer concerns over ethical issues such as animal welfare are growing, making them become more involved in the purchase process and hence more open to engagement with producers. Weaknesses
Many consumers still view meat, fish, and poultry purchases as value-driven, leading to lower involvement compared to more premium purchases. The high presence of private label in fresh meat, fish, and poultry makes it harder for consumers to connect to a brand or story. Threats
A comparative lack of scale among meat, fish, and poultry producers to invest in wide-ranging social media campaigns, particularly where generic private label brands are prevalent.
73 Health & Wellness Sensory & Indulgence Individualism & Expression Sustainability & Ethics Smart & Connected Evolving Landscapes Easy & Affordable Comfort & Uncertainty Meat Fish Poultry Smart & Connected Online engagement with consumers can significantly influence their product choices
KEY THEME IN SMART & CONNECTED
CONSUMERS DEMAND ONLINE ENGAGEMENT BUT FEW IN THE CATEGORY ARE PROVIDING IT EFFECTIVELY The Internet is now a lifestyle facilitator, as many consumers rely on online platforms to facilitate a growing number of tasks, including making product choices. Not only are they using the Internet to find the best deals, but they are also sharing their own product experiences and seeking other consumers experiences as well. National marketing boards for meat, fish, and poultry are finding ways to engage consumers and encourage consumption such as recipe tools and smartphone apps. However, few brands have themselves been creative in utilizing the online platform and associated technologies to more effectively connect with consumers, leaving considerable room for improvement. Mega-trend relevance in meat, fish, and poultry 74 55% 49% 49% 46% 34% 30% 25% Researching or comparing prices of products Looking for promotional deals Looking for information about health topics Reading product reviews Buying groceries/shopping Posting positive reviews about products Posting negative reviews about products BRANDS HAVE SEVERAL OPPORTUNITIES TO ENGAGE Global consumers are using the Internet for a range of activities, and the pace of uptake is still rapid. They are primarily increasing the frequency with which they research prices and look for promotional deals online, illustrating the value that they place on the online platform in helping them to attain greater value for money. Many of the activities that consumers conduct online relate to their experiences with products, brands, and services. In addition to looking for promotional deals or lower prices, almost half (46%) now read product reviews more often than they did one year ago, while many also share their experiences (both positive and negative). Producers and manufacturers should not only be aware of the prevalence of brand conversations online, they should also be proactive in ensuring that such conversations shed a positive light on their brand.
The challenge for meat, fish, and poultry is the high presence of generic private label brands, making it harder to forge a connection with consumers. There are, however, opportunities for national and international meat and fish development agencies such as Meat & Livestock Australia, the National Pork Board (US), EBLEX (UK), and the Marine Stewardship Council to actively engage with consumers, promote products, suggest recipes, and ultimately increase consumption levels.
Smart & Connected The Internet is being used to facilitate an increasing number of tasks, presenting several opportunities for producers and brands to connect with consumers Source: Datamoni tor Consumer Survey, May/June 2011 Consumers who have increased the amount of time they spend doing the following ONLINE over the past year, global 75 Smart & Connected Case study: a UK retailer is using smartphone technology to engage with ethically minded pork consumers WAITROSE IS USING QUICK RESPONSE CODES TO HIGHLIGHT HIGHER PORK WELFARE STANDARDS In a bid to highlight its commitment to higher pig welfare standards across its pork range, Waitrose launched a marketing campaign in 2012 that enabled consumers to learn more about the products through their smartphones. Packs of private label pork, sausages, bacon, and gammon instore feature a Quick Response (QR) code on the front of the pack and on the shelf edge, which the consumer can scan with thei r smartphone to find information about the product that they are buying. This includes information about the farm where the pig was reared and the welfare conditions, alongside recipes and cooking tips. The QR codes are part of a nationwide campaign to highlight the fact that all the private label fresh pork sold through Waitrose is from pigs that are reared in higher welfare conditions that are spacious, light, and airy. This is an example of how the meat, fish, and poultry sector can connect with customers to raise awareness about the origins of the product and connect with customers emotionally through telling the backstory of the animal they are about to purchase or consume. Source: meati nfo.co.uk; wai trose.com 76 Smart & Connected Case Study: Meat & Livestock Australia is using online media to connect with meat consumers and encourage consumption CONSUMER-FOCUSED WEBSITE OFFERS RECIPES, TIPS, AND INSPIRATION Meat and Livestock Australia is an example of a national development board that delivers services, including marketing, for national cattle, sheep, and goat producers. One of the organizations priorities is to promote meat products to consumers and increase usage levels. Meat and Livestock Australia launched a dedicated consumer website theMainMeal.com.au to provide information on beef, veal, lamb, and goat meat including tips, cooking techniques, nutritional information, and recipes. The purpose of the site is to engage with consumers and actively encourage them to buy and cook dishes using Australian meat.
FACEBOOK AND SMARTPHONE APPS Meat and Livestock Australia is using Facebook to further engage with consumers on a more personal level, such as the recent "Beef-giving" promotion whereby consumers were asked to create their own beef recipes to keep warm during Australias winter season. In keeping with the technology and in a bid to reach a wider audience, Meat and Livestock Australia also created a free smartphone app, Beef Essentials, to offer hundreds of cooking tips for beef at consumers fingertips.
Source: ml a.com.au; themai nmeal .com.au 77 Smart & Connected Case Study: Proper Sausages is an example of a niche artisanal brand that is successfully connecting with consumers using social media Source: propersausages.com; twi tter.com; facebook.com AN ARTISANAL SAUSAGE-MAKER IS USING FACEBOOK AND TWITTER TO ENGAGE Proper Sausages is a Florida-based niche artisanal sausage producer that claims to be Miamis only artisan sausage maker. The company makes sausages in unusual and innovative flavors such as venison and whiskey, orange and fennel, lamb and harissa, and fig and blue cheese. As a small start-up company, Proper Sausages is using Facebook and Twitter to drive awareness of the brand and to help build a loyal relationship with existing customers. Through social media the company updates customers about what new varieties are available, what is sold out, and where to buy the sausages, as well as obtaining direct feedback from customers on thei r products. Customers are also encouraged to share recommendations, recipe ideas, and photos with each other for inspiration.
78 7. EVOLVING LANDSCAPES TRENDS IN MEAT, FISH, AND POULTRY PREVIOUS SECTION BACK TO INDEX NEXT SECTION 79 Opportunities
As Western society becomes increasingly multi- cultural, there are growing opportunities for products that cater to the needs of different religious consumer groups, such as halal or kosher foods. Creating smaller product formats to cater to the growing number of single-person households.
Evolving Landscapes SWOT analysis
Strengths
Meat, fish, and poultry has appeal among older and younger consumers alike.
Weaknesses
Younger consumers are less familiar with and less willing to try lesser known cuts of meat such as offal. Threats
Global shortage in animal proteins resulting, in part, from increased consumption in emerging economies. Rising levels of people leading vegetarian or restricted meat diets as a result of increasing migration from other cultures. 80 Health & Wellness Sensory & Indulgence Individualism & Expression Sustainability & Ethics Smart & Connected Evolving Landscapes Easy & Affordable Comfort & Uncertainty Meat Fish Poultry Evolving Landscapes Migrating influences present new opportunities for product development
KEY THEMES IN EVOLVING LANDSCAPES
MIGRATING INFLUENCES As immigration increases, it has significant implications for mainstream society and presents significant opportunities for meat producers. In particular the rapid growth in the global Muslim population brings with it opportunities for product development in halal products to meet consumer demand.
THE RISE IN SINGLE-PERSON HOUSEHOLDS The continued increase in single-person households necessitates smaller product formats, with consumers looking for convenient, single-serving options. Pack formats that promote freshness are a necessity as single- person households struggle to consume perishable meat, fish, and poultry products in time once opened.
GROWING DEMAND IN EMERGING MARKETS As income levels rise in emerging markets so does demand for meat, fish, and poultry products. This presents opportunities for producers to develop products for such markets.
Mega-trend relevance in meat, fish, and poultry 81 Evolving Landscapes The influence of migration has led to growing demand for halal -certified products
MIGRATION INFLUENCES DEMAND IN MAINSTREAM SOCIETY Migration and its influence on mainstream society can fuel opportunities for product development. The development of ranges to incorporate elements that appeal to migration populations/ethnic minorities can be an important strategy for brand building and sales generation among those communities. For example, globally there is a Muslim population of 1.6 billion who follow a halal diet as part of their religion. 1 The Muslim population is rapidly growing at an estimated rate of 1.8% per year, 2 presenting huge opportunities for meat producers in the development and production of certified halal products to meet growing demand. Source: [1] and [2] Agri cul ture and Agri -Food Canada, 2011; Datamoni tors Product Launch Anal yti cs GROWING DEMAND IS FUELING HALAL PRODUCT INNOVATION To be certified as halal, products must meet particular standards in terms of the way the animals are reared and slaughtered. While globally, new halal products make up a small proportion of total meat, fish, and poultry product launches, they are growing steadily. In 2008, just 0.2% of new product launches were halal, compared to 1.2% in 2011. Outside of the key Muslim countries in Asia and the Middle East, France is the largest halal market due to its significant Muslim population. There are opportunities to broaden the range of halal products available to Muslim consumers, particularly within processed and prepared meat products, as Muslim consumers seek the same types of innovations as other consumers. Meat, fish, and poultry products tagged "halal" as a proportion of total meat, fish, and poultry launches, global, 200711 Isla Delice Halal Burgers l'Oignon France Mr. Goudas Halal Corn Beef Canada 82 Evolving Landscapes Case Study: Saffron Road is meeting the needs of a growing Muslim population in the US THE HALAL MARKET IN THE US IS EXPERIENCING STRONG GROWTH The Islamic Food & Nutrition Council of America has estimated that the market for halal food is growing at a rate of 15% annually in the US. 1 As the Muslim population expands the average age is decreasing, with younger Muslims seeking the same level of convenience as young non-Muslim consumers. Rather than just purchasing raw halal meat, these consumers are demanding halal products that meet their lifestyle needs, and there is huge potential for manufacturers to meet their demands.
SAFFRON ROAD OFFERS A RANGE OF HALAL MEAT PRODUCTS TO CATER FOR THE NEEDS OF MUSLIM CONSUMERS Saffron Road launched in 2010 and produces frozen halal convenience foods to cater to the demands of Muslim consumers in the US. Products such as halal chicken tenders and chicken nuggets feature alongside ready meals such as lamb vindaloo and chicken tikka masala. When founder Adnan Durrani set up the brand he was aiming for a halal food brand that also "embodied ethical consumerism." All products are sustainably farmed, all-natural, antibiotic free, and 100% vegetarian-fed, harvested on family-owned farms. Saffron Road claims to be the worlds first all-natural, ethically produced, halal-certified frozen food range.
Source: [1] IFANCA.org; saffronroadfood.com 83 MEAT, FISH, AND POULTRY BRANDS ARE NOT TAPPING INTO THE GROWING NEED FOR SINGLE-SERVE PRODUCTS Single-person households are steadily on the rise. In the US, for example, the percentage of single-person households rose from 25% in 1991 to 28% in 2011. 1 In contrast, there has been a decline in the proportion of meat, fish, and poultry products launched as single servings. This presents a clear opportunity for manufacturers to launch packaged products aimed at single households. Within the category products are perishable once opened, which can result in higher food wastage among people who prepare dinner only for themselves and who therefore cannot consume larger packs in time. Packaged products that are pre-portioned into a smaller size to retain freshness are ideal for these consumers. Source: [1] Datamoni tors Country Stati sti cs; Datamoni tor Consumer Survey, May/June 2011; Datamoni tor's Product Launch Anal yt i cs Lloyd's Barbeque Company Snack Rack St. Louis Style Pork Spareribs US Oekoland Puten-Lyoner Germany "Single-serving" products as a proportion of total meat, fish, and poultry launches, global, 200711 Evolving Landscapes Single-serving products are important if brands are to tap into the rise in single-person households Prima Ham Shinsen! Tsukai Kiri White Rosu Ham 4 Pack Japan Multi-pack of single-serve ham portions American Beef Carne Para Hamburguesa Mexico Single-serve frozen hamburger Single-serve pork ribs snack 50g single-serve German sausage product 84 Evolving Landscapes Increased meat demand in emerging markets is leading to global shortages
MEAT CONSUMPTION IS INCREASING IN EMERGING MARKETS AS INCOME RISES As income continues to rise in emerging economies, so does demand for animal proteins, including meat, fish, and poultry. With improved living standards in developing countries such as India, Brazil, and China, consumers diets are shifting away from staples such as rice and wheat to include more animal proteins, fruit, and vegetables. This increased demand has led to a wave of new meat, fish, and poultry launches in emerging markets. Particularly strong for new innovation is the South and Central America region, with the number of new meat, fish, and poultry launches increasing by over 200% during 200711, according to Datamonitors Product Launch Analytics.
GLOBAL IMPLICATIONS Increased consumption in emerging economies has global implications, with producti on struggling to keep up with demand. Global meat consumption, per capita, was estimated to grow from 46.9kg in 2010 to 52.0kg by 2014, as a result of increased consumpti on in emerging countries. 1 Per capita consumption in China is expected to be as high as 83.0kg by 2014, a rise of 20% on 2010. 1 In India, where vegetarianism prevails, meat consumption is relatively low but is rising rapidly. This increased demand has led to significant price rises. In addition, increased production globally will have environmental implications as meat production is among the worst for carbon emissions. Source: [1] The Economi st, 2010; Datamoni tors Product Launch Anal yti cs Dia Jerked Beef Dianteiro Brazil Jinzi Liuxiang Sliced Ham China Polyvienas Salchichas Argentina Gahez Spicy Chicken Panne Egypt 85 8. EASY & AFFORDABLE TRENDS IN MEAT, FISH, AND POULTRY PREVIOUS SECTION BACK TO INDEX NEXT SECTION 86 Opportunities Convenient meat-based snacks and ready prepared meals. Meal kits that include fresh meat, fish, or poultry, alongside other meal ingredients to help consumers cook from scratch. Educating and advising consumers on how to cook meat, fish, and poultry products properly including cheaper "forgotten" cuts, fish, and duck. Easy & Affordable SWOT analysis
Strengths
A strong presence of private label products in the category promotes affordability. The variety of meat and poultry cuts available offers something to suit all budgets.
Weaknesses Low price points and aggressive price discounting by supermarkets negatively impacts quality perceptions and thus perceived value. Higher animal welfare products are more costly to farm. The scratch cooking element associated with fresh meat, fish, and poultry goes against the trend for convenience, especially as many consumers lack the necessary cooking skills.
Threats
Rising meat, fish, and poultry prices globally due to increasing production costs and supply shortages. Lack of consumer confidence in cooking with certain less-familiar products such as fresh fish, duck, game, and exotic meats.
87 Health & Wellness Sensory & Indulgence Individualism & Expression Sustainability & Ethics Smart & Connected Evolving Landscapes Easy & Affordable Comfort & Uncertainty Meat Fish Poultry Easy & Affordable Value consciousness and convenience are highly relevant for consumers
KEY THEMES IN EASY & AFFORDABLE
PRIVATE LABEL MOMENTUM CONTINUES The quality of private label products continues to i mprove, which is proving highly appealing to value-conscious consumers. Indeed, private labels are increasingly excelling on more than just price, bringing products to the market that are satisfying, indulgent, ethical, and healthy, while also effectively replicating branded innovation. A RISE IN LOW PRICE LAUNCHES Despite prevalent and intensifying inflationary pressures, meat, fish, and poultry brands have looked to introduce more economy options and multi-buys. Indeed, while consumers consider factors such as healthiness and convenience as being important value-adding attributes, price remains an important driver of demand. CONVENIENCE Brands have looked to find ways to make meat, fish, and poultry products more convenient to consumers, with meat snacks, meal kits, pre-diced/chopped meat, and microwaveable products among the innovations. Mega-trend relevance in meat, fish, and poultry 88 Easy & Affordable Private label products are appealing as they effectively deliver on both price and quality PERCEPTIONS OF PRIVATE LABELS ARE IMPROVING Between 2010 and 2011 there was a slight increase in the proportion of consumers agreeing that private label food and beverages are good alternatives to name brands (from 49% to 52%). The continually improving quality of private label offerings has challenged brand loyalty among consumers, as they question the need to pay more for products of identical (or even inferior) quality. For fresh meat, fish, and poultry private labels dominate the category; however, brands are more visible for frozen and processed products.
PRIVATE LABELS INCREASE THEIR SHARE OF WALLET As perceptions of private labels improve, so too does willingness to purchase them. Indeed, almost half of all consumers agree that they are buying more private labels to save money. However, for most consumers it is not merely the lower prices that encourage private label purchase, but also their consistently improving standards. In meat, fish, and poultry private labels are widening their product range, offering basic products through to higher welfare, free range, sustainably farmed, and organic products, giving the consumer a similar choice as to choosing between different brands. Source: Datamoni tor Consumer Survey, May/June 2011 "Private label food and beverage brands are good alternatives to name brands" 48% of global consumers agree that they are buying more private labels when grocery shopping in order to save money. 89 Easy & Affordable Private labels are increasing their range of offerings to offer a wider choice to consumers PRIVATE LABEL RANGES ARE EVOLVING Private labelers in meat, fish, and poultry have evolved their ranges markedly, delivering significant improvements in the range, quality, and packaging of their offerings. The proportion of private label products being launched is increasing significantly and so is the level of innovation. In 2011, 30% of new product launches in meat and poultry were private label, with slightly fewer (27%) in the fish category. Private labels are extending their ranges to mirror consumer demand for ethics, sustainability, and convenience. Carrefour Agir Eco Planete Darnes de Saumon Keta Greece New products tagged "private label," as a proportion of all new meat, fish, and poultry launches, global, 200711 Source: Datamoni tors Product Launch Anal yti cs Macro Whole Food Markets Free Range Chicken Breast Mince Australia Monoprix Bio! Paves de Truite France Sainsbury's Taste the Difference Roast Topside Scotch Beef Slices UK Eco-friendly Organic Free range Premium private label 90 Easy & Affordable The category has proactively responded to more price-consciousness consumers through offering cheaper cuts THE CATEGORY HAS HAD TO RESPOND TO FINANCIALLY PRESSED CONSUMERS Globally, half of consumers claim that they are switching to cheaper food because of price rises. Developed economies such as France and the US are being hardest hit by rising prices as consumers switch to cheaper alternatives. In contrast consumers in emerging economies are less affected, with just 38% of Russian consumers claiming to buy cheaper food due to rising prices for example. Retailers have been responding to demand for cheaper meat, fish, and poultry by encouraging consumers to try cheaper, cuts of meat such as beef cheeks and chicken thighs, or coley instead of cod. Offering recipes for using up leftovers can also help families to save money while reducing wastage. Consumers who agree that they are buying cheaper food and beverage products because of rising prices, 2011 Source: Datamoni tor Consumer Survey, May/June 2011; Datamoni tors Product Launch Anal yti cs; wai trose.com; [1] Ameri can Meat I nsti tute "The Power of Meat," 2012 France 58% Russia 38% China 46% India 44% Global 49% US 55% WAITROSE FORGOTTEN CUTS CAMPAIGN ENCOURAGED CONSUMERS TO TRY CHEAPER CUTS OF MEAT In the UK, Waitrose launched a successful campaign to offer cheaper, less well known cuts of meat to consumers. It labeled the campaign "Forgotten Cuts" because the cuts will be familiar to older consumers but have fallen out of common use and were not passed on to the younger generations. The cuts on offer include offal (lamb heart, veal tail, and sweetbreads), pigs trotters, beef skirt, and beef cheeks. The aim of the campaign was to offer consumers cooking tips and recipes to enable them to make tasty home cooked meals for less. Evidence suggests that consumers are switching from the frying pan to the oven or slow cookers to cook meat, driven by the growth in popularity of cheaper cuts that often require slow cooking methods. 1
91 Easy & Affordable The versatility of meat and poultry means that consumers can save money by feeding their family on leftovers during the week Source: [1] Food.gov.uk, 2012 Sunday
Roast dinner Monday
Cold meat sandwiches Tuesday
Curry Wednesday
Soup THE VERSATILITY OF MEAT AND POULTRY MEANS THAT LEFTOVERS CAN BE STRETCHED TO LAST FOR SEVERAL MEALS During financially challenging times, consumers are making an effort to use up leftovers in order to spend less money and make meals stretch further. A survey by the Food Standards Agency in the UK found that al most half (47%) of consumers are trying to make better use of leftovers as the cost of the typical grocery shopping basket increases. 1 The versatility of meat and poultry present the consumer with the opportunity to stretch a large bird or joint of meat out to feed a family over several meals. USING UP LEFTOVERS CAN COMPROMISE FOOD SAFETY Many consumers lack basic food hygiene skills, meaning that they lack the necessary knowledge about how to properly handle and store leftovers to ensure that they are safe for consumption. As consumers are making greater use of leftover meat and poultry the risk of food poisoning increases, particularly where it is not stored at the correct temperature or reheated properly. Manufacturers can help by providing clear instructions as to how to store and reheat food, as well as advising how long it will stay safe for. 92 Easy & Affordable Price discounting and economy packs have been implemented to target price-sensitive consumers Source: [1] Kantar Worl dpanel , 2012; [2] Fel gate et al , 2012; [3] Mysupermarket.co.uk, August 2012; Datamoni tors Product Launch Anal yti cs ECONOMY OPTIONS AND MULTI-BUYS HAVE BEEN KEY TO PRICE- FOCUSED ACTIVITY In responding to the mounting financial constraints that consumers have found themselves under, manufacturers and retailers in the category have sought aggressive discounting in relation to price discounts and multi-buy promotions and the launch of economy brands. For example, according to Kantar almost a third of all fresh red meat sold in the UK in 2011 was on promotion. 1 Research at the University of Kent found that the most effective type of promotion for red meat significantly varies depending on the specific cut and tier, and that heavy reliance on promoti ons by retailers is devaluing the meat category and ultimately stemming new innovation. 2
Examples of meat and poultry price promotions in the UK 3
Kroger Value Tilapia Fillets Family Pack US Eroski Basic Salami Spain Coles Smart Buy Hotdogs Australia Carrefour Discount Paves de Saumon France 93 Easy & Affordable Consumers are time-scarce, and value convenient food
CONSUMERS SAVE TIME IN SEVERAL DIFFERENT WAYS Whether perception or reality, consumers are time-poor and seek solutions to counter this. Indeed, around half of all consumers agree that they rely heavily on products and services that help them to save time. Such products can include those that facilitate multi-tasking (e.g. eating while commuting), products that require little preparation, or even products bought in bulk so that fewer shopping trips are required. In meat, fish, and poultry products convenience comes in forms such as canned, pre-cooked, pre-sliced, pre-diced, and prepared ready meals. CONSUMERS VALUE FOODS THAT ARE CONVENIENT A significant proportion of consumers hold a more favorable perception of grocery products boasting strong convenience attributes. Convenience is particularly important in China, with 75% of consumers viewing convenient products more favorably. In contrast, convenience holds less prominence in the US (45%) and the UK (33%) in creating favorable perceptions towards grocery products. For meat, fish, and poultry, convenient products need to save the consumer time in terms of preparation (e.g. pre-diced chicken breast), in terms of cooking (e.g. pre-cooked ham), or be ready to eat on the go (e.g. snacking salami sticks). Source: Datamoni tor Consumer Surveys, Apri l /May 2009 and Jul y/August 2010 Consumers who hold more favorable perceptions of grocery products that are "convenient" China 75% UK 33% Global 53% US 45% Spain 58% Brazil 69% "I rely heavily on time- saving products and services" Male Female 94 Easy & Affordable Snacking products are driving interest among younger meat, fish, and poultry consumers SNACKING PRODUCTS ARE BECOMING MORE RELEVANT With consumers becoming less disposed towards eating only at set mealtimes, there has been a marked rise in interest and innovation in snack products. Meat snacks provide the category with an opportunity to drive interest among younger consumers, where penetration is comparatively low. However, while such products are becoming more relevant to time- pressured consumers, expectations are rising in regard to both health and taste.
Joycome Jiaozhener Xiuxianroudian (Meat Snack Assortment) China The Bath Pig Mini Chorizo Snack UK Ocean's SnacKit Tuna Snack with Mini Crackers, Spoon & Napkin Mild Curry, Onion, & Celery Tuna Canada Ingham Chicken Twirls Chicken Breast Bites Australia "I am choosing healthy snacks when eating between meals" Male Female Source: Datamoni tor Consumer Surveys, Jul y/August 2010 95 Easy & Affordable Packaging innovation is opening up opportunities for products delivering on convenience and quality COOKING INNOVATIONS ARE DELIVERING GREATER CONVENIENCE, HEIGHTENING CONSUMER PERCEPTIONS The convenience credentials of the meat, fish, and poultry category are also being elevated by continued innovation in meal preparation. With financially constrained consumers looking to dine at home but not necessarily having the time to scratch cook using fresh raw ingredients, these cooking innovations have been major growth drivers for the category. As consumers eat out less, they seek tasty indulgent fuss-free meals in the home, of which meat, fish, and poultry usually form a key component.
For example, Perdigao Chester Frango Temperado Congelado (Seasoned Frozen Chicken) launched in the Brazilian market comes with a roasting bag that is claimed to start opening when the chicken is cooked, and can be used straight from the freezer without the need to defrost first. In the US Kroger has introduced to its "Meals Made Simple" range a turkey bacon product that is microwavable in just six seconds. A Moroccan lamb shank product in South Africa by Seemanns is stated as being a "succulent, slow cooked lamb shank in an exotic North African spice blend" that is ready in minutes in the microwave. Schnucks Select Country Style Boneless Pork Rib in BBQ Sauce US Seemann's Moroccan Lamb Shank South Africa Perdigao Chester Frango Temperado Congelado Brazil Kroger Meals Made Simple Fully Cooked Turkey Bacon Smoke Flavor Added US Microwaveable "Simply heat and serve" Innovative roasting bag cooks chicken straight from frozen Source: Datamoni tors Product Launch Anal yti cs "Ready in six seconds" 96 Easy & Affordable Many consumers lack confidence to prepare meals with fish at home, creating opportunities for suppliers MANUFACTURERS ARE MAKING IT EASY FOR CONSUMERS TO COOK FISH AT HOME Many consumers lack confidence in cooking raw fish from scratch. They may not like the smell or the slippery texture and are generally unsure about how to cook it properly. 1 According to a recent UK survey, a quarter of consumers would serve a wider variety of fish but hold back because they are unsure about how to prepare it. 2 In addition a survey by the American Meat Institute found only 33% of consumers to be very knowledgeable about how to prepare fish and seafood, compared to 42% for red meat and 45% for poultry. 3 Manufacturers have been innovative in creating prepared products that make fish easy to cook for the consumer. Source: [1] Packagi ng News; [2] fry-onl i ne.co.uk; Datamoni tors Product Launch Anal yti cs; Ameri can Meat Insti tute, 2012 StarKist SeaSations Frozen Fish Fillets Mediterranean Tomato & Basil Argentina Described as "restaurant delicious seafood in minutes," the product includes two flash-frozen fish fillets packed in a marinate sauce in individual pouches for "steam locked cooking" in a microwave oven. Wholey Boil in the Bag Seafood Entres US A range of frozen boil-in-the-bag fish in sauce in varieties such as Fiery Tomato Cilantro Pepper Salmon and Garlic Lemon Parsley Tilapia. The individually packed portions are said to cook in nine to 15 minutes, depending upon species. Each variety includes a generous amount of sauce for a side dish accompaniment. The Saucy Fish Co. Fish and Sauce UK This range of fresh fish in sauce products comes ready-to-cook in its own foil bake bag. The packaging states "no touch, no smell, no fuss," to appeal to consumers who like eating fish but do not like handling or preparing it. 97 Easy & Affordable Manufacturers are finding ways to make scratch cooking easier for consumers
THE SCRATCH COOKING TREND PROVIDES OPPORTUNITIES When surveyed in 2009, a majority of consumers across the globe said that they were cooking their evening meal entirely from scratch once a week or more. This trend is indicative both of rising nutritional attentiveness and a prevailing dine-at-home trend among more financially constrained consumers. Within fresh meat, fish, and poultry, consumers seek products that make it easier and quicker to cook at home, but, unlike ready meals, still provide the satisfaction achieved from cooking a meal. This includes conveniences such as pre-cut/diced raw meat and meal kits including all the raw ingredients necessary to make the meal at home. Source: Datamoni tor Consumer Surveys, Apri l /May 2009 and Jul y/August 2010 Perfect For Eating In Chicken Fillets UK Woolworths Stir Fry Kit Soy, Honey & Garlic Chicken Australia Charal Cube de boeuf France Cora Cocktail Fructe de Mare Romania "Thinner for a quicker dinner" 85% of global consumers cook a meal from scratch at home at least once per week. Stir fry kit with pre-sliced raw chicken Pre-cubed steak pieces Prepared seafood assortment 98 Easy & Affordable Case study: the Gressingham Duck brand is trying to change consumer perceptions around the difficulty of cooking duck LACK OF CONSUMER KNOWLEDGE IS A BARRIER TO COOKING DUCK AT HOME A recent study of UK consumers found that more people eat duck out of the home in restaurants (40%) than in the home (7%). 1 This indicates that while consumers enjoy eating duck, they lack the skills or confidence to cook it themselves. Specifically there is a barrier that needs to be overcome in terms of a lack of knowledge and a general perception that cooking duck is difficult.
Source: creati vematch.com, Apri l 2012; Gressi nghamduck.co.uk GRESSINGHAM DUCK LAUNCHED A CAMPAIGN TO ENCOURAGE CONSUMERS TO COOK WITH DUCK Gressingham Duck is the largest supplier of duck to retail in the UK. The brand recently launched a new marketing strategy to encourage more consumers to cook with duck at home. The strategy involved the inclusion of a simple "one, two, three" step-by-step system on-pack to show how easy it is to cook duck. The company also provides recipes online and through promotional recipe books to inspire consumers and show that it can be easy to cook meals with duck in under one hour. Although the campaign is in its early stages, Gressingham Duck hopes to increase the household penetration of duck in the UK from the current 7% to 10%.
" "We are passionate about duck and have ambitious plans to champion the category and drive sustained value growth by repositioning duck as a "regular treat" duck is remarkably simple to cook and we want more people to have a go."
William Buchanan, joint managing director at Gressingham 99 9. COMFORT & UNCERTAINTY TRENDS IN MEAT, FISH, AND POULTRY PREVIOUS SECTION BACK TO INDEX NEXT SECTION 100 Opportunities Certification logos to guarantee product quality, origin, or farming methods can build consumer trust. Providing a narrative about how and where products are farmed to enable product traceability right back to the farm level. Emphasizing the credentials of locally produced meat, fish, and poultry products.
Comfort & Uncertainty SWOT analysis
Strengths
Meat, fish, and poultry traditionally form the center point of festive occasions and family meals at home. There is a comfort food element associated with meat, fish, and poultry products e.g. fried chicken, chicken pie, and fish and chips.
Weaknesses
The unhealthy credentials associated with most meat, fish, and poultry-based comfort foods goes against the growing health and wellness mega- trend.
Threats
Food scares associated with livestock can harm consumer trust (e.g. avian flu, swine flu, and foot and mouth disease). The threat of cheaper imports threatens the availability of local products as farmers find it difficult to compete.
101 Health & Wellness Sensory & Indulgence Individualism & Expression Sustainability & Ethics Smart & Connected Evolving Landscapes Easy & Affordable Comfort & Uncertainty Meat Fish Poultry Comfort & Uncertainty Meat, fish, and poultry brands are seeking ways to increase consumer trust through transparency KEY THEMES IN COMFORT & UNCERTAINTY
TRUST AND TRANSPARENCY The meat, fish, and poultry category is affected by many ethical issues regarding animal welfare and sustainability, as well as being susceptible to food safety scares. Certification logos are being used to help build trust and provide a level of transparency for consumers as to the product origin. ASSOCIATION WITH COMFORT Meat, fish, and poultry are closely associated with occasions and foods that bring comfort to consumers. There are many traditional meals and festivities for which meat, fish, or poultry products form the centerpiece, such as Christmas and Thanksgiving. LOCALISM IS A GROWING TREND Authenticity is very important to consumers. Consumers believe that purchasing local supports local farmers, is better for the environment, and can be healthier. The notion that products are made "close to home" can instill a sense of comfort and security, which is particularly valuable in times of uncertainty. Some manufacturers are using brand names to imply authenticity (e.g. Marks & Spencer Oakham Chicken), which can be misleading for consumers.
Mega-trend relevance in meat, fish, and poultry 102 CONSUMERS SEEK A SIMPLER LIFE As aspects of life become more complex, from global economic instability to merely an overabundance of product choice at the supermarket, consumers demonstrate a desire to return to a time when life was simpler. More than two thirds (68%) of global consumers say that living a less complicated life is either important or very i mportant to them. Meat, fish, and poultry in their raw, unprocessed form are simple ingredients that do not require chemical additives or preservatives. Focusing on the natural element has the potential to resonate well with those seeking comfort and simplicity. Farming methods such as antibiotic free, organic, and grass-fed can help to reinforce the simple and natural message. Comfort & Uncertainty Many consumers will sacrifice product benefits in the pursuit of simplicity
THE DESIRE FOR SIMPLICITY INFLUENCES PRODUCT CHOICE Around half of consumers agree that they prefer product simplicity over having multiple benefits, with little variance between males and females. It is thus critical that producers and manufacturers achieve a balance between effectively communicating the various benefits of a product, but without bombarding consumers with too much information. Source: Datamoni tor Consumer Survey, May/June 2011 68% of global consumers agree that living a less complicated lifestyle is important to them. "I prefer product simplicity over having multiple benefits" Male Female 103 Comfort & Uncertainty Meat, fish, and poultry are central to celebratory and family occasions
MEAT, FISH, AND POULTRY CAN BRING COMFORT TO CONSUMERS AS PART OF FAMILY TRADITIONS AND RITUALS There are many traditional meals and festivities for which meat, fish, or poultry products form the center piece. From traditi onal rituals such as fish on a Friday and a roast dinner on a Sunday, many find comfort in these foods and they fit with the "cocooning" trend as consumers are dining at home more.
Traditional festivities and religious celebrations also have a strong association with meat, fish, and poultry. For example, in many countries turkey is traditionally eaten at Christmas along with sausage and bacon garnishes. Other traditions include having fish on Good Friday, lamb on Easter Sunday, haggis for Burns Night in Scotland, and in the US turkey again forms the center piece of the annual Thanksgiving dinner. These occasions bring family and friends together at home to celebrate and enjoy traditional home- cooked meat, fish, and poultry dishes. Manufacturers are responding to these traditional occasions, developing products targeted specifically at these occasions. Source: Datamoni tor anal ysis Debbie & Andrew's Christmas Sausage Meat UK Christmas sausage-meat Albert Heijn Excellent Lamsboutrollade met Pestokruiden Netherlands Picard Pintade Farcie Italy Ugglarps Christmas Ham Greece Lamb slices for Easter (Feestdagen) Ready cooked Christmas ham Stuffed guinea fowl for Christmas 104 Comfort & Uncertainty Food safety scares can damage consumer trust in the category
CONSUMERS ARE CONCERNED ABOUT FOOD SAFETY, ESPECIALLY FOREIGN-SOURCED FOOD Food safety is of concern to consumers, particularly when it comes to foreign-sourced foods. The degree of concern varies by country; in Russia, concern is high, with three quarters of consumers worried about the safety of imported foods. China is a heavily populated country and Singapore a city state, which may have contributed to consumers being highly concerned about food safety in these areas, especially as diseases such as swine flu and avian flu could potentially spread so easily. A survey of American consumers found that consumers put more trust in locally produced foods than foreign imports, citing food safety as one of the main reasons. 1
THE MEAT, FISH, AND POULTRY CATEGORY HAS SUFFERED MANY FOOD SAFETY SCARES IN RECENT DECADES The meat, fish, and poultry category has been rocked by numerous food safety scares in recent decades, which will undoubtedly have dampened consumer trust. Safety scares include diseases affecting livestock such as foot and mouth disease in cattle and pigs, BSE in cattle, swine flu in pigs, and avian flu in birds. These do not usually pose a direct threat to humans when consuming infected meat but can create a sense of panic and loss of trust. Other safety scares come in the form of contaminated meat, which can pose a significant health risk to consumers including food poisoning bacteria such as salmonella, e-coli, listeria, and other pathogens. Source: Datamoni tor Consumer Survey, May/June 2011; [1] Envi ronmental News Network RUSSIA 80% SINGAPORE 75% CHINA 67% GLOBAL 63% UK 63% NETH. 35% Consumers who are concerned about the safety of imported/foreign-sourced food 105 Comfort & Uncertainty Certification logos in meat, fish, and poultry can be used to help increase consumer trust CONSUMER TRUST IN CONSUMER PACKAGED GOODS IS LOW Trust in consumer packaged goods is relatively low, with just 37% of consumers agreeing that they trust consumer packaged goods companies to tell the truth. 1 National and international certification logos on packaging can help to improve consumer trust by affirming that the product meets certain production standards, for example in terms of animal welfare, product origin, food safety, or sustainable production. For example, the Certified Angus Beef Brand logo in the US is used to assure consumers that the beef in the pack is quality Angus beef and meets with a strict criteria. The Red Tractor logo is used in the UK to assure consumers that meat and poultry has been produced, processed, and packaged in the UK. Source: [1] Datamoni tor Consumer Survey, May/June 2011 US UK The Netherl ands Icel and Canada UK Austral i a/global Gl obal US 106 Source: Datamoni tor's Product Launch Anal yti cs Certified organic
Fresh & Easy Organic Ground Beef Chuck US Packaging features the USDA organic certification label on the front to assure the consumer that the meat is organic. Comfort & Uncertainty Manufacturers are using on-pack certification labels to improve trust and create transparency for the consumer Assured British beef
Appleby's British Beef Topside UK The on-pack Red Tractor logo assures the consumer that the product has been produced, processed, and packed in the UK to rigorous standards right across the food chain. Sustainably farmed fish
Pacific West Sustainable Harvest Beer Battered Fish Cocktails Australia Packaging features the Marine Stewardship Councils logo certifying that the product contains sustainably farmed seafood. Label Rouge certified
Peyac Poulet Jaune Fermier France The Label Rouge certification guarantees that poultry is farmed using free range production techniques that protect animal welfare and the environment. 107 Comfort & Uncertainty The perceived benefits of local products make them highly appealing and comforting
CONSUMERS ATTACH IMPORTANCE TO LOCAL PRODUCTS The majority of global consumers (58%) attest to the importance of choosing grocery products made locally (i.e. in their country of origin or within a certain distance from their home). 1 The noti on that products are made "close to home" can instill a sense of comfort and security, which is particularly valuable in times of uncertainty.
SUPPORTING LOCAL FARMERS IS THE MAIN DRIVER BEHIND BUYING LOCAL MEAT A recent study by Bernard (2012) of Kansas State University explored US consumers motivations behind purchasing local beef. The key motivation behind buying local was found to be to support local farmers, with 90% of consumers agreeing that this is one of the drivers behind them buying locally. Environmental motivations were also important, as consumers seek to reduce their carbon footprint and to be more environmentally responsible. Taste was less important, as only 37% of consumers considered locally produced beef to taste better. The study also considered potential barriers to purchasing local beef, of which price, unfamiliarity, quality concerns, and availability were the key factors. The implications of this for meat producers is that they need to find ways to emphasize taste and quality credentials to help further drive purchases, as this is deterring some consumers from buying locally. Source: [1] Datamoni tor Consumer Survey, May/June 2011; [2] Bernard, S (2012) "Consumer Moti vati ons and Barri ers Towards Purc hase of Local Beef," Kansas State Uni versi ty 56% 90% 53% 37% 46% 47% 53% Healthier Supporting local farmers Reducing carbon footprint Tastes better Better animal welfare Better for me (free from anti - biotics/hormones) Environmentall y responsible Consumers who agree with the following motivations behind purchasing local beef, US, 2012 2
108 Comfort & Uncertainty Retailers are using brand names that imply product origin to give a perceived sense of authenticity BRAND NAMES ARE BEING USED TO INFER A LOCAL AND AUTHENTIC IMAGE UK retailers have been accused of misleading customers by creating brand names for meat products that falsely imply product origin and infer a sense of localism. Consumers have a greater level of trust towards local offerings and desire products that offer authenticity. Marks & Spencer has developed a chicken brand called Oakham Chicken, which to the average consumer sounds as though it originates from a place called Oakham. In fact, Oakham is a real place in England, but the Oakham branded chicken by Marks & Spencer does not originate there; it in fact originates from several different farms across the UK. Similarly Marks & Spencers Lochmuir salmon comes from several different farms in Scotland, not a place called Lochmuir as implied in the name.
The same story is true for products from other retailers such as the Mey Selections beef and lamb range in Sainsburys, which it is suggested comes from the Castle of Mey in Scotland, and Willow Farm chicken in Tesco, which comes from over 40 different UK farms. Branding products in this way can dent consumer trust, as they become confused by labeling and begin to question the true authenticity and origin of the products they are buying. Source: The Tel egraph, 2010; Datamoni tors Product Launch Anal yti cs Male Marks & Spencer Oakham Chicken Breast Fillet Chunks UK Tesco Willow Farm Sliced Roast Chicken Breast UK Marks & Spencer Scottish Lochmuir Soy & Ginger Salmon Flakes UK Sainsbury's Taste the Difference Beef Bourguignon with Mey Selections Scottish Beef UK 109 10. CONCLUSIONS PREVIOUS SECTION BACK TO INDEX 110 Conclusions Red meat: the applicability of certain mega-trends (and more specific sub-trends) is likely to evolve as manufacturers more effectively address the needs of consumers Health & Wellness Sensory & Indulgence Individualism & Expression Sustainability & Ethics Smart & Connected Evolving Landscapes Easy & Affordable Comfort & Uncertainty Now Growth opportunity over next 3 yrs Mega-trend relevance in the RED MEAT category, current and prospective This brief provides an overview of current trends in meat, fish, and poultry in the context of Datamonitor's mega-trend framework. In doing so, a comparative weighting is given to each mega-trend based on its relevance to the category. This is determined by an overall assessment of consumer demand and the degree to which product innovation is responding to such demand or anticipating future demand.
It should be noted, however, that the weighting assigned to each mega-trend is not static. Particular sub-trends associated with the mega-trends are likely to emerge as areas of opportunity, as manufacturers develop new ways of meeting changing consumer lifestyles and product preferences.
EVOLVING LANDSCAPES AND INDIVIDUALISM & EXPRESSION MEGA-TRENDS OFFER KEY GROWTH OPPORTUNITIES FOR THE MEAT CATEGORY There are significant growth opportunities for halal meat products to meet the demands of a rapidly growing Islamic population. The influence of the vegetarianization trend will also present challenges and opportunities for the meat category in the coming years, as many consumers seek to reduce their intake of meat. 111 Conclusions Fish: the applicability of certain mega-trends (and more specific sub-trends) is likely to evolve as manufacturers more effectively address the needs of consumers Health & Wellness Sensory & Indulgence Individualism & Expression Sustainability & Ethics Smart & Connected Evolving Landscapes Easy & Affordable Comfort & Uncertainty Now Growth opportunity over next 3 yrs Mega-trend relevance in the FISH category, current and prospective
IN FISH, SUSTAINABILITY & ETHICS PRESENTS GROWTH OPPORTUNITIES As consumers become more aware of the issues surrounding the sustainability of fishing, there will be significant opportunities to introduce consumers to more sustainable species such as coley and tilapia.
EASY AND AFFORDABLE ALSO HOLDS OPPORTUNITIES One of the barriers to consumers cooking fish at home is a lack of confidence and knowledge as to how to cook with it properly. Products that make it easier for the consumer to cook fresh fish at home will be in increasing demand, especially as consumers experiment with lesser known, more sustainable species. The Smart & Connected mega- trend will also be a key area of growth, as consumers seek to be better informed about the production methods and origin of the products they purchase. 112 Conclusions Poultry: the applicability of certain mega-trends (and more specific sub-trends) is likely to evolve as manufacturers more effectively address the needs of consumers Health & Wellness Sensory & Indulgence Individualism & Expression Sustainability & Ethics Smart & Connected Evolving Landscapes Easy & Affordable Comfort & Uncertainty Now Growth opportunity over next 3 yrs Mega-trend relevance in the POULTRY category, current and prospective
SUSTAINABILITY & ETHICS PRESENTS OPPORTUNITIES FOR GROWTH IN POULTRY As consumers hold increasing importance about animal welfare issues, there will be growth in demand for higher welfare poultry. There has been a move towards poultry that is not at free range standards but which is higher welfare than standard broiler farmed poultry, and this is a trend that is likely to grow in the coming years as it offers better welfare poultry for a more affordable price than free range.
EVOLVING LANDSCAPES ALSO OFFERS GROWTH OPPORTUNITIES Similarly to meat, there are opportunities for halal poultry products to meet the demands of a rapidly growing Islamic population. Vegetarianization will also present challenges and opportunities to the poultry category over the coming years as more consumers reduce their intake of meat and poultry. Smart & Connected will be important as consumers seek more transparency about where the meat has come from and how it was reared. 113 Conclusions Datamonitor has identified the following opportunities in meat, fish, and poultry innovation
Issue Opportunities Ingredients and flavors Keep consumers interested and excited by offering more unusual products such as exotic meats and products with unique flavors, such as vanilla-infused bacon. Enhance the overall sensory experience for consumers by encouraging food pairings such as meat with alcohol. Emphasize and promote product attributes such as "natural" and fresh," and make use of available active and intelligent packaging technologies to improve product freshness and extend shelf life naturally, such as HPP. Invest in rare breeds to present a more premium offering to consumers, who will be willing to pay more for breeds such as Gloucester Old Spot pork and Angus beef. Benefits and positioning Meat, fish, and poultry are commodity sectors with little brand value. It is therefore very important to generate a point of differentiation to get the products to stand out and appeal to consumers, and move it away from being price-led and a "commodity." Private label is at the forefront of successful innovation, creating its own values for meat. Offer products that meet the growing consumer demand for ethically and sustainably sourced products, such as free range pork, higher welfare indoor reared poultry, and responsibly farmed fish. As the global Islamic population increases there are significant opportunities for halal meat and poultry, particularly as Muslim consumers demand the same innovations (e.g. convenience) as seen for non-halal products. Develop products aimed at specific consumer needs, such as gluten-free sausages. Launch snacking products that appeal to younger demographics. Take advantage of the dine-at-home trend by developing more premium options and convenient products that make scratch cooking using meat, fish, and poultry easier. 114 Conclusions Datamonitor has identified the following opportunities in meat, fish, and poultry innovation
Issue Opportunities Packaging Premiumize the look of packaging to make products stand out, particularly within fresh meat, fish, and poultry where private label dominates and products often look very generic. Harness smartphone technology to turn product packaging into an information gateway, offering consumers a narrative "from farm to fork" and complete transparency as to where and how the product was farmed. Produce smaller, single servings and individually portioned packs that help to retain product freshness, in order to take advantage of the growth in single-person households. Invest in sustainable packaging initiatives to reinforce environmental credentials. Merchandising and marketing Use certification logos on-pack to help improve consumer trust in products and market them as ethical, sustainable, or eco-friendly. Provide recipes, cooking advice, and tips to consumers to help those who lack confidence to cook with fresh meat, fish, and poultry at home. Tap into the potential offered by social media in relation to customer engagement, product feedback, and brand narrative. 115 Appendix References and further reading
The Meat and Livestock Commission, "The Shopping Decision Tree," A Meat Market Insights Publication, 2012 Meat & Livestock Australia, "Processing & Product Innovation: Active and Other Novel Packaging," Meating Change Processing, 2000 Packaging News, "Consumers back Siranes absorbent pad," http://www.packagingnews.co.uk/news/consumers-back-siranes-absorbent- pad/, May 2012 Business Insights, "Vegetarianization Strategies in Food and Drinks," July 2012 Meatless Monday, "This just in! Were at 50% National Awareness!" http://www.meatlessmonday.com/we%E2%80%99ve-reached-50- national-awareness/, May 2011 New York Times, "No Meatless Mondays at the USDA," http://opinionator.blogs.nytimes.com/2012/07/31/no-meatless-mondays-at-the- usda/, July 2012 Sainsburys, "Our Future With Fish: Investigating Consumer Attitudes, Behaviors, and Motivations," August 2012 Meat Info, "Waitrose stresses high-welfare pork in new campaign," http://www.meatinfo.co.uk/news/fullstory.php/aid/14159/Waitrose_stresses_high-welfare_pork_in_new_campaign.html, June 2012 Agriculture and Agri-Food Canada, "Global Pathfinder Report: Halal Food Trends," April 2011 The Economist, "Industry Briefing: World food: A meaty problem," http://viewswire.eiu.com/index.asp?layout=ib3PrintArticle&article_id=597409844&printer=printer, September 2010 Packaging News, "Seafood packaging: Taking the fuss out of fish suppers," http://www.packagingnews.co.uk/news/seafood-packaging- taking-the-fuss-out-of-fish-suppers/, August 2009 Fry Online, "Fish Consumption Held Back By Prep Fears," http://www.fry-online.co.uk/news/item/fish-consumption-held-back-by-prep- fears, July 2012 Felgate M, Fearne A, DiFalco S, and Garcia-Martinez M, "Using supermarket loyalty card data to analyze the impact of promotions, " International Journal of Market Research, Vol. 54, No. 2, 2012
116 Appendix References and further reading
American Meat Institute and the Food Marketing Institute, "The Power of Meat," 2012 Creative Match, "Gressingham Launches New Marketing Strategy," http://www.creativematch.com/news/gressingham-launches-new- marketing-strategy/101341/, April 2012 Environmental News Network, "Survey: Consumers Trust Food Grown Locally, But Not Foreign Grown," http://www.enn.com/top_stories/article/22962, September 2007 Bernard, Sarah, "Consumer Motivations and Barriers Towards Purchase of Local Beef," Kansas State University, 2012 Progressive Grocer, "Golden West Adds CAB Marinated Line," http://www.progressivegrocer.com/top-stories/special-features/meat- seafood/id35803/golden-west-adds-cab-marinated-line/, July 2012 The Independent, "Hotdogs and champagne...it's the rise of gourmet junk food," http://www.independent.co.uk/life-style/food-and- drink/news/hotdogs-and-champagne-its-the-rise-of-gourmet-junk-food-7922525.html, July 2012 The Telegraph, "The mystery of the Oakham chicken," http://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/8029291/The-mystery-of-the-Oakham-chicken.html, September 2010
117 Appendix
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