Friday 28 June 2013

Market Study: Lunch Meat Market Trends in US - June 2013


The lunch meat category enjoys high household penetration rates but is now grappling with the challenge of decreasing personal usage due to consumer price and health concerns.




Scope and Themes
What you need to know
Definition
Data sources
Sales data
Consumer survey data
Advertising creative
Abbreviations and terms
Abbreviations
Terms

Executive Summary
Lunch meat sales creep higher, fueled by inflation
Figure 1: Total U.S. sales and fan chart forecast of lunch meat market, at current prices, 2007-17
Lunch meat segment performance
Figure 2: Total retail sales of lunch meat, segmented by type, at current prices, 2010 and 2012
Health concerns and higher prices squelch demand
Figure 3: Reasons consumers might eat more lunch meat, by change in lunch meat eating habit in past 12 months, February 2013
Kraft Foods’ Oscar Mayer leads market but loses sales along with others
Figure 4: MULO sales of refrigerated sliced lunch meat, by leading companies, 52 weeks ending March 24, 2013
Expanding the ways consumers use lunch meat may grow sales
Figure 5: Household usage by type of meat, June 2013
Nearly one in four consumers are eating less lunch meat this year
Figure 6: Lunch meat usage, February 2013
Consumers most interested in natural, nutritional attributes
Figure 7: Important lunch meat attributes, February 2013
What we think

Issues and Insights
How can companies increase usage in an already saturated market?
Insight: Redefine lunch meat for more varied usage
How can companies overcome price increases and drive sales?
Insight: Enhance consumers’ perception of lunch meat value
How can lunch meat brands address consumer health concerns?
Insights: Create a better-for-you image

Trend Applications
Trend: Factory Fear
Trend: Extend My Brand
Mintel Futures: Old Gold

Market Size and Forecast
Key points
Meat consumption down; availability, price, and health concerns to blame
Widespread health concerns encourage meat reduction
Economic recovery could stifle growth prospects
Sales and forecast of lunch meat market
Figure 8: Total U.S. retail sales and forecast of lunch meat, at current prices, 2007-17
Figure 9: Total U.S. retail sales and forecast of lunch meat, at inflation-adjusted prices, 2007-17
Fan chart forecast
Figure 10: Total U.S. sales and fan chart forecast of lunch meat market, at current prices, 2007-17

Market Drivers
Key points
Higher retail prices discourage lunch meat usage
Figure 11: Consumer Price Index for all urban consumers: Meats, poultry, fish, and eggs, March 2008-13
Negative health perceptions may discourage increased usage
Figure 12: Consumer attitudes on lunch meat, by age, February 2013
Figure 13: Reasons consumers might eat more lunch meat, by age, February 2013
Figure 14: Reasons cosumers might eat more lunch meat, by household income, February 2013
“Brown bag it” trend motivates some to bring lunch from home

Competitive Context
Eating out presents a convenient alternative to homemade lunch
Meals, frozen and homemade, offer more food at competitive price
Figure 15: Lunch meat competition, February 2013
Snacking culture eats into lunch meat usage


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