UK: Meat and dairy perform well in January as consumers focus on health

Meat and dairy products were a hit with consumers in January with dairy- and meat-free products seeing less demand, according to AHDB.

Posted on Mar 20 ,00:15

UK: Meat and dairy perform well in January as consumers focus on health

It seems food trends during January are changing, with greater opportunities for red meat and dairy to be eaten by consumers as part of a more health-conscious start to the year.

In January 2023, we saw poor performance for both meat-free and dairy-free products compared to January 2022.

This resulted in some retailers attempting to position plant-based products with health-focused messaging within stores this year, rather than promoting Veganuary 2024 as a standalone occasion (IGD).

The cost-of-living crisis can be attributed to a large proportion of the 12.8% and 3.8% year-on-year (YoY) volume decline for meat- and dairy-free products respectively (Kantar, 3 w/e 21 Jan 2024; Nielsen, 4 w/e 27 Jan 2024).

This is because meat- and dairy-free products are 3.3% and 18.4% more expensive than their animal product competitors respectively.

Retailers’ efforts to try and increase the pick-up of meat-free products during this health-focused month weren’t very successful, as the percentage of baskets with meat-free products fell 0.4% YoY, to 4.1% (Kantar, 3 w/e 21 Jan 2024).

This indicates that consumers’ interest in meat-free products is waning, despite attempts to market them as healthy following the indulgent Christmas period.

As expected, due to retailers focusing on health messaging, volumes for all plant-based dairy products were up for the 4 weeks of January 2024 (+6.4%) compared to an average 4-week period for the 52 w/e 27 January 2024 (Nielsen).

While it is likely that new plant-based product development will be limited, meat and dairy may still face competition from cheap staple alternative products, like pasta and potatoes.

Tom Price, Retail and Consumer Insight Analyst at AHDB, said:

"Media coverage has recently focused on the negative nutritional values of ultra-processed foods, which is putting many consumers off eating these products.

"This, alongside slowing inflation and the potential for real wages to grow in 2024, means health is becoming more of a priority for consumers.

"This provides an opportunity to promote the health benefits of meat and dairy to align with consumer values.

"AHDB continue to promote red meat and dairy as part of a healthy, balanced diet in our Let’s Eat Balanced and Love Pork campaigns, and our recent meat labelling research highlights the consumer desire to see meal inspiration, both on-pack and in-store, to give them confidence in their cooking".

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