Value-tier red meat and dairy sales soar despite cost-of-living crisis
Products within a specific money-saving/value-for-money supermarket-own label range are known as value-tier products. These items have performed strongly as trading down continues, as they often represent the cheapest items in supermarkets.
Value tier products make up only a small part of red meat and dairy volumes, at 7.7% (Kantar, 52 w/e 06 August) and 2.4%, respectively (Nielsen, 52 w/e 12 August 2023).
Despite this, value tier volumes have grown massively in both categories, up by 35.6% year-on-year (YoY) for red meat and an impressive 47.9% for dairy over the same period.
Mince was high on the list, with sales volumes growing by 179.8% YoY, and milk and cheese value products also performed well, with volumes up by 56.3% and 56.7%, respectively (Kantar, 52 w/e 06 August).
Tom Price, Trainee Analyst, said:
"This YoY growth comes from consumers looking to cut back on spending due to price rises. Price has become more important to consumers. However, the data indicates that consumers do not want to fully remove their favourite meat and dairy products from their diet but instead want to save money by purchasing value-tier versions.
"By expanding the number of products on offer in the value tier and making sure this offering is tailored towards staples like mince, sausages and cheese, there is an opportunity to further expand retail sales of red meat and dairy.
"It's also important to remember that not all retailers currently offer a value-tier range, so expanding tiers in all supermarkets could attract more customers. Adequately advertising these value-tier ranges in supermarkets and communicating their in-store location to consumers will ensure that value-tier products can be found easily.
"Consumers care about quality and sourcing credentials even when shopping in the value-tier ranges. Shopper focus has shifted away from just low prices and instead towards value for money and product satisfaction.
"Campaigns such as AHDB's We Eat Balanced messaging help to highlight the exceptional taste and quality of British meat and dairy, and encourage repeat customers in both premium and value ranges".
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