In some ways it becomes more difficult to predict the future. The world is changing so quickly that we find ourselves asking, “What’s next?” The answer has already arrived – yesterday.
Many elements are at play as we look ahead to the new year: The US is about to usher in a new administration. The war continues in Ukraine and Gaza.
Despite the uncertainty about how things will unfold on the national and global stage, we know two key factors that will have a significant impact on business in 2025: the economy and technology. Expect headlines about the economy to continue into next year as the Fed tries to address stubborn inflation and consumers seek relief from high prices. The technology will also generate a lot of buzz as companies quickly figure out how to use AI to increase production and profits.
When it comes to the meat industry, the critical “moving part” we keep in mind never blows: today's ever-evolving meat consumer. As we look ahead in this fast-paced world, we have meat eaters in our sights as we scan the horizon for opportunities that will help us move the needle in 2025.
Here are Midan's picks for the top trends this year:
Health and Wellness: A Mega Opportunity for the Meat Industry
Consumers' obsession with health is intensifying. The continued expansion of the global wellness industry has this: it reached approximately $6.3 trillion at the end of 2023. For perspective, the wellness industry is now approximately four times larger than the global pharmaceutical industry.
Consumers view food as medicine, seek nutrient-dense foods and prioritize protein. As the population ages, people are adopting proactive strategies for longevity (living longer) and vitality (living better). Among consumers to prevent, treat or support healthy aging, 42% rely on food. This helps with the increasing interest in foods such as adaptogens (herbs, mushrooms, etc. used to boost immunity and treat stress) and nootropics (herbal supplements or medications used to improve cognition). Mushroom coffee, anyone?
How Consumers Fit Meat's Nutritional Profile into the Wellness Equation Compared to other types of protein, meat has the highest nutritional value per ounce.
Another important consideration in the health space is how the proliferation of GLP-1 drugs for diabetes and weight loss will impact America's diet, as patients taking semaglutide are encouraged to eat a high-protein diet.
Take away: For the meat industry, the growing focus on holistic wellness and the sheer number of people taking GLP-1 medications (more than 15 million adults) signals the perfect opportunity to promote meat as a nutrient-dense food that is an excellent source of protein. Protein has always been one of red meat's best-selling features. By amplifying protein benefits, consumers are now awakened to the search for food as medicine. It's also a prime time to call meat a good source of iron. A recent study found that almost one in three adults is iron deficient.
Get to know the “sustainability enthusiasts” who
Consumers are becoming more conscious and proactive about sustainability. But even if consumers themselves are sustainable, they are skeptical of companies' response to sustainability. Concerns about “green washing” – over-attention to sustainability efforts – have led to “green fatigue.” According to Mintel, 60% of consumers believe companies are simply “making up” their eco-friendly claims.
On the positive side, interest in regenerative agriculture is increasing. A study by Regenified shows that Regen AG awareness among values-based buyers increased from 6% in 2019 to 47% in 2024. These values-based buyers are motivated to support initiatives that protect water systems, improve human health and increase nutrient density in food.
Midan's own research, Sustainability Profile Report, revealed a group of consumers who consider sustainability a “lot” when purchasing meat. We coined them “sustainability enthusiasts.” While only 17% of meat consumers fall into the enthusiast category, almost a third of meat consumers consider sustainability when purchasing meat.
Take away: There will be a growing opportunity in this space as sustainably-minded consumers seek specific options that align with their values. However, companies need to ensure their sustainable efforts are transparent, authentic and verifiable: consumers are paying attention. Find out more about sustainability-conscious meat eaters.
Meat-based meats: a convergence of health and sustainability
In the meat case, the intersection of wellness and sustainability lies on damage labels. Wellness is linked to the desire for damage base meat, and some evidence suggests that wellness, not sustainability, is the main driver, particularly when it comes to Regen AG.
According to the 2024 Power of Meat Report, 83% of consumers look for a “better-for-you option” when purchasing protein, and 4 in 10 meat buyers occasionally purchase meat or poultry with production claims such as organic, free-range, grass-fed or locally raised.
Midan's Meat Consumer Segmentation 3.0 segmentation study shows that the most likely consumer to pursue meat with claims is the “Claim Seeker” segment. This consumer is highly motivated by natural and organic claims and is willing to pay more for harm aspects such as no antibiotics, ever grass-fed, etc.
Take away: As consumers become more aware of climate change issues and more conscious of their personal health and well-being, expect interest in claims-based meat to grow. For packers/processors, highlighting their sustainability story on pack will appeal to buyers who value sustainably raised meat and are willing to pay more for it.
The Economy: Inflation is stubborn
Many economists have written about the confluence of factors that led to spikes in inflation in the U.S. economy following the 2020 pandemic. For the average consumer choosing a ribeye over meat, all of these explanations don't alleviate their current reality: food costs more (and in some cases significantly more). The average national price of ground beef at the end of October 2024 was $5.59, up from $3.84 during the same period in 2019. That's a 45% jump. And despite the Fed ticking interest rates a month earlier, inflation actually has rose 2.6% in October 2024.
Many consumers have traded in for cheaper food alternatives, including chicken, as their share of income spent on food has remained high for three decades. Even if chicken prices rise, the poultry is considered a bargain compared to red meat, and chicken demand is expected to remain high for at least two years until beef supplies stabilize. Cobank reports that per capita chicken consumption in the U.S. is on pace to increase by 1.5 pounds in 2024. As beef prices remain elevated in 2025, beef products should continue to see strong sales in both retail and foodservice. While pork prices are expected to remain steady through the end of the year, the potential to have fewer pigs on the market – and therefore less product on the shelves – and talk of tariffs with our largest pork exporter, Mexico, will make pork a story , which follows in the New Year. We should have a better sense of Pork's opportunity in the first quarter of 2025.
Take away: The combination of ongoing inflation and the long-term impact of a contractual beef supply means that including meat in the shopping cart will continue to be a challenge. To offset sticker shock, packers/processors should focus on messaging that highlights the quality and consistency of their brands, while retailers should remind consumers that meat continues to be a good value when it comes to putting a nutritious meal on the table to get. It's more important than ever to dig deeper into your target consumers: who is looking for value cuts to stretch their dollars, and who is willing to pay the premium cuts they prefer? Learn more about today's five meat consumer segments and what they value: Download our FREE Meat Consumer Segmentation Report.
Social commerce is big business
It's time to pay attention to what's happening with social commerce. While it may seem like the social apps Tiktok and Instagram are fun and games, make no mistake: these platforms are just as focused on “commerce” as they are “social.” TIKTOK, for example, is fueled by creating content that users dedicate to the “Tiktok Shop” to ensure “influence purchasing” within the same app. Instagram follows a similar model.
Influencer Marketing Hub's report, The State of Social Shopping in 2024, found that 98% of customers are using social shopping at least once this year – a big jump from last year's 68% of shoppers.
Take away: Social commerce is expected to grow by more than 28% annually and generate $3.37 trillion by 2028. (Yes, that's “trillions”) for companies working on their 2025 marketing plans The attention of the youngest meat buyers, Gen ZS and Millennials. (60 percent of Tiktok users are Gen Zs, followed by Millennials.)
*Note that the US government took action to ban Tiktok due to concerns about Chinese ownership. However, it is unclear how the new administration will approach Tiktok.