Supermarket Perimeter - November 2024 - 43

LAMB IS NO LONGER A NICHE PROTEIN - it's becoming a favorite
among slightly adventurous, affluent restaurant diners, and that has
trickled down to consumers at grocery retail.
In fact, lamb continues to grow in both volume sales and distribution.
During the pandemic, many consumers were inspired to try cooking
lamb at home, and ever since, many continue to prepare lamb for both
everyday and special occasions.
The American Lamb Board's most recent monthly lamb market
summary, which came out in August, noted live lamb prices and
wholesale lamb values remain strong relative to 2023, even with slightly
more domestic supplies and larger imports this year.
Lamb has been steadily gaining traction, seeing a 15.7% increase in
dollar sales and a 9.3% increase in volume sales over the last few years.
Perhaps more telling, lamb and exotic meats were the only categories to
see volume growth during this period.
" Consumers, both retail and foodservice, are opting for more pricefriendly
items, while higher wholesale values are encouraging more
imported product, " the report noted. " Consumer budgets will continue
to influence their purchasing power for lamb. "
Wholesale lamb values are averaging 6% higher this year than in
2023, supported by shoulders, legs and loins, according to the report.
Racks have struggled this year, but finally surpassed year-ago levels
in June.
" Even in the face of economic pressures, lamb volume sales
continued to grow by 4.7% year-over-year, with the South Central
region, including Texas, seeing a significant 8.1% increase in volume
sales, " said Jaclyn Oyola, CEO of World Select Cuts and a foodservice
consultant for JKG Food Services. " This growth in consumption
demonstrates that consumers were clearly interested in and open to
eating lamb when it was made more available to them at retail, and
a recent leveling off signals that they haven't found products that
continue to suit their lifestyle as they got back to work. "
Recent data also shows that lamb appeals strongly to wealthier
consumers, particularly millennials, who are a key demographic for
many retailers. With 67% of lamb consumers earning over $150,000
annually, the potential for premium products is undeniable.
" As consumers walk away from pork, lamb is well positioned to
continue its growth trajectory, already seeing year-over-year growth
post-COVID at rates other mainstream proteins are not seeing, "
Oyola said.
She credits the " foodie generation " noting millennials and Gen Z are
redefining food trends, spending more on dining out than ever before,
and driving the popularity of less traditional proteins like lamb.
" With more consumers seeking these experiences at home, there's a
clear opportunity to offer high-quality lamb products in retail, " she said.
Still, she has noticed growth softening in recent months.
" Our hypothesis is this has been caused by more people returning
to the office and having less time to cook an item like lamb at home, "
Oyola said.
That's why many consumers, in lieu of inflation challenges, are
shifting to more budget friendly lamb items such as ground lamb and
shoulder cuts. Despite that, sales have been steady.
" Due to economic concerns, consumers more and more are
seeking affordable food and convenient solutions, " Oyola said. " For this
supermarketperimeter.com
NOVEMBER 2024 - 43
reason, we see a growth in cuts that are less expensive than what has
traditionally been popular. It's a reason consumers are drawn to Aussie
Select products - they offer the lamb consumers love, without the need
for any labor addition, at an accessible price point. Lamb can now be a
sandwich/lunch solution. "
Australian lamb, which is exported to the U.S. as cuts, is seeing higher
prices compared to a year ago. Total imports of lamb and mutton for
the January-June 2024 period came in at 182.5 million pounds, a 30%
increase from the year before, according to the American Lamb Board.
" Lamb has numerous health benefits and offers additional variety
as a red meat, " said Danielle Marta, vice president of marketing and
innovation at Thomas Foods International. " It is mild and easy to
prepare, and Australian lamb has all the claims consumers are seeking
- All Natural, Pasture Fed & Pasture Raised, Raised without Antibiotics,
Raised without Hormones, Humanely Raised, Halal Certified. "
What's trending
Interestingly, while higher-priced cuts like rack of lamb have seen a
slight decrease in sales volume, more versatile and economical cuts are
surging in popularity in 2024.
" This shift indicates that consumers are still eager for lamb but are
seeking more budget-friendly options, " Oyola said. " Ingredient cuts
have also shown significant growth in dollar sales, despite only a
modest increase in pounds sold, highlighting the demand for costeffective
yet flavorful lamb choices. "
For many retailers, ground lamb continues to grow in popularity,
as well as items like lamb stew meat, lamb shoulder chops and lamb
rib chops.
" Items like Seasoned Butterflied Boneless Lamb are proving especially
popular, helping busy consumers get dinner on the table in under 30
minutes, " she said. " Grinds are always popular, and all the chops -
shoulder, loin and rib - are very easy to prepare and quick to cook, as
well as lamb stew meat. Consumers continue to prepare legs and racks
for special occasions. "
Health benefits and
claims are key to
Thomas Foods' lamb
marketing efforts.
Natalia Lisovskaya - stock.adobe.com, Thomas Foods International
http://www.supermarketperimeter.com
Supermarket Perimeter - November 2024

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