Meat & Livestock News

Bacon Sales: Trends and Insights

TL;DR: Bacon sales have declined over the past year, with total revenue dropping by 6.7% to just under $5.9 billion. Despite a decrease in unit prices, consumer purchasing habits shifted, particularly due to high egg prices influencing choices. Bacon bits emerged as a growth category, with sales increasing significantly. Going forward, the focus for bacon marketers is on reclaiming the interest of protein-focused consumers and expanding into premium product offerings amidst increasing market competition.

Recent Sales Performance

For the first time in many years, the total sales of retail bacon fell over the last 52 weeks, ending January 28, 2024. The sales dropped to just under $5.9 billion, showing a decrease of 6.7% from the previous year. This was reported by Circana OmniMarket Integrated Fresh, a market research firm based in Chicago. Additionally, the price per unit of bacon also fell to $6.05, matching the sales decline percentage.

Changing Package Sizes

A notable shift occurred in packaging sizes. The standard bacon package size changed from 1 lb to 12 oz. This adjustment is partly responsible for the drop in price.

Consumer Behaviour and Inflation

Despite a fall in prices, bacon sales did not increase as expected. Chris DuBois, executive vice president of Fresh/Protein practice at Circana, highlighted a curious trend. “Despite lower prices, bacon sales did not rise last year,” he noted. According to DuBois, 10% of households that frequently bought both bacon and eggs in 2021 stopped purchasing bacon from 2022 to 2023, likely influenced by the soaring prices of eggs. This choice reflects a strategic shift by consumers, favouring eggs over bacon amidst inflationary pressures.

Focus for 2024

For 2024, the challenge for bacon marketers will be to win back those protein-loving households. “The key for 2024 is bringing those protein-loving households back into the bacon category,” stated DuBois.

A Rising Star: Bacon Bits

One standout category was Fresh Refrigerated Salad Toppings/Bacon Bits, which saw significant growth. Sales neared $1 billion, rising over 264% last year, while unit sales jumped 450%, reaching more than 115,500.

“Bacon enhances nearly any dish, and bacon bits are a versatile addition to various meals and desserts,” commented DuBois.

Innovations and Premium Products

The bacon segment continues to see the launch of new and premium products as consumers maintain their appetite for this favourite pork product. Both new and established companies in this sector are strategically positioning themselves, some focusing on competitive pricing while others emphasise premium quality.

Market Competition and Outlook

“Bacon pricing is crucial, and the competition is intensifying,” DuBois added. He predicts a promising growth area for brands focusing on quality and innovative offerings. “This is likely a nice pocket for growth for these brands going forward.”

In conclusion, while the bacon market faces challenges, there are bright spots and opportunities for growth through strategic marketing and product innovation.