World meat industry news

In 2022, consumers began to save more by combining different consumer models: switching to private label brands (PL) or cheaper brands/products, shopping at hard discounters, and looking for better deals ( shares and promotions) both offline and online, said Dmitry Vostrikov, executive director of the Rusprodsoyuz association. Visits to more retail outlets for the purchase of necessary goods at minimal prices are also noted. “The strengthening of the economy is primarily due to high inflation, especially characteristic of the first half of the year, accompanied by a decrease in real incomes of the population,” he says. “According to analysts, the percentage of people spending on food is growing, and this is pushing for a review of food purchases.”

According to Vostrikov, first of all, in 2022, purchases of goods in the middle price segment were reduced. “We can see a switch in consumer demand to cheaper goods within different categories. Although the demand for basic products is not declining, we do not predict an increase in demand in the near future,” he says.

The Association of Retail Companies (AKORT) sees an increase in demand for low-price goods and a noticeable decrease in interest in more expensive food products. Within the categories, there is a redistribution of demand towards key products: for example, in the dairy category, sales of cottage cheese desserts and drinking yoghurts are declining, while a steady demand for butter, milk and sour cream remains, says Igor Karavaev, Chairman of the AKORT Presidium. “Restrained demand is influenced by the thrifty approach of consumers: in the face of uncertainty, people try to spend less,” he commented.

In the third quarter of 2022, the share of promotional sales of consumer goods from offline retailers recovered after a sharp drop in March-April and amounted to 51.4% in monetary terms, NielsenIQ estimates. For the same period in 2021, the promo share was 48.5%.

The representative of the Cherkizovo group agrees that saving is the main trend in 2022 in consumer behavior. “We see an increase in sales of economy segment products, an increase in the share of promotional products. In addition, the consumer expands the number of stores visited and brands purchased, seeking to find a better deal,” he notes.

At the same time, one cannot say that the premium segment is dying, the representative of Cherkizovo draws attention. “Food remains a quick and affordable way to de-stress, calm down and indulge,” he explains. - Largely for this reason, we see that sales of meat products have generally remained at the level of 2021. At the same time, the sale of uncooked smoked sausages and meat snacks is growing. In the category of sausages, consumers also switched to a smaller packaging format.”

Certain segments of consumers have begun to save, confirms a representative of the Prodo group, however, a similar trend has emerged in previous years. Promotional goods, special offers, etc. are becoming increasingly popular. “However, it cannot be argued that this is the only trend on the market. In 2022, the Prodo group saw an increase in sales of products from both low-price and premium brands. For example, there was a clear increase in demand for Dobry Product brand products in Bashkortostan. At the same time, sales of Troyekurovo, a mid-price brand of poultry meat products, increased in all regions of presence,” says a company representative. - Sales of the high-priced brand of sausages "Klinsky" have noticeably increased in the Moscow region. Also, the high-priced brand of meat delicacies “Black Boar” was growing.”

Cherkizovo produces everyday products, the demand for which is stable, while the company, according to its representative, expects that the most significant changes regarding the solvency of the population have already taken place, and in 2023 purchasing power will gradually recover.

But the representative of Prodo says that there is no hope for an increase in the income of the population in the short term, and the behavior of buyers will not change either. “To build forecasts in the current circumstances is a thankless task. However, with a competent marketing and assortment policy, it is possible to increase sales even today. To do this, it is necessary to communicate your values to customers, create a certain emotional contact, guarantee high quality products and maintain interest in the brand with popular new products, ”adds the representative of the group.