K-State’s Glynn Tonsor says the July Meat Demand Monitor revealed positive trends in meat consumption and consumer attitudes toward protein purchases.

Key findings from the July Meat Demand Monitor report show an increase in consumers’ willingness to pay for meat compared to June. Both retail and food service demand demonstrated strength, with food service experiencing a particularly notable improvement.

Glynn Tonsor, Kansas State University professor of agricultural economics, describes this as “meat having a moment,” highlighting the continued popularity of protein consumption.

Tonsor shared results of the July report providing insights into the current state of meat demand across beef, pork and chicken on a recent AgriTalk with Chip Flory.

Taste Trumps Other Considerations

The conversation focused on the dynamics of meat purchasing. Tonsor says that taste and freshness are the primary drivers of consumer choices, outranking price as the most important factors. While environmental concerns, origin traceability and animal welfare claims matter to a niche market (10-20% of consumers), the majority of Americans prioritize eating experience over other considerations.

“For the typical American … taste and freshness carry the day, and importantly, those factors are more important than price,” he says. “So, price matters. No economist can tell your price doesn’t matter, but it’s actually outranked by taste and freshness.”

Price Sensitivity Varies

“We have not found new consumer resistance to price,” Tonsor says.

He emphasizes that ground beef price trends are more critical to monitor as an economic indicator compared to premium steak prices. High-end cuts like ribeye steaks are less affected by price fluctuations, primarily purchased by higher-income consumers who are less concerned about incremental price increases. In contrast, ground beef remains more sensitive to pricing, which is a key concern for many consumers and producers.

Economic Uncertainty Hasn’t Dampened Protein Consumption

The current economic landscape presents both opportunities and challenges. Despite macroeconomic challenges like inflation and limited consumer financial improvement meat demand has held up well. Consumers are still prioritizing protein purchases, particularly in retail channels.

Tonsor says only 19% of consumers reported improved financial conditions in July, with 81% indicating stable or worsening financial situations. According to Tonsor this metric is crucial because consumers who feel financially secure are more likely to purchase multiple meat protein meals and spend more on food service.

He highlights several macro-economic concerns or challenges that loom on the horizon.

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