Final demand is critically important to any industry. The financial crisis and ensuing recession had a sharp outcome on consumer behavior, especially in the food-retailing sector.
The primary question going forward revolves around the permanence of those shifts. In other words, consumers are increasingly looking for value. Will that last?
Given the results of a recent survey (depicted in the chart below), it appears that food-shopping habits and subsequent merchandising have experienced permanent shifts. That’s especially important within the protein complex, as shoppers look for specials and/or features on a weekly basis. And it becomes even more important in scenarios where confidence weakens, such as the current situation revolving around the fiscal cliff.
Beef expenditures during the past several years have been surprisingly resilient. But how does the beef sector appeal to consumers on the price side within this type of environment, especially in light of even higher prices to come in the coming year? Will consumers finally begin to back away from beef because of price?
Let’s have a discussion. Leave your thoughts in the comments section below.