Peter Duggan, Strategic Information Services, Bord Bia - Irish Food Board

Consumer spending on meat at retail level in Ireland showed little change in 2012 with the market valued at €1.13 billion. However the pattern of meat consumption changed slightly as the year progressed with switching between meats more evident among consumers.  

According to Kantar Worldpanel, the value of the fresh meat market fell fractionally to €1.13 billion on the year ending the 23rd December 2012 compared to the previous corresponding period. Despite tough trading conditions, the fresh meat category was helped by prices increasing by over 2%, despite volumes being back by almost 3%.

Consumer spending on chicken, beef and pork remained unchanged throughout the year. Most of the movement in consumer spending was evident in the lamb and bacon (incl. rashers) categories, with lamb expenditure rising by over 8% while bacon expenditure eased by 5%. The lamb category’s revival is being helped significantly by consumers switching from beef and bacon throughout the year. The volume of lamb purchased over the 52 week period rose by almost around 8% with a marginal increase in price also evident. Within the lamb segment, purchases of loin chops, whole leg and mince showed the strongest growth.

The immediate prospects for retail meat sales remains challenging as demonstrated by a drop of 4% recorded in volumes for the 12 weeks ending the 23rd December. This was offset by a 5% increase in retail prices, which left overall spend on meat 1% higher.  The strong performance of lamb continued over the period with value sales almost 12% higher over the period. Supervalu accounts for almost one third of lamb sales with strong growth recorded over the last year. On the other hand Aldi and Lidl who are under trading in lamb relative to their overall market share.  The beef category also showed some improvement in value terms, with expenditure rising by over 5% in response to retail prices increasing by almost 7%. While the chicken category worsened over the last quarter, with expenditure back by almost 3%, reflecting some switching that took place as consumers switched to beef and lamb in the build up to Christmas.