Is There an Increasing Demand for Direct to Consumer Meat?

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January 30, 2024

Is there an Increasing Demand for Direct to Consumers Meat?

Is there an Increasing demand for direct-to-consumer meat? In 2022, the meat subscription market earned revenues estimated at $1.2 Billion. According to data from the Persistence Market Research report, the industry has projected a CAGR growth of 15.2 percent between 2023 and 2033, reaching revenues of $6.4 billion. The COVID-19 pandemic caused a surge in demand for meat subscription services offering home delivery. Consumers found these services to be convenient, and easy to use, with customizable options for their orders, discount pricing, and fast delivery times.

Is There an Increasing Demand for Direct to Consumer Meat?

Key factors driving the growth in direct-to-consumer meat offerings include sustainably sourced meat options, healthy diet trends, meal planning, and customizable plans. There’s an increase in demand for ethically sourced meat products free from hormones and antibiotics. Companies competing in the space offer a variety of products, including chicken, seafood, beef, pork, and more.

So, it’s unsurprising that more Americans are shifting their purchasing habits to meat subscription services, leaving the local butcher holding the bag. On average, Americans spend $124 per capita on meat and food subscription services.

The youth demographic has the fastest adoption rates, spending $200 per capita on these services. With the help of social media, ordering online as opposed to going to the grocery store or farmers market is more convenient and appealing.

Who Are the Key Players in the Meat Subscription Service Industry?

Several companies offer direct-to-consumer meat subscription services. Some of the key players in the direct-to-consumer meat subscription service industry include:

  • Butcher Box
  • Carnivore Club
  • Porter Road Butcher
  • Greensbury
  • Omaha Steaks
  • Crowd Cow
  • The Kansas City Steak Company
  • Moink
  • Goldbelly, Inc.
  • FarmFoods
  • GoodChop
  • Igourmet

These brands are investing in company acquisitions to grow their market opportunities. We expect to see further acquisitions and expansion investments in the sector in the coming decade.

Market Demographics & Segmentation

Market studies suggest younger consumers, particularly men with incomes over $50,000, college students, households with kids, and urban consumers offer the biggest growth opportunities for the subscription meat industry.

Hispanic and Asian consumers in the United States are more likely to purchase subscription meat services. Approximately 90 percent of consumers classified as “protein progressives” have already used these services to buy their meat. 58 percent of consumers classified as convenience chasers and 54 percent classified as family-first food lovers have purchased their meat online at some stage in the last year. Social media has played a major role in this surging growth as well.

Customer Base

Protein Progressives –  trendsetters in communities and experiment with eating different protein sources. They’re also the most likely consumer segment to shift towards plant-based protein alternatives as opposed to processed meat or live animals.

Convenience Chasers price-conscious and look for promotions and coupons. Meat price is important. These customers prioritize convenience and are not as concerned with brand claims when choosing their preferred supplier.

Family-First Food Lovers – enjoy cooking at home and use meal times to connect with their family.

Industry Opportunities & Challenges

There are several challenges facing the meat subscription service market. The first challenge is setting the price for high-quality meat products. The second challenge is implementing proper food safety and refrigeration during transit.

These are the biggest concerns for companies competing in the space and selling their products. The Department of Agriculture is responsible for regulating meat and poultry to ensure safety. This includes selling freezer beef to customers.

However, the quality, convenience, and variety overcome these challenges. The shift in consumer meat sales trends towards ethical, sustainable food sources is another huge opportunity for direct-to-consumer meat companies.

You can learn more about Beef cattle and meat science from the Penn State Extension.

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