Dive Brief:
- Turkey meat and byproducts are becoming more popular among U.S. consumers, and U.S. Department of Agriculture data shows per capita consumption of turkey is expected to increase by about 6% in 2016 to an average of 17 pounds, CNBC reported.
- That 6% per capita increase for turkey compares to 2.4% for beef, 1.6% for chicken and less than 0.5% for pork.
- Still, turkey comprises only a small portion of the total consumption of all red meat and poultry, which is expected to hit nearly 215 pounds per person this year.
Dive Insight:
Experts point to turkey’s perceived health benefits as a key reason why consumers have begun choosing it over other meats. Turkey is considered s a leaner meat with lower levels of fat than certain cuts of red meat.
But recent research continues to morph public opinion about saturated fat and whether meat causes cancer, cardiovascular or weight issues. Turkey could lose its luster if it can’t compete with other meats on flavor, texture, versatility and appearance.
Another critical benefit for turkey has been a push by major producers to position turkey as the aforementioned healthy alternative. Hormel’s Jennie-O suffered a huge blowback from last year’s bird flu, which decimated a portion of the brand’s turkey flocks. But this year, Jennie-O relaunched its “Make the Switch” campaign and boosted its advertising spend for turkey products.
Pricing is one more benefit manufacturers can derive from turkey. Supply has increased since last year, but pricing is still expected to rise due to the lingering impact of last year’s bird flu outbreak. Manufacturers can capitalize on this pricing scenario while they still can and increase margins in this sector to boost or balance overall operational margins.