By Katelin Parrish, Head of Category & Insights, Verde Farms

In the world of grocery, trends quickly come and go. But when it comes to Better-For-You (BFY) products, a significant shift is underway, particularly in the beef category. While consumers have long embraced health-conscious options in categories like dairy, eggs and poultry, BFY beef has historically lagged behind — until now.

Learning from the leaders

Across the perimeter of the store, we can draw inspiration from the evolution of the egg, dairy and poultry categories. These categories have not only integrated BFY claims but have also shown a dramatic transformation because of them.

From cage-free eggs to organic milk, brands have skillfully expanded their offerings, tapping into a growing consumer base that prioritizes health and wellness. Entirely new health-focused segments have emerged, providing needed innovation to energize and expand commodity-based categories that were once stagnant.

New news, new investments and new consumers have been drawn into these categories with anchor brands like Vital Farms, Organic Horizon and Farmer Focus at the helm of the change. These leading categories address the three pillars of Better-For-You consumers’ priorities: BFY consumers are mindful of their own wellness needs, the well-being of animals, and the planet’s future.

The same transformation is building in the meat aisle with innovative brands looking to close the gap in beef, the largest category in the meat department. Today, Better-For-You segments of categories like eggs, milk and poultry make up anywhere from 25% to 40% dollar share of their respective categories, while BFY beef only makes up 13% of the total beef category. While BFY beef share is growing rapidly, there is still substantial white space for growth and consumer conversion. Given the size and scale of the beef category, at 4.5x the size of the adjacent chicken category, the potential of BFY beef to reach the heights of other high-performing adjacent BFY categories signals a major opportunity for expansion. In the past several years, we’ve witnessed the rise of claims-based beef products — antibiotic-free, hormone-free, grass-fed, and organic among the most prevalent — each one driving strength and momentum in a traditionally slow growing category. The success of these emerging offerings highlights a crucial opportunity: retailers can lean-in to these accelerating trends to cater to a new generation of health centric consumers and grow their categories.

Claims that matter

A recent shopper study by Verde Farms reveals several key claims that significantly influence shoppers as they browse the beef aisle. Mirroring the trends of other leading BFY categories, these learnings showcase that BFY beef consumers have a three-pronged health mindset when it comes to their shopping priorities that focuses on the wellbeing of themselves, the animals and our planet.

No Added Hormones and Antibiotic Free

These claims are table-stakes for the BFY shopper and are the legacy attributes that began the BFY differentiation from Conventional beef. Consumers highly value these attributes and expect that all product offerings inside BFY are raised without any added hormones or antibiotics that could compromise their own health in any way.

Grass-Fed

The Grass-Fed attribute has become a hallmark of the Better-For-You beef category with many brands and product offerings touting this claim; but not all Grass-Fed claims are equal. Some brands may claim Grass-Fed, however that may only be for a portion of the cattle’s lifespan due to costs or seasonality reasons. Only 100% Grass-Fed & Finished claims satisfy consumers’ three pronged health mindset. Consumers are becoming more educated and can see through the greenwashing of non-100% Grass-Fed products. According to recent Verde consumer research, 100% Grass-Fed is one of the top two most important claims to BFY consumers across all demographics. Consumers prioritize this attribute for the health benefits as well as the positive animal welfare and land health implications. Some of the tangible health credentials of 100% Grass-Fed beef (versus grain-fed beef) that consumers look for include being lower in fat and calories and containing higher levels of essential vitamins, minerals, antioxidants and 200-400% more omega-3 fatty acids.

Organic

There are many key benefits consumers desire when seeking out organic products, including no synthetic fertilizers or pesticides used to treat grass consumed by animals and no antibiotics or added growth hormones given to the animals. Consumers find trust in the rigor of certification as all beef labeled ‘organic’ must be sourced and processed through organic certified facilities (verified by the USDA itself). This claim is also the #1 fastest growing attribute in the BFY beef category. According to recent Verde research, shoppers under the age of 45 believe this is the most critical attribute in their purchase decision. Additionally, families with children over-index on the value of organic and actively seek out organic meat at higher levels than any other demographic group.

Regenerative & Animal Welfare Practices

Consumers are increasingly concerned about sustainability efforts that impact the earth and the welfare of the animal during beef production. These practices may include humane treatment of animals, improved landscapes with positive climate impact, more nutritious beef and improved economics for farmers. These emerging product attributes carry strong value with consumers. Adding these premium claims to the legacy attributes like hormone free, antibiotic free, Grass-Fed and Organic allows retailers to address 98% of BFY consumers’ shopping priorities, according to Verde research.

What Drives the BFY consumer?

The BFY Consumer is a diverse shopper, spanning demographics across age, ethnicity and regionality. These attributes hold even more weight for the younger generation of shoppers found in Millennials and Generation Z.

They care deeply about brands and are more motivated than ever to support those that align with their values. For GenZ shoppers, brand is the top decision factor driving meat purchases, different from earlier generations who are driven by quality and appearance.

Whether it’s for a casual family dinner or a special occasion, these consumers are looking for beef that not only tastes great but also meets their health, ethical and environmental standards at greater levels than the previous generations. The rising buying power of Millennials and Generation Z highlights the urgency for retailers to advance the BFY beef segment to position themselves for future growth.

Understanding what matters most to BFY consumers is essential for retailers looking to maximize sales. Key claims such as ‘Organic,’ ‘Grass-Fed,’ ‘Regenerative Agriculture’ or ‘Animal Welfare’ are not just buzzwords; they are pivotal factors influencing purchasing decisions.

BFY consumers care about how their purchases impact not only themselves or their families, but also the land it came from and the treatment of the animal itself. New Verde Farms consumer research shows that consumers perceive attributes as interconnected, not hierarchical — where more is truly more.

For example, the same Verde Farms study also found that beef that carries both Organic and Grass-Fed attributes reaches 27% more households with kids than products that are Grass-Fed alone, proving organic is a must-have for the future growth of the category. Sales data also shows that products that boast multiple claims are flying off the shelves faster than those with fewer attributes. In fact, the growth rate of products with 4+ attributes is nearly 2.5x that of products with just 1 BFY attribute.

Growth of BFY beef: a catalyst for change

Category sales data reinforces that consumers are putting their dollars behind their stated priorities. Better-For-You beef is experiencing swift growth, consistently outpacing Conventional beef: BFY has posted dependable double-digit year-over-year gains at growth rates 2x that of Conventional. It’s clear that this movement is more than a fleeting trend.

Today’s consumers are not only seeking healthier options but are also making more informed choices, propelling BFY beef into the spotlight. Retailers have a golden opportunity to harness this momentum and engage with a shopper who is already in their stores; a shopper who is already seeking out BFY options in their milk, eggs, poultry and produce purchases; a shopper ripe and ready for conversion in the beef aisle.

Simultaneously, consumers are on a quest to get more protein in their diets at greater levels than ever before. There is a greater awareness of individual daily protein needs and a consumer trend of tracking this essential part of their diet that is leading a surge in demand for high-protein foods and beverages across the store.

A recent Mintel report indicated that 57% of U.S. consumers look for high-protein options when shopping, particularly among younger demographics who prioritize protein as part of their fitness and wellness goals. The rise of BFY beef options is increasingly satisfying consumers’ demands for high-quality protein in their diets, as beef is seen as a real and pure source of protein that aligns with their sought-after health benefits.

This article is an excerpt from the December 2024 issue of Supermarket Perimeter. You can read the entire Claims-based Meat feature and more in the digital edition here.