Consumers shift food purchases from restaurants to grocery stores

American consumers have been spending more and more in restaurants, but following the outbreak of coronavirus, they are shifting their purchases to grocery stores, and the food industry is responding.

“To accommodate these changing consumption patterns, many food processors are shifting their production lines to focus on cuts of chicken, beef and pork that are more marketable for home consumption, shelf-stable products and frozen food products, rather than food items more suitable for food away from home use,” the American Farm Bureau Federation said in a Market Intel report.

The North American Meat Institute said its member companies are shifting from production for the food service industry to grocery stores.

NAMI noted that meat and poultry retail sales increased 7.3% for the week ending March 8, 2020, and deli meat sales advanced 4.8% due to a shift from food service production.

NAMI President and CEO Julie Anna Potts said in a news release, “With increased demand in retail, our members acted quickly to adapt, taking steps to keep operations running at normal or increased capacity.

“In these uncertain times, the data shows consumers are turning to meat and poultry to provide their families with the nourishment and comfort they need,” Potts said. “Our members are committed to meeting this need.”

–The Hagstrom Report