Millennial consumers are driving the next dietary trend towards protein, ready-to-eat products, and from animal humanely treated. The food industry trend toward convenience, “cleaner” labels, and protein-oriented products are fundamentally driven by millennials that are looking for different things from their food than their forebears, said Morningstar analyst Zain Akbari in an interview with Investor’s Business Daily. Think in terms of the “Paleo Diet” and “Low Carb” that have permeated the foodie space.
Convenience and prepared foods are also tending. Overall, the health of the meat products industry itself is “reasonably good,” Akbari said, and feed prices for livestock have been “fairly attractive” across the board. With beef prices still relatively high and more health-conscious consumers looking for leaner meats at a lower cost, demand for chicken has held steady.
The desire for a quick, but homemade meal, has led to the rise of meal-kit services that deliver to its subscribers fresh organic ingredients packaged into pre-portioned meals, including the recipe. Some companies, like Tyson, are offering ready-to-cook slow-cooker ingredient packs.
Finding balance between the simultaneous demands for conveniently packed proteins and natural foods has not been easy for food companies. While refrigerated pre-cut meal kits and uncured bacon might be on trend, frozen food is decidedly not. “The freezer case in general has really struggled over the past several years, because of the perception of inferior quality and taste,” said Akbari. So packaged foods that offer convenience and taste is the direction many companies are moving towards.
While chicken is king for now, chicken volume growth and price appreciation could plateau, particularly if fickle millennial consumers move towards other proteins, such as turkey or plant-based offerings, in a more meaningful way, Akbar said.
