Margins, Market Share and the Value of Branding

In 2022, only 6% of whole muscle beef in the meat case was unbranded; 73% had a private or store label and 21% had a national or manufacturer brand.² Today, this is in line with consumer demand – only 5% of consumers prefer an unbranded product when making fresh meat purchases and that number has been falling over the last decade. In 2023, more consumers are reaching for private label or store brand products than national or manufacturer brands, but that’s a trend that seems to be caused in part by current inflationary pressures.³ These preferences are also being reflected in sales data. According to data from Circana (formerly IRI), the percent of beef sales that were unbranded product dropped 5% between 2015 and 2019 and has continued to fall more in line with consumer expectations.⁴

The ratio of dollars earned per pound of protein is higher for private label and national brands than it is for unbranded products, suggesting value generated by brand equity. Additionally, branding allows a company an opportunity to tell their story, which can significantly increase market share. While price is an incredibly important factor when choosing beef at retail, it’s far from the only factor. Only about half (54%) say price is the most important influence on their beef purchase; 14% consider quality first, 10% consider raising claims, and 8% consider the brand itself. Smaller numbers of consumers look first to nutrition claims, the color of the meat, package size, package type or environmental claims.⁵ Branding provides the opportunity to message easily about the product’s quality and claims and pull in new customers who are looking for the attributes you’re offering.

There’s no getting around the ups and downs of the cattle cycle and profit margins. But branding is a proven way to increase market share and develop customer loyalty.