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041044 U.S. Retains an Appetite for Red Meat

October 27, 2004

Sales for red meat are predicted to top $44 billion this year, up 18% in just three years and nearly 40% since 1999, according to a report from research firm Mintel, which tracks consumer trends.

After a growth slowdown after 2000, the appetite for red meat spiked again last year - unquestionably spurred on by low-carb eating and the rush to try out diets like Atkins.

Beef showed the biggest jump in recent years, with sales up nearly 20% since 2002. Pork sales also rose over 13%; lamb was up more than 7%. One in five people said low-carb diets spurred their meat and fish intake.

Yet the gains for red meat come even as people eat less of it. The average American consumed just under 65 pounds of beef in 2003, though the U.S. Department of Agriculture expects that to climb slightly this year and next. Though nearly nine in 10 Americans say they eat beef, consumption is well off a peak of 90 pounds or more annually in the 1970s.

Pork consumption remains near 50 pounds per capita, about where it was in the early 1980s, while lamb has dropped steadily since the 1960s to about 1.1 pounds per capita.

Worries about red meat's fat content seem to have been brushed aside. In recent years, the beef industry has waged a campaign to highlight its relative benefits compared to fish and chicken. Though three-quarters of Americans believe red meat to be less healthy than fish or poultry, the report noted, it hasn't dented sales.

Other health and safety concerns linger. Four in 10 people said they had concerns about the hormones found in meat and poultry. And 17% said they were eating less red meat because of safety concerns like mad cow - though more were concerned about tainted poultry or seafood than red meat.

The popularity has also come despite overall higher prices at the supermarket. Despite a brief dip earlier this year, when prices were driven down by fears over the discovery of mad cow disease in a Washington state dairy cow in December 2003, consumers have been paying near-record premiums for beef. Beef makes up 70% of the red meat market, with pork, veal and lamb accounting for the rest.

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