Bacon is a legacy category that really doesn’t need to convince people to come back.
The bacon category has experienced modest growth across the last year fueled mainly by an increase in retail prices. What people are looking for is opportunities to use bacon in different ways. That’s where convenience and flavor come in as ways that inspire consumers to use bacon in new ways.
Over the past year, the bacon category has seen solid growth, with units up more than 2% and sales rising over 2.7%, according to Circana. That’s faster than the overall edible sales growth of 0% in units and 1.9% in dollars.
It shows bacon dollar and unit sales are positive across the category, with the natural channels leading category growth. At the retail level, the banners that are embracing the better for you trends and including more of these SKUs in their bacon set have realized higher lift in their sets vs. those who have not.
Melissa Myres, director of insights for 84.51°, a data marketing company that helps Kroger and its partners create customer-centric shopper journeys, noted despite shopper’s concerns over inflation, more than 1 in 3 households purchased bacon at least once in 2024.
“In some food categories, consumers state that they are buying in bulk and in larger sizes to save money, though for bacon, the smaller pack sizes—under 16 ounces—are growing at a faster rate than the larger pack sizes,” she said. “Additionally, national bacon brands showed stronger sales growth than private labels in 2024, though that’s not always the case.”
Aly Sill, senior brand manager for Hormel Black Label Bacon, noted while it’s difficult to speculate what the hot new trends will be for the bacon category in the new year, according to company research, Millennial and Gen Z shoppers continue to demand new, exciting and sophisticated flavors.
“Therefore, we anticipate that brands will continue to take a flavor-forward approach and continue introducing new flavor extensions,” she said. “In 2024, we saw brands introduce different smokes as well as other limited-time flavors.”
In response, new flavors and consumer convenience were the theme of 2024 for Hormel.
“This year we introduced new products under our Hormel Black Label Bacon brand, which amplified our flavor innovation, including the category’s first-ever co-branded partnership with Cinnamon Toast Crunch cereal,” Sill said. “This limited-edition product delivered a crisp, sugary crust with a delicious balance of cinnamon, sugar, salt and savory bacon taste.”
The company also introduced limited-editions Hormel Black Label Garlic Rosemary-flavored and Hormel Black Label Ranch-flavored bacon, which both pushed the boundaries of bacon beyond breakfast.
“Finally, we revolutionized the category with the launch of our Hormel Black Label Oven Ready Thick Cut Bacon with Oven Safe Tray,” Sill said. “This first-of-its-kind product brings the convenience of fully cooked bacon while offering a mess-free, easy-to-prepare option for bacon lovers.”
Source: North Country Smokehouse Convenience, indulgence, flavor
Colin Babin, brand manager for Applegate, believes the ‘24 trends will carry over into 2025. These include convenience (how do you make bacon easier for the consumer to make so that it can be used more frequently); necessary indulgence (users of bacon are not willing to give it up an indulgent part of their diets); and flavor interest (flavored bacon can move outside of the traditional if brands are willing to go that route).
“Our main focus in innovation continues to be convenience,” Babin said. “Last year we launched Applegate Naturals Fully Cooked Sunday Bacon, which was our first entrance into the convenience bacon space. This product is our consumer favorite Sunday bacon in a pre-cooked form that is perfectly crispy in a matter of seconds using a microwave oven.”
Aaron Corbett, CEO of North Country Smokehouse, sees trends towards non-GMO organic and ethically raised will carry over to 2025, as the data continues to show growing interest from consumers and retailers responding with expanded sets and assortment.
“The bottom is coming up in the bacon category, with responsibly raised meats taking up more shelf space,” he said. “Looking ahead, we’ll see a growing consumer interest in sustainable practices, with more folks holding their brands of choice to a standard of responsibility for their farm practices and environmental impact.”
All bacon companies study what consumers look for in their products and the answer is always the same — flavor.
“While it’s true folks value responsible meats, the taste has to be there,” Corbett said. “We keep this forefront in our minds daily, and it’s why we stay committed to our processes. Cutting corners for the sake of producing more results in less flavor. We stay true to our roots in meat mastery—it’s not the fastest way to get it done—but the flavor’s all there, every time. That’s why we have such a loyal following and what contributes most significantly to our continued growth.”
Convenience and added value are also important to today’s shopper.
“Traditionally, good bacon takes time and life gets busy,” Corbett said. “We recently launched our new Organic Applewood Smoked bacon crumble, a fully cooked crumble made using the same recipe as our signature smoked strips. It’s been a big success, because it’s high quality, responsibly sourced, and easy to use. Not an easy combo to find in the bacon category.”
Health trends
The consumer’s desire for healthier foods has impacted the bacon category, as the demand for lower sodium and nitrate-free options has risen.
Hormel estimates approximately 12% of bacon consumers seek better-for-you options in the bacon category.
“We pride ourselves on offering bacon for every consumer preference,” Sill said. “From Jennie-O® Turkey Bacon and Hormel Natural Choice uncured bacon to Applegate organic bacon, we offer options for every preference, alongside classics like Hormel Black Label bacon, ensuring there’s a perfect choice for everyone.”
In fact, Applegate has never used chemical nitrates or nitrites in any of its products.
In terms of flavor, North Country Smokehouse sees healthier alternatives to mainstay flavors doing well.
“Our sugar free organic applewood smoked bacon continues to be a category leader and the recent launch of our low sodium organic applewood smoked bacon at Whole Foods Market has been received very well,” Corbett said. “Shoppers are looking for healthier alternatives to traditional recipes but don’t want to compromise on flavor. We’re responding to that.”
Tech advancements
Hormel has been working to transform and modernize its end-to-end production process that is improving the way it plans, makes, buys and moves products to customers.
“This is powered by modernizing our data analytics to help drive our understanding of our consumers and what it is they want to see from this category,” Sill said. “Our main goal is to deliver delicious products, and building out this area of our business will help us do that more effectively. For example, leveraging GenAI to source ideas for innovation so we can stay on top of flavor trends with the next generation of bacon enthusiasts.”
Babin noted data analytics is a heavy part of any successful innovation. Most new products start with a data point that supports their creation and the story behind why retailers need that product.
Source: ©BRENT HOFACKER - STOCK.ADOBE.COMTips for increasing sales
Hormel works with its customers to cross merchandise bacon with meal-inspiring products.
“Research shows that the next generation of bacon shoppers isn’t typically eating a hearty breakfast,” Sill said. “To help bring future shoppers into the category, we need to give them ideas on how to use our bacon products beyond breakfast and provide them with convenient ways and ideas to prepare bacon.”
Product assortment is also important. Grocery stores should aim to provide customers with a variety of flavors and formats giving them flavor varieties that inspire a meal and convenient formats that remove pain points.
“Our core bacon buyers look for three key things: first, they love how bacon elevates every dish, earning its reputation as the ‘duct tape of the kitchen,’” Sill said. “Second, bacon lovers are deeply passionate, often considering it a must-have ingredient that brings excitement to their meals. Finally, our most devoted fans can’t imagine being without it, always keeping their refrigerators or freezers stocked with their favorite products. Bacon isn’t just food to them—it’s a staple, a flavor enhancer, and a source of joy in their cooking and eating experiences.”
In the stores, Applegate is a big proponent of floor shippers to help increase sales.
“Speaking specifically to our new Fully Cooked Sunday Bacon, this product is shelf stable and available in floor shippers,” Babin said. “Floor shippers are a powerful way retailers can get this product off the shelf to increase incremental sales.”
On-shelf and digital promotions remain effective as food inflationary pressures continue to impact the cart. Beyond that, it’s important to tell the story.
“Our data shows shoppers place their trust in their local meat managers as well as the farmers and put the responsibility on the producers and retailers to provide quality product,” Corbett said. “Making sure all members of the team work together to tell the story and understand points of differentiation are important, so consumers have the information they need to make informed decisions about the meat they eat and brands they buy from.”
Even in uncertain economic times, it’s clear that bacon remains a top priority for shoppers.
