KANSAS CITY, MO. — Consumers looking for a convenient snack or protein for meals made at home are buying more processed meats, and recent sales data underscore the trend. Two categories within the segment — which includes balogna, sausage, meat snacks, bacon, hot dogs, salami, ham and deli meats — loom larger than others when it comes to sales, according to NielsenIQ (NIQ) research.

“Bacon and dinner sausage are by far the largest categories within processed meat,” said Chris Costagli, vice president and food insights lead for Chicago-based NIQ.

For the 52 weeks ended March 22, 2025, he said bacon sales hit approximately $6.1 billion, up 4% over the year-ago period, and dinner sausage sales totaled $5.3 billion, up 2.2%. During the same time frame, sales of meat snacks, including jerky, meat and cheese combination packs, and meat sticks, tallied $4.7 billion, for 5.3% growth.

“It’s a quick protein dose for consumers, something you can eat on the go,” he said.

Today’s consumers are looking for protein and preparing more meals at home, Costagli said. A recent NIQ survey of 1,005 households found 51% were eating at home more often, 48% said they were using leftovers more and 42% were thinking more about how to use leftovers and not throw them away.

Processed meat products are following the lead of increasing sales in the overall meat category, said Anne-Marie Roerink, principal and founder of San Antonio, Texas-based 210 Analytics and author of the Power of Meat report released in March.

“The meat department all together, that is anything that is prepackaged in the meat case or sold at the full-service counter, generated $105 billion in 2024, which was up 4.7% over 2023,” she told Food Business News, sister publication of MEAT+POULTRY.

Looking at demand growth, Roerink said the meat department sold 23 million lbs last year, a 2.3% increase over 2023.

“That shows us that wasn’t just inflation, but we actually sold a lot more pounds,” she said, adding that the 2024 amount was greater than in 2023, 2022 and 2021.

“Only the pandemic year, 2020, was higher, which was when everyone was cooking at home and a lot of restaurants were not open,” she said.

Roerink added there has been “huge growth” in bacon and breakfast sausage sales since egg prices have gone up.

“We’re seeing substitutions,” she said. “People are seeing value in protein in the morning and maybe eating fewer eggs.”

Innovation, experiences are key

New processed meat products and new experiences are critical to attracting interest and sales, according to two manufacturers.

Jaclyn Oyola, chief executive officer of Aussie Select, Marrietta, Ga., said the company is bringing “something entirely new to the category” with lamb imported from Australia and packaged in a fully cooked, ready-to-eat format.

“We’re offering a new protein option that stands out on flavor, sourcing strategy and versatility,” she said.

Aussie Select’s lamb products “cater to a growing segment of consumers looking for non-pork and globally inspired options,” Oyola said. She added that sales are steadily growing, and the company’s products have drawn “strong interest” from both retailers and foodservice operators.

Mike Sloan, co-owner of Hermann Wurst Haus in Hermann, Mo., produces and sells a variety of processed meat products. He said consumers “seeking unique flavor profiles that sound interesting and are unlike anything they have experienced before” have boosted sales.

“A few decades ago, you could count on six fingers the main flavors of beers out there,” Sloan said. “Now there are hundreds, if not thousands. The same trend has extended to the meat and sausage business.

“That’s why we make 40 flavors of bratwurst, 12 flavors of bacon, etc. I guarantee you will not like all flavors of beer out there, or all flavors of bratwurst (and) bacon, but you will enjoy the experience of the unknown or unique flavors because we are humans, and we are curious and intrigued by different food products.”

New processed meat products and new experiences are critical to attracting interest and sales.

| Source: Jaclyn Oyola

Packaging innovation also has influenced more processed meat purchases, Roerink said. There are more vacuum-sealed and freezer-ready packages available, providing a longer shelf life for both the retailer and the consumer at home, and generally less plastic is being used.

“Also, people are buying more in bulk over time, and we’re seeing packaging playing into that,” she said, adding, “We’re also seeing more portion variety.”

The impact of increasing costs

Like many other food products, processed meat ingredients have increased in price, presenting challenges for manufacturers.

Costs have gone up across the board and “forced companies to rethink sourcing, pack sizes and margins,” Oyola said.

“That said, products that deliver on value are still moving,” she said, adding, “Price sensitivity is real, but there’s room for innovation when the product solves a problem or meets a need.”

Costagli said tariffs pose another challenge for the processed meat sector.

“I think the jury is still out on what we’re about to go through on tariffs,” he said. “I think that’s certainly going to raise prices for consumers on a lot of different things. Meat isn’t going to be isolated from that since we get meat from a lot of different places.”

Enhancing market share

Manufacturers looking to win market share in the processed meat sector will need to consider a variety of factors to succeed.

Costagli said they have to have a correct value proposition and lead with “a very empathetic approach” since today’s consumers are struggling more and having to make tough purchasing choices.

“It’s a paradigm shift,” he said. “Manufacturers aren’t just selling products.”

Roerink called boomers “still very important” when it comes to meat sales, but she said millennials are coming on strong and buying more often for teenagers, plus they’re concerned about sustainability and health and wellness.

For Sloan, keeping an eye on industry happenings from the international level down to the local one will be important for market share, along with selling products and the experience. He also said it will be important to keep key employees and build around them.

Oyola said processed meat manufacturers will attract consumers by doing something different and doing it well.

“Whether it’s better-for-you, globally inspired or made for foodservice efficiency, companies need to deliver more than just another version of what’s already out there,” she said. “Strong branding, clear purpose and real solutions for today’s kitchens are what’s helping brands win right now.”

Some manufacturers are investing in additional capacity to better position themselves within the processed meat category. One example is Virginia-based Smithfield Foods, which announced plans in June 2024 to buy a dry sausage plant in Nashville from Cargill.

Smithfield also has closed several of its pork processing plants and reduced hog production while shifting focus to more packaged meats. The company reported a record operating profit of $1.2 billion last year in its packaged meats segment.

Mark Hall, chief financial officer, said in late March that Smithfield’s strategy was to increase sales of higher-margin products such as lunchmeat and dry sausage.

“These products command a higher price by providing on-trend and innovative solutions to consumers and customers,” he said.