Feb 02, 2021
As COVID-19 spread across the country last year, it spurred the “great grocery grab of 2020” a shift to at-home food consumption not seen since the early 1980s. The abrupt change also forced the most significant shift in meat supplies the industry has experienced, diverting massive volumes of meat and other food originally intended for restaurants into retail distribution channels and grocery stores.
U.S. animal protein supplies have returned to normal and foodservice sales have improved since the onset of the pandemic but may not return to pre-pandemic levels until the second half of 2022, according to a new report from CoBank’s Knowledge Exchange.
“Trends in consumer demand for at-home and away-from-home consumption are central to the profitability and viability of the U.S. animal protein supply chain,” said Will Sawyer, lead animal protein economist with CoBank. “As the U.S. foodservice sector climbs out of the hole left by 2020, the animal protein sector will not only need to realign itself with the survivors of the last year, but also remain flexible.”
The importance of individual foodservice channels varies significantly by animal protein species and by producer. Some foodservice channels have rebounded to achieve sales growth, as evidenced by the quick-service (QSR) and fast casual restaurant concepts that have recorded positive comparable-store sales since the summer.
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