'High inflation, supply chain challenges and fluctuating restaurant engagement' boost food & beverage retail sales in 2022: IRI data

17-Jan-2023 - Last updated on 17-Jan-2023 at 17:25 GMT

Chart: 210 Analytics; data: IRI

Related tags Inflation food & beverage sales

Dollar sales of foods and beverages in IRI-measured multi-outlet stores in the US rose 8.7% to $753bn in 2022 vs 2021, driven by double-digit inflation, while unit sales dropped -3.3%, although units are still above pre-pandemic levels, according to IRI data crunched by 210 Analytics.

“High inflation, continued supply chain challenges and fluctuating restaurant engagement resulted in another year of record [retail] food and beverage sales reaching $753bn in 2022. However, unit sales dropped for the second year in a row but remained ahead of 2019," said 210 Analytics president Anne-Marie Roerink in a series of reports collating IRI point-of-sale data from calendar year 2022.

The price per unit across all foods and beverages in IRI-measured multi-outlet stores* increased 12.5% in 2022 vs 2021, with double-digit increases in eggs, dairy, fats, oils, flour, and bakery items, offset partially by more modest single-digit increases in meat, produce, and seafood.

According to IRI, which surveyed consumers in December, there was also an uptick in the estimated share of meals prepared at home at the end of the year, with the share of home-prepared meals increasing from 78.9% in November 2022 to 81.5% in December. Among people working away-from-home, meanwhile, 38% said they were packing lunches more often to save money.

Looking ahead to 2023, Roerink predicted inflation would likely "start moderating month-over-month… though weather and transportation conditions remain unknowns. With it, units and volume are creeping closer to year ago levels while dollars remain elevated as a result of higher retail prices.”

$ sales and unit sales, calendar year 2022

Total food & beverage: $+8.7%, units -3.3%
Eggs: $+45.7%, units -1.5%
Dairy: $+15.2%, units -2.4%
Bakery: $+11.8%, units -1.6%
Milk: $+11.2%, units -2.1%
Yogurt: $+10.9%, units -5.6%
Deli: $+9.1%, units -2%
Produce: $+4.8%, units -3.5%
Frozen food: $+8.6%, units -5.1%
Natural cheese: $+6.3%, units -0.9%
Frozen meat: $+16.5%, units -4.2%
Frozen meat alternatives: $+6.8%, units -6%
Meat dept (fresh & processed): $+5.8%, units -3.2%
Refrigerated meat alternatives: $-13.5%, volume -14.5%
Meat alternatives (frozen and refrigerated): $-0.3%, units -8.2%
Seafood: $-8.2%, units -15.8%

Source: IRI, Integrated fresh, Total US, MULO

*IRI multi-outlet (MULO) data covers supermarkets, club, mass, supercenter, drug and military stores, but excludes convenience stores and natural retailers such as Whole Foods.