Palmer, Alaska. A variety of sausages are displayed on the meat counter at Kroger-owned Fred Meyer grocery stores.
Michael Siluk | Underground CG | Universal Image Group | Getty Images
The rise in demand for sausages could be the latest sign of consumers tightening their belts as they continue to cope with high prices.
One producer saw “moderate growth” in the dinner sausage category, according to the Dallas Fed Texas Manufacturing Outlook Survey Published Monday. This highlights the trend of shoppers opting for cheaper products and spending less as accumulated inflation erodes purchasing power.
“This category tends to grow when the economy weakens,” respondents said, according to editorial comments in the Dallas Fed report. That’s because “sausage is a good protein alternative to higher-priced proteins that can ‘extend’ consumers food budget.”
This anecdote pointed out by the eagle-eyed Bespoke Investment Group on X Grocery prices remain a top concern for consumers. While annualized inflation has fallen to levels close to what economic policymakers consider healthy, the collective rise in prices has left Americans unhappy with the state of the nation’s economy compared with just a few years ago.
Additionally, it supports two themes that have become hallmarks of today’s post-pandemic economy.
A growing chorus of business executives, including leaders of some of the largest restaurant chains, are warning that consumer spending is starting to slow. In particular, they highlighted the pressure on lower-income tax brackets while trying to make their dollars go further.
The shift to sausages also highlights what experts call a “trade-in” move. Carefree customers may choose proteins that are typically more expensive, such as steak or chicken. Price-conscious shoppers, on the other hand, will look for sausages or other lower-cost alternatives.
Other food manufacturers who responded to the Dallas Fed survey also expressed concerns about the health of their economies. One person said agriculture as a whole was “hurting”, citing challenges posed by factors including weather and rising costs.
Another put it more bluntly, saying it was “preparing for a recession.”
About The Author
