Chicken Reigns Supreme: The Rising Dominance of Poultry in the U.S. Food Industry
The landscape of the U.S. food industry is undergoing a remarkable transformation, and chicken is taking the crown. As beef consumption experiences a prolonged decline, businesses across the spectrum—from meatpackers to fast-food giants—are seizing the opportunity to capitalize on the soaring popularity of this versatile protein.
The Shift Toward Chicken
Fast-Food Innovation
One notable player in this movement is Taco Bell, renowned for its signature ground beef tacos. Recently, the chain has diversified its menu by introducing an extensive range of crispy chicken dishes, including mouthwatering strips and burritos. In December, Taco Bell launched chicken nuggets that became an “instant sensation, selling out nationwide in under a week.”
A spokesperson for Taco Bell emphasized that “consumer response has proven crispy chicken is a powerful growth engine for us,” indicating that nearly 95% of new dishes developed at Taco Bell’s Test Kitchen now feature chicken.
Economic Factors Driving Change
This shift isn’t just about flavor; it’s also driven by economic necessity. According to R.J. Hottovy, head of analytical research for Placer.ai, “cash-strapped consumers are limiting their spending to cheaper meats,” making chicken an attractive option for many households.
The Rise of Poultry Consumption
In 2010, chicken officially surpassed beef as America’s most popular meat. According to the U.S. Department of Agriculture (USDA), the supply of broilers is expected to reach a record high of 101 pounds per capita in 2024, with projections suggesting it could climb to 104 pounds this year. This shift reflects changing consumer preferences, especially among younger generations.
Who’s Eating Chicken?
Research from FMI, The Food Industry Association reveals that Gen Z and Millennials have a marked preference for poultry, particularly ground turkey and chicken. Meanwhile, Boomers and lower-income households tend to lean towards ground beef and pork, signifying shifts in dietary habits across different demographics.
The Chicken Craze Explained
Why We Love Chicken
Wesley Batista Filho, CEO of JBS USA, articulates the reasons behind the chicken boom succinctly: “[Chicken is] affordable, easier to prepare, and healthier.” The average price for fresh chicken in U.S. grocery stores was $6.79 in 2024, a minimal increase compared to beef, which has seen a 6% rise to $12.03.
Moreover, the growing interest in high-protein diets, partly fueled by the popularity of injectable weight-loss drugs, has led many to seek out chicken as their go-to protein source. As David Portalatin, a market analyst, notes, “there seems to be a competition to see how much protein we can actually pack in food.”
Competition Among Chains
With the success of specialized chicken chains like Raising Cane’s and Wingstop, other fast-food establishments are scrambling to adapt. Chick-focused offerings have emerged as a significant growth driver for established players.
For instance, McDonald’s reintroduced chicken strips and even launched a chicken-based version of its iconic Big Mac. Similarly, Subway’s owner, Roark Capital, has expanded its portfolio by acquiring the fast-food chain Dave’s Hot Chicken in a $1 billion deal.
The Financial Impact on the Industry
This consumer shift towards chicken provides much-needed relief to both restaurants and meatpackers, particularly amid rising costs of beef production. JBS faced a staggering $112.9 million operating loss in its North American beef segment, largely due to a shortage of calves. However, chicken contributions soared, accounting for 71% of JBS’s earnings during the last quarter, which was an increase from 57% the previous year.
Due to this heightened interest, cuts of chicken previously overlooked, like leg quarters and dark meats, are now becoming trendy, showcasing a significant shift in culinary preferences.
The Drive-Through Effect
Fast-food chains aren’t just stopping at chicken sandwiches; there’s been substantial growth in drive-through offerings as well. Yum Brands, Taco Bell’s parent company, has expanded chicken options across its Pizza Hut chain, introducing chicken sausage as a pizza topping and new meal deals for boneless wings. A Yum Brands spokesperson stated, “Consumers can’t get enough,” highlighting the incredible demand for chicken.
Conclusion
As chicken consolidates its position at the apex of the U.S. food chain, it’s clear that this beloved protein is not only a favorite among consumers but is also a game-changer for the industry. With its affordability, versatility, and rising esteem as a health-conscious choice, chicken is set to maintain its dominance for years to come.
For more insights on the food industry, check out The National Chicken Council and stay tuned for what’s next in the world of poultry!
