Though the sausage category has experienced growth in dollars in 2022, it has declined in unit and volume, said Anne-Marie Roerink, principal of 210 Analytics. She attributes this pattern to the inflationary pressures that Americans consumers are facing.

Despite the decline in unit and volume for sausage, she said hot dogs are performing better than last year in both dollars and pounds sold.

“With pressure on income from so many things in life combined with wage increases not keeping up, consumers are increasingly forced to make some tough choices,” Roerink said. “There’s a lot of focus on sales specials and grinds are outperforming whole muscle cuts at the moment.

She also noted that pork is dominating breakfast sausage, and though it has some competitors in the dinner sausage category, it still makes up almost half of dinner sausage sales.

Following the general decline of plant-based protein alternatives, Roerink observed the quick decline of plant-based sausage. “Sausage alternatives are not unique in that but rather mirror the patterns seen in virtually all plant-based meat alternatives, refrigerated and frozen,” she said.

Innovation

Roerink said the effectiveness of innovation within this category, which has helped engagement for sausage. Innovation continues to thrive for sausage, as Roerink commented that sausage products are now including various protein types like chicken and beef, as well as pork and beef. She also noted that blended sausage products featuring produce inclusions are coming into the market — this includes both fruits and vegetables.

Kelly Krumholz, consultant, client insights at Circana, observed the consumer demand for meal innovation. This includes much more than flavor options, though.

“Consumers continue to look for ways to have elevated food experiences. They want new tastes, simpler ingredients, and indulgence,” Krumholz said. “They want mealtime to be more interesting without sacrificing ease or convenience. Sausage is a great vehicle for fulfilling that desire.”

Consumers continue to adjust their spending habits to reduce the felt impact of inflation, but they still desire convenience with their food options.

Alicia Baker, director of marketing at North Country Smokehouse, said the value of the sausage category in the current inflationary environment. “It’s a great way to stretch the grocery dollar and feed large families without sacrificing flavor,” she said.

Flavor trends

Flavor innovations in this category are booming. Both North Country Smokehouse and Circana observed the growth of cheese in sausage products.

Krumholz noted the continuance of heat as a trend but commented on the evolution of spicy flavoring. “Breakfast, which is traditionally anchored in savory and sweet flavors, also turned up the heat with several new spicy product launches,” she said. “Heat is a longstanding flavor macro trend, but it is evolving to be a balance of spice and flavor.”

There is plenty of opportunity for development in seasonal flavors, according to Roerink — the younger generations are gaining more share in retail as they age, and these younger consumers are interested in new, innovative flavor options.

“At retail, it is important [that] new and limited time offers stand out so they can help drive a new purchase and hopefully draw in a new shopper,” Roerink said. “Leveraging signage or an island case can be just the way to draw the consumer eye.  

“Pairing with meal-ideas and recipes can be a way to highlight the versatility of sausage, whether leveraged as the protein at the center of the plate or a flavor-enhancing meal component,” Krumholz said. “Emphasizing the ease and flexibility of preparation will also be broadly appealing, especially to time-pressed families.”

Jack S. Dorian, president of Spar Sausage Co., commented that though his company has worked on flavor innovation, product placement in grocery is not easy. “Grocery isn’t what it used to be,” he said. “Buyers are more focused on what sells historically as the case space is so limited.” Spar Sausage Co. is the maker of Casper’s Famous Hot Dogs.

Dorian said that customers have an interest in flavors that come from national brand partnerships. “For example KC Barbecue sauce, Jack Daniels ingredients, Dole, just to name a few,” he said. “These type of partnerships interest me.”

Roerink said the trend of flavor innovation not just for limited-time-only products, but also for new lines. “For instance, Al Fresco introduced a sausage line that introduces classic meals as a flavor, from chicken burrito to chicken parmesan … These types of innovations open the door to more meal occasions as people now could eat their chicken parm sausage on Monday and chicken burrito meal on Tuesday and have a vastly different eating experience.”

North Country Smokehouse is catering to this consumer desire for flavor innovation with the introduction of new franks. “We use only the finest beef and pork, and our low & slow smoked Delicatessen Franks are packed with incredible flavors,” Baker said. “They're seasoned with garlic, onion, and even bits of our signature maple-cured bacon.”

Staying on top of trends

Krumzholz observed the success of cooked sausage options for both dinner and breakfast sausage, which reinforces the shopper demand for convenience.

“Fresh dinner links struggled in the first half of 2023, particularly bratwursts (-3.9%) and Italian (-5.0%) varieties. Weather is a key performance factor for fresh links, and Spring weather was less than ideal for grilling,” Krumholz said. “It will be interesting to see how performance tracks throughout the summer grilling season for these segments.”

With his own company, Dorian tries to stay in the loop on trends. “I try to read everything I can get my hands-on that relates to Industry trends and of course listen to our customers comments.” 

Dorian said the rise in consumers paying attention to labels and of clean-label products.

Roerink commented on the rise of claims-based products, noting that consumers frequently perceive these products as “better” in many ways.

North Country Smokehouse is catering to this consumer trend by including the Global Animal Partnership logo on its packaging for sausage, Baker said.

Roerink said consumers are not focusing on limited diets as much, but are more so concerned with having a balanced diet. She noted that the innovations in this category are benefitting that focus on health.

Looking to the future, Roerink said that in this constantly changing market landscape, it’s important to consider the facts.

“More than anything it’s important to look at the trendlines and understand the dynamics of the biggest sellers versus small and growing niches,” she said. “The focus on affordability and food waste favor experimenting with smaller pack sizes or individually wrapped items, educating shoppers about freezing items and certainly package innovations that promote a longer shelf-life are all areas to look into.”

Sausage Report