Inflation-related increase in decline in meat consumption in Germany For years, there has been a steady, slight decline in meat consumption in Germany. However, in the last 3 years from 2021, this trend has intensified significantly. What is behind this? Meat is one of the higher-quality foods. As a rule, it can be observed that the higher income is, the greater the demand for meat. However, there has been no reduction in income; nominal incomes rose by +11% from 2020 to 2023. The income effect on the recently falling demand for meat can therefore be classified as comparatively low. In contrast, consumer price increases have obviously had a strong influence. The consumer price index for meat rose by +27.5% from 2020 to 2023. The decline in meat consumption accelerated to -9.6% in the same period . This results in a price reaction of -3.5% decline in demand for every 10% price increase (= so-called price elasticity).
The decline in consumption varies greatly from type of meat to type. For high-priced beef , the three-year decline in demand is around 17% , for pork around 10% , and for poultry just under 3% . As inflation rates continue to fall, it can be assumed that the recent acceleration in reduced meat consumption will slow down again. Private households in Germany demanded slightly more meat, sausage, and poultry in the period from January to February 2024 compared to the previous year. Overall, there was an increase of 2.8% in the two months compared to the same period last year. Poultry and mixed minced meat recorded a particularly significant increase . These ended up in shopping carts around 10% more often than at the same time last year. An increase in the quantity demanded was also observed for beef. In both cases, consumer prices have fallen by 4 to 5%. Only pork was bought less, down almost 5%. The price level has remained high at +10% and there is simply a lack of quantities in the inexpensive segment.
