Lamb is no longer a niche protein — it’s becoming a favorite among slightly adventurous, affluent restaurant diners, and that has trickled down to consumers at grocery retail.

In fact, lamb continues to grow in both volume sales and distribution. During the pandemic, many consumers were inspired to try cooking lamb at home, and ever since, many continue to prepare lamb for both everyday and special occasions.

The American Lamb Board’s most recent monthly lamb market summary, which came out in August, noted live lamb prices and wholesale lamb values remain strong relative to 2023, even with slightly more domestic supplies and larger imports this year.

Lamb has been steadily gaining traction, seeing a 15.7% increase in dollar sales and a 9.3% increase in volume sales over the last few years. Perhaps more telling, lamb and exotic meats were the only categories to see volume growth during this period.

“Consumers, both retail and foodservice, are opting for more price-friendly items, while higher wholesale values are encouraging more imported product,” the report noted. “Consumer budgets will continue to influence their purchasing power for lamb.”

Wholesale lamb values are averaging 6% higher this year than in 2023, supported by shoulders, legs and loins, according to the report. Racks have struggled this year, but finally surpassed year-ago levels in June.

“Even in the face of economic pressures, lamb volume sales continued to grow by 4.7% year-over-year, with the South Central region, including Texas, seeing a significant 8.1% increase in volume sales,” said Jaclyn Oyola, CEO of World Select Cuts and a foodservice consultant for JKG Food Services. “This growth in consumption demonstrates that consumers were clearly interested in and open to eating lamb when it was made more available to them at retail, and a recent leveling off signals that they haven’t found products that continue to suit their lifestyle as they got back to work.”

Recent data also shows that lamb appeals strongly to wealthier consumers, particularly millennials, who are a key demographic for many retailers. With 67% of lamb consumers earning over $150,000 annually, the potential for premium products is undeniable.

“As consumers walk away from pork, lamb is well positioned to continue its growth trajectory, already seeing year-over-year growth post-COVID at rates other mainstream proteins are not seeing,” Oyola said.

She credits the “foodie generation” noting millennials and Gen Z are redefining food trends, spending more on dining out than ever before, and driving the popularity of less traditional proteins like lamb.

“With more consumers seeking these experiences at home, there’s a clear opportunity to offer high-quality lamb products in retail,” she said.

Still, she has noticed growth softening in recent months.

“Our hypothesis is this has been caused by more people returning to the office and having less time to cook an item like lamb at home,” Oyola said.

That’s why many consumers, in lieu of inflation challenges, are shifting to more budget friendly lamb items such as ground lamb and shoulder cuts. Despite that, sales have been steady.

“Due to economic concerns, consumers more and more are seeking affordable food and convenient solutions,” Oyola said. “For this reason, we see a growth in cuts that are less expensive than what has traditionally been popular. It’s a reason consumers are drawn to Aussie Select products — they offer the lamb consumers love, without the need for any labor addition, at an accessible price point. Lamb can now be a sandwich/lunch solution.”

Australian lamb, which is exported to the U.S. as cuts, is seeing higher prices compared to a year ago. Total imports of lamb and mutton for the January–June 2024 period came in at 182.5 million pounds, a 30% increase from the year before, according to the American Lamb Board.

“Lamb has numerous health benefits and offers additional variety as a red meat,” said Danielle Marta, vice president of marketing and innovation at Thomas Foods International. “It is mild and easy to prepare, and Australian lamb has all the claims consumers are seeking — All Natural, Pasture Fed & Pasture Raised, Raised without Antibiotics, Raised without Hormones, Humanely Raised, Halal Certified.”

What’s trending

Interestingly, while higher-priced cuts like rack of lamb have seen a slight decrease in sales volume, more versatile and economical cuts are surging in popularity in 2024.

“This shift indicates that consumers are still eager for lamb but are seeking more budget-friendly options,” Oyola said. “Ingredient cuts have also shown significant growth in dollar sales, despite only a modest increase in pounds sold, highlighting the demand for cost-effective yet flavorful lamb choices.”

For many retailers, ground lamb continues to grow in popularity, as well as items like lamb stew meat, lamb shoulder chops and lamb rib chops.

“Items like Seasoned Butterflied Boneless Lamb are proving especially popular, helping busy consumers get dinner on the table in under 30 minutes,” she said. “Grinds are always popular, and all the chops — shoulder, loin and rib — are very easy to prepare and quick to cook, as well as lamb stew meat. Consumers continue to prepare legs and racks for special occasions.”

More recently, Marta has seen a rise in consumers preparing boneless legs more often, making lamb barbacoa in crockpots and Dutch ovens for easy and delicious weeknight meals like tacos, hot pots and rice bowls.

“We always have new items in the marketplace and can create items to specification as well for our customers,” Marta said. “Our new frozen bone-in lamb cubes in a 15-pound box are also proving very popular. We have a few additional items in the pipeline that will be showcased at AMC and available in the spring.”

Aussie Select offers a line of fully cooked lamb products in the style of deli/charcuterie.

“Our mission is to help make lamb more accessible and approachable, and to create innovation in the deli aisle that has not been seen in years,” Oyola said. “Aussie Select fully-cooked lamb products allow consumers the lamb they crave without any work. Simply add it to pastas, eggs, flatbread, salads, sandwiches and more. Aussie Select lamb products offer lamb luxury at home.”

Consumers are attracted to Australian lamb, she added, because it is consistent, great-tasting, lean and sustainable.

Increasing sales

Increasing sales of lamb products at supermarkets requires a multifaceted approach that focuses on consumer education, innovative marketing strategies and enhanced product availability.

For instance, highlighting lamb’s sustainability and health characteristics have been a popular way for stores to attract more consumers to its products. Additionally, sharing recipes featuring lamb makes the protein more approachable to the widest audience at store level and social media is a great place to do this.

Packaging also helps bring consumers to the product. For instance, Thomas Foods has a variety of options from Cryovac to rollstock to MAP to VSP, as well as frozen boxed and bagged items. It also uses packaging to help educate consumers by including information about its all-natural claims and offers a QR code on-pack that leads to meal and recipe ideas for busy consumers.

“By calling attention to the nutritional content and claims such as all-natural or antibiotic-free, it creates a valuable opportunity to connect with shoppers who are seeking protein choices with these attributes,” Marta said. Implementing in-store promotions, cooking demonstrations and seasonal campaigns can also spark interest and highlight lamb’s role in everyday meals, and social media is a great place for this.“By emphasizing the unique flavors, nutritional benefits, and versatility of lamb in various cuisines, supermarkets can engage customers and encourage trial purchases,” Marta said.