Sausage sales are on the rise

A recent survey by the Dallas Federal Reserve indicates “modest growth” in the dinner sausage category for one manufacturer. The action, called a “trade down,” shows that people are choosing low-cost items like sausage over pricier options like steak or chicken.

The observation indicates that US households are tightening food budgets due to high prices and inflation.

Economists observe that sausage sales typically increase when the economy weakens because it’s a budget-friendly protein option. The jump in sales shows that even though inflation is slowing down, people still feel the impact of higher prices compared to previous years.

Other food areas, including large restaurant chains, are noticing that consumers, especially those with lower incomes, are spending less.

Grocery prices have increased significantly post-COVID, with Americans spending 11.3% of their disposable income on food in 2022—the highest since 1991.

Sausage demand isn’t the only economic indicator. Sales drops in products like lipstick, underwear, and cardboard boxes also reflect the economy’s performance. Consumers are also increasingly looking for bargains while buying groceries.

That said, inflation has dropped since its peak in 2022. It was 2.9% in July 2024, and the Federal Reserve may cut interest rates in September to help ease economic pressure.