Hector Camacho of Abilene, Texas, has lost 40 pounds since January. Thanks to following a high-fat, low-carb keto diet, he’s wearing smaller sizes, his knee pain is gone, his blood pressure has dropped and his cholesterol levels are in the normal range.

“One of the best things about being on a keto diet is that you can eat a lot of protein, which helps you feel full longer. But you must still plan your meals and snacks,” Camacho said. “If I feel a slump in the afternoon or start craving a snack, I’ll have some beef jerky. It’s portable, it doesn’t need preparation, and it’s not messy. I keep a package in my gym bag and another one in my glove compartment, just in case.”

Once the popular snack of camouflage-clad hunters, jerky has become an in-demand, savory treat for today’s low-carb eaters of both sexes, as well as hikers, bikers, triathletes and time-crunched parents on the run. Similar versions of the keto weight-loss program—including the Carnivore Diet, Atkins and Paleo—also recommend jerky for snacking. And today’s focus on healthy noshing has some manufacturers reformulating their offerings, producing new jerky flavors and reducing sodium and sugar.

Category Overview

According to NACS Category Definitions, alternative snacks make up a small category featuring four subcategories: meat snacks, granola/fruit snacks, health/energy/protein bars and “other” options, such as dried fruits and vegetables and additional innovations.

“In 2020, sales for the category dropped to below 2018 levels during the initial lockdown phases of the COVID-19 pandemic. However, they recovered in the latter half of the year,” said Jayme Gough, research manager, NACS. “Alternative snacks accounted for 1.81% of in-store sales in 2020—a decline of 0.14%. Average per-store sales were $56,196, and gross profit was $25,844.”

Meat snacks contributed $18,801 in average sales dollars and $9,411 in gross profit dollars per store in 2020.

Nearly 129 million Americans enjoyed meat snacks and beef jerky in 2020, according to Statista, a consumer data company. Already, alternative snack sales have far exceeded 2020 numbers and “show increased purchase patterns escalating with vaccine distribution, back-to-work initiatives and general consumer confidence returning to retail,” Gough said.

Last year, meat snacks sales (36.2%) came in second in the category behind sales of “other” options (40.0%), while contributing $18,108 in average sales dollars and $9,411 in gross profit dollars per store. Industry insiders expect more robust results for 2021.

Tough Competition

You might not suspect it, but the jerky business is highly competitive.

“There are so many players,” said Karen Phillips, managing partner, Derby City Jerky of Louisville, Kentucky. “That’s why we wanted to bring something unique to the category.”

Just before the pandemic began, Derby City introduced two products. One is Thrive Jerky, which replaces sugar with stevia, a natural sweetener derived from plants found in Brazil and Paraguay. “If you take sugar out of jerky, it becomes a dry, no-flavor product,” she said. “Stevia allows us to put various flavors out there, because we can manage the levels of stevia we’re using to change the taste profile.”

The second product is Bourbon Barrel Wood Smoked jerky. “There’s no actual bourbon in it. If you put bourbon in it, it just burns off,” Phillips said. “We smoke it using aged bourbon barrel wood instead of hickory smoke or cherry smoke.”

Due to pandemic disruptions, the two jerkies got a slow start last year, but both sold well through the company’s online store. Now, they’re moving into the retail environment, including Lowe’s Home Improvement stores in three states and the FiveStar Food Marts in Kentucky and Indiana.

Werner Gourmet Meat Snacks of Tillamook, Oregon, produces a zero-sugar jerky made with grass-fed beef, plus meat snacks in flavors ranging from sweet to traditional. The company has recognized regional flavor preferences when it comes to meat snacks, according to Lauren Kottre, director of marketing.

“Honey glaze does well in the Pacific Northwest, chipotle does well in the South and Southwest and teriyaki does well nationwide,” she said. “We’ve also seen a move from jerky to meat stick products, especially in convenience stores. For instance, our three-inch-long mini meat sticks are wildly popular across the country. I think it’s because they come in large packages and are easy to grab and go. One serving is three mini meat sticks—less than an ounce. You can eat one mini stick in two bites.”

One benefit of selling meat snacks is that they’re in demand all year long. “You do see their popularity increase in the summer months, because people are on the road and traveling,” Kottre said.

Meat Snacks Shoppers

Americans love snacking, with younger consumers helping to grow that trend. According to Mintel, the increase in meat snacks consumption is driven by consumers, who “strongly skew millennial and Gen Z.”

The average jerky customer for Wenzel’s Farm of Marshfield, Wisconsin, is a male in his 20s or 30s, although “we do have customers that span all age ranges,” said Mark Vieth, president, Wenzel’s Farm. “Your typical Wenzel’s customer is a hard-working, grassroots person who is looking for quick and satisfying fuel for their on-the-go life. They want a hearty snack that fills them up when they don’t have time to eat a full meal.”

Private-Label Success

Casey’s based in Ankeny, Iowa, carries a huge selection of private-label products, including five proprietary meat snack flavors that made their debut in January.

“It’s a category that gives us an opportunity to offer a high-quality product at a real value,” said Eric Long, the chain’s director of private-label brands. “There is not a lot of competition at our price point. The cheapest brands are about $7 or $8 per bag. We’re about $1 a bag cheaper, but we’re still able to deliver better margins on private brands than other brands. [Since January], we’ve bounced back and forth between being the No. 1 and No. 2 seller in the category.”

Five or six years ago, we wouldn’t have considered a bacon jerky. But we’re keeping our finger on the pulse of where the category is going.

Currently, Casey’s offers original, bacon, teriyaki, pepper and sweet-and-hot flavors, but the company hopes to broaden that selection. “There’s a lot of runway in the category,” said Long. “Five or six years ago, we wouldn’t have considered a bacon jerky. But we’re keeping our finger on the pulse of where the category is going. We want to be on the front end of innovation.”

Late last year, Irving, Texas-based 7-Eleven announced a milestone of selling $1 billion in private-label products in a single year. Among those sales were meat snacks.

“Having our own private-brand line of beef jerky and snacks has given us the opportunity to experiment and create new, unique and exclusive flavors that are driven by customer feedback and marketplace trends,” said Amy Werth, senior director of private brands, 7-Eleven. “Our 7-Select Jack Link’s Beef Jerky assortment features savory flavors such as Brown Sugar Bourbon, Bold Cracked Pepper, Mahalo Teriyaki and the classic Signature Recipe. They put a fun 7-Eleven twist on classic jerky flavors that people know and love.”

The convenience retailer’s proprietary beef snacks have performed well nationwide and particularly in Southern states, she said.

Continued Interest

“As consumers’ interest in high-protein diets has increased over the past three years, we’ve seen slight sales growth,” 7-Eleven’s Werth said. “This year alone, we’ve seen an increase in overall sales for our private-brand beef snacks because we continue to prioritize and deliver great quality items at valuable prices.”

C-store retailers typically merchandise meat snacks on a store endcap, but there are other options. “Endcaps are great for merchandising jerky, but we have different displays,” said Kottre. “We have spinner racks that give customers a cascading view of the products.”

Said Vieth, “Our products do very well at the point of sale, as well as in refrigerated sections or anywhere customers are looking for a quality, healthy, tasty snack. Additionally, we have merchandising options to fit retailers’ needs.”

Get jerky and meat snacks in front of the dieters and the health-conscious younger consumers, Phillips recommends. “We like to promote our products in the better-for-you section, the keto section and the health-food area of the store,” she said. “The packaging helps us. Customers who are really looking for zero sugar will check out the ingredients to make sure the product is clean.”