The Size and Scope of the
U.S. Hot Dog Market – 2008

Supermarkets and school cafeterias, restaurants and concessions stands hot dogs are served everywhere. And while it is difficult to offer a single precise answer as to the number of hot dogs sold and consumed each year, one thing is for sure: the market is more than a foot long.

The following information is comprised of retail scanner data at supermarkets and grocery stores and by estimates as to the number of hot dogs sold at places where barcodes are not used such as corner stores, sporting events, carnivals, fairs and restaurants.

Retail Sales

Retail sales in major markets are collected when products are scanned at the checkout counter. Scanners read bar codes on uniform-weight products, like a package of ten to the pound branded wieners. Companies like Information Resources Inc. in Chicago or NPD in Port Washington, N.Y., track these numbers.

According to data ending Dec. 30, 2008 almost 730 million packages of hot dogs were sold at retail stores, not including Wal-Mart, which does not report sales data. That number represents more than1.6 billion in retail sales.

Ballpark Consumption

According to the Council's 2009 survey of hot dog and sausage consumption at major league ballparks in the United States, ballparks expected to sell 21,233,839 hot dogs this season. This information is based on sales data for the previous year and expected attendance for the upcoming season.

Trends and Facts

Sales of hot dogs remain strong throughout the United States. Despite a slight drop in sales last year at the retail level, other venues continue to post high sales, including at airports, restaurants and ballparks.

Driving sales is the popularity of high protein foods and interest in natural and organic products. New products available are mostly brand favorites reformulated with a reduced fat content or increased protein content. New products in flavors such as honey and brown sugar, barbeque, Cajun, spicy and teriyaki have hit the market in the last year. According to consumer research, convenient packaging, preparation and usage information are high priorities.

Consumers with larger households, made up of older children in the Midwest and south continue to be the highest consumers of refrigerated packaged meat products. Sixty percent, mostly older consumers, of people surveyed said they preferred all beef hot dogs. Younger consumers preferred other products such as pork and chicken.

Products in the “better for you" category, low-fat and fat-free, continue to sell well. In 2004, these products accounted for 12.4 percent of the total hot dog market. The top ten markets demonstrate substantial sales reaching more than $53 million in 2008. 

The vast majority of hot dogs are of the skinless variety, cooked inside a cellulose casing that is removed prior to packaging. Some hot dogs are produced in natural casings that are not removed, these feature the characteristic “snap" that many people enjoy. Most hot dogs are sold eight to a pound. Approximately 35 percent are offered in packages of 10 to the pound.

While the hot dog is a popular entree across the country, consumption does vary by region. According to sales data for 2008, New York City spent more money on hot dogs in retail stores ($107 million) than any other market in the country. Residents of Los Angeles came in second with $91 million spent on hot dogs and with an impressive third place ranking, the combined Baltimore/Washington area spent over $51 million on hot dogs, despite a substantially smaller population than New York and L.A.

The summer months between Memorial Day and Labor Day continue to make up the “hot dog season." Hot dog producers estimate that an average of 38 percent or $614 million of the total number of hot dogs are sold during this time. Ten percent of annual retail hot dog sales occur during July, which is designated as National Hot Dog Month.

Experts believe sales of the entire refrigerated processed meat category will continue to grow in the future. Estimates place total dollar sales at $22.49 billion by 2009.

Sources

Information Resources Inc. 2004, 2006, 2007, 2008
Package Facts, 2006