The Real Reason You're Paying A Sky-High Price For Bacon
Well, bacon lovers, in case you hadn't already noticed, the price of your favorite cured pork product is now officially sky high. We have a feeling you've had your suspicions. In June, data from the Bureau of Labor Statistics showed that the price of a pound of bacon had risen 13% since the previous year (via Business Insider). On top of that, CNN reports, America's beloved bacon is now the most expensive that it has ever been in the last 40 years.
All pork, in fact, has gotten more expensive since the pandemic was declared. According to the Consumer Price Index, the price of pork has gone up 7% in the past 12 months, while the average price for bacon has increased by 28%, with costs soaring even higher than they did in the summer months. So, what gives? Besides the fact that we love our bacon, why does it seem like the product is becoming such a precious commodity? Specifically, what's been happening that has driven the cost of bacon so unusually high as compared with other cuts of pork and other groceries in general?
Demand for bacon is increasing
There isn't just one reason you're paying exorbitant prices for bacon these days. Different experts cite various factors, and they may all be playing a role. The Biden administration believes that pork prices may have risen because a few major companies control most of the market share, CNN reports. These companies include Hormel, Tyson, and Kraft Heinz, among others, according to Mordor Intelligence.
Others suggest that the U.S. pork supply has been hit hard by pandemic-related supply-chain issues. This year's pork production is estimated to be 2% lower than last year's, yet "demand has been exceptional," economist Adam Speck told CNN. This is particularly true for bacon, the popularity of which is only rising, according to Statista, which predicts that U.S. consumption of the product will rise by nearly 3% by 2024.
It does not appear that bacon prices will drop anytime soon. If you're looking for savings, one way that you might be able to pay less for your bacon is by buying it at Costco or Sam's Club, according to The Pricer. The only catch (if it even is a catch at all) is that you'll have to buy that bacon in bulk.