What do consumers want in deli?

The deli sector just continues to grow, according to the most recent data via the International Dairy Deli Bakery Association (IDDBA).

“The deli department is seeing less units per trip, but their trips per buyer is growing at a faster rate, resulting in deli growth,” said Whitney Atkins, vice president of marketing for IDDBA. 

A big trend is thinking local, and many supermarkets are making this more of a priority in 2024.

“Our friends in produce cultivated this and we see it today in delis,” Atkins said. “Specialty cheese is one area we see a heavy local presence. Local means something to consumers. It really helps to create that community feel. Shoppers can also find local sauces and dips for example throughout their local store of choice.”

Another positive in the deli is the entertainment segment. In June, deli entertaining sales saw strong numbers in both dollars and units, with trays up 26.9% compared to the same time last year, followed by pickles/relish at 14.8%. 

Prepared meats also saw year-over-year improvements, rising double digits in sales, up 15.1% in units and 12.4% in dollar sales. 

Private label

Southern California grocer Gelson’s Markets has seen more interest in private label items in the deli, which led to the recent launch of three Gelson’s label charcuterie SKUs, all imported from Italy and nitrate-free. 

“Often times for our Gelson’s label, we aim to source locally, but in the case of our Salame Milano, 18 Month Aged, Prosciutto Crudo, and Hot Soppressata, it felt important to maintain the authenticity of traditional Italian techniques and family recipes,” said David J. Vana III, grocery category manager for Gelson’s Markets.

International influence

One of IDDBA’s guiding trends is that “Food Influences Culture, Cuisine and Culinary Explosions,” and that has been evident in the growing want from consumers to explore other flavors and international cuisines, Akins said. 

That’s why many supermarket delis are investing more in international culinary delights to take advantage of a rising interest in ethnic-food offerings. 

“We aim to provide our customers with the opportunity to explore, discover and savor a variety of international culinary delights available in our deli section,” said Jewel Hunt, group vice president of fresh merchandising at Albertsons Companies. “In many of our grocery stores, we feature a selection of both domestic and international suppliers who provide an assortment of specialty cheeses, including imported Asiago, Grand Padono, Parmesan Reggiano, Gouda, Gruyère, among other varieties as well as specialty meats like Prosciutto de Parma and Calabrese salami.”

Additionally, the grocer offers curated charcuterie boards such as an Italian Sampler and European Cheese trays. 

Arthur Ackles, director of perishable foods for Dave's Fresh Marketplace, an independent grocery chain of 10 stores in Rhode Island, said he continues to look at international influences, as customers are more familiar with non-traditional flavors either through social media platforms or restaurants that specialize in a unique product or cultural flavor. 

“More and more customers are also introducing spicier flavors into their pallets as well such as hot honey, Asian infusion and international spices,” he said. 

Thinking healthy

Many grocers are paying attention to the rising consumer demand for healthier deli options, such as plant-based or low-sodium products.

For instance, the deli leadership and culinary team at Albertsons Companies have collaborated extensively with its pharmacy and wellness team to develop a variety of dietary options. 

“Our ReadyMeals selection available at many of our banner stores will be expanding to include items designed with lower levels of salt and sugar, as well as better for you attributes, to serve customers who are seeking these options,” Hunt said.

Although Ackles sees a demand for healthier options, the traditional items still outweigh the healthier ones significantly at his stores.

“Carrying some of these items require much more management and attention to ensure product freshness and reduce any shrink,” he said. “The shift we do see is consumers eating less traditional deli and moving more to vegan and produce options to supplement their dietary needs.”

There are also certifications now for regenerative farming and as those become more recognized, Vana believes customers will looks for them and it will impact shopping behaviors.

“Organic callouts on their own do not seem to be the same kind of driver that they once were,” he said. “I think customers care about more than just what’s used to grow their food, they also want to know where its coming from—traceability—and what kind of impact its production is having on the planet that will be left behind.”

Grab-and-go

Taking into consideration IDDBA’s Guiding Trends work these last two years, convenience has been a driver of growth, and many supermarkets are investing in grab-and-go options to appeal to consumers. 

Katie Macarelli, a spokesperson for Lakewood, CO-based Natural Grocers, shared that handheld items that are quick to prepare and can be consumed on-the-go have been trending.

“Check out our stores during the lunch rush and you’re likely see a mix of folks that might include a truckload of firefighters between calls, remote workers in their casualwear, to folks from nearby offices and high school students in this section,” she said. “Our wide selection of grab-and-go sandwiches, salads, soups, burritos, wraps, entrees, side dishes, desserts and more can help consumers get going the healthy way, for sustained energy all day.”

Vana has seen many of Gelson’s customers gravitate towards the hot bar, poke bar, etc. for unplanned convenient meals.

“Convenient, ready-to-eat take-home meals are where I aim to please in the deli department,” he said. “I recently authorized three SKUs of refrigerated sous vide meals by Trois Petits Cochons that are a perfect example of quick and easy, while also providing a delicious and protein-packed meal.”

The evolution of today’s deli department reflects the dynamic and diverse preferences of today’s consumers. From the emphasis on local products and international culinary influences to the growing demand for healthier options and convenient grab-and-go meals, delis are adapting to meet these trends head-on.