Deli departments are growing, and so is the packaging waste they produce

Rising sales of ready-to-eat meals from the deli department have been a boon for many grocers over the last few years, but along with increased profits come concerns about sustainable packaging, or lack thereof.

And grocers aren’t the only ones taking a closer look at the environmental impact of this growing segment—shoppers are also noticing, and organizations like FMI—The Food Industry Association are now providing guidance on the issue.

FMI released the report "Acting on Concerns about Food and Packaging Waste” in late July, noting that more than half of retailers (52%) and more than three-quarters of suppliers (77%) have set tangible goals and a timeframe for reducing their packaging waste. “In many cases, companies without goals and timeframes in place are currently working on them,” the industry association noted.

The report is the third installment in a new blog series by FMI on sustainability. Andy Harig, vice president of Tax, Trade, Sustainability & Policy Development at FMI and co-author of the report, told Winsight Grocery Business the market for sustainable packaging is growing. “The good news is there are options in the market today that weren’t there 10 years ago; the bad news is that there’s so much demand for it that in a lot of cases, I think you’ll see demand outstripping supply,” he said.

This is driven in part by Gen Z and Millennials prioritizing sustainability at the stores where they shop. Millennials have the highest interest in sustainability, with 47% saying it guides their shopping habits, FMI noted. That’s closely followed by the Gen Z cohort at 44%.

Retailers face the reality of packaging grab-and-go and other ready-to-eat products sustainably but also in a way that is attractive and displays what’s inside—so people will purchase it, Harig said. “You see lots of different kinds of packaging if you go to a food bar, for example,” he added.

Some grocers stock clear plastic clamshell containers and brown paper containers with a wax layer, while others are using plastic that includes recycled materials. “So, it’s a full spectrum, and I think retailers are trying to meet their customers where they are, as well,” Harig said.

He said FMI members have been so concerned about the topic of sustainable packaging, they prompted the association to develop a packaging-assessment guide.

The two-part document lays out a framework for how to think about sustainable packaging, what kind of commitments retailers can make in terms of sustainable packaging and sample policies.

The second part of the document includes a questionnaire grocers can use when meeting with suppliers on cost, metrics and other considerations.

“What’s challenging about the issue is there’s not a silver bullet or one-size-fits-all solution,” Harig said. “A lot of times, you are looking at it very much on a department-by-department basis, so the deli does have unique needs that the produce doesn’t or that meat doesn’t and vice versa.”