Deli numbers have seen tremendous change over the past year. Deli inflation has cooled, with October deli price increases dropping to 1%.
As consumers still shift their dollars across items, brands, sizes, stores and restaurants, Circana, 210 Analytics and the IDDBA team up to document the marketplace impact on the deli industry.
Deli sales
“The Circana National Eating Trends study found that nearly 41% of all meals are ‘quick prep’, meaning more heat/eat and component assembly than traditional cooking,” said Jonna Parker, team lead fresh for Circana.. “This points to an important role for convenience-focused foods, including deli-prepared, to be a meal ingredient in addition to a full meal solution.”
Deli meat
Deli meat sales (combined fixed and random weight) totaled $615 million in the four October weeks. This was down in both dollars and pounds, unlike the 52-week view that still shows dollar strength. Over the past few years, the share of deli meat generated by the service counter has dropped in favor of growing shares for grab-and-go and presliced.
Packaged lunchmeat (included in meat department sales) reached $477 million in October 2023. After months of substantial, but inflation-driven dollar gains, October became the third month in which sales dipped below year-ago levels. Packaged lunchmeat saw pounds drop -3.5% versus year ago in October versus a decline of -5% for deli meat. IDDBA and Circana’s State of Deli Meat & Prepared Foods will be on Nov. 30 (register at www.iddba.org).
Deli entertaining
Deli entertaining sales held steady in dollars and experienced mild unit pressure in October. In the 52-week period, spreads and holiday meal demonstrate the increased reliance on convenience during special occasions.
Deli prepared
“The overall flat unit performance in October masks a wide range of performances at the category level,” Parker said. Winners include prepared meats, appetizers, side dishes, soups and chili, and pizza, illustrating that deli-prepared foods can serve as a meal ingredient or replace the entire home-cooked or restaurant meal.