Deli-prepared foods generated nearly $2.5 billion and only had mild unit pressure of -0.6%, in sharp contrast to deli meat that dropped -5.5% in units (packages sold) year-over-year, according to market research firm Circana.

In the full-year view, the patterns are similar, with the deli-prepared section outperforming cheese, entertaining and meat significantly. 

“Amid widespread unit and volume pressure, the deli department is largely holding its own,” said Jonna Parker, team lead, fresh at Circana.  

Deli meat 

Deli meat sales (combined fixed and random weight) totaled $817 million in the five June weeks, virtually unchanged in dollars compared to June 2022, but down substantially in pounds. 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 pre-sliced. This trend can also be seen in June 2023, with grab and go dollar sales up +4.9% versus service deli meat being down -2.5%.

Packaged lunchmeat (included in meat department sales) reached $6.4 million in June 2023. After many months of substantial, but inflation-driven dollar gains, June is the first month in which sales dipped below year-ago levels. Packaged lunchmeat saw pounds drop -10% versus year ago in June versus -5.7% for deli meat. 

Deli entertaining

“Independence Day saw strong spreads, trays, charcuterie meats and pickles/relish (including olives) sales,” Parker said. “This underscores the continued opportunity in all things boards, whether charcuterie, butter or hummus boards.”  

Deli prepared

“Food decisions are dominated by affordability,” Parker said, adding that, "Consumers are still weighing convenience, health, taste and experiences into their decisions too. There is great recognition that in comparison to restaurants, deli-prepared foods deliver on a lot of these demands. The key is being on the radar for those times that consumers decide to leave the meal preparation to someone else, or better yet, create planned occasions.”

June winners include prepared meats and pizza, illustrating that deli-prepared foods can serve as one of the ingredients of a meal or replace the entire home-cooked meal.