Hello Deli: Industry Trends to Watch

Value, health and wellness, preferred tastes, and convenience drive consumers to deli purchases, according to Whats In Store 2008, the trends report from the International Dairy-Deli-Bakery Association (IDDBA), Madison, WI. Restaurants and home-delivery businesses still lead the category, but a greater number of consumers are turning to supermarkets, which in turn face increased competition from convenience-store offerings.

The report notes that approximately 50% of consumers say a greater selection would likely increase purchases of ready-to-eat supermarket foods. Currently, more than half make purchases from supermarket delis and hot-food stations when they are already at supermarkets for groceriesonly 12% make a special trip. Currently 70% of consumers were very satisfied with product freshness at the in-store deli, but only 55.8% said supermarket delis provide fresher foods and ingredients than other venues. On average, consumers stop at the supermarket deli and bakery 3.6 times per month.

IDDBA outlines the type of consumer most likely to buy deli and bakery items: those who are more well-traveled and educated; have higher incomes; and want fresh, high-quality, sliced-to-order meat products. Other groups more inclined to visit the deli or bakery sections include frequent specialty-supermarket shoppers, frequent club-store shoppers, and Hispanics, especially Central Americans and Caribbean Islanders.

Specialty products, especially sandwiches with artisan and ethnic breads and rolls, and with premium and aged meats and specialty cheeses, should drive increased purchase intent, as will prominent signage promoting these unique selections. The association says the majority of shoppers purchase lunch, so many opportunities for expanding dinner options exist. Conventional grocers might take a page from the Sonoma Whole Foods Market store which offers ready-to-eat, restaurant-quality cuisine featuring freshly made foods for all dayparts, from omelets to tossed-to-order salads, pastas and entrées?all highlighting local ingredients from Sonoma County.

Other trends that will influence whats behind the deli counter include: rising demand for organic, and especially natural products; a heightened interest in healthier products, such as whole-grain products, including salads; lower-salt items; and more products that address allergen concerns and gluten intolerance and highlight nutrients on the label. The IDDBA also recommends stores adopt brochures and signs that educate consumers on calorie controlfor example, how many servings consumers are ordering. They might also encourage customers to order by the serving rather than the pound, and suggest that, because they may be ordering less than they are accustomed to, they can buy higher-quality products.