Deli-Prepared Foods Surge as Consumers Seek Convenience and Authenticity
Deli-prepared foods are surging in popularity, with consumers increasingly viewing them as a true alternative to restaurant dining. This shift is reflected in the growth of retail foodservice sales, which have risen 1.6% over the past year to $52.1 billion. The convenience and flexibility of these options, particularly between noon and 5 p.m., are driving this trend.
Consumers are now more likely to purchase deli-prepared meals to pair with ingredients at home, with these options replacing 30% of home-cooked meals. This change is also evident in the growth of specific deli items, such as fully cooked meats (up 4.8%), grocery store pizza (up 4.5%), and sushi (up 3.8%).
Specialty delis, like Vino Spaghetti and Lo Sfizio in Cologne, are capitalizing on this trend by offering authentic, region-specific food products and ready-to-eat options. These stores combine grocery and dining experiences, reflecting consumers' rising interest in such offerings. Moreover, 66% of consumers want to see a prepared foods menu online, and 58% would like the ability to order in advance and have an inside pick-up station.
However, when not in the mood to cook dinner, consumers still prefer quick-service or fast-casual restaurants over grocery store prepared foods (34% vs. 17%). Despite this, the share of diners opting for deli foods has doubled since 2017, reaching 28%. Meanwhile, 38% of shoppers consider deli-prepared foods to be the same value as restaurants, indicating a significant shift in how consumers define value in food.
The growing demand for deli-prepared foods is reshaping the retail landscape, with consumers seeking convenience, flexibility, and authentic options. As retail foodservice continues to grow, specialty delis and grocery stores are adapting to meet these evolving consumer preferences.
