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What's Going on in the Deli Department?

Deli departments in supermarkets are witnessing significant growth as retailers enhance their offerings to capitalize on this trend. Bold flavors and limited-edition products are primary drivers of this expansion. Heather Prach from the International Dairy Deli Bakery Association notes a rising preference for spicy and “swicy” flavors. With 71% of food menus now featuring spicy options and sauces trending, there’s an opportunity for retailers to innovate.

For instance, Smithfield Foods recently launched sweet and spicy products like Lemon & Cracked Pepper Turkey Breast and Hot Honey Ham, catering to evolving consumer preferences. This shift aligns with broader consumer interests in natural products, prompting manufacturers like Hormel Foods to reintroduce preservative-free options.

However, labor shortages have led to fewer staff-operated service counters. Retailers are adapting by increasing grab-and-go options and streamlining deli case layouts. Kroger has taken proactive steps by organizing meal combos, pairing popular items like rotisserie chicken with trendy sides such as Korean Style Noodle Salad.

The demand for diverse and convenient food choices, along with the rise of remote ordering, indicates that the deli sector is not just surviving but actively reshaping its strategies to align with consumer demands. This strategic evolution is enhancing the overall supermarket experience and driving sales in this crucial department.