North America Deli Food Market Size (2024-2030)

According to the report published by Virtue Market Research in North American Deli Food Market was valued at USD 247.38 million and is projected to reach a market size of USD 329.61 million by the end of 2030. Over the forecast period of 2024-2030, the market is projected to grow at a CAGR of 4.9%.

Delis have always been an essential and popular food in North America owing to their taste. Presently, this market is experiencing rapid growth because of the incorporation of different food varieties, options, fusions, and flavors. Moreover, lifestyle changes have been contributing to the growth as well. With rising E-Commerce expansion, vegan options, sustainability focus, and other different unique offerings this market is predicted to generate significant profits. During the forecast period, this market is expected to see notable growth.

Key Market Insights:

As per a report, according to research provided by the International Dairy Deli Bakery Association (IDDBA) for the year 2020, sales of prepared meats, such as pre-sliced ham, beef, bologna, salami, and pepperoni, increased significantly 2020.

According to a report, from a survey published in May 2020 stated that 26% of customers stated that prepared foods are the most essential factor when shopping for fresh foods, while 66% of consumers purchase prepared snacks, dinners, and other items from retail every month.

As per a report, the United States is expected to attain a total market value of $77,842.8 million by 2028 in chilled and deli foods.

Around 20% of local shops and food chains suffer due to financial shortages affecting the food & beverage industry. To tackle these issues, Governmental initiatives and online channels are being given utmost prominence.

North America Deli Food Market Drivers:

Changes in lifestyle and busy schedules are helping in boosting the market.

There has been a lot of development in educating girls in rural and urban areas. Gender equality and women's empowerment have encouraged women to pursue a career and support their households. Dual income is prevalent in many households. This has led to a hectic timeline for couples to find time to prepare and cook home meals. This calls for the need to opt for ready-to-eat, convenient foods. Additionally, they are a go-to choice for bachelors. The associated ease and time management are helping with the progress. Moreover, factors like urbanization, rising income, and economic advancements have contributed to market success.

Growing opportunities are acting as a major driver for market expansion.

A lot of millennials and Gen Z are interested in trying out new options having unique flavors and tastes. Experimenting is the new norm. This is propelling the market enlargement. Secondly, healthier options are available which fit in well with various ongoing wellness trends. Thirdly online retail has been a boon to the market. After the pandemic, major shifts were observed with one of them being digital transformation. With convenient food delivery apps, discounts, deals, and other offers there was an upsurge in online ordering of various meals. Furthermore, a broader range of options starting from salads to packaged and frozen food are available. All testing and certifications ensure no spoilage and complete safety aiding the market.

North America Deli Food Market Restraints and Challenges:

Guidelines about the usage of preservatives, price variation, and competition from other brands are the major issues that are currently being faced by the market.

Adhering to various rules and regulations is one of the biggest challenges faced by the market. Government agencies have a lot of restrictions on the number of preservatives that need to be incorporated into foods to increase their shelf life. However, it’s difficult to stick to these, and many times manufacturers can neglect this. Preservatives have a lot of disadvantages, which include respiratory issues, allergies, food poisoning, obesity, etc. Some studies indicate that they can cause cancer. Additionally, synthetic preservatives reduce the nutritional content of food in significant amounts. All these reasons can demotivate consumers from buying these products owing to health reasons. Secondly, price volatility can be a major hindrance to market growth. Recent inflation has caused consumers to incline towards home-cooked meals. Thirdly, with rising startups and fast food, there is a lot of competition from different brands, which can saturate the market.

North America Deli Food Market Opportunities:

There is a growing trend towards the consumption of vegan-based diets. Veganism refers to plant-based products. Social media has thrown light on the cruelties to which animals are subjected. This has caused a change in preference of taste. Vegan options that are similar to non-vegetarian foods and have authenticity are expected to provide the market with an ample number of opportunities. Secondly, healthier alternatives that come with more protein and less fat content are helping the market to flourish. Thirdly, food transparency, that is accurate description of the quantity of ingredients used for the food product is propelling the market. Furthermore, customization as per consumer’s preference is enhancing the market.

NORTH AMERICA DELI FOOD MARKET REPORT COVERAGE:

North America Deli Food Market Segmentation:

North America Deli Food Market Segmentation: By Type:

• Organic
• Conventional

Based on type, the conventional segment is the largest growing. This is due to price range, abundance, easy access, popularity, and demand. They hold a share exceeding 50% in the market. However, the organic segment is the fastest growing. This is due to nutritional content, no chemicals, awareness, rising demand, income, and lifestyle of the urban population. Additionally, the price range is being altered and reduced keeping in mind the consumer’s benefit. This has further helped the organic segment to grow at a rapid rate. They are estimated to hold a share of around 30%.

North America Deli Food Market Segmentation: By Product:

• Meat & Meat Alternatives
• Sauces, Dips & Hummus
• Bread & Bakery Products
• Cheese
• Prepared Meal & Sides
• Others

Based on product, prepared meals & sides are the largest growing. Factors like shelf life, easiness, demand, popularity, and affordability contribute to the success. Moreover, busy schedules and less time for cooking meals contribute as well. Sauces, Dips, and hummus are the fastest-growing categories. This is due to their flavor, originality, variety, and versatility offered. These ready-to-eat products are used for the enhancement and production of tasty flavors contributing to the growth rate.

North America Deli Food Market Segmentation: By Distribution Channel:

• Supermarkets & Hypermarkets
• Convenience Stores
• Online
• Others

Based on distribution channels, supermarkets & hypermarkets are the largest growing. They hold a share exceeding 35%. This is because they have a wider range of options, offer discounts, allow bargaining, and consumers can check the freshness of the product. Additionally, face-to-face interaction with the shopkeeper helps them to enquire about the product and know about the ingredients used. However, online has been the fastest growing having a share of around 23%. This is because of the convenience of ordering from the comfort of an individual’s house. Secondly, mega sales and deals are available to frequent purchasers. There have been significant improvements in customer enquiries enhancing their experience. The availability of local and international food products further boosts the growth. Furthermore, after the pandemic online food shopping has gained more prominence allowing local vendors to earn a source of income.

North America Deli Food Market Segmentation: Regional Analysis:

• United States
• Canada
• Mexico
• Rest of the North America

The United States is the largest growing region in North America for this market. The demand for a wide range of flavors, preferences, and lifestyles are the main factors. Secondly, the economic condition and income of people living especially in cities like New York, California, and Massachusetts are raising the profits. Moreover, experimentation with tastes is an ongoing trend. This region is estimated to hold a share of around 45%. Canada is the fastest growing region holding a share of approximately 30%. This is due to emerging players, markets, experimentation with different flavors, rising demand, culinary trends, and an increase in the number of fast-food chains.

COVID-19 Impact Analysis on the Global North America Deli Food Market:

With the spread of the virus, lockdowns, restrictions, and isolation were the new norm. This disrupted the supply chains, logistics, transportation, and import-export trade. As per a report in 2020, the revenue of the food industry dropped by 23%. There was closure of fast-food chains, hotels, and restaurants. Additionally, there was a lack of labor force. However, digital transformation helped the local food vendors and other food marts to generate revenue. Sanitization and other protocols were strictly followed encouraging the public to trust different brands. Moreover, from home option was given to many employees unless their job was under the essential work category. This created more workload. Working people were unable to find time for cooking activities thereby increasing the sales of deli foods. Around a 60% increase in online food orders was seen. Furthermore, the shelf life associated with these products helped in storing them for a longer time.

Latest Trends/ Developments:

Companies are also spending heftily to improve existing formulations alongside maintaining competitive pricing. This has further resulted in increased enlargement. Importance is being given to sustainable packaging by using alternatives to plastic. Healthier options, vegan varieties, and global flavors are being prioritized. Improving existing online chains and creating new ones to enhance customer experience are being looked upon.

Key Players:

1. Subway
2. Jimmy John's
3. Potbelly Sandwich Shop
4. Firehouse Subs
5. Jersey Mike's Subs
6. Jason's Deli
7. McAlister's Deli
8. Erik's DeliCafé
9. Newk's Eatery
10. D'Angelo Grilled Sandwiches

In June 2023, GiftAMeal, which provides meals for needy local families, announced its latest restaurant collaboration with Groucho's Deli. Groucho's collaboration with GiftAMeal was aiming to promote the restaurant's mission of providing visitors with ways to benefit their local community.

In February 2023, Epic Sales Partners announced its plans to grow meat partnerships by 100%. In 2023, the firm hopes to assist merchants and suppliers in providing local communities with access to more than 600 distinct meat products.