Chilled & Deli Foods Market Size, Share & Trends Analysis Report By Product (Meat & Meat Alternatives, Cheese), By Type , By Distribution Channel (Supermarkets & Hypermarkets, Online), By Region And Segment Forecasts, 2022 - 2030

Report Overview

The global chilled & deli foods market size was valued at USD 217.5 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 5.5% from 2022 to 2030. The popularity of delicatessen, specialty, and fine foods has grown enormously, as the consumer's tastes have become more sophisticated and adventurous. Increasing demand for prepared superfoods, which are organic, locally sourced, additive-free, and fair-trade products have complemented the overall market growth. According to a report published by Kerry Group in 2020 May, 26.0% of the consumers claimed that prepared foods are the most important consideration when they shop for fresh foods and 66.0% of consumers buy prepared snacks, meals, and more from retail, every month.

The spread of the Coronavirus (COVID-19) pandemic has affected the industry. Majorly with global shut down of deli counters and supermarkets. During this panic situation, consumers started buying prepared offerings owing to their higher shelf life and convenient low-temperature storage options, which provided a boost in the retail section. However, there was a shift toward comfort eatables, and plenty of consumers were trying to get back on the healthy track after weeks of comfort eating, which prompted the demand for high-quality products including deli offerings. Thus, recent events are helping to shape the trends globally, as a result, driving the market growth.

Consumers are still on the lookout for better-for-health products with clean label attributes such as ‘all-natural, 100% natural’ and ‘made with real’, ‘organic’, and more. In fact, these attributes have seemed to gain even more traction since the onset of the pandemic. Meanwhile, the rising pressure upon brands to expand their portfolio continues to shift the overall concept of frozen deli offerings toward more plant-based/vegan/organic ingredients. For instance, in February 2022 California-based startup Prime Roots launched a new line of vegan deli and charcuterie meats made from koji (a Japanese fungus). The new product line includes both classic deli meats such as cracked black pepper turkey, Smokey ham, and pepperoni, along with delicacies such as meatless foie gras and pâté.

Prepared meals and superfoods have been a behemoth for supermarket delis in recent years. Ready-to-serve meals, sides, salads, pre-sliced meats and cheeses, and ready-to-heat-and-serve sides offer both familiarity and time-saving for the consumers, which have propelled the market growth. According to the report of the International Dairy Deli Bakery Association (IDDBA) published for the year 2020, prepared meats witnessed significant sales increases during 2020 across the categories, including pre-sliced ham, beef, bologna, salami, and pepperoni. The increase in sales ranged from 23.0% to 95.0% for the year 2020.

Furthermore, as frozen food brands penetrate the market with new product launches, many of the established brands in the market are focusing on market strategies such as online advertising campaigns, re-branding, packaging, and more to get a hold of a new set of consumers. For instance, in April 2021 Land O’Frost, one of the U.S. best-selling brands of pre-sliced deli meats and a producer of specialty meats, announced a brand re-design and three new flavors for its Bistro Favorites meat brand after witnessing Bistro Favorites brand reaching 42.0% growth in consumer sales during 2020. The new brand design includes a uniquely crafted, hand-drawn Bistro Favorites logo, while ingredient and sandwich imagery provide inspiration and a reminder of the brand’s unique, handcrafted offerings. Such innovative marketing strategies are likely to provide artisanal and unique engagement with the shoppers.

Growth trends such as mergers & acquisitions in the food & retail industry especially by key players in the market likely to propel the market growth. For instance, in December 2021, Mama Mancini’s Holdings, Inc., a marketer of specialty pre-prepared, frozen and refrigerated products announced agreements for the acquisitions of T&L Creative Salads, Inc. and Olive Branch, LLC, which are related premier gourmet food manufacturers based in New York. Both the premium gourmet manufacturers sell their salads and prepared products to over 250 delis, bagel shops, smaller retail accounts, and distributors in the New York metropolitan area. Thus, the acquisition would help the company to generate more net income and expand its distribution network.

Product Insights

The meat & meat alternatives segment held the largest market share in 2021 and is expected to maintain its dominance during the forecast period. The fast-paced lives of the individuals in developed and developing countries are leading to a preferential shift among the working class from conventional meat to processed meat products covering the requirements of chilled & deli foods. According to the Madison, WI-based International Dairy Deli Bakery Association (IDDBA), grab-and-go deli meat sales growth topped 50.7% for the year ending 2021. While consumers typically have their go-to meat choices and have gravitated toward familiar flavors amid the COVID-19 pandemic, there is still consumer interest in trying out new flavors in this segment.

Therefore, manufacturers are launching new products in different flavors to cater to new demands. For instance, in January 2022 KQF, the British manufacturer of halal convenience foods, announced the launch of its new Premium Sliced Meats range comprising deli-style slices of ready-cooked beef, chicken, and lamb in nine flavors.

However, the prepared meal & sides segment is projected to register the fastest CAGR from 2022 to 2030. Prepared meals are likely to gain traction amongst consumers because of the convenience and longer shelf-life. Prepared meals ensure customers about high-quality food with good flavors and locally/organically sourced ingredients within an affordable range. The inclination of the consumers, especially millennials toward prepared meals due to hectic lifestyles is likely to bode well with the growing demand. Major brands operating in the segment are likely to capitalize on this product segment to obtain a larger market share by launching new prepared meals.

For instance, in February 2021, Hormel Deli Solutions Group launched the Perfect Plate brand offering prepared meals. The aim of the company was to capitalize on the prepared meals trend and thus launched five prepared options in the current launch including Brisket Mac & Cheese, Southwest Chicken, and Rice, Beef and Broccoli Stir-Fry, Chicken Fettucine Alfredo, Cheese Ravioli in the main course and four protein recipe starters-Flame Seared Chicken Breasts, Flame Seared Pulled Chicken, Sadler's Smokehouse Smoked Carved Turkey Breast, and Fontanini Italian Meatballs.

Type Insights

The conventional segment held a larger market share in 2021 and is expected to maintain its dominance over the forecast period. As demand for chilled & premium foods increases amongst the consumers, the conventional segment is likely to dominate the supermarket shelves in the major countries such as the U.S. and U.K. Strategic partnerships, product launches, and expansion strategies in the conventional segment by major players in the market likely to bode well with the future market growth. For instance, in March 2020, Target Corp. partnered with meat and condiments brand Boar’s Head to offer pre-packaged meals, conventional raps, premium deli meats, specialty cheeses, spreads such as hummus, and condiments with prices ranging from USD 2.99 to USD 8.99 in its deli section.

However, the organic type segment is projected to register faster growth during the forecast period. Millennials nowadays are becoming more conscious of their health & wellness and are willing to pay a reasonable price for the ingredients that are organic. According to the You Gov report published in September 2019, in the U.S. one in two Millennial which is approximately 51.0% indicate they are buying more organic food products, and 60.0% of older Millennial-aged 33- to 37-years  stated that they are buying organic more often now. Such facts are likely to boost the demand for organic frozen foods in near future.

Distribution Channel Insights

Supermarkets & hypermarkets distribution channels made the largest contribution to the global market in 2021. Grab-and-go and prepackaged meals dominated the shelves in supermarkets, while some local restaurants and ghost kitchens collaborated with supermarkets to offer their wide range of products. For instance, in February 2021, Unreal Deli announced its supermarket retailers nationwide in the U.S. for chilled & deli foods. The supermarket in the U.S. includes Wegman’s, Fresh Thyme, HEB, Whole Foods, Giant Food, Ralph’s stores, and more offering plant-based meats, deli sandwiches made from real vegetables, and protein-rich grains.

An online distribution channel is anticipated to grow at a higher rate during the forecast period. Delicatessen brands have embraced online distribution channels and many deli brands now sell products online. Many producers use e-commerce to sell their goods directly to consumers. For instance, in May 2020 Deliveroo-online food delivery company launched its new virtual brand called Deliveroo Deli in order to support its Australian restaurant partners as well as smaller grocery and businesses during the COVID-19 outbreak. The virtual platform provides groceries such as bread, ready meals, and delis and helped consumers during the restrictions on retail and restaurants. Such initiatives are likely to bode well with the future segment growth.

Regional Insights

North America accounted for the largest share of 34.3% in 2021. Rising consumption for the convenient sources of food products that can be consumed on the go has been supporting the dominance in the region. Several customers supplement their regular meals with chilled products, such as prepackaged sandwiches and prepared salads, while some time-pressed consumers substitute their regular meals with the same. Thus, changing consumer lifestyles, especially in terms of eating habits, and the rising need for convenience meal options are estimated to augment the sales of such products within the region.

Asia Pacific is expected to be the fastest-growing region with a CAGR of 5.8% from 2022 to 2030. Sales of chilled & deli offerings are growing with the expansion of modern retailers in emerging economies, wherein companies are increasingly investing in cold chain infrastructure for fresh, chilled packaged products. The market is mainly driven by the need for convenience products that need less preparation or consumption time. Retail chains are significantly boosting the demand for savory appetizers.

Key Companies & Market Share Insights

The market holds immense potential for international as well as regional players. Emerging entrants, especially in developing countries, are expected to gain increased opportunities to enter the market. The rising establishment of government initiatives and increasing foreign investments in developing the sector, mainly in China and India, are expected to boost industry growth in the coming years. Overall, the global market is highly competitive and dependent on technological advancements along with product development. Industry players strive to achieve the local taste and gain a competitive advantage over others. The presence of local players poses a significant threat to large multinational companies in terms of product quality and the price offered to customers.

• In March 2022, Verdino Green Foods U.K. expanded its product portfolio by adding three new products such as Mortadella with Pistachio (80g), Dry-Cured Salami (240g), and Bacon (80g) in its plant-based deli foods range.

• In July 2021, Sweet Earth Foods-plant-based innovator announced the launch of its new heat-and-eat breakfast bowls and ready-to-eat deli slices.

• In April 2021, a new plant-based deli meat company announced its launch in the U.S. after one year of product development. The company offers a wide range of products including plant-based cold cuts, sausages, pâtés created with green banana, golden linseed, grape seed oil, protein from legumes and seeds, onion, garlic, herbs, and spices.

Some of the key players in the global chilled & deli foods market include:

• General Mills, Inc.

• PepsiCo

• The Kraft Heinz Company

• Nestlé

• The Kellogg Company

• Unilever

• Calbee

• Intersnack Group GmbH & Co. KG

• Conagra Brands, Inc.

• ITC Limited

Chilled & Deli Foods Market Report Scope

Segments Covered in the Report 

This report forecasts revenue growth at global, regional & country levels and provides an analysis on the latest trends and opportunities in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the global chilled & deli foods market based on the  product, type, distribution channel and region.

• Product Outlook (Revenue, USD Million; 2017 - 2030)

  • Meat & Meat Alternatives

  • Cheese

  • Bread & Bakery Products

  • Prepared Meal & Sides

  • Sauces, Dips & Hummus

  • Others

• Type Outlook (Revenue, USD Million; 2017 - 2030)

  • Conventional

  • Organic

• Distribution Channel Outlook (Revenue, USD Million; 2017 - 2030)

  • Supermarkets & Hypermarkets

  • Convenience Stores

  • Online

  • Others

• Regional Outlook (Revenue, USD Million; 2017 - 2030)

  • North America

    • U.S.

  • Europe

    • Germany

    • U.K.

    • France

  • Asia Pacific

    • China

    • Japan

    • India

  • Central & South America

    • Brazil

  • Middle East & Africa

    • UAE

    • South Africa