Retail sales of deli meat are trending down compared with year-ago performance, according to retail sales data analysis conducted by Circana. Deli meat sales totaled $8.4 billion from June 2024 through June 2025, a decline of -8.3% in dollar sales and -6.7% in pounds sold year-over-year. Two of the three deli meat categories — grab-and-go and service counter – saw sales declines, with pre-sliced deli meat bucking that trend and delivering $1.7 billion in sales (up 2.4% for the 12-month period) while pounds sold rose 5.2%.

Deli meat sales for June 2025 were $678 million, a decline of -7.5% compared with June 2024 dollar sales. Pounds sold for deli meat were down as well, seeing a -6.8% decline.

Service counter deli meat sales sustained double-digit drops in dollar sales (down -10.9%) and pounds sold (down -11.5%). Despite posting sharper sales declines than the grab-and-go or pre-sliced categories, service counter deli meat enjoyed the strongest sales of the three categories at $343 million. Grab-and-go deli meat sales totaled $209 million for the month, with declines of -5.2% and -3.9% for dollar sales and pounds sold, respectively. Pre-sliced deli meat sales for June 2025 were $126 million, with dollar sales falling -1.3% and pounds sold down -1.5%.

According to recent Nielsen IQ retail scanner data, bulk or service counter deli meat sales have been softer than packaged deli meats. Consumers appreciate the convenience of pre-sliced product that doesn’t require waiting in line at the deli counter, said Courtney Schmidt, Wells Fargo Agri-Food Institute sector manager.

As US consumers look for healthy, convenient and flavorful protein options, the deli industry is seeing growth trends for natural and low nitrate deli meats and regional/bold flavors, such as hot honey, Schmidt said.

Marketers also are seeking to leverage the unique value proposition that deli meats can offer consumers, she said.

“The longer shelf life and protein content of deli meats make them a great option for busy consumers that are looking for convenience and healthy food options,” Schmidt said. “Deli meats can easily pair with other high-protein options like cheese and nuts to make a quick grab-and-go meal. Italian cured deli meats have been a favorite option in grab-and-go items. Pre-made sandwiches in the retail deli section are another increasingly popular item for consumers wanting to save time.”

Packaging factors

Offering value to deli meat consumers includes packaging, with Schmidt noting that sustainable packaging and packaging that extends product shelf-life are top of mind for food manufacturers.

Packaging is doing more heavy lifting than ever, said Ray Rastelli Jr., president, Rastelli Foods Group.

“It’s got to look great, keep the product fresh, and add value in the kitchen,” Rastelli said. “We’re seeing traction with packaging that shows off the product clearly — no mystery meats — and doubles as the heating vessel. That means oven- or microwave-safe trays, vacuum-sealed formats with leak protection, and tamper-evident features that build trust. For shoppers, that convenience is huge — less mess, no extra dishes. For retailers, it extends shelf life and opens up merchandising beyond the service case. When packaging works that hard, it turns deli meats into full meal solutions, not just slices in a bag."

Foodservice

While deli meat and sandwiches are lunchtime go-to’s, foodservice sales of deli meat have been sluggish compared to retail sales, Rastelli said. “As labor and other costs have pushed menu prices higher across foodservice restaurants, many office workers are opting to save a few dollars by bringing their own sandwiches from home.”

Rastelli said deli consumers are looking for deli meat products that offer versatility and bold, but familiar, flavors that work across multiple meal occasions.

“We’re seeing strong movement in fully cooked, value-added proteins — things like barbecue-seasoned pulled pork, rotisserie-style chicken, or sweet and smoky ham — that can be used in wraps, bowls, sandwiches, or even dinner kits,” he said. “These products aren’t about deli slicing; they’re about deli assembling. Operators want solutions that reduce prep and labor, and these fully cooked items let them build high-quality, grab-and-go options without firing up the stove. The flavor’s already built in — all they have to do is portion and pack. It’s an easy win for the deli and a fast, satisfying option for the shopper.”

Automation

Processors can achieve faster speed to market and more of a broader product mix through automation.

“Processors can’t risk downtime to keep production flowing,” said Andy Schneider, sales director at Grote Co. “Increasing automation with updated equipment means simpler maintenance and operation. The designs are also more sanitary.”

Automating processes also reduces the need for workers at every step. “That means that increased automation may also reduce the risk of contamination,” Schneider said. “Fewer human workers touching the product results in a safer end product.”

He said consumer expectations for value-added products in the deli category are leading processors to incorporate automation.

“There’s an upswing in grab-and-go food options and retail offerings,” Schneider said. “Examples include sandwiches and salads, as well as charcuterie kits, which may involve slicing multiple products using the same machine. They can also result in the need for less manual labor at the deli counter, which can be less sanitary and consistent.”

There’s also the need for processors to offer multiple packaging options for the same products. Examples include bulk slices of deli meat in a package, or shingled slices on a tray.

“These new offerings require flexible conveyance systems, robotics with additional end-of-arm tooling, and so on, to process multiple products on the same line,” he said.

www.provisoneronline.com   |  august 2025