TL;DR
The food industry is changing rapidly, presenting challenges and opportunities for in-store bakery and deli. Consumers’ buying habits are evolving, and flexibility is crucial for small retailers. Americans are cooking more at home, creating a chance for premium purchases in the deli and bakery. Offering healthier options and promoting balance in indulgence can attract customers. Deli-prepared meals are on the rise, and meal solutions can be a key focus. Collaborating with well-known brands can boost product appeal. Sliced and thaw-and-sell products can cater to labor shortages. Nitrite-free meats and innovative cheese flavors are also gaining attention.
The food world is experiencing rapid changes, bringing both challenges and exciting opportunities for in-store bakery and deli departments. Recent data from the International Dairy, Deli, Bakery Association (IDDBA) reveals essential insights for small and independent retailers to thrive in this dynamic environment.
Adapting to Changing Consumer Habits: Consumer buying habits are evolving quickly, and the keyword is “flexibility.” Retailers should be ready to adapt to the changing needs of their customers. Notably, households led by people under 40 will soon become the majority in the US.
Home Cooking and Premium Deli Options: Despite the pandemic’s easing, Americans continue to cook more at home than before. This trend opens up significant opportunities for in-store deli and bakery to offer premium products that bring restaurant-quality meals to homes.
Healthier Food Options: Consumers today seek healthier food options, but the definition of “good” has evolved. Products made with real butter, for instance, appeal to many due to their cleaner ingredients compared to substitutes.
Finding Balance: Retailers can strike a balance between promoting healthier options and indulgence. Emphasizing healthier attributes in deli-prepared meals, such as lower fat and salt content, while also offering tempting bakery indulgences can cater to diverse customer preferences.
Meal Solutions and Deli Prepared: Instore deli-prepared meals are gaining popularity due to the continued preference for home-cooked meals. Retailers can capitalize on this trend by offering a diverse range of deli-prepared options. Reasons consumers choose deli-prepared options include better variety, frequent promotions, and the ability to order in advance.
Collaborating with Brands: Partnering with well-known brands can enhance product appeal and drive incremental SKUs. By collaborating with established brands like Old El Paso, retailers can offer premium salsas and guacamole, elevating their deli offerings.
Sliced Products for Labor Shortages: Amid labor shortages, sliced and thaw-and-sell products provide convenience for both retailers and consumers. For example, sliced breads and cakes offer easy-to-serve options that cater to busy schedules.
Nitrite-Free Meats and Innovative Cheese Flavors: Retailers can stay ahead by offering innovative products, such as nitrite-free meats and unique cheese flavors like blood orange-infused specialty cheese. These products address consumers’ changing preferences and foster brand loyalty.
Conclusion: For small and independent retailers in the food industry, embracing flexibility, promoting healthier options, offering deli prepared meals, collaborating with renowned brands, and introducing innovative products can lead to success. By understanding evolving consumer needs and adapting to industry trends, retailers can create a compelling and diverse offering that appeals to a broad customer base.
