Cold Cuts Market to Grow by USD 174.2 Billion (2024-2028) as Demand for Convenient Packaged Foods Rises, with AI Powering Market Evolution- Technavio

NEW YORK, Oct. 16, 2024 /PRNewswire/ -- Report on how AI is driving market transformation - The Global Cold Cuts Market  size is estimated to grow by USD 174.2 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of over 9.45%  during the forecast period. Growing demand for convenient and packaged food is driving market growth, with a trend towards increasing demand for healthy and natural cold cuts. However, competition from alternatives  poses a challenge - Key market players include Alfa Corporativo S.A. De C.V., Andrews Smokehouse, Boars Head Brand, BRF SA, Bridgford Foods Corp., Butcher On The Block, Cargill Inc., CrisTim Group, Evans Meats and Seafood Inc., German Butchery Retail Pty Ltd., Hormel Foods Corp., JBS SA, Maple Leaf Foods Inc., Pocino Foods Co., Seaboard Corp., Sierra Meat and Seafood, The Kraft Heinz Co., The Wursthutte, Tyson Foods Inc., and WH Group Ltd..

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Key Market Trends Fueling Growth

The global cold cuts market is experiencing growth due to the rising health consciousness among consumers. People are shifting towards healthier options, including clean-labeled, vegetarian, and organic cold cuts. The demand for meat and processed meat products, such as cold cuts and deli meats, is decreasing due to health concerns. According to PETA, approximately 2.5% of the US population follows a vegan lifestyle, which is projected to increase by 0.5%-0.7% during the forecast period. In response to this trend, vendors are introducing organic and vegan alternatives, like Maple Leaf Foods' Maple Leaf 50/50, made with meat and plant-based protein and natural ingredients. These factors are anticipated to fuel market expansion during the forecast period. 

Cold cuts market is witnessing significant trends with consumers increasingly demanding hormone-free and antibiotic-free options. Clean labeling and heritage breeds are also popular choices among health-conscious consumers. Plant-based proteins are gaining traction as an alternative to traditional meat varieties. Food safety and contamination concerns have led to a focus on food service sector's use of pre-cooked and packaged cold cuts. Flavor combinations and nutritional value are key considerations for consumers, driving innovation in organic cold cuts and salted meats. Processed meats like luncheon meats, deli meats, and sliced meats continue to be popular, but heart disease and diabetes concerns have led to increased demand for meatless choices like vegan cold cuts and vegetarian options. The upper middle class and working women are key consumers, with cold cuts serving as convenient lunch options. Retail locations and packaged food are major distribution channels, with gluten-free options catering to specific dietary needs. Food safety and nutritional value remain top priorities, driving innovation in meat varieties like beef, pork, chicken, and Turkey breast. 

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Market Challenges

• The cold cuts market faces a notable challenge from the rising popularity of plant-based meat substitutes. Consumers are increasingly seeking healthier, eco-friendly, and cruelty-free options. Companies like Beyond Meat and Impossible Foods have gained significant followings due to their plant-based meat alternatives that mimic the taste and texture of real meat. In response, cold-cut producers must innovate and create healthier, more sustainable products to remain competitive. Failure to adapt to these shifting consumer preferences could result in lost market share. Additionally, the growing preference for plant-based alternatives may lead to a change in consumer behavior, as more individuals opt for these substitutes over traditional processed meat products. This trend is expected to impact the growth of the cold cuts market negatively during the forecast period.
• The cold cuts market encompasses various types of deli and packaged meats like Ham, Roast Beef, Salami, Bologna, Pastrami, and more. Convenience and quick meal options are key drivers, catering to busy urban populations and health-conscious consumers. Clean label products and packaging technology, including vacuum sealing, are essential for maintaining freshness and extending shelf life. Challenges include managing sodium content and catering to dietary restrictions, driving demand for plant-based alternatives and sustainable sourcing. Ethical practices and ecommerce are also important, with online grocery shopping growing in popularity. Grocery stores, charcuterie counters, and specialty meat shops compete for consumer preferences, offering versatile protein-rich foods that cater to various dietary habits and health awareness. Meat quality regulations, local and international brands, and product safety are crucial considerations for both offline and online sales. Refrigerated products, such as chilled cold cuts, and high-quality ingredients are essential for meeting consumer expectations in the foodservice industry. Overall, the cold cuts market requires a focus on versatility, health awareness, and meeting the diverse needs of consumers.

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Segment Overview 

This cold cuts market report extensively covers market segmentation by

1. Product 
• 1.1 Deli cold cuts
• 1.2 Packaged cold cuts
2. Distribution Channel
• 2.1 Offline
• 2.2 Online
3. Geography 
• 3.1 Europe
• 3.2 North America
• 3.3 APAC
• 3.4 Middle East and Africa
• 3.5 South America

1.1 Deli cold cuts-  Deli cold cuts have gained popularity over prepackaged options due to their perceived freshness and lower preservative levels. These meat products, including ham, sausages, chicken breast, and various other varieties, are convenient for consumers as they require no cutting or cooking. Deli cold cuts are also rich in proteins, vitamins B12, and minerals Zinc and iron. However, they pose a higher risk of contamination due to multiple handling and temperature fluctuations during processing. This risk is exemplified by the 2019 Listeria outbreak in the US, affecting eight people with one fatality. Despite this, the increasing availability, growing consumer awareness, and diverse flavors of deli cold cuts are driving market growth. Key players like Boar's Head, Cargill, and Hormel Foods offer popular deli cold cut products. The market is expected to expand significantly in India due to increasing purchasing power and health consciousness. However, the risk of contamination remains a concern, necessitating stringent food safety measures.

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Research Analysis

Cold cuts refer to a type of precooked, sliced meats that include luncheon meats, deli meats, and cured meat products. These chilled and ready-to-eat items are popular for sandwiches, salads, appetizers, and urban lunch options. Urban populations, particularly working women from the upper middle class, often opt for high-quality, natural cuts of meat, free from hormones and antibiotics. Specialty markets offer a wide variety of meat choices, including vegetarian options and meatless choices for those following a plant-based diet. Clean labeling, gluten-free, and packaged food options are also becoming increasingly important for health-conscious consumers. Cold cuts can be found in retail locations and are a convenient lunch option for busy individuals. Meat varieties range from traditional favorites like ham, Turkey, and roast beef to more exotic options like chorizo and salami. With a focus on natural, hormone-free, antibiotic-free, and vegetarian choices, cold cuts continue to evolve to meet the changing needs and preferences of consumers.

Market Research Overview

Cold cuts refer to a variety of precooked, cured meat products including luncheon meats, deli meats, and sliced meats. These convenient and versatile food items are popular for sandwiches, salads, appetizers, and more. Meat varieties range from beef, pork, chicken, Turkey, and their specific cuts like Turkey breast, ham, roast beef, salami, bologna, pastrami, and more. Health-conscious consumers prefer convenience and quick meal options, leading to the demand for clean label products and packaging technology like vacuum sealing. Cold cuts are available in deli, packaged, specialty, and artisanal forms, catering to diverse consumer preferences. Meat quality regulations ensure product safety and high standards. Sodium content and dietary restrictions are significant considerations, leading to the growth of plant-based alternatives, sustainable sourcing, ethical practices, and ecommerce platforms for online shopping. Urban populations and convenience foods drive the demand for chilled cold cuts in specialty markets. Customization, organic cold cuts, and plant-based proteins cater to various dietary habits and health awareness. Food safety and nutritional value are crucial factors, along with flavor combinations and the food service sector's needs. Pre-cooked meats, salted meats, and processed meats have health concerns, including heart disease and diabetes. Local and international brands offer a wide range of convenience foods, catering to diverse consumer preferences and dietary needs. Contamination and food safety are essential concerns, requiring stringent regulations and transparency in clean labeling. Overall, cold cuts continue to evolve, meeting the needs of modern consumers while maintaining traditional flavor and quality.

Table of Contents:

1 Executive Summary

2 Market Landscape

3 Market Sizing

4 Historic Market Size

5 Five Forces Analysis

6 Market Segmentation

• Product
• Deli Cold Cuts
• Packaged Cold Cuts
• Distribution Channel
• Offline
• Online
• Geography
• Europe
• North America
• APAC
• Middle East And Africa
• South America

7 Customer Landscape

8 Geographic Landscape

9 Drivers, Challenges, and Trends

10 Company Landscape

11 Company Analysis

12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

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SOURCE Technavio