Cold Cuts Market

Cold Cuts Market Outlook (2023 to 2033)

The global cold cuts market is valued at US$ 498.24 billion in 2023. As per this latest study by Fact.MR, worldwide demand for cold cuts is predicted to rise at a CAGR of 9% and reach a market size of US$ 1,179.52 billion by 2033.

Cold cuts, also referred to as luncheon meats, deli meats, or sliced meats, are precooked or cured meat products. They are typically available in sliced form. They are popularly used in sandwiches, salads, and appetizers. Cold cuts can be made from a variety of meats such as beef, pork, chicken, turkey, and sometimes even combinations of these meats. Some of the common types of cold cuts include turkey breast, ham, roast beef, salami, bologna, and pastrami.

Key Market Drivers

• Busy and on-the-go lifestyles are leading to higher demand for convenient and quick meal options, including cold cuts, a popular choice for sandwiches and snacks.
• Cold cuts are easy, ready-to-cook, and satisfying meals. This is especially attracting people seeking a fast and hassle-free lunch or snack option.
• Culinary and cultural diversity in many regions is resulting in higher demand for a variety of cold cut options to cater to different tastes and preferences.
• Growing consumer focus on buying clean-label products is enabling top cold cut brands to work on transparency in labelling to build trust with consumers.

The ready-to-eat feature of cold cuts is reducing the need for extensive meal preparation, becoming a popular food option for busy individuals and families. Advancements in packaging technology are allowing for more efficient sealing and preservation of cold cuts, succeeding in the list of organic and natural cold cut products. Implementation of advanced preservation techniques such as modified atmosphere packaging (MAP) and vacuum sealing is enhancing the quality of packaged cold cuts and their lifespan by slowing down the deterioration of the product.

• Deli cold cuts and packaged cold cuts are two types of cold cut products. Sales of packaged cold cuts are estimated to increase at a CAGR of 10.5% over the next 10 years.
• Deli meat market growth is forecasted to evolve at a CAGR of 8% through 2033 due to the rising popularity of specialty and artisanal cold cuts.

Growing popularity of high-quality cold cuts with distinct flavours and characteristics is also stimulating demand for deli counter meats. Food truck businesses are the major consumers of deli meat products due to their versatility in different dishes such as salads and charcuterie boards.

Report Attributes	Details
Cold Cuts Market Size (2023E)	US$ 498.24 Billion
Forecasted Market Value (2033F)	US$ 1,179.52 Billion
Global Market Growth Rate (2023 to 2033)	9% CAGR
United States Market Value (2022)	US$ 121.4 Billion
Canada Market Growth Rate (2023 to 2033)	8% CAGR
Germany Market Growth Rate (2023 to 2033)	5.5% CAGR
Japan Market Growth Rate (2023 to 2033)	5% CAGR
China Market Growth Rate (2023 to 2033)	13% CAGR
Key Companies Profiled	Boar's Head Brand Cargill, Inc. Hormel Foods Corporation Seaboard Corporation The Kraft Heinz Company Tyson Foods, Inc. BRF SA Bridgford Foods Corp. Butcher On The Block CrisTim Group Evans Meats and Seafood Inc. German Butchery Retail Pty Ltd. JBS SA Maple Leaf Foods Inc. Pocino Foods Co. Sierra Meat and Seafood The Kraft Heinz Co. The Wursthutte WH Group Ltd.

Cold Cuts Industry Statistics

• Short Term (2023 to 2026): Key suppliers of cold cuts are prioritizing sustainability by sourcing eco-friendly and organic ingredients and minimizing packaging waste in response to the growing eco-conscious consumer base.
• Mid Term (2026 to 2029): Key producers of cold cuts to use health and wellness labels such as gluten-free or low-sodium to attract health-conscious consumers who look for such labels while buying. Companies are expected to offer cured meat products that cater to specific dietary needs.
• Long Term (2029 to 2033): Product innovation, including premium & specialty cold cuts and artisanal offerings, is expected to cater to evolving consumer tastes and preferences.

Why is Consumption of Cold Cuts Increasing Rapidly?

“Refrigerated Cold Cuts Suppressing Frozen Varieties”

Long-back, cold cuts were not on some consumers’ preference lists because of their taste, availability, and price. However, a noteworthy transformation has occurred over the last five years, especially in developed urban regions. Several consumers have a strong preference for fresh and refrigerated cold cuts as opposed to frozen varieties, primarily due to their superior taste and nutritional qualities.

While specialty markets and butcher shops were traditionally the primary sources for fresh cold cuts, conventional grocery stores are now also joining this trend. Some of these stores are also introducing dedicated charcuterie counters to meet the growing demand for high-quality, fresh cold cuts. This is further boosting the cold cuts market size.

“Clean-label Trend Driving Revenue of Cold Cut Manufacturers”

Growing trend of health and wellness is shifting consumer preferences toward high-quality and organic food products, including cold cuts. One of the prominent trends in the cold cuts market is the increasing demand for products with clean labels. Clean labels refer to packaging and ingredient lists that convey transparency and minimal processing, often featuring natural and recognizable ingredients.

Rising consumer awareness about food production processes and the potential impact of additives and preservatives on health is forcing food manufacturers to introduce organic and chemical-free food products. Clean labels offer clear and honest information about the product, increasing trust between brands and consumers.

The clean label trend is aligned with the broader movement toward natural and organic foods. Consumers are willing to pay for premium cold cuts made from organic meats and ingredients, which are healthier and more environmentally friendly.

“Versatile Packaged Cold Cuts Widely Consumed By Foodservice Businesses”

The foodservice industry, including restaurants, cafes, delis, food trucks, and catering services, is a significant consumer of cold cuts. These versatile meat products are playing a pivotal role in enhancing menus and meeting customer preferences in various ways.

Packaged cold cuts and cured meats are prime choices for consumers, chefs, and foodservice professionals due to their versatility. They can be used in various culinary applications, from crafting classic sandwiches and hearty salads to elevating gourmet dishes.

Cold-cut-based sandwiches have been considered a menu staple for decades. They provide an appealing option for quick and satisfying meals for dine-in and takeout services. Cold cuts are often used to add protein and flavour to salads, antipasto platters, and charcuterie boards. Their ability to complement a wide range of ingredients makes them valuable components of these dishes.

Packaged cold cuts are pre-sliced and ready to use, enabling fast and efficient food preparation in busy restaurant kitchens and food trucks. This quick turnaround time is crucial for meeting the demand of dine-in and takeout customers. This factor is boosting the market’s growth.

What are the Main Challenges Encountered by Cold Cut Manufacturers?

“High Prices of Premium Quality Cold Cuts and Availability of Plant-based Substitutes”

High levels of sodium in certain cold cuts can distract consumers from their buying preferences, especially those with dietary restrictions such as hypertension or heart conditions. Some consumers’ perception of cold cuts as overly processed is shifting their preference for fresh, less processed alternatives such as fresh meat.

Premium and artisanal cold cuts are often more expensive, which can limit their adoption among price-sensitive consumers in some regions. The cold cut producers are facing competition from alternative protein sources such as plant-based options, which cater to the growing demand for meat alternatives. Factors such as disease outbreaks among livestock or disruptions in the supply chain are expected to cause fluctuations in meat prices and availability.

How are New Cold Cut Manufactures Establishing Their Presence in This Competitive Landscape?

“Targeting Clean-label & Sustainable Practices to Increase Clientele Base”

New companies are focusing on the growing demand for healthier cold cuts by offering options with reduced sodium, fewer additives, and natural ingredients. They are also focusing on transparency in ingredient lists and labelling, avoiding artificial additives and preservatives. Clean labelling possesses major power in building trust with consumers seeking natural and minimally processed products.

Newcomers are implementing sustainable and ethical sourcing practices, including animal welfare standards and eco-friendly packaging, to align with consumer's ethical and environmental concerns. They are also establishing a robust online presence, including an e-Commerce platform, to reach a broader audience and tap into the growing trend of online grocery shopping.

Collaborations with local restaurants, delis, and foodservice establishments are expected to increase their market reach. Building relationships with businesses that already have a customer base can be an advantageous move for new entrants. By employing these strategic approaches, start-ups are establishing their presence in the cold cuts market, differentiating themselves from established competitors.

Country-wise Analysis

What is Propelling the Sales of Cold Cuts in the United States?

“Organic & Low-sodium Cold Cut Products-Prime Protein Choice of Fitness-conscious Americans”

• As per this new study by Fact.MR, a market research and competitive intelligence provider, cold cut sales in the United States reached US$ 121.4 billion in 2022, backed by consistent demand for convenient and protein-rich foods.

American consumers prefer low-sodium and organic cold cuts due to their increasing awareness about health and fitness. Some of the leading companies in the United States are Hormel Foods, Oscar Mayer, and Boar's Head.

What is the Demand Outlook for Cold Cuts in Germany?

“Cold Cuts Widely Used in Traditional German Cuisines”

• The German market is forecasted to expand at a CAGR of 5.5% through 2033 due to strict regulations on meat quality and labelling, ensuring product safety and transparency

Germany has a strong tradition of consuming cold cuts, especially Wurst. It's a staple food in German cuisine and culture. German consumers prefer a wide variety of cold cuts, including traditional sausages such as Bratwurst in Bavaria and Mettwurst in the North, and also newer, healthier options.

Why is Japan Considered a Profitable Market for Cold Cut Producers?

“Busy Lifestyle of Japanese Stimulating Demand for Ready-to-eat Cold Cuts”

• The market for cold cuts in Japan is estimated to expand at a CAGR of 5% from 2023 to 2033 due to rapid urbanization and changing dietary habits.

Pre-packaged, ready-to-eat cold cuts are gaining popularity among busy individuals in Japan. While international brands are present in the country, local Japanese brands such as Nippon Ham and Itoham are majorly dominating the national market.

Category-wise Analysis

Which Sales Channel is Popularly Used for the Distribution of Cold Cuts?

“Offline Channel Still Holding Dominance in This Market”

The distribution of cold cuts primarily occurs through offline channels such as brick-and-mortar stores, supermarkets, hypermarkets, and specialty meat shops. These traditional offline markets are popular among consumers to purchase cold cuts, as they can physically inspect and select the product of their choice.

However, online shopping for cold cuts is also expected to gain traction over the coming decade due to the rise of e-Commerce and online grocery shopping apps. Many grocery stores and specialty meat retailers now have online platforms where consumers can order cold cuts for delivery or pickup. The online distribution offers convenience, particularly for busy consumers or those looking for a wider variety of cold cut options, including specialty or international products.

Competitive Landscape

Top brands in the cold cuts market are focusing on innovation and adopting several advanced packaging technologies to increase the shelf life of products and reduce waste. They are advancing their product portfolio to attract a wider consumer base and earn more profits.

• Hormel recently introduced the Natural Choice product line, featuring various natural and organic cold cut options such as bacon, ready-to-eat pizza, etc., with no artificial preservatives.

Key Segments of Cold Cuts Industry Research

• By Product Type :

  • Deli Cold Cuts
  • Packaged Cold Cuts

• By Distribution Channel :

  • Online
  • Offline

• By Region :

  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia & Oceania
  • MEA