I grew up in the dairy-deli business. My father ran a food brokerage that specialized in it, and before I ever knew what a Nielsen report was, I was learning the rhythms of the case.
The particular logic of how you merchandise specialty cheese next to sliced meats, the way a well-lit deli counter could stop a shopper cold. Back then, the only use for kale was to add some greenery to the perimeter of the deli case. I even did advertising programs for the Tri-State Dairy Deli Association, which gave me an early education in something most food marketing people don’t appreciate enough: that the perimeter of the store isn’t just a department, it’s a conversation.
The dairy/deli is where grocery retailers earn trust, build baskets, and – when they do it right – turn casual shoppers into loyal regulars.
That formative experience has stayed with me through more than 35 years of watching this industry evolve. And right now, I’m watching it face the most consequential consumer shift in my professional lifetime. The question for grocery retailers is simple: are you going to lead it, or are you going to get caught behind those who are profiting from it?
The Forces Reshaping Everything: GLP-1, Protein And Health & Wellness
Let’s start with the numbers.
Gallup’s National Health and Well-Being Index finds the number of Americans taking semaglutide or tirzepatide drugs for weight loss more than doubled in the past year and a half, with 12.4% of respondents taking the medications compared to just 5.8% in early 2024. These shoppers are not a niche demographic anymore.
According to Circana research, the deli department is appealing to GLP-1 users precisely because it offers more portion control than pre-packaged options that may be too large for them to finish before they spoil.
That’s an important ‘aha’ moment for the deli. The deli department is already positioned as the single best answer to the most powerful consumer health movement of our era. The question is whether you’re ready to capitalize on it and promote it!
SPINS data highlights the protein trend has now saturated pretty much every type of consumer, every age group, every athletic activity level -everyone is finding a reason to add protein to their diet. Cheese, always the backbone of the dairy department, is evolving with it.
IFF’s 2026 Dairy Trends Report finds that cheese is emerging as an indulgent, premium snack and mood lifter, with growing potential for flavored, whipped and interactive formats tailored for personal indulgence. That’s good news for a category that for decades was challenged to premiumize.
Meanwhile, the same IFF report finds consumers are moving from basic wellness to holistic well-being, from simple sustainability to proactive regeneration, and from convenience to meaningful indulgence. What used to be a trade-off – health vs. taste, convenience vs. quality – is collapsing. Consumers are no longer willing to choose between health and happiness; they expect dairy-deli products to deliver both.
Grab-and-Go Has Grown Up
When I was working with my dad’s brokerage, “grab-and-go” meant a pre-wrapped sandwich and maybe a container of potato salad. Today, it’s a $5.8 billion business, and just getting started. According to Circana data, the deli grab-and-go salad category ranks as the third largest in deli prepared, behind only entrees and prepared meats, totaling $5.8 billion, up 6.9 percent in 2024.
The global flavor story in the deli is just as compelling, and just as underleveraged. According to IFT’s 2026 Flavor Outlook, Middle Eastern flavors are gaining significant traction and may soon rival Asian cuisines in influence, with za’atar, labneh, baba ghanoush, and harissa all moving into the mainstream.
Datassential reinforces this, reporting that Middle Eastern and African flavors are gaining popularity especially among Gen Z and Millennial diners, driven by social media exposure and a growing appetite for authentic cultural experiences.
Mediterranean-inspired options, including hummus, labneh, tabbouleh, shawarma-spiced proteins, belong prominently in both the prepared foods case and the specialty cheese section, because frankly, that’s where curious shoppers already go to explore. The deli counter is, in many ways, the most natural home for global culinary exploration in the entire store.
What Consumers Actually Want Right Now
The IDDBA put it best when they summarized the 2026 consumer mindset: consumers want their food to be honest, low stress, functional but fun, global but approachable, and comforting but convenient. That’s not a contradiction; it’s a brief. One the dairy/deli department is uniquely equipped to fulfill, if grocery retailers are willing to invest in it.
I’ve worked with Innova Market Insights, and find that their annual consumer trends research which tracks thousands of new food and beverage launches worldwide is one of the best sources I use.
Gut health and protein lead their top industry trends for 2026, and indulgence is running right alongside them. Nearly 60 percent of global consumers are actively incorporating more protein into their diets, 59% say gut health is very important for overall wellbeing, and at the same time, indulgent claims on food and beverage launches are solidly on the rise. Innovative grocery retailers are responding with products that let consumers have their cake and eat it too, and we need to bring that mindset squarely into dairy-deli!
Protein-enriched options, gut-friendly formulations, and nutrient-conscious ingredients are gaining traction.
IFF identifies five trends shaping dairy through 2026: Considered Consumption, Wholistic Health, Joyful Harmony, Regenerative Resilience, and Human + AI collaboration. Together these five are signaling a decisive shift from price-led decisions to more purpose-driven choices. For dairy-deli shoppers, this means the premium SKU is no longer a luxury item. It’s what the health-conscious shopper – who skews younger and more affluent than your average customer – is actively seeking out.
Notably, IFF’s report finds that 30 percent of Gen Z cheese consumers in the U.S. already seek sustainably produced options. Those shoppers are growing into their purchasing prime. Grocery retailers who build provenance and sustainability messaging into their dairy-deli departments today are laying the groundwork for decades of loyalty.
The Playbook For Retailers: The 5 Steps To Take Today
First, make your deli counter a protein destination. Label gram counts. Clearly – on case tags, on signage and online. Merchandise high-protein grab-and-go items prominently.
The c-store operators figured this out before many supermarkets did. Convenience stores that placed signage on their hot deli case showing the number of grams of protein for each item, created GLP-1- and protein-friendly sections in cold merchandisers, and saw a measurable lift in sales of meat and cheese snacks, hard-boiled eggs, yogurt, and protein drinks.
If a gas station chain is outmaneuvering your deli department on this, it’s time to recalibrate. When was the last time your deli case taught a shopper something new about protein?
Second, right-size your portions – literally. The real growth opportunity for GLP-1 users sits in high-protein snacks, functional beverages, and modular meal components rather than traditional plates – any format that delivers more nutrition per bite. Your deli can do that! Half-portions, snack trays, and bundled protein-and-cheese grab-and-go kits that serve both GLP-1 users and the broader health-conscious shopper.
Third, invest in your specialty cheese section like it’s 1982 again, because in terms of growth opportunity, it kind of is. The educated, food obsessed Millennial, GenZ and Alpha consumers want to know where the cheese came from, how it was made, and what it pairs with.
Your associates need to be able to answer those questions. Demos, pairings, storytelling. The deli is experiential retail, and that’s precisely what e-commerce can never replicate.
Fourth, think about breakfast. The IDDBA notes that dairy, deli, and bakery are uniquely positioned to collaborate by merging flavor, convenience, and format flexibility to dominate the AM daypart. Grab-and-go breakfast is one of the fastest-growing segments in food retail, and your deli case has a natural competitive advantage over every fast-food drive-through within a mile of your store. Less expensive, more variety, better quality – and probably fresher.
Finally, don’t underestimate the emotional dimension. As the IDDBA’s Heather Prach observed, consumers still crave comfort, but they now expect it to look fresh, feel elevated, and fit their modern standards. The deli department is where comfort food and aspiration can coexist. A great rotisserie chicken. A perfectly curated charcuterie assortment. An artisan cheese your shopper has never heard of but will tell six friends about. That is the promise of the dairy-deli, and it has never been more relevant than it is today.
My dad understood something in the 1970s that the data is now confirming at scale: the perimeter is where shoppers decide whether they trust you. The dairy-deli isn’t a legacy department running on autopilot. In today’s environment it’s your greatest competitive advantage, and the single most powerful tool you have to win the health-driven, protein-hungry, flavor-curious shopper of 2026.
The only question is whether you’ll choose to execute it that way.
Phil Lempert is a food industry analyst and editor of The Lempert Report. Follow him on LinkedIn @supermarketguru
