Why Is Beef Bologna So Expensive These Days?

Bologna, that staple lunch meat many of us grew up eating, seems to keep getting more and more expensive at the grocery store deli counter. You may have noticed the rising bologna prices lately and wondered why a humble cold cut now costs as much as a good steak. There are several factors driving up the costs of beef bologna in recent years.

The High Demand for Beef

One of the main reasons behind expensive bologna is that beef prices in general have been going up. Beef is in high demand in the U.S. and worldwide, which leads to higher prices.

• Americans consume massive amounts of beef – around 57 pounds of beef per person in 2020. So there is huge demand for beef domestically.

• Overseas markets also clamor for American beef exports. The growing middle class in countries like China, Japan and South Korea has an appetite for beef.

• But the supply of cattle in the U.S. has declined over the years due to droughts and other factors. With supply lower but demand still high, beef prices climb.

• Since bologna is made of beef the increasing costs of beef get passed along to the consumer in the form of pricier bologna.

Processing and Ingredient Costs

Producing bologna is a complex manufacturing process requiring multiple ingredients beyond just beef The costs of processing and ingredients have been rising, making bologna more expensive to produce

• Labor, equipment, energy, packaging and transportation costs have all gone up for meat processing companies. These higher costs mean pricier bologna.

• Spices, seasonings and curing agents used to make bologna have increased in price as well. For example, the price of garlic and pepper has risen dramatically.

• Casings to encase the bologna also cost more. Beef bologna uses edible collagen casings, which have over doubled in price lately due to supply chain issues.

Brand Name Bologna Costs More

One way deli meat brands justify charging higher prices is by touting their brand name Big national brands like Oscar Mayer can command premium pricing for their bologna,

• Brand name bologna is seen as higher quality and worth paying more for, compared to generic store brand bologna.

• Advertising and marketing budgets of the major brands also drive up their costs and prices. Customers pay for all those TV commercials and NASCAR sponsorships when buying brand name bologna.

• Less price-sensitive shoppers are willing to pay extra for the brand names they recognize and trust when it comes to processed meats.

Premium Bologna Varieties

Another factor pushing up bologna prices is the proliferation of premium and specialty bologna varieties. These upscale bologna types cost more to produce.

• Flavored bolognas infused with ingredients like pepper, garlic, olives or cheese are more expensive to make.

• Artisanal bologna containing grass-fed beef or locally-sourced ingredients usually costs more as well.

• Organic bologna made without hormones, antibiotics or artificial preservatives also comes at a premium price.

• Even just thicker sliced bologna or “deli style” bologna costs more than regular thin sliced.

These upgraded kinds of bologna must charge higher prices to cover their additional manufacturing expenses. Of course, customers may perceive these premium bolognas as higher quality and worth the extra cost.

Shrinking Bologna Packages

You may have noticed your pound of bologna contains less cold cuts lately. This is because packages have shrunk while the price stays the same.

• A standard 1 lb pack of bologna now contains only around 10 oz of meat rather than a full pound.

• Oversized packaging makes you think you are buying a pound but you are actually getting less bologna.

• Packages got downsized while prices increased slightly too. So per pound, bologna is more expensive.

• Buying bologna by the slice instead of packaged can avoid this shrink ray effect. But deli counter bologna is pricier.

So next time you make a bologna sandwich, just remember all the reasons why that humble lunchmeat now costs an arm and a leg! The forces of supply, demand, manufacturing costs and marketing have driven bologna prices through the roof. Meat processors and retailers know customers expect low bologna prices, but economic realities make cheap bologna a thing of the past.

Ways to Save on Bologna

Bologna might seem overpriced these days, but there are some tips to save money on it:

• Buy store brand or generic bologna instead of national brands. It’s usually 40% cheaper or more. Taste tests show most people can’t tell the difference.

• Check the deli counter at grocery stores for bologna sliced fresh to order. This can cost less per pound than packaged.

• Look for bologna in the discounted deli cold case section, often marked down if near sell-by date.

• Shop at warehouse club stores like Costco and Sam’s Club. Their huge volume lets them sell bologna for less.

• Watch for bologna coupons and promotions at supermarkets. Stock up when it’s on sale.

• Purchase large diameter bologna logs and slice them yourself. Gets more slices per pound.

• Switch to other lunch meats like ham, turkey or chicken that are currently less expensive than beef bologna.

• Try store brand bologna alternatives like “beef lunch slices” that use meat byproducts and cost less.

• For kids, swap bologna in lunches for budget-friendly peanut butter and jelly instead.

With some smart shopping, you can still enjoy bologna without breaking the bank. But be prepared to pay premium prices for the convenience of pre-sliced deli bologna. Or make small sacrifices like buying a cheaper brand in order to keep America’s favorite lunch meat on the menu!