Specialty Food Magazine is the leading publication for retailers, manufacturers and foodservice professionals in the specialty food trade. It provides news, trends and business-building insights that help readers keep their businesses competitive.
Issue link: https://www.e-digitaleditions.com/i/1119718
While brick-and-mortar retail sales still comprise most of the market, specialty foodservice and online
sales are growing more rapidly.
In 2018, sales from brick-and-mortar retailers reached
$113.4 billion, representing more than three-quarters of total
sales. Specialty foodservice sales account for 22% of the
market, at $32.4 billion. Foodservice sales grew more than
retail between 2016 and 2018, 12.9% compared to 8.4%.
However, in both cases sales were stronger in 2017 than 2018.
Online sales of specialty foods and beverages represent
only 2.5% of total sales, or $2.85 billion. But growth has been
very strong since 2016 at 41%, and particularly robust last year
at 24%.
Today, mainstream outlet growth, including supermarkets,
mass merchandisers, drug stores, and other mass outlets, is the
strongest, with specialty and natural food stores lagging. The
wide availability of specialty products in conventional outlets is
a definite factor. "Specialty is becoming mainstream. As the
specialty categories grow and CPGs acquire some of these
companies, it creates the risk for us that a retailer will choose to
take it direct along with other mainstream product they
purchase from that CPG," says a vice president of vendor
relations for a large specialty food distributor.
"As we build a product up and it's successful, a retailer may
take that directly into their warehouse, and then it is our job to
find new items to replace it. We are continually working with
smaller companies and startups of varying levels of prepared-
ness, which can pose challenges," she adds.
"Looking ahead we're asking how we
are going to assist these retailers
with their initiatives around online,
and direct ship, store pickup, etc.
There's a lot of buzz right now, as to
how to solve for these issues and be
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—vp of vendor relations for a
large specialty foods distributor
Source Mintel/SPINS
THE STATE OF THE SPECIALTY FOOD INDUSTRY S3
Mainstream Stores 11%
Natural Food Stores 3%
Specialty Food Stores 2%
Natural food stores includes sales estimates for Whole Foods Market and Trader Joe's.
Does not include private-label sales, specialty food perishables, PLU or random-weight
specialty items sold in bakery, deli, meat, and seafood, or online sales. Source: Mintel/SPINS
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Source Mintel/SPINS
Retail Channels $113.4
Foodservice $32.4
Online $2.85
SPECIALTY FOOD
2018 $ Billion
total u.s. sales of
% change
Editor's note: The market size for the specialty food industry has been calculated as follows: SPINS provides three-year
scanner data sales for food, drug, and mass segments and natural supermarkets (excluding Trader Joe's and Whole Foods
Market) for sales in 63 categories. To reach the U.S. sales total, Mintel adds estimated sales that weren't collected by
scanner data. This includes PLU sales (excluding produce) through all channels, as well as sales through Trader Joe's, Whole
Foods Market, and some specialty food retailers.
THE SIZE OF THE SPECIALTY FOOD MARKET
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