28 SPECIALTY FOOD SPECIALTYFOOD.COM
24
%
17
%
Sales Growth of Specialty
Food vs. All Food at Retail
Specialty Food
All Food
The Specialty Food Market at a Glance
Design by Funnel Inc.
About the Research
COVID-19 and its related stay-at-home mandates influenced shopping decisions, category
fluctuations, and channel sales. Overall, all food sales, both specialty and non, grew much
faster between 2018 and 2020, spurred by COVID surge buying and at-home meal prepara-
tion and consumption. All food grew 17 percent at retail during the timeframe compared to 3
percent from 2017-2019. Specialty food sales, specifically, grew 24 percent at retail from
2018-2020, and 19.4 percent in 2020 alone. Categories related to cooking or baking at home
soared, benefitting products like baking mixes, pasta and sauces, frozen entrees, and meat,
poultry, seafood (frozen, refrigerated).
On the flipside, some products associated with on-the-go
convenience slumped without daily commutes to schools or
oŒces. Last year was a year of extremes for grocers. Both
brick-and-mortar and online retailers experienced signifi-
cantly elevated sales as COVID guidelines limited consumers
to their homes. But retailers also had to contend with
increased costs, out-of-stocks, reduced hours, and reduced
or ill sta'. Strict in-store limitations or fewer people choosing
to shop in store as frequently as normal resulted in lower foot
traŒc. One-stop shopping options and ecommerce benefit-
ed from the circumstances.
The growth in both physical and online retail o'set a 30
percent sales freefall of foodservice, which was devastated
by the pandemic. While industry estimates predict foodser-
vice's overall recovery will take years, retail sales are expect-
ed to thrive. By the end of 2021, the specialty market is fore-
cast to be down about 1 percent, but still well above normal,
up 18.4 percent over 2019. Brick-and-mortar retail is forecast
to grow 4.4 percent CAGR by 2025.
This year's State of the Specialty Food Industry research focuses on sales data and growth, 10-year
category forecasts, and supply chain insights. The consumer survey on generational preferences,
shopping and consumption habits will be released as a separate report.
The Specialty Food Association's State of the Specialty Food Industry report encompasses the three
most recent calendar years of sales data from SPINS/IRI and includes figures for 63 specialty food cate-
gories, pulled from the SPINS database of mainstream and natural and specialty food stores. The report also
estimates online specialty food sales. Market researchers David Browne and David Lockwood worked with
SFA to analyze the data and forecasted 37 specialty food categories through 2025. Interviews with mem-
bers of the supply chain, including retailers, foodservice operators, specialty food makers, brokers, and
distributors complete the report.
The state of the specialty food industry and the realities of
the pandemic were inextricably tied over the past year.
