Specialty Food Magazine

Summer 2021

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.

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SUMMER 2021 29 The specialty food market reached total sales of $170.4 billion in 2020, a 13 percent increase since 2018. Brick-and-mortar retail channels represent the bulk of sales with $136.3 billion (including sales estimates for Whole Foods Market, Trader Joe's and PLU sales). $0 $50B $100B $150B $200B $ 150.4 2018 2019 2020 $ 158.5 $ 170.4 $ 114 $ 32.8 $ 3.6 $ 118.3 $ 34.8 $ 5.4 $ 136.3 $ 24.4 $ 9.8 U.S. Sales of Specialty Food— Brick-and-mortar retail channels* Online retail channel** Foodservice *Brick-and-mortar retail channel includes sales from natural, specialty, and MULO, as well as an estimate for specialty food perishables (PLU or random-weight specialty items sold in a supermarket's bakery, deli, meat, and seafood sections) sold in these outlets. In addition, these figures include estimated specialty food sales from Trader Joe's and WFM (including their private-label sales). **Online retail channel estimated by the SFA Data may not equal totals due to rounding Source: SPINS/SFA $ Billions $114 $118.3 $136.3 2018 2019 2020 $32.8 $34.8 $24.4 2018 2019 2020 Foodservice (Billions) 0 5 10 15 20 25 30 35 Brick-and-mortar retail channels 0 30 60 90 120 150 Online Retail Channel (Billions) 2018 2019 2020 $ 3.6 $ 5.4 $ 9.8 0 5 10 (Billions) Retail, Foodservice, and Online (Billions) The Size of the Specialty Food Market at Retail and Foodservice The foodservice channel has been particularly devastated over the past year with stay-at-home mandates, indoor dining restrictions, and restaurant closures. While it has accounted for 20-22 percent of the total specialty food market in the past with solid year-on-year growth, in 2020 it comprised 15 percent of specialty food sales. Specialty foodservice sales declined a staggering 30 percent to $24.4 billion in 2020, but were o›set by increases on the retail side of the market. The meteoric rise of online (either pure play ecommerce or brick-and-mortar retailer ecommerce sales) continues, with sales hitting $9.8 billion in 2020, a 170 percent leap since 2018. This growth was prominent pre-COVID but was certainly spurred on by the pandemic. In 2020, online sales grew 80 percent.

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