*Annual survey dates: January 2018-20, July 2021
**Discounters new in 2018; Grocery Outlet added as an example in 2020
Source: SFA
Various factors have propelled these types of outlets forward. First,
specialty brands are increasingly gaining a foothold in mainstream outlets,
including mass, club, and discounters. Some seek these accounts as their
primary distribution goal.
Second, these types of outlets are known for value, and SFCs are
eager to shop with value an increasingly important factor.
In 2021, natural outlets like Whole Foods Market ranked third after
mass outlets as the consumer need for one-stop-shopping and value
appealed more during COVID. Natural and specialty outlets have seen
fewer SFCs use them in recent years, though these outlets are often where
new food trends and emerging specialty brands first get noticed.
Retailer formats and brands should attune to their core consumer.
For example, younger generations are the most likely to favor natural
markets, while Boomers stand out in their preference of traditional
supermarkets. Specialty brands that know their core consumers should
prioritize distribution in optimal store formats.
Supermarkets are still the leading retail channel where SFCs shop, but they are dropping
as mass, club, and discount outlets gain ground. Discounters like Aldi, Grocery Outlet,
and Dollar General have become increasingly popular as well (+4pts).
Where Specialty Food Consumers Shop
Today's Specialty
Food Consumers:
Where
They Shop
by Retail Channel
10
%
20
%
30
%
40
%
50
%
60
%
70
%
80
%
2018 2019 2020 2021
Supermarket
Mass
Natural
Club
Discounter
Specialty food store
33%
48%
45%
37%
29%
26%
33%
36%
26%
24%
16%
22%
17%
24%
21%
19%
44%
37% 44%
47%
49%
72%
69%
62%
(ALDI, Lidl, Grocery Outlet, Dollar General)**
(Costco, Sam's Club)
(WFM, Sprouts, Trader Joe's)
(Walmart, Target)
FALL 2021 43
