Catch Summer Fancy
Food Show Highlights
on SFA's Livestream
Tune in to SFA's livestream coverage on the
SFA Feed app or SFA's YouTube, LinkedIn,
or Facebook page on Sunday, June 25 and
Monday, June 26, 11 a.m. - 1 p.m. EDT, and
Tuesday, June 27, 10:30 - 11:30 a.m. EDT.
The specialty food trade has its challenges despite
continuing sales growth that hit $194 billion in 2022,
according to SFA's latest State of the Specialty Food
Industry research, now in its 20th edition.
Despite that impressive dollar sales rise is an
unprecendented 2.8 percent annual decline in unit
sales as inflation in most categories outpaced growth.
Makers are struggling to remain profitable amidst
pricing pressure across the supply chain. While
specialty food consumers are continuing to seek
specialty foods, they occassionally may be trading
down or out of different categories.
In addition to tracking the past three calendar
years of retail sales data (2020-2022), the State of the
Industry research analyzed Q1 2023 sales. Here is some
of what's driving growth, and what's not, as we head
into the second half of 2023:
• Savory and sweet snacks are on the rise.
Chips, pretzels, snacks are the number-one
category in retail sales and Chocolate and other
confectionery has risen within the top 10 list
too. Among subcategories, pretzels, potato
chips, and popcorn are among the fastest
growing. Personal indulgence plus a return
to more social events and entertaining likely
helped drive sales. The momentum continues in
early 2023.
• Drinkable yogurt has experienced an uptick,
particularly for plant-based offerings. Dairy-
based also did well in 2022. Many of the latest
innovations are delivering lower-sugar options.
• Soup has continued to thrive in 2022 and
early 2023, driven by consumers' desire for
convenience. Nearly all subcategories are
performing, led by noodles (ramen and other).
• Plant-based meat alternatives are
struggling with few areas demonstrating
growth except plant-based jerky.
• Tea (non-RTD) has seen several of its
subcategories (e.g., green, yerba mate) dip
in the first part of 2023.
• While convenience is trending overall,
some food and beverages are challenged
to grow whether due to maturity or a
need for innovation. Examples include
flavored water (non-sparkling), trail mix,
cold cereal, and sandwich crackers.
You can find more report highlights on p. 37.
And if you are heading to or reading this at the
Summer Fancy Food Show in New York, don't
miss our session, Research Spotlight: State of
the Specialty Food Industry on Monday, June 26
at 10:30 a.m. on the Big Idea Stage.
You'll find several other category trend
sessions during the Show as well, including
talks in our NYC-themed Pavilion Pop Ups in
the Beverage, Deli, and Plant-Based pavilions.
Look for Sips Bay, Lower Cheese Side, and The
Plant-Packing District, and also don't miss the
NEW NOW NEXT pitch stage in Hall D where
some of the newest brands on the market will
be pitching their products daily at 9:45 a.m.
and 2:45 p.m.
You can find a full schedule of events on
specialtyfood.com under Shows & Events or by
downloading the Fancy Food Show 2023 app.
SUMMER 2023 1
editor's letter
Denise Purcell
Editor, SFA Specialty Food
dpurcell@specialtyfood.com
CATEGORIES DRIVING
SPECIALTY FOOD INDUSTRY GROWTH
