However, folding in our estimates for natural powerhouses Whole Foods and Trader Joe's presents
a more complete picture.
In 2023, tracked sales of specialty retail (brick-and-mortar stores) rose to another record high of
$102.1 billion. Growth in the last two years has largely been driven by conventional retailers and grocers.
The Conventional channel includes conventional
grocery, drug, mass merchandisers, club, dollar,
and military outlets.
With $87.3 billion in specialty sales in
2023, and 15% growth during
2021-2023, the sprawling channel
accounted for
of all specialty retail sales.
67%
13%
The Natural/Specialty channel includes
grocery stores, co-ops, independents,
and large regional chains.
Natural & Specialty retailers have struggled
to grow sales since 2020, growing about
halfas fast as conventional.
Now, add in combined natural/specialty
sales for Whole Foods and Trader Joe's of
$30.4 billion, and shares becomes 33%,
holding steady since 2021,
vs. conventional's 67%.
40%
Often these retailers derive
or more of their total sales
from specialty products.
These stores generated $13.4
billion and accounted for
of sales in 2023.
The Size of the
Specialty Food Market at Retail
In 2022, out of 63 food and beverage categories, there were just three categories in which the
natural/specialty products performed better than total products in those categories. In 2023, there are
26 positive comparisons, the top 10 of which are shown. Prior to the pandemic, natural/specialty always had
a significant majority of positive cases, so these categories' performances may indicate a return to normal.
Natural/Specialty vs. Total Market
3.3%
9.1%
22.4%
8.7%
21%
24.8%
35.2%
17.1%
26.6%
19.4%
28.7%
17.4%
24.7%
4.4%
10.7%
23.9%
30%
18.4%
24.4%
22.7%
Total Market Natural/Specialty Point Variance
0 5 10 15 20 25 30 35 40
SOURCE: SPINS/SFA
SUMMER 2024 43
