The Specialty Food Association’s annual State of the Specialty Food Industry Report, reveals that specialty food remains one of the fastest-growing segments of the food business. Sales jumped 9.8% between 2016 and 2018, reaching $148.7 billion last year.
Specialty food sales outpaced the growth of all food at retail – up 10.3% vs. 3.1%. Product innovation and the wider availability of specialty foods through mass-market outlets is playing a part in the industry’s success. Sales through foodservice represented 22% of sales, with retail taking the top spot with 76% of sales.
The Top Five Categories with Highest Dollar Growth are: Refrigerated Plant-Based Meat Alternatives, Rice Cakes, Frozen Plant-Based Meat Alternatives, Water, Refrigerated RTD Tea and Coffee. The Share of Consumers Buying Specialty Foods by Generation is: Gen-Z – 66%, Millennials – 84%, Gen-X – 75%, Baby Boomers – 69%.
Top Take-Aways include: Plant-based is going strong. Specialty beverages are increasingly a force in the market. Reduced packaging and food waste are hot points and the C-store channel is an under-tapped market for specialty items.