Sales of specialty foods and beverages across all retail and foodservice channels neared $194 billion in 2022, up 9.3 percent over 2021, and are expected to reach $207 billion by year’s end, according to SFA’s annual State of the Specialty Food Industry Report.
The specialty market is composed of 63 food and beverage categories which collectively account for nearly 22 percent of retail food and beverage sales. The chips, pretzels, snacks category was the highest-selling specialty category at retail in 2022, moving up from the #3 spot in 2021 and becoming the first specialty category ever to exceed $6 billion in annual sales.
The top 10 specialty categories in retail sales were:
1. Chips, pretzels, snacks
2. Meat, poultry, seafood (Frozen, refrigerated)
3. Cheese and plant-based cheese
4. Bread and baked goods
5. Coffee and hot cocoa, non-RTD
6. Entrees (Refrigerated)
7. Chocolate and other confectionery
8. Water
9. Desserts (Frozen)
10. Entrees, lunch, dinner (Frozen)
“The resilient specialty food industry continues to thrive despite weathering challenges since 2020,” said Denise Purcell, SFA’s vice president, resource development. “While food inflation has impacted the market in the past couple of years, that is stabilizing, and the industry is poised for the future with several positives in place. Consumers have more retail channels in which to purchase specialty foods, foodservice is rebounding, and makers are innovating with sourcing, ingredients, and promotion.”
Two top-selling categories in 2022 - Entrées (Refrigerated) and Chocolate and other confectionery - also were among the top 10 fastest-growing specialty categories in 2022:
1. Energy and sports drinks
2. Tea and coffee, RTD (Refrigerated)
3. Entrées (Refrigerated)
4. Breakfast foods (Frozen)
5. Cream and creamers (Refrigerated, Shelf stable)
6. Chocolate and other confectionery
7. Baby and toddler food
8. Cookies and snack bars
9. Soda
10. Appetizers and snacks (Frozen)
Researcher David Lockwood will discuss the findings of the report at the Summer Fancy Food Show on Monday, June 26 at 10:30 a.m. on the Big Idea Stage at the Javits Center in New York.
The State of the Specialty Food Industry and 10-Year Category Tracking and Forecasts, 2023-2024 Edition can be purchased in the specialtyfood.com Learning Center. The cost is $499 for SFA members and $899 for non-members.
Related: Lessons Learned With Jonathan Milo Leal, Milo's Whole World Gourmet; Fancy New York Pitch Slam Finalists Named.