Specialty Food Magazine is the leading publication for retailers, manufacturers and foodservice professionals in the specialty food trade. It provides news, trends and business-building insights that help readers keep their businesses competitive.
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THE STATE OF THE SPECIALTY FOOD INDUSTRY 2014 BY RON TANNER 2A ❘ THE STATE OF THE SPECIALTY FOOD INDUSTRY The Specialty Food AssociationÕs State of the Specialty Food Industry is a joint research project prepared by Mintel International and SPINS. The research encompasses three years of sales data for 59 specialty food categories, pulled from the SPINS database of mainstream and natural food stores. In addition, Mintel surveyed specialty food manufacturers, importers, distributors, brokers, and retailers to develop the statistics presented in this report. • Total specialty food sales in 2013 topped $88.3 billion. • Approximately 80 percent of specialty food sales are at retail. • Cheese and Cheese Alternatives is the largest category, with $3.99 billion in sales in 2013, and a growth rate of 16.1 percent between 2011 and 2013. • The fastest-growing categories include Nut and Seed Butters (51.6 percent), Eggs (35.9 percent), and Frozen Desserts (28.2 percent). • Categories with the most significant penetration are Refrigerated Salsas and Dips (49.8 percent) and Tea (40.1 percent). • With growth slowing in mainstream supermarkets, unit sales were also sluggish, showing a -0.8 percent change from 2011 to 2013. Unit sales in natural food stores and specialty food stores grew more rapidly: 23.2 percent and 21.1 percent, respec- tively, according to data from SPINS tracked channels. • In retail segments, specialty food stores recorded the biggest sales increase, at 42.4 percent between 2011 and 2013, followed by natural food stores, at 33.8 percent. • More than 8 in 10 specialty food manufacturers recorded positive sales in 2013. • Distributors say non-GMO has the highest potential for growth of all product claims over the next three years. • Importers report that Latin and Mediterranean are two of the fastest-growing cuisines. • The size of the average specialty food store is 4,748 square feet, with 1,877 SKUs. Average transactions per week exceed 2,500. • Seven in 10 specialty food retailers report that Local is the most important product claim. Sales of specialty foods continue to boom. From 2011 to 2013, sales increased by 18.4 percent. In 2013, retail dollar sales grew an impressive 8 percent. Working with Mintel International and SPINS, the Specialty Food Association has tracked sales of specialty foods through supermarkets, specialty food stores, and natural food retailers, as well as gathered benchmarking data from the supply chain. Here are some of the highlights: ABOUT THE RESEARCH Design by Funnel Inc. @ FOR INFORMATION, including definitions and brand examples of specialty food segments researched for this report, visit specialtyfood.com/stateindustry2014 SOI_2014.indd 90 3/18/14 4:25 PM