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.
Issue link: https://specialtyfoodmagazine.epubxp.com/i/802137
EDITOR'S LETTER Five Categories Driving Specialty Food Sales Growth SPRING 2017 1 SPECIALTY FOOD ASSOCIATION MEMBERS: Discuss this topic in the Solution Center on specialtyfood.com T he outlook is positive for a continued strong specialty food industry, with dollar sales hitting $127 billion last year, according to the "State of the Specialty Food Industry 2017" report, compiled by the Specialty Food Association and Mintel. Specialty food sales grew 15 percent, compared to only 2.3 percent for total food sales, the annual research reveals. Denise Purcell Editor, Specialty Food Magazine dpurcell@specialtyfood.com Specialty foods outperformed their non-specialty coun- terparts in almost all of the 61 categories covered in the re- port. With increasingly informed consumers emphasizing quality in their food choices, products that accentuate good health, freshness, and better-for-you alternatives to tradi- tional offerings are driving growth. Here are five areas that have emerged as sales leaders: • Specialty beverages outpace growth of food. Sales of spe- cialty beverages, which hit $10.5 billion in 2016, represent about 18 percent of the total specialty retail market. Though specialty food accounts for the majority, or 82 percent of market share, beverage growth outperformed that of food between 2014 and 2016, at 24 percent versus 15 percent. Wa- ter, refrigerated juices and functional beverages, shelf-stable and chilled RTD tea and coffee are all driving this increase. • Specialty snack foods nab over one-quarter of the total market. As snacking becomes the norm, the segment now commands about 28 percent of the total specialty food mar- ket. Sales reached $16.3 billion in 2016, a 16 percent jump. Of the 13 snack segments represented in the report (includ- ing chips, pretzels, snacks; chocolate and other confection- ery; yogurt and kefir; nuts, trail mix, dried fruit; refrigerated juices and functional beverages; cookies and snack bars; re- frigerated salsas and dips; wellness bars and gels; crackers and crispbreads; frozen appetizers and snacks; nut and seed butters; jerky and meat snacks; and rice cakes), about half ex- perienced growth of more than 20 percent. The popularity of some snacks is helping keep the center store relevant despite fresh and perishable categories' reigning status. In 2016 shelf- stable specialty foods accounted for 61 percent of the total specialty food market, or $36.2 billion. • Trending categories: Jerky, probiotics, and bars. Jerky is still on fire: Sales reached $235 million in 2016, and con- sumer interest in protein snacks has contributed to extremely strong growth (+86 percent) since 2014. Probiotics are the common thread among two of the fastest-growing categories in unit sales ranking, yogurt and kefir—up 19 percent—and juices and functional beverages—up 35 percent and predom- inantly made up of kombucha drinks. And specialty wellness bars and gels reached $1.2 billion in sales. Nearly half of all bar/gel sales are now coming from these types of products. The category is innovating across usage occasions and nutri- tional needs, and is fueled by trends in snacking, protein, and portability. You'll find more insights on channels, trends, and movements impacting the industry in this issue's highlights of the annual report, beginning on p. 81. For a deeper look at dollar and unit sales, category sales performance versus non-specialty foods, and benchmarking supply chain data, visit specialtyfood.com/ stateindustry2017.