Consumers Drive Growth
From college students to upscale fine diners, consumers are at the forefront of specialty food innovation and sales growth in foodservice channels. As the industry continues to recover from the pandemic years, specialty food sales across retail, foodservice, and e-commerce have seen a 6.5% increase, reaching $206.8 billion in 2023. While inflation played a role in this growth, retail sales—though up by dollar amount—experienced a slight decline in unit volume in some channels.
Foodservice Takes the Lead
Despite retail’s dominance, foodservice has emerged as the fastest-growing channel in the specialty food category over the past two years. In 2023, specialty food sales in foodservice grew by an impressive 11.3%, accounting for 18.1% of the specialty food market. This trend is expected to continue, with foodservice comprising between 18% and 19% of the growing market in the coming years.
Defining Specialty Foods
The Specialty Food Association defines specialty foods as products of the highest grade, style, and quality within their respective categories. These foods stand out due to attributes such as uniqueness, global origin, specific processing (or lack thereof), compelling packaging, or unusual applications. In the foodservice arena, specialty food players are thriving amid changing trends influenced by the effects and aftermath of the COVID-19 pandemic.
Now Trends: Comfort, Community, and Curiosity
The foodservice landscape has shifted, reflecting consumers’ evolving preferences. In 2020 (BC—Before COVID), eco-friendly packaging, plant-based proteins, and healthy bowls were hot trends. In 2022 (PC—Post COVID), experiences and local community took center stage, followed by chicken sandwiches, charcuterie boards, and comfort fare. In 2023 and now in 2024, consumers crave flavors that blend comfort, community, and curiosity. They seek new twists on familiar foods, international cuisines, and shareable dishes that bring people together.
Consider leveraging these insights to enhance your offerings, engage your audience, and stay ahead in the dynamic specialty food landscape. Bon appétit! 🍽️🌟
Comments