NEW
YORK, May 21, 2024 /PRNewswire/ -- The
Specialty Food Association (SFA) has released a second edition of
its groundbreaking research report, Understanding the Real Value
of Specialty Foods. Built on interviews with 1,000 shoppers,
100 retailers, and other data points, the new report outlines the
positive impact of specialty products on retailer profitability and
shopper loyalty, impact that has only increased in importance since
the first edition came out in 2014.
Sales of specialty foods have grown from
$88 billion in 2013 to an estimated
$207 billion in 2023, an increase of
149%.
Describing the current moment as "an era of specialty food
prominence," the report notes that sales of specialty products have
grown from $88 billion in 2013 to an
estimated $207 billion in 2023, an
increase of 149%. With specialty food and beverages now
representing 21.6% of all center store grocery sales in the 63
categories measured by SFA, they are no longer regarded as niche
products, but a major driver of growth in the grocery sector.
"There is a general perception of specialty foods as inherently
worth more, whether in price or in time shoppers spend to procure
them. This updated research proves that perception correct," said
Bill Lynch, SFA president. "This has
meaningful implications for many SFA members and the industry as a
whole. In a time of economic uncertainty and fluctuating prices, we
hope this research helps food makers, buyers, brokers, and
distributors understand the positive impact that specialty products
have on retailers' bottom lines."
Top Takeaways:
Specialty foods drive shopper loyalty. The
report outlines a clear relationship between how customers rate
their primary store and that store's selection of specialty food
items. Almost half (44%) of primary store shoppers surveyed for the
report make trips to secondary stores specifically "to find
specialty food items that their regular store does not carry."
These trips, along with others made to dedicated specialty stores,
represent $1,200 in sales per
household per year, sales which retailers could be retaining
themselves. "If my favorite store carried a wider selection of
specialty food products," said 41% of shoppers surveyed, "I would
be less likely to make shopping trips elsewhere."
"For my stores, specialty foods provide guests moments of joy,"
said Dwight Richmond, director of
center store for Town & Country Markets. "Helping them
re-discover unique foods they loved or encounter new foods they are
going to love helps us create a guest who is excited to come back.
They're telling their friends about the 'treasure hunt' of foodie
finds in our stores, and that makes them a loyal customer for years
to come."
Specialty foods drive retailer profits. In addition to
the sales generated from retaining more trips, specialty foods are
disproportionately more profitable on the shelf, according to this
report. In fact, specialty food items generate a gross margin
dollar return that is 3-4 times higher per unit than mainstream
items, which, the report posits, helps to balance out "somewhat
slower turns from specialty products." Given specialty products'
higher average prices and gross margin rates, these items deliver
more than twice the return on inventory investment (ROI) for
retailers: 50.1% compared with 19.8% for non-specialty items,
according to this report's data.
"From a business perspective," said Richmond, "specialty foods
provide needed boosts in margin and dollar-sale profitability
across all the categories they belong to."
SFA's new report contains sections on the economic impact of
specialty foods, consumer insights and market dynamics, retailer
case studies, growth opportunities, the role of distributors,
private-label trends, e-commerce strategies, and the future outlook
for the specialty foods market.
Understanding the Real Value of Specialty Foods - 2024
Edition is available for purchase in the SFA Learning
Center. Qualified food industry professionals who register for the
2024 Summer Fancy Food Show can also download a complimentary copy
of the report with a redemption code. Learn more and register on
the SFA website.
About the Specialty Food Association
The Specialty Food Association (SFA) was founded in 1952 and is
the not-for-profit trade association of the $207-billion specialty food industry.
Representing more than 3,800 businesses worldwide, SFA champions
industry participation and success for a diverse community of
makers, buyers, importers, distributors, and service providers by
developing resources, information, education, and events
that celebrate innovation and inclusivity. SFA owns and operates
the Fancy Food Shows as well as the sofi™ Awards,
which have honored excellence in specialty food and beverage
annually since 1972. The SFA also produces the e-newsletter SFA
News Daily, the Trendspotter Panel annual predictions
and Fancy Food Show reports, the State of the Specialty Food
Industry Report, Today's Specialty Food Consumer
research, and the Spill & Dish podcast. Find out more
online and connect with SFA on Facebook, X,
Instagram, LinkedIn, and TikTok.
View original content to download
multimedia:https://www.prnewswire.com/news-releases/specialty-food-association-releases-new-research-understanding-the-real-value-of-specialty-foods---2024-edition-302151527.html
SOURCE Specialty Food Association