The Mainstream Appeal of Specialty Foods

With U.S. sales of $207 billion in 2023—up 149% in the past decade, according to the Specialty Food Association (SFA)—specialty foods have broad-based appeal. Sales are projected to reach $221.5 billion this year and enjoy a compound annual growth rate of 5.4% from 2023 to 2027. Experts consider specialty foods dependable predictors of high-potential food and beverage market opportunities.

Those who are most likely to purchase specialty foods include households with kids, those with incomes of $150,000-plus, plant-forward consumers, and residents of the West Coast, per the SFA. Specialty food purchasers skew younger. Eighty-three percent of millennials, 77% of Gen Z, 73% of Gen X, and 53% of baby boomers made specialty food purchases last year.

Specialty food products are purchased across channels; last year 62% of purchasers bought specialty foods in a supermarket, 50% in a mass retailer like Walmart, 42% in a natural food store, 25% in a farmers market, and 21% in either a gourmet shop or a convenience store.

One indicator of just how mainstream specialty foods are: Walmart this spring announced the rollout of a 300-plus item line of bettergoods products, which the company says offers consumers an “elevated experience.” The new line, Walmart’s largest private label launch in 20 years, includes specialty salts and seasonings, premium pastas, plant-based items, and “made without” offerings that are gluten-free or made with no artificial flavors, colorings, or added sugar.

Here’s a look at product trends within some of the largest specialty food and beverage categories. (See a list of the 10 specialty product categories with the highest sales below).

Source: The Specialty Food Association

SNACKS

Chips/pretzels/snacks make up the largest specialty food category with sales projected to reach $8.3 billion by 2027, and snacks and appetizers are the second fastest-growing specialty food category, according to the SFA. Across the board, indulgent snacks hold the greatest snack food share, followed by better-for-you offerings, according to data from Circana. Chocolate was the most purchased specialty food last year, according to the SFA. Macalat uses a fermented mushroom mycelium extract to remove bitter notes from its new sugar-free, organic Sweet Dark Chocolate bar.

Early morning and late night are the fastest-growing snacking occasions, according to The Hartman Group. Circana reports that kids snacked 4.9 times a day and adults had 3.5 daily snacks last year, contributing to a 9% increase in snacking occasions.

With three-quarters of consumers eating snacks as a meal at least once a week, according to Datassential, expect meal-worthy appetizers like new Laoban Bao Buns in varieties including Barbecue Pork, Spicy Beef, and Sesame Chicken to be well received.

Snack categories with strong growth potential include sprouted and upcycled products, sea vegetables, and high-protein products. Popped Protein Chips from Legendary Foods claim 20 grams of protein per serving. Snacks from the Sea Kelpie Chips are made from sustainably harvested kelp.

Designed to deliver trend-forward taste experiences, Walmart’s new private label bettergoods lineup features 300-plus items, most priced for less than $5. Photo courtesy of Walmart

Circana reports that interest in snacks positioned to offer a digestive benefit has jumped 12.3% since 2019. Other snack categories drawing increased interest, per Circana, include low-calorie, up 8.5%; vegetarian, +7.2%; and vegan, +6.5%.

Four in 10 consumers want more salty chips featuring sweet heat, chili crisp, and shitake flavors, per flavor company T. Hasegawa. Tajin, adobo, masala, bulgogi, furikake, and za’atar are among the global chip flavors of greatest interest to Gen Z.

Market Movers

• Matilde Vicenzi’s Millefoglie are mini puff pastries with an apricot and bourbon vanilla filling.
• The Saucy Ladies’ Arrabbiata Kettle Chips are right on target for adventuresome snackers.
• THEO’S Sweet Potato Jerky, which comes in varieties like Korean BBQ, has two servings of veggies per two-ounce bag.
• Tucson Foods introduced Tamale Bites.

MEAT, POULTRY, SEAFOOD

Sales of specialty meat/poultry/seafood products (both frozen and refrigerated) are projected to reach $7.4 billion by 2027, per the SFA, making it No. 2 on the association’s list of top 10 specialty product categories.

Natural store shoppers are much more likely than other channel shoppers to buy value-added meat, such as marinated products or kabobs, and meat with claims related to how it is produced, according to FMI, The Food Industry Association.

Raised in the USA is the most sought-after meat claim in the natural channel, followed by humanely raised, no hormones/antibiotics, natural, free-range, grass-fed, and organic, FMI reports.

Gourmet flavors, healthier charcuterie, protein look-alikes, and plant-based options are adding sizzle to the specialty meat case. Examples of specialty products with such positioning include Brooklyn Cured’s Bourbon and Sour Cherries Pork Salami, which is made from meat that is pasture-raised and nitrate-free, and a new Salame Milano charcuterie from Veroni, which carries a low sodium and no nitrates/nitrites claim.

Market Movers

• A new Fiorucci Appetaggio snack pack features hard salami wrapped around peach-studded mozzarella cheese.
• V&V Supremo Foods is introducing Chicken Chorizo.
• Gutted and scaled, NEPTUNO USA’s Whole Yellowtail Snapper makes restaurant-style seafood convenient for the home cook.

BREAD/BAKED GOODS

Specialty food shoppers are also big bread buyers. With sales projected to reach $6.8 billion by 2027, bread and baked goods are No. 4 on the SFA’s top 10 list. Unit sales in the refrigerated bread/rolls/pastry dough subcategory rose 9% for the year ended March 24, 2024, Circana reports.

Global varieties, convenience, allergen-free, and plant-based continue to be hot trends for gourmet breads. Sales of brioche grew 16% in 2023, per Circana. Sweet Loren’s puff pastry, pie crust, and pizza dough are allergen-free. La Brea Bakery debuted a plant-based brioche bun. Nature’s Own Perfectly Crafted Flats are Non-GMO Project Verified and ready to customize.

Six in 10 bakery shoppers say they want more bread products linked to diverse cultures, according to FMI research. Think Brazilian pão de queijo cheese rolls, Pan Cubano bread, German pumpernickel, Irish soda bread, English crumpets, and fluffy flatbreads like Norwegian lefse or Chinese shaobing.

Made with sprouted grains, pea protein, and chickpea flour, Arnold Grains Almighty Plant Protein Bread has 9 grams of protein per two-slice serving.

Market Movers

• The Krusteaz brand has introduced a Hawaiian Sweet No Knead Bread Mix.
• Arnold Grains Almighty Plant Protein bread delivers 19 grams of whole grains, 9 grams of protein, and 5 grams of fiber per serving.
• Rhodes Warm & Serve rolls are 90% baked and may be heated in the oven or the microwave before serving.

ENTRÉES

Specialty and natural channel food shoppers prepare fewer home-cooked dinners than traditional supermarket shoppers—fewer than four per week, according to data from FMI. They spend 33 minutes on average on dinner preparation.

So it’s not surprising that both refrigerated and frozen entrées are included on the list of specialty food products with the greatest sales. Sales of refrigerated entrées are expected to reach $6.0 billion by 2027, and frozen entrée sales are expected to be $4.4 billion, according to the SFA.

Globally inspired recipes, sushi, and plant-based products are driving entrée sales growth. Half of fresh prepared product users say they are highly likely to buy more Japanese and Mediterranean entrées; four in 10 expect to purchase more sushi, Caribbean, Thai, Cuban, or Korean products; and one-third anticipate purchasing more Indian, Middle Eastern, and Vietnamese products, according to FMI data.

In addition, FMI finds that more than half (55%) of shoppers say they want more gourmet convenience products and ingredients while 32% want more meals that are ready to heat and eat.

For consumers looking for an easy and healthful meal on the go, Lentiful Instant Lentils are high in protein and fiber and come packaged in microwaveable cups in varieties including Cinnamon Apple, Mexican Green Chile, and Thai Coconut. Primi Italy introduced gourmet Italian Mac & Cheese in a to-go cup that requires only a cup of hot water for easy preparation.

The Blue Zones Kitchen Burrito Bowl is inspired by the cuisine of Nicoya, Costa Rica, one of the regions of the world where people have long, healthy lifespans. Photo courtesy of Blue Zones Kitchen

Market Movers

• Blue Zones Kitchen offers a line of frozen bowl meals inspired by cuisines from the regions of the world where residents live long, healthy lives.
• Kevin’s Natural Foods has introduced a new lineup of frozen bowl meals, including varieties such as Korean BBQ-Style Chicken and Parmesan Basil Chicken.
• Natural products grocer Earth Fare offers new meal kits, one focused on Healthy Weight and another on Athletic Performance.

DESSERTS

It appears that specialty food purchasers have a sweet tooth. With sales projected to reach $4.5 billion by 2027, desserts were No. 8 on the top 10 specialty product list.

Chocolate flourless cakes and tortes, rainbow cakes, lemon cakes, sponge cakes, funnel cakes, caramel custard, chia pudding, and molasses cookies are among the fastest-growing desserts on U.S. menus, according to Datassential.

Dessert beverages, up 62% on casual dining menus in 2023, and dessert samplers/charcuterie platters, up 32% in mid-scale dining establishments, are missed fancy food retail opportunities, per Datassential.

Watch for a new wave of lesser known decadent global treats, including Canadian Nanaimo bars, Chinese mango pudding, Polish kolaczki, German Black Forest cake, Greek galaktoboureko custards, linzer tortes, Chinese mooncakes, and Italian zabaglione. Europastry introduced Pastel de Nata, a ready-to-eat Portuguese tart with an egg cream filling.

Dessert cheeses are another fast-emerging market opportunity. The lineup from Henning’s Wisconsin Cheese includes Simply Strawberry Cheddar and Blueberry Cobbler Cheddar dessert cheeses.

Sweet and salty tastes come together in Tillamook’s new ice cream variety, which combines honey-flavored ice cream with honeycomb toffee and sea salt. Photo courtesy of Tillamook County Creamery

Market Movers

• Tillamook Sea Salt & Honeycomb Toffee Ice Cream won the Gold Award in the SFA’s 2024 sofi Awards frozen desserts category.
• Sweety Mochi Ice Cream in a bite-size treat format comes in a Vietnamese Coffee flavor.
• Nature’s Premium DessertPEARLS, available in varieties including Cookies & Cream, mixes tasty ingredients like cookie crumbles and frozen yogurt pearls in single-serve cups.

BEVERAGES

Ready-to-drink coffee/tea is projected to be the fastest-growing specialty gourmet product category through 2027, per SFA. La Colombe Coffee Roasters introduced its one-gallon ready-to-drink Cold Brew on Tap Pack Fridge Pack. Minor Figures’ Barista Chai Concentrate is ready to mix with milk for a hot or cold chai beverage.

Water is No. 10 on the SFA’s list of top 10 categories, with 2027 sales projected to be $4.3 billion. SFA reports that more than half (54%) of specialty product shoppers buy water/sparkling water.

New GoodBelly Prebiotic Sparkling Waters made with real juice contain 3 grams of fiber per can and no added sugars. Karma Water introduced a line of flavored waters formulated with probiotic cultures. Good Idea Sparkling Water, which includes a blend of essential amino acids and chromium picolinate, claims to boost metabolism and balance blood sugar levels.

In 2023, mood support, cleanse/detox, digestive health, and energy support were the fastest-growing health focuses for functional beverages in the natural/organic channel, per SPINS.

New GoodBelly Prebiotic Sparkling Waters are organic and contain sustainably sourced blue agave prebiotic fiber to support healthy digestion. Photo courtesy of GoodBelly

Market Movers

• Minus Coffee debuted a bean-less coffee, created by fermenting upcycled ingredients including chicory roots, date seeds, and legumes with caffeine extracted from tea leaves.
• Four Sigmatic’s Think Organic Coffee made with lion’s mane mushroom extract is formulated to support mental focus and energy, the company says.
• GoodSport, a clear, dairy-based hydration beverage, delivers three times the electrolytes and 33% less sugar than traditional sports drinks, according to the company.

Other segments of the specialty products sector worth watching include plant-based, specialty produce, globally inspired products, and more.

RE-PRIORITIZING PLANT-BASED

Dollar sales of plant-based burgers, nuggets, and dinner sausage links fell 16% for the year ended Nov. 5, 2024, per SPINS. Sales of plant-based yogurt and ice cream are also slowing. Perhaps in response to sales downturns, savvy marketers are trying new approaches, focusing on taste and recipes as their primary on-pack sales motivators and simply calling out product attributes such as plant-based and dairy-free.

Daring Foods highlights the product variety (Spicy Fajita, for example) on its Plant Chicken Bowls. Secondary callouts include protein content, gluten-free, and non-GMO. Parmigiana Stuffed Chicken is the most eye-catching descriptor on the TiNDLE plant-based chicken entrée.

As consumers move to whole food health solutions and continue to cut back on ultra-processed meat alternatives, true veggie-centric/real food ingredient formulations with nuts and legumes, for example, are grabbing attention.

Dr. Praeger’s Crunchy Cauliflower Veggie Burgers are formulated with six different vegetables. Nutcase Vegan Breakfast Sausages are a savory blend of walnuts, sage, spices, pecans, and hemp, flax, sesame, and fennel seeds.

Beyond Meat has announced it will pivot to a real food ingredient health message. Its fourth-generation Beyond Burger has been reformulated with avocado oil, red lentils, faba beans, peas, and brown rice.

Vegetarian positionings are also on the rise. Purple Carrot debuted Vegetable Tikka Masala and Sweet & Sour Cauliflower vegetarian meals, touting the messaging that “veggies are the hero.”

Crafty Counter’s WunderEggs, plant-based hard-boiled eggs formulated with almonds, cashews, and coconut milk, are among the company’s innovative new specialty offerings. Burroughs Family Farms introduced Regenerative Organic Almond Milk Concentrate, which is ready to mix with water.

SPECIALTY PRODUCE

Produce is the largest organic food category with sales of $20.5 billion in 2023, according to the Organic Trade Association. Avocados, berries, apples, carrots, and packaged salads were the most purchased organic items.

Tropical fruits, specialty fruits, and berries drove strong volume growth for fresh fruits last year. Watermelon radishes, pink lemons, and Honey Dragons Fruit (pitaya) from Frieda’s Branded Produce are among the novel items set to dazzle shoppers.

The Southwest Salad Kit from Little Leaf Farms features greenhouse-grown Baby Crispy Green Leaf Lettuce. Photo courtesy of Little Leaf Farms

New introductions from FiveStar Gourmet Foods include Simply Fresh Deluxe Salad Kits with extra toppings in varieties like Mexican Tostada and Thai Crunch. Lettuce in new Southwest and Crispy Caesar Salad Kits from Little Leaf Farms is greenhouse grown without the use of chemicals.

UNIQUELY ADVENTUROUS

Flavor and global grazing are the top purchase drivers in the specialty gourmet sector; planetary concerns and health benefits remain second-tier motivations, according to the SFA.

As interest in more complex flavors and combination flavors (think spicy-herbal and sweet-umami) moves mainstream, expect the demand for more detailed flavor descriptors to grow.

While Korean, Indian, Middle Eastern, Spanish, and Vietnamese are the most familiar global cuisines being featured in trendy restaurants and specialty grocers, Hawaiian, Jamaican, regional Chinese, Sicilian, Irish, and Venezuelan are also on the rise, according to Datassential.

Remoulade, arrabbiata, Southern comeback sauce, harissa, tapenade, curry, romesco, and ponzu are among the sauces and spreads trending in specialty stores and chic eateries. Miso, Thai basil, tahini, fry sauce, chili oil, wine reductions, fruit vinegars, mole, and saffron are other fast-emerging flavoring favorites, according to Datassential.

Up-and-coming barbecue flavors cited by T. Hasegawa include white barbecue, Carolina, Arizona, spicy maple, tamarind, and huli huli.

Fruit vinegars such as Villa Manodori Dark Cherry Aceto Balsamico Di Modena and flavor-infused jams like Mango Pineapple Habanero Jam from Blake Hill Preserves are among the trendy new condiments. Also trending are vegetable toppers such as Vantia Sweet & Savory Sun Dried Peppers and Pickled Pink Onions from Pink Wagon Foods.

Watch for a new era of personalized flavors and sauces and for founders of authentic globally inspired food companies to be among the next food celebrities.

NATURAL CHANNEL HOTSPOTS

Allergen-free formulations remain a strong trend in the natural/specialty products arena. Bake Me Healthy Oatmeal Pancake & Waffle Mix is gluten-free and contains none of the top nine allergens. Kid-friendly Organic No Sugar Added Fruit Burst JonnyPops Minis are ice pops made in a peanut-free facility and also are free of the top nine allergens.

Popcorn, brown rice, chickpea, nut, and lentil flours are attracting attention in the marketplace. Baking mixes from TruEats Modern Baking Co., made using a blend of chickpeas, lentils, buckwheat, and almonds sweetened with monk fruit, are billed as a healthy way to manage blood sugar levels.

Traditional sweeteners, such as dates, honey, maple syrup, agave, and fruit purees, are back in the spotlight. New Nature’s Bakery Brownie Bars are made with whole grains, dates, and cocoa. Food brand GOOD GOOD debuted Lemon Curd made with no added sugar.

Made with purified water and organic cane sugar, JonnyPops ice pops are vegan and have a simple ingredient list. Photo courtesy of JonnyPops

Arame & Ginger Organic Kraut from wildbrine formulated with seaweed and probiotics is among the new fermented products grabbing attention in the marketplace. Kefir was one of the fastest-growing small product categories last year, per Circana. Pure Culture Organics will make its new kefir line available for distribution this September; it includes varieties such as Vanilla Peach, Wild Blueberry, and Tart Summer Cherry.

Creatine, magnesium, hydration ingredients, and mushrooms were among the hot ingredients in the natural channel in 2023, per SPINS. Reishi mushrooms were the fastest-growing functional ingredient in natural snacks, followed by protein and ashwagandha.

Nutritional density, collagen, metabolism-boosting ingredients, and glucose-friendly formulations are all emerging specialty food trends. Confetti Lovely Veggie Chips, available in varieties including Summer Truffle, Teriyaki BBQ, and Tandoori Curry, are nutrient dense and a good source of fiber.ft