Specialty Food Stores Industry Profile

Companies in this industry sell products such as meat, fish, fruits and vegetables, baked goods, candy, and gourmet foods from physical retail locations, often specializing in a single product category. No major companies dominate the industry.

Sales of specialty foods have been increasing worldwide as demand for ethnic foods has continued to grow. In part, the increase comes from immigrant consumers seeking out foods from their own cultures. In the US, it is expected that the buying power of the Latinx population will reach $2.6 trillion by 2025, which is higher than the gross domestic product of non-Latino countries, according to Insider Intelligence.

The US specialty food store industry includes about 22,000 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $20 billion. Specialty food sales grew about 10% from 2021, according to Specialty Food Association (SFA).

The industry includes meat markets, seafood markets, fruit and vegetable markets, baked goods stores (but not retail bakeries), candy and nut stores, and gourmet food stores. Grocery stores and supermarkets, along with superstores and warehouse clubs that sell food, are covered in separate industry profiles.

COMPETITIVE LANDSCAPE

Consumer spending and tastes drive demand. The profitability of individual companies depends on effective merchandising and the ability to generate store traffic. Large companies can offer a wide selection of products and have advantages in purchasing, distribution, and marketing. Small companies can compete effectively ...