Noreen Lanigan, Established Markets Manager, Bord Bia – The Irish Food Board
According to Mintel data published in the US magazine, Speciality Food Magazine, to coincide with the Summer Fancy Food Show in New York this week, the US speciality food and beverage market[i] is now valued at $148.7 billion, based on 2018 annual figures. This represents an increase of 9.8% on 2016 sales, with growth rates three times higher than overall food sales growth. Speciality food and beverage sales account for 16.1% of the total food and beverage market in the US.
However CNBC’s Nightly Business Report, NBR[ii], reporting from the Summer Fancy Food Show yesterday warned that the looming possibility of import tariffs for European food exporters to the US (for speciality cheese, meat and jam) could threaten the future growth of this category.
The retail channel accounts for 76% of speciality food sales, while foodservice and online vendors represent 22% and 2% respectively. Sales growth for 2016-2018 in the foodservice and online channels outpaced retail, while within retail mainstream players are performing better than independent speciality or natural food stores.
In retail, the frozen and chilled speciality foods performed strongest, recording 2016-2018 growth rates of 16.3% and 12% respectively. Within that plant-based products are leading this growth both in the meat and frozen desserts categories. Products clearly articulating their brand transparency and clean labelling are also amongst the winners in the speciality foods category. Based on the product innovations awarded Sofi Awards at the Summer Fancy Food Show, four flavour and ingredients trends emerge: Rosemary, Lavender, Bourbon and Rye and Pink Peppercorns.
If you are looking to assess the growth potential for your speciality food products in the US please talk to our New York office to review category data and potentially opportunities and also to assist you appointing a US distributor to access the market.
[i] Specialty foods are defined as foods or beverages of the highest grade, style, and/or quality in their respective categories. Their specialty nature derives from a combination of some or all of the following qualities: uniqueness, origin, processing method, design, limited supply, unusual application or use, extraordinary packaging, or channel of distribution/sales