Specialty Foods Global Market Report 2024

The specialty foods market size has grown rapidly in recent years. It will grow from $232.04 billion in 2023 to $264.68 billion in 2024 at a compound annual growth rate (CAGR) of 14.1%. The growth witnessed in the historical period can be ascribed to factors such as food regulations and standards, marketing and branding strategies, retail and distribution channels, evolving consumer preferences, and the emergence of food tourism.

The specialty foods market size is expected to see rapid growth in the next few years. It will grow to $420.79 billion in 2028 at a compound annual growth rate (CAGR) of 12.3%. The forecasted growth in the upcoming period can be linked to factors such as a shift in the retail landscape, innovative packaging and presentation, influence from diversity and ethnic cuisine, emphasis on clean label and transparency, and the expanding growth of culinary tourism. Notable trends expected in the forecast period include increased prominence of online and direct-to-consumer sales, the use of storytelling and brand narrative, focus on localized and seasonal aspects, exploration of innovative ingredients and flavors, and the rise of gourmet convenience foods.

The increasing number of millennials who prefer preparing healthy meals at home and have a growing interest in nutritious food for a healthy lifestyle is driving the demand for specialty foods. The Specialty Foods Association (SFA) reports that millennials are twice as such as ly to plan at-home meals and show a strong preference for specialty products to enhance their culinary experiences with healthy options. Additionally, a Culinary Visions study conducted in March 2022, surveying over 2,000 U.S. consumers, revealed that 91% of participants express enjoyment in cooking at home. Consequently, the rise in millennials engaging in at-home cooking and their preference for healthy foods is anticipated to contribute to increased revenue in the specialty foods market.

The increasing demand for e-commerce is expected to fuel the growth of the specialty foods market in the future. E-commerce, involving the online buying and selling of products and services, has facilitated consumers in discovering and purchasing specialty foods. Online shopping platforms provide specialty food producers with a broader reach. For example, as of September 2022, the International Trade Administration reports that consumer eCommerce accounts for 30% of the UK's overall retail industry, up from 20% in 2020, generating over $120 billion in yearly sales. Moreover, 82% of people in the UK made at least one online purchase in 2021. Thus, the increasing demand for e-commerce is a driving force behind the specialty foods market's growth.

The elevated cost of specialty foods is expected to impede the growth of the specialty foods market during the forecast period. Specialty foods, crafted from high-quality ingredients with features such as gluten-free, non-GMO, and rich in vitamins and minerals, incur higher raw material costs. As reported by the Specialty Foods Association, the increased cost of ingredients, certifications, and production is leading to higher prices for specialty foods, making them unaffordable for a significant portion of the population. Consequently, the elevated cost of specialty foods is projected to hinder the growth of the specialty foods market in the forecast period.

The specialty foods industry is witnessing a significant trend driven by the introduction of high-quality and innovative products, including plant-based, convenience, better-for-you, and non-GMO items with unique attributes such as low fat, low calorie, low sodium, high protein, no dairy, and organic. An illustration of this trend is the July 2022 launch by Century Pacific Food Inc., a Philippines-based food and beverage company, of the innovative plant-based alternative 'unMEAT Fish-free Tuna.' Comprising 100% fish-free and non-GMO ingredients, the product stands out with its low fat content, zero traces of mercury, and trans-fat. Despite being entirely fish-free, the product maintains the taste, texture, and appearance of traditional tuna.

Leading companies in the specialty foods market are strategically focusing on the development of protein bars infused with adaptogens to gain a competitive advantage. One such example is the July 2022 launch by Laird Superfood Inc., a US-based functional foods manufacturing company, of a protein bar featuring adaptogens. This innovative product provides ten grams of plant-based protein derived from peas, hemp seeds, and pumpkin seeds, along with six grams of dietary fiber and all nine essential amino acids. It is also non-GMO, dairy-free, soy-free, and gluten-free, serving as a wholesome source of protein, fiber, and essential nutrients, while being free from artificial flavors, colors, and preservatives.

In April 2021, Brazilian-based JBS SA, a meat processing company, made a notable announcement regarding its acquisition of Vivera, a European plant-based food company, for €341 million ($410 million). The acquisition encompasses three manufacturing facilities and a research and development center in the Netherlands. This strategic move aims to bolster JBS SA's global plant-based protein platform, providing the company with a strong presence in the plant-based sector, enriched with technological knowledge and innovation capacity. Vivera, with its range of plant-based meat replacement products, is distributed to retailers in over 25 countries across Europe, further enhancing JBS's position in the evolving market.

Major companies operating in the specialty foods market report are Cargill Incorporated, Archer Daniels Midland Company, United Natural Foods Inc., Compass Group PLC, DuPont de Nemours Inc., International Flavors & Fragrances Inc., Hormel Foods Corporation, Koninklijke DSM NV, Kerry Group PLC, Ingredion Incorporated, Novozymes A/S, Tate & Lyle PLC, AMCON Distributing Company, Lancaster Colony Corporation, Krispy Kreme Inc., Sensient Technologies, Calavo Growers Inc., The a2 Milk Company Limited, Chobani LLC, Amy's Kitchen Inc., Farmer Bros. Co., Beyond Meat Inc., Daily Harvest Inc., Bear Creek Corporation, American Spoon Foods Inc., Pacmoore Products Inc., AeroFarms LLC, Eden Creamery LLC, World Central Kitchen Inc., Axiom Foods Inc., Safe Catch Inc., Union Wine Company LLC. Asia-Pacific was the largest region in the specialty foods market in 2023. Western Europe was the second-largest region in the specialty foods market report. The regions covered in the specialty foods market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The primary types of products in the specialty foods market include cheese and plant-based cheese, frozen or refrigerated meat, poultry, and seafood, chips, pretzels, and snacks, bread and baked goods, chocolate and other confectionery, among others. Cheese, a nutritious food primarily derived from cow's milk and occasionally from other mammals such as sheep, goats, buffalo, reindeer, camels, and yaks. Plant-based cheeses are crafted from various nuts, with cashews, almonds, and macadamias being the most common choices. The distribution channels for these specialty foods encompass food service, retail, and online platforms.

The specialty foods market research report is one of a series of new reports that provides specialty foods market statistics, including specialty foods industry global market size, regional shares, competitors with specialty foods market share, detailed specialty foods market segments, market trends and opportunities, and any further data you may need to thrive in the specialty foods industry. This specialty foods market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The countries covered in the specialty foods market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The specialty foods market consists of sales of cheese and plant-based cheese, non-RTD cocoa and coffee, refrigerated and frozen poultry/seafood/meat, yogurt, candy, pretzels/snacks/chips, bread & baked goods, and other specialty foods. Values in this market are factory gate values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.