Specialty foods refer to food that is well above average in quality and price and cater to a particular audience. Consumers perceive them as having various benefit and are willing to spend more to buy them. This may be because of the health-benefit they expect, the high-quality ingredients the food is made of, or any elements that make them stand out compared to non-specialty foods.

 

Please note that the scope of this report goes beyond “gourmet food” which emphasis on the refined, even elaborate presentations and costly ingredients. 

 

Specialty foods can be divided into four categories:

• Specialty diets (gluten-free, plant-based, low-protein…)
• Foods that are used in religious dietary laws (halal, kosher…)
• Ethnic foods (Chinese food, Mexican food, Italian food…)
• Gourmet and artisan foods (truffles, caviar, artisan cheese…)

 

This market report includes major grocers in California, grocery delivery services, organic grocers, food and drink processing conglomerates, wholesalers, leading manufacturers of plant-based products in California and importers of gourmet and artisanal foods.

 

In the U.S, the specialty food market registered double digit growth in 2020, with retail sales outpacing the overall market by a wide margin. Much of the growth can be attributed to the pandemic’s effect on categories related to cooking or baking at home. Fastest-growing categories included plant-based alternatives, sauces for pasta and pizza and seasonings. 

 

In California, the natural and specialty food and beverage industry experienced record growth in sales, outpacing conventional products by more than 4 percent. California hosts more than 5,000 organic businesses and some 90% of California shoppers buy organic. California consumers stand at the forefront of food trends; consumers view foods as an experience and like to try new food.

 

Online grocery sales more than doubled over the past two years as people increasingly turn to platforms such as Amazon, Instacart or smaller Bay Area grocery startups like Good Eggs or Farmstead for online grocery shopping.