New York — Sales of specialty foods and beverages across all retail and foodservice channels neared $194 billion in 2022, up 9.3 percent from 2021, and are expected to reach $207 billion by year’s end, according to the Specialty Food Association’s (SFA) annual State of the Specialty Food Industry Report.

The specialty market is defined by SFA as consisting of 63 food and beverage categories which combined account for nearly 22 percent of retail food and beverage sales. Chips, pretzels, snacks was the highest-selling specialty food category at retail in 2022, according to the report, moving up from third place in 2021 and becoming the first specialty category to exceed $6 billion in annual sales.

The top 10 specialty food and beverage categories for 2022 in retail sales were:

1. Chips, pretzels, snacks
2. Meat, poultry, seafood (Frozen, refrigerated)
3. Cheese and plant-based cheese
4. Bread and baked goods
5. Coffee and hot cocoa, non-RTD
6. Entrees (Refrigerated)
7. Chocolate and other confectionery
8. Water
9. Desserts (Frozen)
10. Entrees, lunch, dinner (Frozen)

“The resilient specialty food industry continues to thrive despite weathering challenges since 2020,” says Denise Purcell, SFA vice-president, resource development. “While food inflation has impacted the market in the past couple of years, that is stabilizing, and the industry is poised for the future with several positives in place. Consumers have more retail channels in which to purchase specialty foods, foodservice is rebounding, and makers are innovating with sourcing, ingredients, and promotion.”

Two top-selling categories in 2022 — Entrées (Refrigerated) and Chocolate and other confectionery — also were among the Top 10 Fastest-Growing Specialty Food and Beverage Categories in 2022:

1. Energy and sports drinks
2. Tea and coffee, RTD (Refrigerated)
3. Entrées (Refrigerated)
4. Breakfast foods (Frozen)
5. Cream and creamers (Refrigerated, Shelf stable)
6. Chocolate and other confectionery
7. Baby and toddler food
8. Cookies and snack bars
9. Soda
10. Appetizers and snacks (Frozen)