With its agile, broad base of suppliers and constant flow of innovative, new products, the specialty food market continues to expand steadily. Sales of specialty foods at retail stores have increased at double-digit rates for several years in succession and have enjoyed solid margins. But competition is on the increase from both supermarkets and now the world’s largest retailer.

Americans are exploring diet options and healthier foods as they try to battle obesity. This movement is led primarily by adults over age 45—a segment that will represent more than 30 percent of the population by 2010.

Organic farming is one of the fastest-growing segments of U.S. agriculture. As consumer interest continues to gather momentum, many retailers are specializing in marketing an ever-widening array of organic agricultural and food products.

Food-safety fears and health concerns boosted organic/natural food sales by 17 percent in 2005 to nearly $15 billion, according to an annual survey in the Nutrition Business Journal. Organic products are expected to continue gaining at an inflation-adjusted rate of 16.5 percent annually from 2004 through 2009.

Consumers’ continuing perception of these products as safe, nutritious and healthful alternatives is crucial to continued growth. As long as shoppers remain concerned about food integrity, the higher price point of organics is not expected to deter sales. However, increased competition is anticipated to place downward pressure on prices.

The ethnic foods market is even larger with more than $26 billion in annual sales. As the U.S. population grows older, wealthier, more educated and more ethnically diverse than ever before, this segment continues to reshape food markets.

For convenience stores, foodservice is currently the number three contributor to sales, not including petroleum products, according to the National Association of Convenience Stores. Foodservice contributes healthy gross margins and incentives for shoppers to spend more of their dollars in the store.

Whatever your specialty store is trying to achieve, Hobart/Traulsen is uniquely positioned with products to help enable you to realize your goals, whether it is weigh-scale systems to enhance the merchandising of your organic meat and produce, or cooking and refrigeration equipment for your foodservice operation. Our products are designed to deliver the results you need, while delivering durability, dependability and long life.

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