Letter from the editor: The next chapter for specialty food

Sales of specialty foods are surging despite economic uncertainty - to find out what is driving the growth, FoodNavigator-USA headed to the Summer Fancy Food Show.
Brands at the Summer Fancy Food Show showcased innovations spanning functional foods, pantry staples, premium ingredients and better-for-you beverages as they competed for a place in consumers’ everyday routines. (E Crawford)

From gut health and protein to olive oil, pantry staples and retail strategy, this special edition explores how brands are transforming specialty foods into everyday essentials

As consumers look to stretch grocery budgets while eating healthier and finding small moments of indulgence at home, specialty foods have an opportunity to expand beyond occasional treats and into everyday routines.

But winning those occasions will require brands to satisfy multiple, sometimes contradicting, demands simultaneously, including convincing increasingly discerning shoppers that premium products deliver value worth paying.

That balancing act was on full display at this year’s Summer Fancy Food Show in New York City, where brands introduced new products and repositioned existing offerings to better fit evolving consumer needs.

In this month’s special edition, FoodNavigator-USA unpacks the trends, spotlights brands that are driving innovation and share strategies for expanding in retail, including across channels.

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An evolving landscape

NielsenIQ’s Sherry Frey laid out the landscape for specialty food stakeholders, including where shoppers are spending – at the category and channel level – and where sales and units are declining. The shifts are dramatic, and unexpected – creating both challenges and opportunities for specialty foods and beverages.

NIQ’s Krystal Dawson also shared tips for pitching retailers more broadly – including how to balance numbers with storytelling.

Leaders at Walmart also shared strategies for smaller and emerging brands to win distribution at the retailer, including busting myths that may block startups from even attempting to secure shelf space.

Emerging categories

Among the 2,529 exhibitors at the show sampling more than 700 new products, were several telling trends that tap into consumers’ top priorities, including health, convenience and an elevated at-home eating experiences.

These include innovative products disrupting the olive oil category, pantry staples and frozen aisle, as well as new solutions to support gut health, immunity.

Check out all the details by clicking through the headlines below or, if you are a subscriber, by checking your inbox for the special edition. If you are not yet a subscriber, you can register to receive daily news, weekly podcasts and monthly special editions on timely topics.

Fancy Food Show highlights

Gut health enters a new phase as brands move beyond probioticsConsumer demand for more targeted digestive benefits for different usage occasions is driving innovation across yogurt, fermented foods and traditional botanicals, while raising the stakes for education

Can new formats reinvent the olive oil category?Established brands are reinventing how consumers use, and think about, olive oil through wellness-focused formats and packaging innovation

Startups revive nostalgic snacks for the frozen aisleHow two founders are reviving classic snacks (or meals) in a frozen format with a fun twist

Can flavor beat function in the crowded soda aisle? - As beverage brands race to add more benefits to every can, Fruga is making a simpler pitch: Make it delicious first. The startup’s tropical fruit sodas contain fiber and vitamin C, but unlike many competitors, it doesn’t want functionality to be the headline.

How pantry staples are seeing a glow up – While the products differ, food and beverage founders are encouraging consumers to rethink what pantry staples can do

Replicate or reimagine? Non-alcoholic startups choose their lane – The growing non-alcoholic category is splitting between faithful replicas and entirely new drinking experiences

Fragmentation reshapes grocery, creating new opportunities for specialty brandsNielsenIQ says shifting shopping habits, online growth and changing drivers of consumer trust are redefining the path to purchase and opening doors for specialty manufacturers

Walmart debunks 3 myths that deter emerging brandsWalmart executives challenge common assumptions about national distribution, premium positioning and the retailer’s shopper base, and share the performance metrics they say matter most after launch

What brands need to know before pitching retailers – Winning at retail requires balancing data, storytelling and relationships to reinforce each other

Bone broth breaks out of the soup bowl – Bone broth’s versatility across beverage formats reveals there is more to it than a functional, savory drink

What’s driving the protein surge? – Consumers are cutting sugar with confidence and chasing protein with confusion, while generational divides over where protein belongs are reshaping the trend

Why flour is having its specialty coffee moment - Flour startup Roaring Fork is betting that regenerative agriculture can transform the flour aisle beyond its largely commoditized roots through premium positioning, farm-level transparency and heritage grains to create value.

As retail buyers demand more, seafood suppliers rethink their approach - As Supreme Crab & Seafood expands its retail footprint, the company believes the same strategy that built its global seafood business, including supply chain control, product innovation and adaptability to market demands, will continue to fuel retail growth.