Foodservice

Growth Predictions for the Retail Food Channel

New Technomic analysis reveals industry findings

CHICAGO -- The retail foodservice segment, from grocery stores to convenience stores, is projected to grow by 3% through 2017, according to new data unveiled by Technomic. Its 2016/2017 U.S. Food Industry Universe deliverable provides an overarching look at the entire $1.74 trillion foodservice industry, revealing trends, opportunities and growth projections across restaurant and retail food channels.

While restaurants are expected to outpace retail foodservice, with a growth rate of 4.8% through 2017, Technomic analysts still forecast the strong, ongoing progression of the retail food segment, beyond the expansion of foodservice within conventional supermarkets or “supercenters.” Key findings released by Technomic pointed to the elevation of “nontraditional” food channels, which represent the five fastest-growing segments in the overall food industry:

  • Online food services are expected to grow by 19.8% in 2017
  • Fresh-format markets reveal projected growth of 9.1% over the next year
  • Supermarket fresh prepared foods are estimated to grow by about 9%
  • Limited assortment stores are expected to grow by 6%
  • Independent restaurants/small chains are projected to achieve about 6% growth

Together, Technomic predicts that these five segments will contribute 43% of the total industry growth through 2017. In a first-of-its-kind analysis by the firm, U.S. Food Industry Universe leverages extensive proprietary data to identify where opportunities lie within the overall industry.

"We are delighted to be able to provide industry participants with comprehensive statistics and projections on the total food industry," said Bob Goldin, vice chairman of Technomic.  "Our forecast provides meaningful insights into industry dynamics and growth opportunities and shows that industry growth drivers are evolving."  

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