Forecast: U.S. Food Industry to Grow by 3.9% in 2017

A recent forecast from Technomic projects that the U.S. food industry will grow by 3.9% overall in 2017. Read on for more highlights.

Foodservice is expected to grow more than retail, with supermarket fresh prepared foods leading the way

• Foodservice sales are forecast to grow by 4.8%, compared to 3.0% growth for food retail.

• Within the foodservice category, the following growth rates are projected:

  • Supermarket fresh prepared foods – 8.9%

  • Restaurants and bars – 5.0%

  • Other foodservice – 3.9%

Traditional grocery will continue losing share to “nontraditional” channels

• Traditional grocery sales – including supermarkets, supercenters, and mass merchandisers – are expected to grow by 1.6% in 2017.

• Other grocery channels are projected to grow by 5.1%.

• Retail grocery categories with the largest forecast growth include:

  • Online – 19.8%

  • Fresh format – 9.1%

  • Limited assortment – 6.5%

• Two retail grocery categories are expected to see declines: mass merchandisers (-4.0%) and “all other” (-5.9%).