Specialty Food Stores NAICS 4452

Oct 13, 2025 - Rising Prices Hurting Organic/Natural Product Sales

• Retail price inflation and economic concerns are having an impact on sales of natural and organic products, according to a recent survey of retailers conducted by Supermarket News that included specialty and ethnic grocers. A majority of retailers (61%) surveyed reported their sales of natural and organic products increased during the past 12 months, including about 23% who said sales were up significantly. However, nearly a third (31%) reported natural and organic sales were flat, while 8% said sales were down compared with the preceding 12-month period. Among those who reported natural and organic sales gains, 59% credited the resilience of the natural/organic consumer, who tends to skew higher on income. Looking ahead, 11% of retailers said they expect sales of natural/organic products to decline slightly over the next 12 months, although none said they expect significant declines.
• In September, the Specialty Foods Association (SFA) joined the We Pay the Tariffs coalition of small businesses on Capitol Hill to advocate for small food businesses impacted by rising import tariffs. The groups met with House and Senate lawmakers to share firsthand accounts of how tariffs are straining specialty food makers. Their message to legislators was that tariffs on ingredients not produced domestically are driving up costs and threatening the viability of small importers and entrepreneurs, according to the SFA. The small business owners traveled to Washington, DC as the Supreme Court prepared to weigh the constitutionality of President Trump’s sweeping Liberation Day tariffs, which they contend are driving up costs for producers and ultimately US consumers.

• Tariffs on imported produce and labor shortages caused by deportations of agricultural workers are driving up produce prices – a key category for specialty food retailers – Frugal Forward reports. Items that are highly-sensitive to tariffs include tomatoes, avocados, limes, bell peppers, and cucumbers, while strawberries and leafy greens are categories considered very-highly sensitive to deportations. Meat and seafood prices are also under pressure from tariffs and supply shortages. Consumers in the US, which depends heavily on Brazil for beef imports (particularly ground beef), are feeling the impact of tariffs levied on that country by the Trump administration, with the August 2025 Consumer Price Index report showing uncooked ground beef prices up 2.3% in August versus July and 12.8% compared to a year ago.
• Shoppers at Whole Foods Market and other grocery stores encountered sparsely-stocked and bare shelves following a cyberattack on distributor United Natural Foods (UNFI) in June, The Wall Street Journal reports. The cyberattack cut into sales over several days as Whole Foods and UNFI’s other retail customers weren’t able to place orders through regular digital channels leaving many grocery store shelves bare, according to WSJ. The incident exposed the food supply chain’s vulnerability to cyberattacks, with some retailers unable to place orders with the distributor and UNFI unable to order from food companies. Retailers heavily dependent on a primary distributor are especially vulnerable to supply disruptions from cyberattacks and must rely on manual processes or scramble to find backup suppliers during outages. Whole Foods’ contract with UNFI requires it to maintain cyber insurance and a business-continuity plan that's tested regularly, with written results provided to Whole Foods.