What splurging on $22 smoothies in this economy really represents

What explains the success of Erewhon’s $22 smoothie?

[Source Image: Erewhon]

Americans are skipping restaurant dinners, delaying car purchases, and scouring for grocery deals. Amid tariff anxiety and broader stress over affordability, consumer confidence has dropped to levels not seen in over a decade, according to The Conference Board, a business think tank. At this point, it’s wealthier consumers who are powering the bulk of spending in the U.S. economy.

So what explains the success of Erewhon’s US$22 smoothie?

The Los Angeles grocery chain selling these fancy concoctions is doing so well, it opened three new stores in 2025—its biggest expansion since 2011. The chain reportedly generates $1,800 to $2,500 in sales per square foot, up to five times what a typical U.S. supermarket earns.

These aren’t ordinary blended drinks; they include ingredients such as high-grade sea moss gel, adaptogenic mushrooms and collagen peptides. Often they come with a celebrity’s name attached.

It’s all part of the broader boom in the U.S. specialty food market, which has surpassed $219 billion—up nearly 150% in a decade, according to the Specialty Food Association. That far outpaces the roughly 47% growth seen in overall U.S. grocery sales over the same period.

Independent retail data from the market research firm Circana also confirms this growth: Even as inflation-weary consumers have traded down to store brands in many categories, premium and specialty products held up and even grew their dollar share of the market through 2025. On TikTok, creators who once filmed designer-bag hauls now post $12 tinned fish boards. Craft chocolate bars that cost $8–$12 are being marketed as, without irony, “self-care.”

So if consumers are this anxious, why are they still splurging? In fact, these aren’t contradictions—they’re two expressions of the same psychological reaction.

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