FMI’s The Power of Produce Report Shows The Path to Success

The latest report, conducted and written by 210 Analytics gives retailers valuable insight into the department that most shoppers use to decide what supermarket to frequent.

September 19, 2017

The report says that the U.S. produce retail market is big, lucrative and driving growth for the perimeter. Dollars increased 3.3 percent and volume grew 2.6 percent over the 52 weeks ending March 19, 2017. 

50 percent of shoppers classify themselves as creatures of habit when purchasing produce, 83 percent welcome ideas about unfamiliar and new items to help overcome habit and expand their comfort zone to a wider range of products, according to the report.

Seventy percent have an interest in a produce “butcher”, and a strong desire is seen for expanded assortments in locally-grown, seasonal, organic, sustainably-grown and fair wage/living wage produce items. The Growth Drivers are Organic produce, which continues to see double-digit dollar and volume growth and with organic at less than 8 percent of the total retail produce market the potential is huge. The second driver is Locally-grown produce  which centers on supporting the local economy and a perceived better freshness. 

The third driver is Value-added produce and packaged salads and the last driver is branded produce, both national and private brands, which are growing and reflect a +12 percent 5-year dollar growth. National brands are more important in processed produce and local/smaller brands taking preference in unprocessed produce. Shoppers say that brands are seen as being safer to eat, being fresher, higher quality and more consistent purchase to purchase. 

Promoting produce is important for our nation’s health and wellness and with per capita consumption at just 2.7 servings a day, we have a long way to grow. The report goes on to say that less than half of shoppers eat fresh produce every day but many are looking to increase consumption across most meal occasions

from breakfast, lunch and dinner to snacking and smoothies. Consumers associate fresh produce with a balanced diet in general, but also with specific benefits, including digestive health, heart health, healthy weight and having essential nutrients in the diet.    

The report is chock full of merchandising ideas and the tools retailers need to help their shoppers understand and consume this very important food group. Check it out. 

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