Research finds increase in produce consumption
Research finds increase in produce consumption
It has been a sore spot in the industry for many years that fresh produce consumption on a per-capita basis is just not increasing, despite many positive factors including the trend toward healthy eating.
At the United Fresh Produce Association Convention in Chicago in early June, a presentation on consumer trends by the well-known Nielsen Perishables Group seems to contradict that widely held belief.
Jonna Parker, the presenter and a director for that organization, revealed that over the past five years, dollar volume of fresh produce has increased about 25 percent while unit volume is up 10-13 percent. In fact, Parker’s entire presentation sang the praises of fresh produce and noted many trends that would seem to point toward increased consumption.
She said of the top 10 growth items in the grocery sector, six are fresh produce, including two value-added products, specialty fruit, avocados, pineapples and cooking greens, with that last category topped by kale.
Over this past year, Parker said dollar sales of produce have grown 4 percent while unit sales are up 2 percent. On the flip side of the ledger are frozen foods, which have seen a 3 percent drop in units sold over the past year.
The Perishables Group numbers came from both UPC and random weight data collected at retail. Parker said it is a complete picture of sales in the nation’s retail produce departments. Her overarching message was that “all eyes are on fresh and produce.” It is the focus of the store and creating a renaissance for supermarket operators.
“Produce,” she said, “is in a power position” because of its increasing sales. The rest of the store, she added, is trying to capture the exuberance that exists in the fresh produce department.
Statistics show that annually the average American household spends $338 on fresh produce, compared to only $299 on meat, which comes in second place in dollar sales.
While produce is leading the way and most customers claim it is the most important department in picking a store, there are still many trips to the market that do not include a produce purchase. More than half of the times that a person goes to the supermarket they do not put a produce item in their basket. Parker said that if consumers were to buy produce during one or two more of those trips annually, sales growth would be “phenomenal.”
Currently, the average shopper makes about 40 to 50 supermarket trips per year. Parker said higher-income households (in excess of an annual income of $100,000) are far more prolific produce buyers. They make 51 trips per year and purchase about $454 worth of fresh produce. The least affluent consumers make about 40 trips per year to the supermarket and spend just $221 on produce.
While there is some disparity concerning what these two groups buy in the produce department, there is a lot of crossover. Less affluent shoppers still want good quality, good-tasting and high-end items. The research indicates that suppliers would do well by gearing some smaller package sizes and lower price points toward areas with lower-income households.
For example, fresh berries, which are considered a high-end item and are bought by affluent customers in larger numbers, still show up in the baskets of less affluent shoppers 4.5 times per year, or about 10 percent of their shopping trips. That shows that an increase of just one purchase per year by this group could greatly expand that category.