Fresh Produce
Shoppers are buying smaller quantities of produce more frequently
The produce sector is experiencing significant growth. For the five weeks ending June 2, produce department volume sales increased by 3.4% compared to the same period last year, with a 3.9% rise in dollar sales, according to Circana, a Chicago-based market research firm.
Fresh fruit volume sales rose by 4.2%, and fresh vegetables increased by 2.4%. Notable fruit varieties with substantial volume gains include berries (up 10.7%), grapes (15.7%), and apples (9.8%). Popular fresh vegetables with volume increases include tomatoes (5.4%), lettuce (2.8%), and onions (3.1%). Increased trip frequency is a key factor driving higher sales, said Jonna Parker,
Circana’s team lead for fresh foods. Rather than purchasing in bulk and risking spoilage, many shoppers are opting for smaller amounts of produce per visit. This shift has resulted in average annual trips to produce departments growing to 84.4 in 2024, up from about 77 in 2019.
“People shopping ‘just in time’ are making more frequent trips to stores for fewer items, and produce is making it into the baskets on those small trips,” Parker explained. “Consumers want to keep the cost of each shopping trip moderate. Produce is unique in that it is gaining in trip frequency while categories like meat and seafood are declining.”
Additionally, while produce prices have risen about 18% since 2019, this increase is lower than that of other food categories. Shelf-stable and frozen foods have seen inflation rates of 30% to 35% over the past five years. “Produce stands out compared to other categories like meat, general foods, and beverages, which are growing in dollar sales but not in incremental units,” Parker noted.
Retailers have a significant opportunity to boost activity by encouraging shoppers to buy a wider variety of produce. Most consumers purchase an average of seventeen varieties and categories per year, even though a typical produce department stocks 80 varieties and categories. “There is potential for much stronger growth,” Parker said.
Encouraging households to purchase one additional type of fruit or vegetable could significantly increase revenues. “Providing reasons to buy different selections would lead to remarkable produce growth,” Parker stated. “The key is to promote variety rather than competition between varieties.”
Merchandisers can generate interest in a wider range of products by offering money-saving coupons and sharing information via QR codes, signage, and social media.
“Younger consumers and those who are more affluent and educated are seeking information about growing regions, conditions, and reasons to choose a particular store for produce,” Parker said. “Shoppers are more complex and savvy. Communicate what sets your store apart, even outside the store.”