Rising Produce Costs Fuel Concerns Among Supermarket Shoppers

According to a nationally representative August survey of 1,628 consumers conducted by the Southeast Produce Council for the What’s New? 2024 report, 33% of shoppers listed money and budget as their top purchase driver, up from 32% in 2023. This makes price the leading factor in produce purchasing decisions.

David Sherrod, president and CEO of the Southeast Produce Council, noted, “The combined impact of several years of inflation across all areas of life has shifted how, what, and where people purchase produce.” Many shoppers are now turning to value-focused retailers like supercenters and club stores. Consumers are also becoming more flexible, opting for items that are on sale or have a longer shelf life, and adjusting their purchases to align with these price-driven decisions.

Even though budget concerns dominate, the survey revealed that 93% of shoppers are still willing to spend more on produce for special occasions, holidays, or when entertaining, suggesting an opportunity for retailers to capitalize on these moments. “Optimizing sales during primary and secondary holidays with strong displays is a must,” said Sherrod. Retailers can also create unique events like “Citrusfest” or a farmers’ market in the parking lot to encourage consumers to add extra items to their carts.

However, the growing focus on price has led to a decline in emphasis on the health and wellness benefits of produce. In 2024, 26% of consumers cited health and nutrition as their top priority when purchasing produce, down from 30% the previous year. Despite this, 71% of consumers still buy specific fruits and vegetables because of their health or nutritional benefits, which presents an opportunity for merchandisers to highlight these advantages.

Sherrod encourages produce marketers to take cues from the supplement, smoothie, beverage, and bar industries, which frequently emphasize health benefits in their advertising. “We need to step up our educational game,” he said, recommending that retailers connect nutrients to their benefits. For example, instead of just stating that “bell peppers have vitamin C,” they could explain, “Bell peppers are a good source of vitamin C to boost immunity.” By tying nutritional information directly to health benefits, retailers can reignite consumer interest in the wellness aspects of fresh produce.

This strategy will help retailers not only drive sales but also educate consumers on the value of produce beyond just price, creating a more balanced approach to shopping.