Despite inflation, volume sales of produce increased 3.4 percent in 2022 compared to pre-pandemic sales in 2019, according to the "Power of Produce 2023" study from The Food Industry Association.
Value-added produce, including pre-cut and washed produce, and packaged salads are piquing the interest of more consumers, the report finds. Roughly 68 percent say they would like their store to carry a bigger selection of these items which provide convenience, but typically come with a higher price point per pound.
“Consumers are continuing to purchase produce at roughly the same volume as in 2021 despite rising prices due to inflation. The shift we’re noticing is that shoppers turned to more affordable conventional fresh fruits and vegetables and canned and frozen vegetables rather than buying pricier organic items,’’ said Rick Stein, VP for fresh foods at FMI, in a statement. “Shoppers are searching for deals, but also willing to pay more for convenience–like pre-cut and washed products. This shows how complicated the consumer decision process is. On one hand, shoppers are saying price is important, but when it comes to convenience, they are willing to pay.”
Although produce volume sales remained constant overall, pounds of fresh fruits and vegetables sold declined as 84 percent of consumers implemented money-saving measures, including looking for sales specials, buying less, and shifting between types and stores. More than a quarter of shoppers rank price as the top factor when selecting and purchasing fresh produce. This caused some shoppers to buy more frozen and canned produce instead.
Produce is the second-largest grocery store perimeter department behind meat. The report found that 30 percent of shoppers indicate the produce department is a determining factor in where they shop for groceries.
Organic produce volume decreased in 2022, reversing the trend of aggressive organic growth over the last several years. Roughly 25 percent of shoppers indicated they are purchasing cheaper fresh produce in light of inflation, but many core organic consumers expect they will further increase their purchases.
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