s consumers become increasingly conscious
of the quality and nutritional value of the
foods they eat, health and wellness trends
bode well for continued growth and greater
innovation across the store perimeter. Manufacturers are
introducing countless products that tout wholesome attributes, while retailers are launching new, health-focused
store concepts, including Hy-Vee’s new HealthMarket in
West Des Moines, Iowa, and Raley’s farm-to-fork concept, Market ;;ONE;;, in Sacramento, Calif.
With the rising focus on fresh, healthy food, one might
assume the produce department is practically guaranteed
consistent growth, but several factors, including time constraints, consumers’ greater aversion to food waste and
shrinking U.S. households, among others, are hindering
the category’s full potential. Sales of fresh produce have
dropped this year, signaling the need for innovation in
terms of unique products, merchandising strategies and
communication e;orts between trading partners.
“Although more and more Americans are increasingly
concerned with their health and diet, fresh produce
sales actually declined year over year,” says Matt Lally,
associate director of New York-based Nielsen Fresh.
“Being inherently healthy is no longer good enough as
products across the store continue touting their own
health bene;ts.”
A ;;; billion category and the second-largest fresh
department, with ;;.;; household penetration, accord-
ing to the Food Marketing Institute’s ;FMI’s; The Power
of Produce ;;;; report, produce is ample in opportunity.
Yet there is room for growth in consumption occasions
such as snacking, lunch and dinner. And with ;;; of consumers saying they purchase unplanned produce items on
occasion, retailers have the opportunity to capitalize on
consumers’ desire for healthy foods and boost impulse
sales through convenient, value-added products, exciting
recipe ideas, enticing displays and education.
Tackling Time Constraints
In addition to health and wellness trends, the demand
Produce
Breaking
Down the
Barriers
Boosting impulse produce sales
through convenient products,
targeted merchandising and creative
communication is generating fruitful
gains. By Natalie Taylor
A
Fresh Business
86%
Amount of
consumers who
say they purchase
unplanned produce
items on occasion
Source: The Power of
Produce 2017, FMI
