State of the Industry 2018: The power of produce
Produce, a category that outpaces total store sales at $63 billion, increased in dollars 3.3% and grew in volume 2.6% over the 52 weeks ending March 19, 2017, according to “Power of Produce 2017,” produced by the Food Marketing Institute (FMI), Arlington, Va.
The analysis, conducted by 210 Analytics, San Antonio, Texas, and supported by data from IRI, Chicago, and Nielsen, New York, reveals that while price remains an important factor in produce selection, appearance still dominates. In fact, 58% of impulse produce purchases are a result of eye-catching displays. The popularity of locally-grown also continues to soar, with 54% of shoppers hoping for an expanded local selection.
The fruit and vegetable processing industry is also growing at a strong growth rate thanks to a rising consumer demand for fresh and healthy products that are easily available and need minimum preparation time, according to a study from Market Research Hub, Albany, N.Y.
Per the study, the vegetable category has experienced stable growth over the past few decades, primarily driven by fresh vegetables and fresh-cut salad. Health concerns are the prime factor. And, as technology improves and consumer incomes increase, it’s possible for processors to provide fresh produce year-round.
Furthermore, in 2016, the frozen corn segment generated the highest revenue, registering a CAGR of 6.0% from 2017 to 2023, according to a report published by Allied Market Research, Portland, Ore. Likewise, in 2016, the frozen broccoli segment accounted for one-tenth share, in terms of value, and is expected to grow at a significant CAGR of 5.8%.
What’s more, is that the distance produce “travels” has been steadily increasing over the last 50 years, according to ATTRA, a program developed and managed by the National Center for Appropriate Technology, Butte, Mont. Studies estimate that processed food in the United States travels over 1,300 miles, and fresh produce travels over 1,500 miles, before being consumed.