A recent report by Circana suggests that grocers are missing out on significant sales in the produce department by not effectively promoting fruits and vegetables to specific consumer groups. According to the research firm, produce sales are projected to increase by approximately 2% in 2026, with fresh fruit sales expected to surpass overall category sales.
Circana’s vice president of fresh foods, Jonna Parker, highlighted the need for the industry to counter the multitude of marketing messages surrounding other food products like snacks and sweets in order to further boost produce sales.
Parker noted that while average retail prices have increased by 30-40% across most grocery departments since 2019, produce prices have only risen by about 18% per pound on average during the same period. Despite this relatively slower price growth, the demand for fresh fruits and vegetables is not increasing at the same pace.
One key challenge identified by Parker is the lack of differentiation in how retailers market produce compared to other grocery items. While many grocers focus on offering the freshest and cheapest produce, Parker emphasized the importance of establishing unique selling points beyond freshness and affordability.
She suggested that grocers could benefit from adopting strategies similar to those used in categories like wine, cheese, and bottled water, where product diversity and brand-specific marketing are utilized to target specific consumer groups.
Furthermore, Parker highlighted the need for grocers to merchandise produce in “micro segments” to better cater to consumer preferences and simplify the shopping experience.
With traditional supermarkets losing market share to retailers such as Whole Foods Market and Walmart in recent years, Parker emphasized the importance of grocers enhancing their produce offerings to remain competitive in the evolving retail landscape.
She also pointed out that consumer perceptions of produce quality have shifted, with more Americans now viewing retailers like Walmart as viable options for fresh produce.