Shopper Spend on Value-Added Continues to Grow: Report

Shopper spend on value-added vegetables continues to grow, with a 2.7% dollar contribution of value-added vegetables to total produce, according to the United Fresh Produce Association’s Q1 2021 issue of “FreshFacts on Retail.” Mixed fruit is also the top selling value-added category, and eight out of top 10 categories reported growth. Value-added produce looks as if it’s here to stay as rising prices at food retail fuel demand. Retailers should ensure that they have enough department “real estate” for this biggest produce change in years.

“More than a year later, the pandemic continues to cause significant changes in consumer behavior,” said Miriam Wolk, VP of member services for Washington, D.C.-based United Fresh. “The cautionary spending environment means brands will need to be laser-focused on economically constrained consumers’ price sensitivity and channels, shifting towards value outlets.”

Among the findings, the report also found that while most fruit dollars declined, berries and lemons stood out, reflecting inflationary increases. Additionally, six out of the top 10 vegetable categories reported dollar growth.

Other Q1 highlights include:

• Total produce household trips to the store are up 4.6% versus a year ago.

• Salad kits continue to gain in popularity, as dollar share grew 2.1 points.

• Quarterly sales of organic produce eclipse $2.3 billion.

The “FreshFacts on Retail” report measures retail price and sales trends for the top 10 fruit and vegetable commodities, as well as value-added, organic and other produce categories. Sponsored by Kingsville, Ontario-based Mucci Farms, the Q1 report was produced in partnership with NielsenIQ Fresh, with direction from the United Fresh Retail-Foodservice Board. FreshFacts on Retail can be downloaded free of charge for all United Fresh and Produce Marketing Association members ($50 for non-members) on the trade association’s website.