September 2024 - Insights to Action

The produce department continues to see positive trends in retail as consumers continue to eat more at home, while restaurant recovery has slowed with lingering inflation causing declines in traffic.

  • Thru 32 weeks, produce dollars sales is trending up 3.3% vs prior year, while volume continues to grow at +3.4%.
  • Seasonal lifts continue to drive Fruit growth with + 5.0% in dollars and 4.0% in volume. Vegetables are trending at a slower pace with +1.6% dollar sales & +2.7% volume growth.
  • Total edible performance is still lagging produce, but overall retail demand is stable.

Regional performance YTD (32 weeks)1

Produce has seen positive dollar and volume sales growth across all defined regions.

Top 10 fruits & vegetables YTD1

($ Sales)

Commodity spotlight: Onions

Onions are a staple in the produce section, known for their versatility and essential role in cooking. Available in yellow, red, and white varieties, they enhance dishes from soups to salads. With global production around 105 billion pounds annually and an average consumption of 13.67 pounds per person, onions are indispensable in both every day and gourmet cuisine, adding flavor and nutrition to every meal.

Price is a decisive factor in consumer choices. Price is top of mind for both retail partners and shoppers. Both believe that it is a top factor that impacts produce purchases.

Retail partners noted that noncompetitive pricing due to inflation is an immediate concern for them. They plan to use promotional activity and shopper engagement as key levers to drive growth this year.

Additionally, shopper loyalty programs and eCommerce platform development are also current focus areas for their organizations.

The levers and focus areas noted by the retail partners align well with what shoppers want for their in-store and online experience, as it relates to price.

Channel Shifting

Seeking out the best value/price spans across all channels. An overwhelming majority, 72% of shoppers, stated they purchase produce through a paid membership or subscription program.

  • 76% of paid membership respondents hold a Club membership
  • 50 % of paid membership respondents hold more than one membership/subscription

About the sentiment survey: In 2024, Robinson Fresh surveyed retail partners to gain deeper insights into their priorities and challenges. This feedback was used to shape a comprehensive consumer sentiment survey. A third-party research firm was used to survey 2,000 consumers regarding their shopping habits. Respondents were geographically and demographically representative of the total U.S. population. To participate, the consumer needed to have purchased fresh produce during the previous 2 months.

Restaurant Market Trends

The foodservice industry has been following the general pattern of a soft landing post-COVID, which is similar to the U.S. economic recovery forecast.

In May, the Bureau of Economic Analysis (BEA) adjusted its economic growth projections from 1.6% (forecasted in January) to 1.3%. Similarly, projections for foodservice growth were revised from 5% to 3.8%. This adjustment reflects the slower-than-expected decline in inflation.

How are restaurants addressing segment competition?

Value is key! Many restaurants prioritize providing value to consumers. They achieve this through strategies such as offering limited-time deals and value menus. Regularly advertising price reductions and special deals helps attract customers to their stores.

  1. Circana Integrated Fresh, Total US, MULO, Calendar Year 2023 Ending 08/11/2024
  2. Circana Integrated Fresh Scan thru 08/11/24
  3. Circana Integrated Fresh Panel 2023 (NBD $ Adjustment)
  4. Circana POS and Panel Data through 08/11/24
  5. Danielle Wiener-Bronner (May 2024), ‘Even with food prices flattening out, the cost of dining out is still going up’ https://www.msn.com/en-us/money/other/even-with-food-prices-flattening-out-the-cost-of-dining-out-is-still-going-up/ar-BB1o6hMu
  6. Circana CREST® U.S. Q1 = JFM, Q2 = AMJ, Q3 = JAS, Q4, OND