Following the decline in fresh fruit and vegetable sales at US supermarkets between 2005 and 2008, business continued to turnaround in 2010 after sales registered an upturn of 1.7 per cent for fruit and 1.5 per cent for vegetables.
With the rapidly growing emphasis on healthy lifestyles, fresh produce is becoming even more “in vogue”, according to Chicago-based analyst The Perishables Group.
Within the category, prepared produce saw “significant volume increases” in 2010, after “recession-related declines” during the previous two years, the report said.
Consumers were willing to spend more for convenience in 2010, but if food prices rise in 2011, The Perishables Group predicts that prepared produce sales could be affected.
“The emphasis on health will keep consumers in the produce department, but they may opt for more affordable whole fruits and vegetables,” the firm explained.
And although some predictions for 2011 indicate a decline in the search for “natural” foods in exchange for foods with substantial nutrition, the analyst said sales of natural items do not appear to be slowing down just yet.
Meanwhile, across all fresh departments and every retail outlet, The Perishables Group said consumers have made it clear that they are looking for the best deal.
“While some shoppers have indicated that they purchased more items on sale in recent years, the percent of fresh food volume sold while on promotion has actually declined since 2005,” the analyst noted.
This trend was likely fuelled by more aggressive everyday low prices as well as electronic coupons distributed via mobile applications or social media.
As these strategies gain even more momentum, The Perishables Group expects a decline in the frequency or depth of traditional promotions is possible for 2011.
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