Price deflation has been the story of the year on fresh fruit and vegetable products.
Pretty much all of the products in the FPJ Big 50 Products have been affected, causing some categories to crash in value.
But fruit, by and large, enjoyed a positive year, with berries, grapes and mangoes performing strongly.
Lauren Webb, an analyst at grocery insight expert Kantar Worldpanel, said: “The key trend we have seen has been price deflation, and the price war has driven value out of fresh produce. Deflation in potato prices has affected total produce value and volume figures, and we are only just seeing potato volume return to growth.
“Iceberg lettuces have also been a major driver of price deflation. Although we saw high volume growth at first, this has now trailed off as consumers become used to the lower price. This has therefore driven value and volume out of the category.”
Delisting is an issue too, with retailers axing pack sizes and varieties. But Webb told FPJ that the range of fresh produce products will likely rise as a result.
The changing nature of how consumers buy their fresh fruit and veg will also have an effect on the market. Laura Tomlinson, senior consultant at PamLloyd PR, said: “With an increasing number of shoppers expanding their repertoire to encompass a range of channels, such as online and discounters, the traditional supermarket format struggles to retain relevance.
“Many are still wedded to the supermarket shop, 96 per cent of consumers still use them, but the multi-channel shop is here to stay and this is likely to be a permanent change to the retail landscape.”
Tomlinson expects the much-anticipated arrival of Amazon Fresh in the UK to present new challenges - including on fresh produce - to the established retailers, both online and in store.
She said: “As it stands, the fresh produce category doesn’t fare as well as it could in terms of online sales. But, with the average adult spending half of their waking hours engaged in media and communications activities, there is considerable room for growth here.”
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