Grocers are missing out on big sales in the produce section, a recent report from Circana reveals. The report highlights that while produce sales are set to grow by about 2% in 2026, they could do even better with smarter marketing.
Jonna Parker, Circana’s vice president of fresh foods, points out that while overall grocery prices have jumped 30% to 40% since 2019, produce prices have risen just 18% per pound on average. Surprisingly, some products even cost less now than they did several years ago. Despite this, the demand for fresh fruits and vegetables is not rising quickly.
Parker shares that this growth rate is on par with total food and beverage sales, which is surprising. One major issue? The produce industry doesn’t meet consumer needs effectively. Many retailers focus on price and freshness, but those traits are not enough to stand out.
Unlike categories like wine or cheese, where variety and targeted brands are marketed to specific groups, produce marketing tends to be generic. For instance, while some drinks attract certain demographics, apples aren’t marketed that way, despite coming in about 65 different types.
Innovations in growing and picking are often based on supply chain needs rather than consumer preferences. Parker emphasizes that grocery stores can increase sales by helping customers understand their choices better.
The competition is stiff; traditional supermarkets have lost ground to chains like Whole Foods and Walmart, which are gaining share in the fresh produce market. A recent shopper survey showed that over half of Americans find Walmart’s produce satisfactory. This suggests that consumers do not believe that only traditional grocers offer high-quality fruits and vegetables anymore.
In short, the produce industry has the opportunity to adapt and become more customer-focused. By promoting diversity and better marketing strategies, there’s potential for much higher growth in produce sales.
For further insights into grocery industry trends, check out Circana’s analysis here.
