Market amp Consumer Information August 2014 US FreshCut Produce Is An Estimated 27 Billion Market and Sales Are Increasing US Market Size US retail sales growing for freshcut fruit and vegetables ID: 138879
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Fresh-Cut Fruits and Vegetables Market & Consumer Information
August 2014Slide2
U.S. Fresh-Cut Produce Is An Estimated $27 Billion Market and Sales Are Increasing
U.S. Market Size:
U.S. retail* sales growing for fresh-cut fruit and vegetables
Fresh cut fruit retail sales increase 2012-2013: +10.3% dollars, +13.9% volumeFresh cut vegetable retail sales increase 2012-2013: +5.5% dollars and volume Fresh-cut produce accounts for 16% of total retail produce salesFoodservice accounts for the larger share of fresh cut sales (60%)
Source: Freshcut.com, UC Davis 2012 Study, Roberta Cook “Trends in the Marketing of Fresh Value Produce and Fresh-Cut/Value-added Produce”; Nielsen 52 weeks ending July 13 2013 – *Select US Retailers
Note – Retail includes all grocery retail channelsSlide3
Share of U.S. Fresh-Cut Fruit & Vegetables by Category in Retail
Mixed fruit, apples, pineapple and watermelon account for the largest dollar and unit share of fresh cut fruit sales in U.S. grocery retail
Excluding bagged salads, carrots and mixed vegetables account for the largest dollar share of fresh cut vegetable sales in U.S. grocery retailSlide4
Share of U.S. Fresh-Cut Fruit & Vegetables by Packaging
Fresh-cut
fruit packaging types and share of sales:
Fresh cut with no preservative (72.4%)Characteristics include chunk, cubed, cored, cup, cut, wedge, spear, sliced, boatTray with plastic overwrap (19.3%)Jars & cups with fruit in juice (8.2%)Sold in a plastic cup or jar – fruit in juice or preservativesFresh-cut vegetable packaging types and share of sales:Side dish (54.6%)Can often be cooked in the microwave directly in the bagTrays (19.4%) – vegetable only with or without dipMeal prep (17.2%)
Diced, sliced, chopped and shredded items ready to incorporate into a meal or recipeSnacking (8.8%) – single serve (5 oz. or less) typically for on the go
Source:
FreshFacts on Retail Q2 2012 – Vegetable excludes bagged saladsSlide5
Aside From Convenience, New Eating Occasions & Quality Also Drive Fresh Cut Purchases in the U.S.
Fresh-cut produce offers
consumers
value for the following reasons:Convenience – it is the #1 reason for purchaseGrab & go is needed for busy familiesShifting consumption patterns – more grab & go needed for breakfast & snackingOption for a side dishQuality – consumers know fresh-cut produce is ripe vs. figuring it out with the whole item Barriers to consumers’ purchases of fresh-cut include price, poor quality from past experience and limited shelf lifeRetailers and Foodservice providers also find value in fresh cut produceFresh-cut reduces labor costs, stabilizes price and offers consistent sizing & supply
Source: Euromonitor International; Fresh Cut Magazine Jan 2014 “Food for Thought: Experts offer snapshots on fresh-cut industry”Slide6
Fresh-Cut Produce In the U.S. Appeals To More Affluent, Upscale Consumers As Well As “Healthy Living Families”
Who consumes the most fresh-cut produce in the U.S.?
Affluent
and suburban consumersUpscale urban consumers“Healthy Living Families” - households with children ranging from lower income to affluentLarge householdsCollege-educated consumersPrimarily Caucasian consumers, but also Asian consumersSource: Beth Padera, The Perishables Group January 2011