Consumers have good intentions.
When it comes to food, they say they want to eat healthier. Sometimes they even report that they are eating healthier, but mostly they’re not. We know this based on obesity rates and consumption studies. While the latest produce consumption figures show flat growth or growth only at the rate of population, sales are better than flat in most produce departments.
That’s because consumers are finding value in value-added produce, even if it costs more than bulk.
In this issue, we reveal findings from a survey of produce retailers on packaging, which often means value-added. Retailer responses generally correspond to The Packer’s annual Fresh Trends consumer survey results.
Sometimes they don’t. For instance, 55% of retailers in their survey said convenience was the primary motivation for consumers buying packaged produce, by far the highest factor, with “value” coming in fourth at 12.5%. But consumers in Fresh Trends listed “value” almost as often as “convenience” when asked what was a top advantage of buying packaged produce (49% versus 65%).
More specifics
A report from the United Fresh Produce Association, using retail scan data from the Nielsen Perishables Group, shows that fresh produce sales in the second quarter of 2016 were up 4.2% this year versus the second quarter of 2015. Two of the stars of the category were packaged salads and value-added vegetables, which saw Q2 year-over-year sales gains of 6.6% and 9.7%, respectively.
The report looked at four categories of value-added vegetables:
- Side dish: washed and cut vegetables that can be quickly cooked or microwaved, 11.1% increase over Q2 2015.
- Snacking: washed and cut vegetables, usually eaten raw, with sizes for one or two people, 10.2%.
- Meal prep: washed and cut vegetables to be used in recipe or meal, reducing a preparation step, 13.9% increase.
- Trays: cut vegetables in a tray with or without dip, often used in social settings, 0.2% increase.
Whether they’re millennials increasing their food purchases as they acquire assets and responsibilities or older consumers looking to simplify their cooking and eating experience, packaging and value-added fresh produce options will continue to lift the category.