Fresh sales data shows cooling inflation and a slight increase in the volume of fresh produce purchases in April.
Circana's (formerly IRI) April sales results and survey of primary grocery shoppers reveals that economic pressure on income continues to result in consumers moving around dollars between channels, products and brands, according to a report summary. Circana, 210 Analytics and the International Fresh Produce Association combine to document the impact on sales patterns in fresh produce.
While inflation is slowing, it is still a big factor for consumers, according to the report.
“After many months of double-digit increases, we found that the increase in the price per unit for total food and beverages averaged 8.2% in April 2023 compared with April 2022,” Jonna Parker, team lead of fresh for Circana, said in a news release. “At the same time, this is 23.1% above the April 2020 levels — illustrating that inflation continues to take a big bite out of American households’ paychecks.”
What’s more, Parker said the temporary Supplemental Nutrition Assistance Program (SNAP) emergency allotments (EAs) — a temporary benefit increase that Congress enacted to address rising food insecurity and provide economic stimulus during the COVID-19 pandemic — ended in March 2023. That means the average SNAP recipient person receives about $90 a month less and households receive at least $95 less up to reductions of $250 per month, the release said.
The report noted that the consumer-estimated share of meals prepared at home rose to 80%, with above-average shares for lower-income and fixed-income shoppers. The April report said 22% of consumers plan to source fewer restaurant meals.
The survey found that the share of people who work from home one or more days per week is 25% of consumers or 46% of those who are active in the workforce.
Cutting back
Eighty-five percent of consumers said in the survey that they apply one or more money-saving measures when they shop for food, led by looking for sales promotions (53%), cutting back on nonessentials (46%) and buying store brands more often (34%), the report said.
“At the same time, consumers are changing behaviors inside the home,” Parker said in the release. “In our survey, 40% of consumers noted they are more conscious of using up fresh foods before they go bad, 39% are using leftovers more and 25% are using more simple ingredients.”
The April report also points to strengthening demand for fruit in reaction to sustained deflationary conditions and continued strength for many vegetables, Joe Watson, vice president of retail, foodservice and wholesale for IFPA, said in the release.
Overall, the report said average prices for fresh produce were flat in April 2023 when compared to April 2022.
April 2023 fresh produce sales reached $5.9 billion, up 5% from a year ago and 17.5% more than two years ago. The volume of fresh produce sales was up 0.1% in April compared with a year ago. For the 52-week period through April, fresh produce sales were up 3.5% from a year ago, while unit sales were off 2.4%.
Fresh fruit sales in April were $2.9 billion, down 0.3% from a year ago but up 8.5% from two years ago. The volume of fresh fruit sales was up 1.9% in April from a year ago and up 1.7% from two years ago, the report said. For the 52-week period through April, fresh fruit sales were up 2.2% and volume was off 1.3% compared with year-ago levels.
Fresh vegetable sales were pegged at $2.9 billion in April, up 1.5% from a year ago and 7.2% higher than two years ago. The volume of fresh vegetables sold in April was off 1.1% compared with a year ago and down 4.1% compared with two years ago. For the 52-week period through April, fresh vegetable sales were up 4.8% and volume was off 3.2% compared to year-ago levels.
“The strengthening demand for fruit in reaction to deflationary conditions is a very positive sign going into the summer months,” Watson said in the release. “There is typically a lag between improvements in pricing levels at retail and strengthening demand. We certainly saw that for fruit as well. But fresh fruit has experienced positive unit and volume growth for two consecutive months now and that bodes well for continued strength going into the big summer and grilling seasons.”
Fresh fruit sales in April, with change compared with April 2022:
- Fresh fruit: $2.9 billion, down 0.3%.
- Berries: $785 million, up 4.3%.
- Apples: $338 million, down 3%.
- Grapes: $275 million, down 1.6%.
- Bananas: $267 million, up 1.4%.
- Melons: $254 million, up 11.4%.
- Avocados: $190 million, down 19%.
- Mandarins: $170 million, down 2.0%.
- Oranges: $107 million, down 10.9%.
- Pineapples: $90 million, up 3.1%.
- Mixed fruit: $88 million, up 3.2%.
Fresh vegetable retail sales in April, compared with April 2022
- Fresh vegetables: $2.9 billion, up 1.5%.
- Tomatoes: $319 million, up 0.7%.
- Potatoes: $303 million, up 10.8%.
- Lettuce: $247 million, up 4.3%.
- Salad kits: $238 million, down 2.4%.
- Onions: $206 million, down 0.3%.
- Peppers: $198 million, up 1.6%.
- Cucumbers: $125 million, up 8.3%.
- Carrots: $108 million, up 2.6%.
- Broccoli: $100 million, up 2.8%.
- Salad blends: $94 million, down 0.7%.
Source: Circana