As consumers increasingly crave freshness and convenience, sales of fresh cut, value-added produce continue to climb.
While value-added represents a relatively modest $10.4 billion of the $71.6 billion fresh produce industry, the category is driving growth. According to the latest data from market research company IRI, dollar sales of value-added produce grew 12% in 2021, while nonvalue-added produce grew just 1.1%. Value-added fruit sales were up a whopping 27.3%, while nonvalue-added fruit climbed 4.4%. And in fresh vegetables, value-added made gains (up 3.6%), while nonvalue-added declined 2.3%.
At Barons Market, a Southern California-based grocer with nine stores, sales of grab-and-go fresh produce items soared at the start of the pandemic and remain strong, even as life regains a sense of normalcy.
“Our grab-and-go prepared items were extremely popular during the pandemic, especially the fresh items,” says Rachel Shemirani, senior vice president of Barons Market. “Customers experienced recipe fatigue quite quickly and, because more and more people were working from home, our premade salads and fresh-cut fruit became staple items for quick and easy lunches. Many customers would buy five at a time for their work week. Our prepackaged fresh salads and precut fruit [were] also an easy way to stay healthy when many people's focus was on health.”
Looking ahead, Shemirani sees demand for grab-and-go fresh-cut fruit remaining strong.
“Fresh-cut fruit in to-go containers is consistently one of our most popular produce items, year- round. During the summer months, we'll do cups of fresh-cut watermelon and berry mixes, which both fly off our shelves, as they are perfect for snacking on the go,” she says. “We will also do to-go cups of jicama and cucumber with a bit of lime and Tajin for a unique summer snack that our customers really love. So, we'll continue to do all of this in 2022. The key is freshness and convenience.”
Barons Market further entices shoppers to purchase value-added produce by building displays that make these products easy to find in-store. The grocer uses upright coolers near the registers at the front of its stores and keeps them stocked with colorful fresh-cut fruit in a variety of sizes.
“This is a great way to merchandise them because it's an easy, attractive, last-minute buy,” says Shemirani. “During the summer months, we fill barrels with ice and our fresh berry cups and fresh fruit cups and put them right at the register. We are constantly filling up these barrels throughout the day.”
Top trends in value-added produce
What trends are driving sales in value-added produce? Lana Rodrigues, marketing specialist for Highline Mushrooms in Leamington, Ontario, shares her top three picks:
Plant-based diets. They have been growing steadily in the last few years, and statistics suggest that plant-based is here to stay. Nielsen reported that 39% of Americans claim that, even though they don't follow an entirely vegan diet, they have been eliminating animal-related products from their plate and strive to be completely plant-based one day.
Environmentally conscious eating. Even though plant-based diets have been trending for years, this newer trend has gained strength with the pandemic. As concerns about the climate crisis arise, restaurants, supermarkets and meal-delivery kits have shown more local, clean and sustainable food options. This reflects in more flexitarian, “reducetarianism” diets that envision less meat consumption and waste and offer nutritious options that are good for both the body and planet.
Easy food. After two years of a pandemic and home cooking, people are just tired. Home meal kits, subscriptions and online shopping are on the rise, all with the intention of making it faster, more accessible and convenient for the consumer. This means less time in the kitchen without compromising health and taste.
Simple Sides, Highline's newest product, seeks to deliver these three trends in an easy-to- prepare dish, says Rodrigues. The saute kits feature mushrooms with two sauce options: Sesame and Ginger, and Herb and Garlic. With only six minutes of cooking time, these mushroom sides offer an easy and convenient addition to any meal, she said.
Convenience is key
At Taylor Farms in Salinas, Calif., a laser focus on fresh convenience guides the company's growth plan.
“We are focused on key trends and growth pockets in convenient value-added produce and fresh foods,” said the company. “As consumers continue to move from away-from-home to at-home eating experiences, they are opting for national brands and premium products across the store and across categories. As part of that dynamic, consumers continue to seek out products that feature bold flavors in meals they can prepare at home.”
Taylor Farms has recently added several new products with this trend in mind, including Taylor Farms Dill Pickle Chopped Salad and Taylor Farms Everything Ranch Chopped Salad. The company also plans to reintroduce its seasonal Taylor Farms Watermelon Crunch Chopped Kit for a second summer.