Produce industry trends – 2017 and beyond

Oct 01, 17 Produce industry trends – 2017 and beyond

By Doug Ohlemeier

Consumers – particularly millennials – are requesting more convenient and healthier foods, which is changing how produce is sold in stores and offered in restaurants.

Millennials – those born after 1980 and the first generation to come of age in the new millennium – are influencing produce purchases and transforming the way produce is merchandised, said Brian Darr, managing director of Datassential, a Chicago food industry research and consulting firm.

“Research has shown millennials are shopping the store perimeter more as they are interested in and comfortable with preparing more meals at home,” he said. “They are interested in trying new recipes, love variety and are interested in a wider variety of flavors and flavor influences — especially a wider variety of global flavor influences.”

That interest has prompted retailers to expand their produce sections with a wider variety of produce and include more exotic and value-added products, including chopped, shredded, peeled and cubed vegetables, salad kits, and more. “We also know that millennials are fine with a meal including some prepared items and some items they prepare themselves,” Darr said.

In some stores, the produce area is flowing into the deli/prepared foods and cheese sections to facilitate the increased “mix-and-match” shopping. Millennials may place into their shopping carts pulled pork from the deli section and a variety of vegetables to chop or shred, and tortillas to make pulled pork tacos or lettuce wraps with pulled pork, Darr said.

Smart produce marketers should try to serve millennials’ needs by offering convenience products, said Matt Lally, analytics and insights manager for Nielsen Fresh. “They’re not sitting down for as many formal meals,” he said. “They’re having smaller snacks throughout the course of the day. As their demands involve something more convenient and portable, products that are able to adapt to fit into that need are also experiencing a lot of growth.”

Compared to longtime produce department staples like bananas, grapes and potatoes, which are experiencing soft sales from lagging convenience offerings or product innovation, fresh-cut and sliced fruits and vegetables have seen high growth, Lally said. Nielsen Fresh and the United Fresh Produce Association’s quarterly FreshFacts on Retail reports show berries and packaged salads dominating fruit and vegetable category sales.watermelon1croptnsized

Grapefruit, watermelons, radishes, heirloom tomatoes and kumquats are experiencing high demand. Growth in sales of grapefruit and watermelons is primarily due to their use in beverages. Watermelon is used with feta cheese on salads, paired with tomatoes in burrata (an Italian cheese) dishes, in gazpacho presentations and as a dessert flavor for lighter sorbets and Italian ices, Darr said.

Radishes add color and crunch to many trending items, including avocado toasts and salads, raw fish dishes and upscale taco offerings. Restaurants are featuring heirloom tomatoes in salads and bruschetta, Darr said. Heirloom tomatoes are also featured with fish and other light proteins as a side for a center-of-plate offerings, he said.

Bowls growing

Bowls, which allow diners to customize their meals, are gaining in popularity and are helping drive vegetable consumption in restaurants.

“While bowls have been added to retail product lineups by a number of fresh produce marketers, another big trend we’ve seen cross over from foodservice to retail is adding value to veggies by fundamentally changing their texture and shape – providing new ways to cook and new textures to enjoy,” said Cathy Burns, president of the Produce Marketing Association.

Spiralized zucchini, cubed butternut squashes and shaved brussels sprouts provide easier and new cooking experiences and huge retail demand. The spiralized veggies explosion is also meeting consumer demand for gluten-free noodle substitutes, Burns said.

Home delivery and online purchasing also is expected to increase in 2017. Meal delivery services including Blue Apron and Hello Fresh “make everyone a chef” and market foods with portion control and restricted servings. The trend helps the produce industry because it exposes consumers to items they may not have tried.

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