Retail produce sales remain strong in January

Retail produce sales growth has remained around 10% above 2019 throughout the "new normal" of the pandemic.
Retail produce sales growth has remained around 10% above 2019 throughout the "new normal" of the pandemic.
(IRI, PMA and 210 Analytics)

The trends of more meals being consumed at home and more people focusing on health continued in January and boosted retail produce sales 9.7% compared to 2019.

“Early on in the pandemic, we saw shoppers indulging in more comfort foods,” Jonna Parker, fresh team lead for IRI, said in a news release. “But 64% of shoppers started 2021 with New Year’s resolutions, according to the IRI Consumer Network survey conducted in January 2021. More than one third, 35%, aim to eat healthier, in general. 35% want to get more exercise, and 29% plan to save more money.”

As has been the case throughout the pandemic, fresh vegetables have outpaced fresh fruit in growth; for the five weeks ending Jan. 31, vegetables were up 12.2% compared to the same period in 2019, while fruit was up 7.2%, according to the release.

“Produce at retail had a strong January, driven by the two middle weeks ending Jan. 17 and 24,” Joe Watson, vice president of membership and engagement for the Produce Marketing Association, said in the release. “We continue to see highly elevated sales results for vegetables that are very much in line with the gains seen in the meat department — both pointing at more meals prepared at home. Retail fruit gains have been in the high single digits since the third quarter of 2020 and remain a big opportunity for more at-home snacking, breakfast and lunch.”

Berries, apples, bananas, grapes and avocados were the top five fruit items for weekly sales, with berries leading the list by a large margin.

“In fruit, berries remained dominant in sales, but the strength of citrus is tremendous,” Parker said in the release. “Citrus fruit was up 13.1% year-over-year, showing consumers’ consistent turn towards foods they perceive to help live healthier lifestyles. Consumers relate citrus to vitamin C and, in turn, with boosting their immune systems. Other fruits and vegetables could benefit from leveraging their strengths as many consumers do not off-hand know their power.”

Oranges were up 19.5%, and lemons up 25.5%, according to the release.

In vegetables, tomatoes, potatoes, packaged salad, peppers and lettuce were leaders in weekly sales.

“The January top 10 is very similar to what we have been seeing all year,” Watson said in the release. “The dominance of tomatoes, potatoes and packaged salad is astounding, with great strength in size and growth for lettuce, onions and peppers as well.

“Mushrooms have also been a pandemic powerhouse in retail, placing in the top 10 month after month despite being a much smaller seller,” Watson said.

The growth in fresh produce sales, a result of a number of consumer behavior changes prompted by the pandemic, may not subside in the near future, as 7 in 10 consumers expect the COVID-19 crisis to last for at least another seven months, if not another year or longer, according to IRI.

The firm’s latest research also found that 44% of employed Americans plan to work from home at least once a week even after the vaccine is widely available and social distancing is no longer required.

 

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