New annual market report shows dramatic increase in produce sales at retail in 2020
Packer Interview Mike Mauti 21
A new report reveals citrus, Asian and Indian vegetables including cooking roots such as garlic, ginger and turmeric, lead the way in year-on-year growth during 2020 in Ontario retail produce departments.
The report, produced by the Ontario Produce Marketing Association shows an overall increase of 8.3% in produce sales growth compared to 5.2% in 2019 and an 8.1% increase in tonnage growth compared to a 2% reduction in 2019, according to a news release.
Vegetables took the lead with an 11% increase in sales compared to their fruit counterparts which saw a 6.1% growth in sales, according to the release. Growth can be attributed to more at-home cooking during the pandemic and possibly consumers replicating their favorite restaurant meals at home.
Resulting in a bump in vegetable sales and a desire to try non-conventional produce items.
“The findings of this report indicate increased grocery spend on fresh produce,” OPMA president, Michelle Broom said in the release. “Whether it’s being driven by a desire to build immune defenses in the face of a pandemic, or wanting to experiment with different flavor profiles, Ontario consumers are spending more time than ever in the produce aisle.”
Tomatoes, potatoes and peppers saw the highest growth in sales while potatoes, onions and carrots experienced the largest tonnage increase in the vegetable category, the report said. When it came to fruit, the release said oranges, strawberries and cherries were the top commodities in sales growth, while avocados, watermelon and oranges led the way in tonnage growth.
“This research points to unique opportunities for both suppliers and retailers,” Mike Mauti, managing partner at Execulytics Consulting, said in the release.
“While consumers are still doing a lot of their cooking at home, it’s a good time for suppliers to diversify with a larger variety, perhaps adding specialty or multicultural vegetables into their offering. Retailers can capitalize on the growing desire for exotic fruits and look at in-store merchandising changes to strengthen this category.”
In a video interview, The Packer’s editor Tom Karst spoke to Mauti about Canada’s general retail outlook in late February.
Fruits that saw a decline in tonnage growth include cut fruit, grapes, apples and pears, according to the report.
On the vegetable side, salad greens and Italian vegetables underperformed in total vegetables and total produce both in sales and tonnage. A decline in these commodities can be explained by the consumer’s desire to experiment more with their home cooked meals, the report said.
This report is based on NielsenIQ MarketTrack data for fresh produce sold in Ontario grocery banner, mass merchandiser and drug channels for the 52 weeks ending October 3, 2020. Additional analysis was conducted by Execulytics Consulting. Access to the full report is available to OPMA members on the OPMA’s website, according to the release.
