What's in store for produce retail, says National Grocers Association
As supermarket leaders grapple with all the business in 2021 — in newer ways such as online, curbside pickup, delivery and contactless checkout methods — what do they expect for 2022?
When asked to rank their hopefulness about the next five years, one-third of independent grocers said they were “less hopeful” about the “overall success of independent grocery stores” in the next five years, but two-thirds of respondents ranked their outlook as “more hopeful” or “the same” as it is now, according to a report with data collected by the National Grocers Association.
Winning with Fresh Fall 2021, a report written by Janice M. Kreslin, uses a study conducted by the association in partnership with The Packer and PMG. The study reveals data that suppliers, buyers, managers and retail executives can use toward making decisions.
The ability to staff their stores was the No. 1 concern for retailers: 54% of independents said they were "less hopeful" about their ability to hire employees.
International trade agreements affecting fresh produce was top of mind too. Almost one-third of independent grocers said they were more hopeful about foreign trade of fresh produce in the next five years, and 28% said they were encouraged by government policies on fresh produce.
Focusing on fresh fruits and vegetables, 48% of independents said they were "more hopeful" about the fresh produce supply chain in the coming years, and 60% said they were optimistic about working with local growers of fresh produce. Some of that optimism stems from new growing practices.
For example, 58% of independents said they were "more hopeful" about the outlook of sustainability practices for fresh produce in the next five years, compared to now.
Considering consumer behaviors
What's hot
- Organics: 61% of all survey respondents said they expected organics demand to rise in the next 18 months. And 50% of all grocery respondents said that the demand for organics has increased in the last 18 months. Only 7% of those surveyed said they thought the demand for organic produce dropped in that same time.
- Shelf space: One-third of respondents said that produce needed more shelf space in the store, while 31% of independent grocers said the the same. Which items need more room to be displayed wasn't clear, but it's apparent produce departments will grab its fair share of real estate. Only 3% of respondents said they saw demand for produce shelf space decrease in the last 18 months.
What's not
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Non-GMOs: In the last 18 months, 58% of survey respondents said that interest in non-GMO fresh produce remained unchanged. This trend was most obvious to wholesalers, with 77% of this group noting the interest in non-GMOs was stagnant.
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Packaged produce: When asked about plastic packaging in general (not just eco-friendly), 75% of those surveyed said demand for packaged produce had stayed the same or decreased in the last 18 months. And 25% of all respondents, and 23% of independent grocers, said there was an increase in demand.
For more nuggets of study findings centered on a theme, check out these two articles:
1. This is what retailers prioritize, says NGA
