The pound’s performance on the global currency market has been a major talking point in the business pages over the past year. But in good news for the fresh produce market, there’s little sign that it is mirroring sterling’s slowdown, with price increases ensuring retailers and manufacturers are getting a competitive return.
Average fruit and vegetable prices are up by 1.8 per cent on last year, thanks in no small part to the many high-ticket vegetable drawer items that are growing in popularity. In total, 53 categories are enjoying price growth ahead of the market, including many premium or more exotic products. One of the most significant of these is berries, which are enjoying a higher price per kg than the rest of the market. Shoppers have also bought berries once more each every year over the past half a decade.
Still, with spending on produce up against market inflation of 1.2 per cent, there is a difference to be accounted for. As we move into a period of increased commercial uncertainty, it’s important for retailers and manufacturers to embrace a variety of avenues for growth rather than solely relying on increasing prices.
Encouragingly, public engagement in fresh produce has rarely been higher, and shoppers are more enthusiastic than ever about trying new products. The average household now buys fresh produce seven more times in an average year than in 2014, with the total now standing at 103 trips every 12 months and increasing at a rate higher than that of the wider grocery sector. This growth is evenly split across both fruit and vegetables – highlighting that as engagement with produce is growing, consumers continue to shop across the category.
The average household now also buys a greater range of products – 49 different produce items each year – than it did five years ago, as shoppers strive towards a more diverse dinner plate. While old favourites might not be as popular as they once were, new, exciting and exotic dishes are becoming more prevalent. With many of these being imports from the out-of-home market as consumers look to recreate their favourite dishes in their own kitchens, this has opened up an entire market for new fruit and veg products.
As ever, keeping one eye on the street food markets and brunch spots is key to getting ahead of the game and understanding what consumers will look for in supermarkets in future.
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