2023
9
US Produce Market Report 2023
2023-06-21T04:06:18+01:00
OX1155665
3695
164291
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Report
en_GB
“Consumers and brands readjusting post-pandemic are now stumbling over inflation, but the impact on produce has been complicated. While a reshuffling of preferred purchase selections is expected, produce also represents…

US Produce Market Report 2023

£ 3,695 (Excl.Tax)

Description

This US produce market report provides an in-depth analysis of the market and consumer, and enables your business to strategize effectively according to the latest developments in the industry. Backed by independent research and statistics, our analyst breaks down the trends and provides opportunities to capitalise on.

Below, we summarise the key topics analysed, and offer handpicked insights from the report.

Key Topics Analysed

  • Total US produce market size, forecast and segment performance.
  • Macroeconomic factors influencing the produce industry.
  • Produce brands’ performance and activities.
  • Changes in produce purchase habits.
  • What quality means to consumers.
  • Attitudes towards produce.

US Produce Industry Overview

The US produce industry is seeing modest growth amidst record inflation, with over a third of consumers adding more produce to their diets in place of higher-ticket items. Only 6% report consuming less produce than the year before, indicating that there is still engagement with the category despite concessions being made.

  • US produce market size: Inflation masks 2022’s 3% decline as a modest 5.1% growth, with tapered growth expected through 2027, to amount to an estimated $141 billion.

Find a complete breakdown of the produce market size and share alongside expert analysis in the full report.

US Produce Consumer Trends

Lack of kitchen experience doesn’t deter younger consumers

Younger consumers, particularly Gen Z, have less spending power and kitchen experience, but demonstrate increasing interest in experimentation and a wider variety of produce. They perceive produce as fun to experiment with and exciting, and are replacing higher priced foods with produce. This report explores opportunities to appeal to Gen Z in the produce industry, and you can see our Marketing to Gen Z Report for further guidance on appealing to this demographic.

Consumers are mixing it up

US consumers are increasingly purchasing a mix of produce products, depending on their budget and personal preferences. While brand loyalty is affected by financial health, many shoppers still choose a mix of branded and non-branded items. In this report, we reveal exactly what each consumer segment is buying and why, and how brands can adapt to consumer preferences.

Opportunity for US Produce Brands

Addressing food waste can increase consumer engagement in the U.S. produce industry, particularly during economic uncertainty. Innovations that prolong shelf-life, improve quality relative to fresh, and educate consumers about food safety and leftover use can build trust in the brand and empower consumers.

A full list of opportunities and competitive strategies are available in this US produce market report. If you were looking for something else, browse our extensive food market research to explore other options.

Produce Types and Brands Discussed

Produce types: This report focuses on the US market for fruits and vegetables, covering the following categories: Fresh vegetables, shelf-stable vegetables, frozen vegetables, fresh-cut salad, fresh fruit, canned/jarred fruit, frozen fruit, and dried fruit.

Companies/brands: Many large and niche brands are discussed in this report, including but not limited to AeroFarms, Bowery, Evive, Seal the Seasons, S!deaway Foods, Clovis Farms, Wholly Avocado, Sunsweet Growers, Del Monte, Jasper Wyman & Son, Ore-Ida Potatoes.

Additional Features Included in Your Report

Different Digital Formats: PDF for conveniently sharing with your team, PowerPoint for quickly including in your presentation, as well as an Infographic and an Excel Databook.

Mintel’s Clients Portal: Our portal offers instant access to actionable analysis and trends pieces relevant to your industry that are published almost daily. You can also browse for more market research reports.

Expert Analysis from a Food Specialist

This report, written by Adriana Chychula, a leading food analyst, delivers in-depth commentary and analysis to highlight current trends in the US produce industry and adds expert context to the numbers.

Consumers and brands readjusting post-pandemic are now stumbling over inflation, but the impact on produce has been complicated. While a reshuffling of preferred purchase selections is expected, produce also represents an economical alternative to higher-ticket items like meat. Brands have opportunity to put a positive spin on cost savings with creativity that keeps consumers engaged, even reviving plant-based interests – through plants.

Adriana Chychula, Analyst – Food, Drink, and Nutrition

 

Adriana Chychula
Analyst – Food, Drink & Nutrition

Table of Contents

  1. Overview

    • What you need to know
    • This Report looks at the following areas
    • Definition
    • Market context
  2. Executive Summary

    • Top Takeaways
    • Consumer trends
    • Inflation-induced purchase shuffling is throwing habits up in the air
      • Figure 1: Changes in produce purchase habits, by financial health, 2023
    • Younger consumers might lag in consumption, but just need a push
      • Figure 2: Changes in produce purchase habits, by generation, 2023
    • Consumers mix and match conventional and organic, branded and private label
      • Figure 3: Product type purchase, by product type purchase, 2023
    • Competitive strategies
    • Improving palatability can spark interest
      • Figure 4: Innovative produce releases, 2023
    • Brands are smoothing barriers, enhancing strengths
      • Figure 5: Convenience-enhanced produce innovations, 2023
    • Market predictions
      • Figure 6: Total US sales and fan chart forecast of produce, at current prices, 2017-27
      • Figure 7: Category outlook, 2023-28
    • Opportunities
    • Help consumers optimize purchase use
      • Figure 8: Select attitudes toward produce, 2023
    • Function-forward marketing can empower long-term health goals
      • Figure 9: Select attitudes toward produce, 2023
    • Inspire younger consumers
      • Figure 10: Reasons for eating more produce compared to a year ago, by generation, 2023
  3. Market Size and Forecast

    • Inflation buffers produce category from negative growth
      • Figure 11: Total US sales and fan chart forecast of produce, at current prices, 2017-27
      • Figure 12: Total US sales and forecast of produce, at current prices, 2017-27
  4. Segment Performance

    • Inflation sends segments on another wild ride
      • Figure 13: US retail sales and forecast of vegetables, by segment, at current prices, 2017-27
      • Figure 14: US retail sales and forecast of fruit, by segment, at current prices, 2017-27
    • “Other” channel growth suggests shifts to value retailers
      • Figure 15: Total US retail sales of produce, by channel, at current prices, 2020-22
  5. Market Drivers

    • Inflation results in some purchase habit shuffling
      • Figure 16: Changes in produce purchase habits, by financial health, 2023
    • Cuts to SNAP compounding inflation’s threat to public health
    • Organic can take advantage of malleable habits
      • Figure 17: Barriers to organic product purchase, 2023
    • Growers, suppliers can shift to meet BFY/BFU with tech
    • Regenerative agriculture can advance environmental interests through a health lens
      • Figure 18: Reasons for increased produce consumption, 2023
    • Food waste innovations making headway
      • Figure 19: Select attitudes toward produce, 2023
  6. Market Share/Key Players

    • Brands can prove value through consistency, convenience
    • Sales of produce by company
      • Figure 20: Multi-outlet sales of produce, by leading companies, rolling 52 weeks 2022 and 2023
    • Company/brand sales by segment
    • Frozen vegetable brands can capitalize on comfort
      • Figure 21: Multi-outlet sales of frozen vegetables, by leading companies and brands, rolling 52 weeks 2022 and 2023
      • Figure 22: Frozen vegetables social media messaging, 2022
    • Longterm lead in shelf-stable private label veggies proves convenience and value are timeless
      • Figure 23: Multi-outlet sales of shelf-stable vegetables, by leading companies and brands, rolling 52 weeks 2022 and 2023
      • Figure 24: Del Monte Facebook ad, 2022
    • Jasper Wyman & Son takes on private label in frozen fruit
      • Figure 25: Multi-outlet sales of frozen fruit, by leading companies and brands, rolling 52 weeks 2022 and 2023
      • Figure 26: Wyman’s fruit cups ad, 2022
    • Private label edges out leading shelf-stable fruit brand
      • Figure 27: Del Monte Facebook ad, 2023
      • Figure 28: Multi-outlet sales of canned/jarred fruit, by leading companies and brands, rolling 52 weeks 2022 and 2023
    • Fragmented dried fruit segment results in mixed bag of performances
      • Figure 29: Sunsweet Growers Facebook ad, 2023
      • Figure 30: Multi-outlet sales of dried fruit, by leading companies and brands, rolling 52 weeks 2022 and 2023
  7. Competitive Strategies and Market Opportunities

    • Brands tackle format barriers with innovation
    • Moving avocados from tricky to RTE/RTH
      • Figure 31: Avocado-based new product introductions, 2023
    • RTB (ready-to-blend)/RTE “smoothie-solutions” ease prep and elevate value
      • Figure 32: Smoothie-focused produce introductions, 2023
    • Brands take BFY alternatives to the next level
    • “Comfort carbs” take alternatives a step further
      • Figure 33: Vegetable-based carbohydrate substitutes, 2023
    • Nuanced prep methods an easy upgrade to texture and taste
      • Figure 34: New product introductions designated for specific cooking methods, 2023
    • Brands explore fresh sourcing opportunities
    • Spotlights on growers add a face to the farm
      • Figure 35: Packaged produce with regional/local claims
    • Sea veggies offer cross-cultural, concentrated functionality
      • Figure 36: Produce containing seaweed, 2023
    • Indoor-grown species buff up produce availability
      • Figure 37: Vertically grown produce, 2023
    • Retailers modernize traditional engagement with digital
    • Function-forward positioning aligns with “food as medicine”
      • Figure 38: Current functional ingredient use, by generation, 2023
      • Figure 39: Function-forward produce introductions, 2023
  8. The Produce Consumer – Fast Facts

    • Consumers demonstrate various inflation-adaptive strategies
    • Food waste is a major limiting factor
    • Consumers are down to get creative
  9. Produce Consumer Segmentation

      • Figure 40: Produce consumer segmentation, 2023
    • Wellness-forward produce buyers
    • Who they are:
    • What they’re doing:
    • What they’re thinking:
    • Value-minded produce buyers
    • Who they are:
    • What they’re doing:
    • What they’re thinking:
    • Cautious produce buyers
    • Who they are:
    • What they’re doing:
    • What they’re thinking:
    • Adventure-inclined produce buyers
    • Who they are:
    • What they’re doing:
    • What they’re thinking:
  10. Fruit Formats Purchased

    • Non-fresh options duel it out
      • Figure 41: Fruit formats purchased in past three months, 2023
    • Young adults look past the stigmas of processed for convenience
      • Figure 42: Fruit formats purchased in past three months, by generation, 2023
    • Empower parents’ convenient nutrition goals
      • Figure 43: Fruit formats purchased in past three months, by parental status and gender, 2023
  11. Vegetable Formats Purchased

    • Fresh vegetable format varieties can complement each other
      • Figure 44: Vegetable formats purchased in past three months, 2023
    • Make vegetables easy for younger consumers
      • Figure 45: Vegetable formats purchased in past three months, by generation, 2023
    • Tap into parental search for convenience
      • Figure 46: Vegetable formats purchased in past three months, by parental status and gender, 2023
  12. Typical Brand and Product Purchase

    • Less than three in 10 regularly buy organic produce…
      • Figure 47: Typical brand and product purchase, 2023
    • …yet aren’t completely opposed
      • Figure 48: Typical brand and product purchase, by typical brand and product purchase 2023
    • Private label scores with even financially healthy shoppers
      • Figure 49: Typical brand and product purchase, by financial health, 2023
    • Branded organic: target urban consumers
      • Figure 50: Typical brand and product purchase, by area, 2023
  13. Changes in Produce Purchase Habits

    • Inflation obstructing usual habits, but also benefiting produce
      • Figure 51: Changes in produce purchase habits, 2023
    • Ease Gen Z’s transition into produce
      • Figure 52: Changes in produce purchase habits, by generation, 2023
    • Market produce-forward recipes to adventurous consumers
      • Figure 53: Changes in produce purchase habits, by consumer segmentation, 2023
  14. Changes in Produce Consumption

    • Keep the momentum going post-inflation
      • Figure 54: Changes in produce consumption, 2023
    • Health + sustainability can be a powerful combo
      • Figure 55: Reasons for increased produce consumption, 2023
    • Brands’ challenge is among “content” produce consumers
      • Figure 56: Reasons for not consuming more produce, 2023
  15. Produce Associations

    • Brands: keep up processed produce education
      • Figure 57: Produce associations, 2023
  16. Produce Quality Indicators

    • Convenience, ease land near the top of the quality checklist
      • Figure 58: Produce quality indicators, 2023
    • Convenience + value = quality produce
      • Figure 59: TURF Analysis – Produce quality indicators, 2023
    • Younger consumers value “how” more than “who”
      • Figure 60: Produce quality indicators, by generation, 2023
  17. Attitudes toward Produce

    • Food waste is top of mind
      • Figure 61: Attitudes toward produce, 2023
      • Figure 62: Misfits Market Instagram post, 2023
    • Keep evolving tech from getting lost in the noise
      • Figure 63: Attitudes toward produce, by generation, 2023
      • Figure 64: Pairwise Instagram post, 2023
    • Help parents take initiative to address waste
      • Figure 65: Attitudes toward produce, by parental status and gender, 2023
  18. Appendix – Data Sources and Abbreviations

    • Data sources
    • Sales data
    • Forecast
    • Consumer survey data
    • Abbreviations and terms
    • Abbreviations
  19. Appendix – Consumer Segmentation Methodology

  20. Appendix – TURF Methodology

      • Figure 66: Table – TURF Analysis – Produce value indicators, 2023
  21. Appendix – The Market

      • Figure 67: Total US retail sales and forecast of produce, at inflation-adjusted prices, 2017-27
      • Figure 68: Total US retail sales and forecast of fresh vegetables, at inflation-adjusted prices, 2017-27
      • Figure 69: Total US retail sales and forecast of frozen vegetables, at inflation-adjusted prices, 2017-27
      • Figure 70: Total US retail sales and forecast of shelf-stable vegetables, at inflation-adjusted prices, 2017-27
      • Figure 71: Total US retail sales and forecast of fresh fruit, at inflation-adjusted prices, 2017-27
      • Figure 72: Total US retail sales and forecast of caned/jarred fruit, at inflation-adjusted prices, 2017-27
      • Figure 73: Total US retail sales and forecast of frozen fruit, at inflation-adjusted prices, 2017-27
      • Figure 74: Total US retail sales and forecast of dried fruit, at inflation-adjusted prices, 2017-27
  22. Appendix – The Consumer

      • Figure 75: Fruit formats purchased in past three months, by fruit formats purchased in past three months, 2023
      • Figure 76: Vegetable formats purchased in past three months, by vegetable formats purchased in past three months, 2023
      • Figure 77: Produce associations, by vegetable formats purchased in past three months, 2023
      • Figure 78: Changes in produce consumption, by changes in produce purchase habits, 2023

About the report

This market report provides in-depth analysis and insight supported by a range of data. At the same time, introductory and top-level content is provided to give you an overview of the issues covered.

Market

Mintel provides a range of market information, frequently through the category level, including market size and forecasting, complete with market drivers that illustrate the forces that shape a category or market.

Consumer

Mintel’s proprietary consumer research provides our analysts with the attitudinal and behavioral data used to provide valuable insight to topical issues.

Brand/Company

Mintel provides overviews of the top brands and manufacturers, and uses consumer research to explore attitudes and reactions to brands, as well as insight into what will resonate with consumers.

Data

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*databooks not available with UK B2B Industry reports.

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