January is fast approaching, and grocery stores know this means you have to stock up your produce department more. As people make New Year’s resolutions to eat healthier, traditionally produce sales rise during the first few months of the new year. But last year, as inflation pushed prices higher, sales didn’t rise as much as expected. Sales of fresh produce only reached $5.7 billion in January 2023, which is only a 1.3% increase from Jan 2022.
Last year’s produce sales showed that even though customers may be committing to healthier eating choices they are still trying to keep their grocery bills costs low. Consumers are turning to alternatives since fresh produce prices have risen so much in the last few years. For example, sales of frozen foods, including fruit and vegetables, rose 9.3% in January compared to 2022. Customers also chose to prioritize fresh vegetables over fresh fruit last year. Last January, staples like potatoes, lettuce, onions, and other vegetables outsold fruit compared to the 2022 numbers.
These shifts show that even when customers are determined to eat healthier, overall costs will always come first. As we approach another new year and a slew of healthy eating resolutions, what can stores do to capture this market? Here are some ideas.
- Expand your frozen food section. Throughout the price increases we’ve seen in stores because of inflation, the frozen food section has remained stable and even grown in popularity. Consumers looking for healthier but affordable fruit and vegetable options will likely turn to the frozen section this new year to meet their healthy eating resolutions. So expand your offerings there with more frozen fruits and vegetables!
- Offer promotions on produce staples. Sales data from the past year shows that customers are still willing to buy produce staples like lettuce and potatoes. Offering promotions on these popular staples will help boost your sales this January.
- Expand your plant-based food options. A shopping trend expected to be popular in 2024 is a renewed interest in plant-based foods made from real plant sources. Products with short ingredient lists made from real foods like vegetables, nuts, and seeds are expected to be popular this year.
Retailers know that January sales rely heavily on the produce department’s performance. This year, people are trying to save money after an expensive holiday season and make changes to the way they eat. So it’s likely that the high prices in the produce department still influence consumer spending, and sales will drop further than in 2023. But grocery retailers can prepare by catering to health and budget-conscious shoppers with these tips!
