fresh produce industry overview

47 Pages·2015·1.41 MB·English

by  Lally, Matthew

FRESH PRODUCE
INDUSTRY OVERVIEW
NIELSEN PERISHABLES GROUP
September 2015
.yrateirp
o
rp
d
n
a
laitn
edifn TABLE OF CONTENTS
o
C
.yn
ap
m
o
C
n
e
sleiN
eh
T 3102
©
th
giryp • Study Background and Data Sources 3
o
C
• Executive Summary 4
• Key Foundational Components 5
6
• Consumer Behavior Trends
• Evolution of Channel Formats 9
• Consumer Demographics 10
• Global Comparison and Insights 16
• Spotlight Research Topics 26
• Importance of Health and Wellness to Low Income Households 27
• Role and Future of Branded Produce 34
• Impact from Convergence of CPG and Fresh Companies 42

2
.yrateirp
o
rp
d
n
a
laitn
ed
ifn STUDY BACKGROUND AND DATA SOURCES
o
C
.yn
ap
m
o
C
n
e
sleiN
eh
T 3102 Key messages and insights to be shared:
©
th
giryp Through a partnership between PMA and Nielsen Perishables Group, a unique
o
C
research project was created exclusively for PMA members based on existing research
and available data. The analysis focuses on the U.S. with key global insights
incorporated where applicable. The deliverable contains clear and actionable
recommendations with detailed findings and statistics available for reference in the
notes section of the presentation. Members should understand opportunities and
trends for both short and long term success.
Nielsen Global Thought Leadership Reports/Analyses Utilized in Research:
• Nielsen Global Ecommerce Report • Nielsen Global Health & Wellness Reports
• Nielsen Global Middle Class Report • Nielsen Global Consumer Confidence Report
• Nielsen Perishables Group Point-of-Sale • Nielsen Global Private Label Report
• Nielsen Global Fresh Foods Report • Nielsen Global Homescan Reporting
• Nielsen Global Snacking Report • Nielsen Global Point-of-Sale Data
* Full reports and country-level information (where available) can be purchased
3
.yrateirp
o
rp
d
n
a
laitn
ed
ifn EXECUTIVE SUMMARY
o
C
.yn
ap
m
o
C
n
e
sleiN
eh
T 3102 • Fresh produce volume (unit or pound) sales increased 8% from 2010-2014
©
th
giryp (double the rate of other fresh departments) and dollar sales increased 22%
o
C
• Products driving growth shared an ability to meet key consumer priorities such as
convenience or quality
• Fresh produce is purchased by everyone across the globe, but the frequency and
spend differs from country to country – and the U.S. ranks at the bottom
• Least affluent households spend significantly less on fresh produce than the
most affluent households, but they are engaged with other forms of fruits and
vegetables
• Branded produce dollars have significantly increased since 2010, and could
continue to propel the department’s success
• Consumer packaged goods companies have taken notice of the growth sustained
by fresh produce and have implemented a number of different strategies to
return to growth

Source: Nielsen Perishables Group, “Success Factors of Produce” report for Produce Marketing Association, September 2015 4
KEY FOUNDATIONAL CONCEPTS
.yrateirp
o
rp
d
n
a
laitn U.S. PRODUCE SALES HAVE CONSISTENTLY GROWN
ed
ifn
o
C
.yn Volume sales increased 8% since 2010 indicating it’s not just prices driving growth
ap
m
o
C
n
e
sleiN
eh Products meeting key consumer
T 3102 $63 BILLION needs have driven department
©
th
giryp department growth since 2010 at twice the
o
C
rate as the rest of perishables
departments

+24%
$$
dollar
growth
CONVENIENCE QUALITY/VALUE
2010 2014
HEALTH VERSATILITY
Dollar Sales
Source: Nielsen Perishables Group FreshFacts® Historical Projected Database ending 12/27/2014; 6
SAME PRODUCTS AND FACTORS HAVE CONTINUED
TO DRIVE GROWTH IN MOST RECENT YEAR
VALUE OF TRUSTED BRANDS
CONVENIENCE
Value – Added Fruit and Vegetables Branded Produce $$
$3.7 billion
$16.3 billion
+10%
dollar growth
+9%
dollar growth
CLEAN LABELS VERSATILITY
.yrateirp Organic Produce Avocados
o
rp
d
n
a
laitned $3.6 billion $1.2 billion
ifn
o
C
.yn +10%
ap +17% dollar growth
m dollar growth
o
C
n
e
sleiN
eh
T 4102
©
th
giryp Source: Nielsen Perishables Group FreshFacts® 52 Weeks Ending 6/2715 7
o
C
THE DEPARTMENT IS EVOLVING, AND SOME
PRODUCTS HAVE ALREADY ADAPTED
+
PORTABILITY MERGED PRODUCTS CONVENIENT MEALS
• • •
.yrateirp
o
rp
d
n
a
laitn
ed
ifn
o
C
.yn
ap
m
o
C
n
e
sleiN EASIER TO CONSUME HEALTHIER LINES CONSUMER VS.
ehT 4102 • • COM• MODITY APPROACH
©
th
giryp Source: Nielsen Perishables Group 8
o
C
.yrateirp
orp THE EVOLUTION EXTENDS TO NOT ONLY WHAT
d
n
a
laitn
ed
ifn PEOPLE BUY, BUT WHERE THEY BUY PRODUCE
o
C
.yn
ap
m
o
C
n
e
sleiN
eh % department dollars by channel to Total U.S. Polarized options gaining
T 3102© momentum
th
giryp
o
C
11%
13%
10%
19% PREMIUM
68%
VALUE
Traditional
39%
Grocery
TOTAL STORE PRODUCE
$2MM+ Grocery Mass Merch W/Supers
Warehouse/Club Conv./Gas
Drug Dollar Stores
Nielsen Homescan Total Shopper View Specialty Panel 52 weeks ending 09/27/14 9
.yrateirp
orp THE ONE CONSTANT IS WHO PURCHASES FRESH
d
n
a
laitn
ed
ifn PRODUCE: EVERYONE
o
C
.yn
ap
m
o
C
n
e
sleiN
eh
T 3102 100% of households purchase fresh
©
th
giryp
o
C produce
57%
….yet of baskets in the U.S.
do not contain fresh produce….
….and not everyone shops as frequently or
spends the same amount on fresh produce
Source: Nielsen Perishables Group FreshFacts® Shopper Insights 52 weeks ending 12/27/2014; Nielsen Homescan 52 weeks ending 12/27/2014 10