Vegetables are becoming more trendy. With all the new ways to consume vegetables without tasting them, has become a big trend. The USDA nutritionists, decided to called for a change to 5-9 servings of vegetables and fresh fruits a day, from 2-3 servings because an anti-cancer campaign by another government agency, the National Cancer Institute, forced the USDA to adopt the higher
With $12 billion in annual sales of pre-cut, pre-washed and packaged fruits and vegetables becoming the fastest growing segment in the produce sector. There is still has plenty of room for this sector to grow. “According to a new research report by the International Fresh-cut Produce Association Fresh-cut Produce Fuels an America On-the-go, is a comprehensive state-of-the-industry report”(Fruit)
Packaged salads are the second-fastest selling item in U.S. grocery stores, with $2.6 billion in yearly retail sales, next are fresh-cut vegetables at $1.4 billion. The fresh cut fruit category, is moving up which reported $300 million in yearly retail sales, is likely to exceed the $1 billion mark over the next three years. The industry possesses $6 billion in yearly sales to the foodservice sector. Although the record breaking sales, of fresh-cut produce stands for only a 13% infiltration of the total fresh produce market. This is excellent news for processors and marketers of fresh-cut fruits and vegetables. The challenges processors have to face are how to sustain growth over the next 15 years, including:
The nation’s continuing obesity epidemic is the reason people need to find easy ways to eat more fruits and vegetables. “A federal nutrition panel has recommended changes in the nation’s Food Pyramid that feature increased intake for fruits and vegetables. Foodservice sales now top $429 billion a year, and almost half of all meals are consumed away from home. Foodservice establishments including cafeterias, restaurants, and airlines are ever more relying on fresh-cut produce to lower labor costs and decrease food safety risks. Also Consumers persist on and demand convenient, high-quality foods that fit into their increasingly busy lifestyles. “Demand for convenience has been the big reason behind the incredible growth of pre-washed, pre-cut and packaged fruits and vegetables for the past 15 years, but convenience is now getting a big boost from growing concerns about obesity and health issues in general, according to IFPA President Jerry” (Fruit) The challenge the industry faces now is to forward the convenience to America’s home kitchens in healthier ways. The industry needs to keep up with an America on the go, because as many as 20 % of all meals are consumed in vehicles and half of all American’s meals are consumed away from home.
Wal-Mart is varying its fresh produce, including more opportunity and local buys, rather than using a supplier-assigned, taking into account food miles but uncertain outlooks, private label focus. Other large supermarket retailers are continuing to strive for lower labor and capital costs, product differentiation, and improved consumer services in order to remain profitable in an increasingly competitive environment. Mass merchandise and warehouse club stores are rapidly expanding and capturing a significant percentage of retail food sales. As a result, there has been a trend toward consolidation of large retailers and distributors to reduce costs and streamline and improve supply-chain management practices. Innovations in procurement and distribution of produce, such as inventory mechanization, direct delivery by suppliers, use of specialty wholesalers, and fixed contracts with suppliers, help to reduce costs and increase efficiencies. This sector of the supply chain is comprised of business operations which in general do not transform a specific fresh product, but rather provide services related to the sale of this product. In contrast to the food retail/grocery sector, many establishments in the food service industry remain small- and medium-sized businesses, where purchasing is handled by local buyers or chefs. Still, chain restaurants have high volume requirements and need consistency in products across time and outlets. The dichotomy in size among away-from-home food outlets provides opportunities for a greater number of intermediaries to be active in the supply chain when compared with retail food sales. Results illustrate that changes in fresh produce distribution and management have created new forms of commercial relationships between suppliers and wholesalers. In some cases, these changes represent valuable opportunities for business, beyond the demand for additional marketing services from suppliers. Part of the difficulty confronting smaller operations relates to market access. “Increasingly, fruit and vegetable growers with good entrepreneurial skills have established on-farm outlets or created niche markets with local independent wholesalers or retailers. Small-volume growers tend to have limited marketing personnel and post-harvest handling equipment, rely more on direct outlets, and sell to final retail consumers, whereas large-scale growers utilize volume-oriented outlets that encompass more involved and specialized marketing activities. Different states have pursued different types of market development to assist small growers and have achieved different degrees of success.” (Industry)
Fruit Growers News » Magazine » Article » Fresh-cut Remains Fastest Growing Trend in Produce Industry. (2010, November 15). Fruit Growers News . Retrieved April 21, 2011, from http://fruitgrowersnews.com/index.php/magazine/article/Fresh-cut-Remains-Fastest-Growing-Trend-in-Produce-Industry
Industry Statistics and Projected Growth - Organic Trade Association. (n.d.). Organic Trade Association. Retrieved April 21, 2011, from http://www.ota.com/organic
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