Fresh produce key to US retail growth, says FMI
Add Fresh Fruit Portal to GoogleFresh produce is set to play an increasingly important role in US grocery retail as rival chains strive to meet consumers’ demand for healthy, convenient food at competitive prices, according to a new report.
Published by FMI – The Food Industry Association, The State of Fresh Foods 2026 found that fresh departments accounted for 41 percent of food retail sales in 2025. Meat and produce led with 10 percent each, followed by dairy at 9 percent. Fresh prepared foods contributed another four percent.
But the industry could be missing a major opportunity to increase sales by giving shoppers more of what they want.
A growing trend for fresh produce
Drawing on an industry survey of 70 US and Canadian retail and wholesale companies, supplemented by public company filings and separate category research, the report highlights significant potential to increase the consumption of fruit and vegetables.
Almost a third of consumers eat fresh fruit and vegetables daily, and almost three-quarters usually or always include fresh vegetables at dinner. However, 44 percent eat fresh produce no more than three days a week. Health remains the leading motivation for increasing consumption, but cost is the main obstacle, especially among financially stretched households.
Digital technologies are also changing how shoppers decide what to eat. YouTube is the leading social media platform for meal inspiration, while 18 percent of millennials use ChatGPT or other artificial intelligence tools for meal planning.
Category growth has been driven overwhelmingly by fruit, which accounted for 95 percent of overall produce growth. Fruit dollar sales rose 5.9 percent in the 52 weeks ending November 2, 2025, while vegetable sales increased just 0.3 percent.
Reflecting changing demand, 48 percent of retailers plan to expand their organic assortments, while 87 percent used local produce assortments to differentiate their offerings in 2025.
Supermarkets are leading the charge
Supermarket chains are also dedicating more space to fresh departments, with 40 percent of them planning to expand space for fruits and vegetables over the next two years, while 77 percent intend to expand fresh grab-and-go selections.
“Retailers are still determined to grow this segment, which represents a strong value for shoppers compared to restaurant meals,” the report said.
Produce generated $287 in sales per labor hour in 2025, compared with $218 across the store. Meanwhile, 41 percent of retailers plan to increase labor allocation to foodservice, and 17 percent to specialist departmental help.
To improve efficiency, retailers are increasingly turning to technology: 44 percent already use solutions for fresh food inventory and demand or production planning, with another 19 percent planning to adopt them in 2026.
*All images are referential.
Written and reported by Tom Azzopardi.
Related stories
Gen Z and millennials drive digital shift in $97B produce market, FMI report finds
