Fruit and Veg Report Reveals Resilience Amid Economic Challenges

Although news stories and data-rich reports frequently cover farm production and venue performance in the hospitality industry, the essential role of wholesalers can stay hidden from view. This is why Fresho developed an annual, comprehensive report to provide unparalleled insight into the wholesale sector that bridges producers and venues throughout the U.K.

Based on anonymous platform data and insights from industry leaders, the inaugural Fruit and Veg report reveals an industry that is not merely surviving, but evolving strategically.

According to Defra (Department for Environment, Food & Rural Affairs) data, vegetable production declined 4.9% in 2024, down to 2.2 million tonnes, while fruit production has dropped by 12% to 585,000 tonnes. This has intensified reliance on imports, which now account for 47% of vegetables and 84% of fruits in the U.K. market.

Simultaneously, operational costs are rising across the board. The withdrawal of COVID-era government support has led to business closures. The imminent National Insurance increases, and rising minimum wages compound these pressures.

Our first Fruit and Veg Report gives an insight into how wholesalers are handling these challenges.

ADAPTION THROUGH EFFICIENCY

The average number of lines per order has consistently declined across all categories, with fruit and vegetable orders decreasing from 10.31 lines in 2021 to 9.69 lines in 2024. This reduction in order complexity suggests that venues are streamlining their purchasing decisions in response to cost pressures.

Despite these challenges, the sector’s growth trajectory remains positive, with wholesalers demonstrating remarkable adaptability. Four key strategies have emerged:

1. Strategic purchasing to manage costs: More targeted, consolidated ordering;

2. Increased technology adoption: Digital ordering systems improving operational efficiency;

3. Growth in prepared items: Orders with prepared items (cut, diced, peeled) increased by nearly 30% from 2023 to 2024;

4. Diversification beyond produce: Many wholesalers expanding into adjacent categories like dairy and bakery.

PRODUCT PREFERENCES EVOLVE

The consistency in top-ordered items tells an interesting story. Cucumber has maintained its position as the most frequently ordered item by line count from 2022 to 2024, followed consistently by lemons and bananas. When looking at volumes, citrus fruits dominate, with lemons and limes holding the top positions since 2022.

What’s particularly noteworthy is milk’s persistent presence in the top products list for fruit and vegetable suppliers. This highlights the opportunity for wholesalers to expand offerings into everyday essentials.

THE SUSTAINABILITY DICHOTOMY

Fisher and Woods, a wholesale supplier interviewed for our report, highlighted tension in the market regarding sustainability.

“There’s an interesting dichotomy. While some customers want pre-packaged products for value, others are rejecting extra packaging entirely. Chefs are increasingly conscious of their environmental impact and prefer reusable options over cardboard boxes,” says Kevin Stanbridge, sales director at Fisher and Woods.

This sustainability focus extends to sourcing practices. As Matt Gummer, director at fresh produce wholesaler Zest Food Service, observes, “I believe it’s important to continue increasing the number of local and U.K. suppliers we use. Food sourced from growers using more sustainable growing practices is increasingly important.”

THE CHEF’S PERSPECTIVE

The report also captures insights from the venues themselves. Craig Rogan, executive head chef at Herd Steakhouse, notes changing consumer preferences: “We are seeing increased demand for wellness-focused options and ‘greener’ dishes, with more people conscious of leading healthier lifestyles.”

Looking ahead to 2025, Rogan anticipates “a big push on back to basics, simplification of menus and a big push on lunchtime offerings.”

EMBRACING THE RIGHT TECHNOLOGY

As we navigate 2025, the U.K. fruit and vegetable wholesale sector continues to demonstrate impressive resilience. Those who can balance cost management with innovation and service quality will be best positioned for success.

As we navigate 2025, the U.K. fruit and vegetable wholesale sector continues to demonstrate impressive resilience.

Technology adoption is being driven by rising costs, but the overall growth in the industry is a testament to hard work and adaptability. More venues are streamlining communications with their suppliers, giving more visibility to their order history and allowing for smarter decisions.

As Gummer notes, “Many of our customers are moving to third-party ordering platforms to better manage their procurement processes. This has led to a significant increase in email orders over telephone orders, with over 50% now placed electronically.”

The critical bridge between producers and venues remains strong, continuing to ensure that fresh, quality produce reaches the U.K.’s tables despite the challenging economic landscape.

The Fresho U.K. Fruit and Veg Report provides unprecedented visibility into the wholesale sector. To read the full report, visit the Fresho website.

Huw Birrell is the co-founder of Fresho, a global order management platform that brings fresh food wholesalers closer to their customers.