Produce Offers Opportunities to Differentiate

Driven by a growing focus on nutrition and wellness, shoppers are gravitating toward fresh offerings, including produce, floral, bakery, deli, specialty cheese, meat and seafood.

FMI’s The State of Fresh Foods 2025 report shows that 42% of sales in 2024 came from fresh offerings. NielsenIQ data shows fresh product sales are outpacing the rest of the store, up 3.7% year-over-year. In the fruits and vegetables section, 39% of consumers plan to buy more produce, according to Provoke Insights.

As shoppers spend more time around the outside of the store, retailers are smart to start thinking of fresh, not as a department, but as a differentiator. Shoppers are demanding more from the perimeter — better taste, nutrition, convenience and transparency. Meeting those expectations can give retailers an edge.

Shoppers are demanding more from the perimeter — better taste, nutrition, convenience and transparency. Meeting those expectations can give retailers an edge.

Here are a few trends grocery retailers can focus on as we look at the year ahead:

DELIVER ESSENTIAL VALUE

Consumers are relying on the fresh category more than ever. Organic and better-for-you options have been resilient, even amid economic pressures.

Value is about more than just being economical. It’s about being “worth it” in the minds of shoppers. Retailers who make fresh feel special and easy, while delivering that value, can win.

EXPAND SEASONAL OPPORTUNITIES

Seasonal assortments paired with thoughtful merchandising drive impulse purchases and set retailers apart from competitors. Fresh departments are particularly primed to create engaging offers around seasonal occasions.

With this approach in mind, it’s important to look beyond the most popular and traditional seasonal promotions. Smaller holidays, sporting events, and weather-driven merchandising can help turn fresh departments into year-round seasonal traffic drivers outside of the holidays.

CAPITALIZE ON CONVENIENCE

The assumption that perimeter departments lack convenience is changing. While meat, seafood and produce often involve additional prep and cooking, compared to frozen or center-aisle options, the perimeter is primed to promote convenience more than ever before.

According to FMI’s The Power of Foodservice at Retail 2025 report, “consumers are increasingly choosing deli-prepared foods in place of restaurant meals, with this share more than doubling from 12% in 2017 to 28% in 2025.”

The report also found that more than half of shoppers combine deli-prepared options with items from their kitchen, creating additional opportunities for fresh ingredients to find their way into at-home meals.

EMPOWER PERSONAL HEALTH CHOICES

Today’s shoppers are highly informed and intentional. They’re focused on a range of wellness goals, from gut health and immunity to energy, stress and healthy aging. These trends are reinforced on social media, and consumers have more resources than ever to better understand the products they purchase and their impact on their overall health.

• Consumers still want occasional indulgence, but overall baskets are planned and purpose-driven.
• Ingredients with functional benefits, like ginger and turmeric, are trending.
• GLP-1 use is driving smaller pack sizes and portion control with continued emphasis on protein and fiber.

STEPS RETAILERS CAN TAKE NOW

Grocery retailers have clear opportunities to prepare for the year ahead by taking practical actions that maximize value and build loyalty within the produce department and across the fresh perimeter.

• Refresh planograms early. Make sure nothing is missing or mislabeled. Prioritize local produce selections and lean into the narrative with signage and grower profiles. At the same time, make sure ready-to-eat produce and portion-controlled items have a chance to shine.

• Stock top performers. Berries remain a powerhouse, offering high value and dependable traffic. Citrus is gaining momentum, particularly standout offerings like sweeter varieties and seedless lemons.

• Balance staples and trending items. The goal should be for predictable products and special entries to complement each other, not compete. Consumers should be able to easily find lettuce, apples and bananas, while at the same time being drawn to seasonal, on-trend items.

• Cross-merchandise meals and moments. Retailers can unlock greater produce purchase opportunities by leading consumers to great mealtime combinations. Think: potatoes and steak, berries and charcuterie. Strategic placement and layout can help facilitate these moments that drive greater basket share and customer loyalty.

• Leverage strategic partners. Look to partners for assistance in developing a robust strategy and approach to differentiating in the produce section and around the entire perimeter of the store.

Ron Selders is president of fresh at United Natural Foods, Inc. (UNFI), where he currently leads the company’s strategy and performance across its deli, bakery, produce and meat departments — core perimeter categories that help retailers differentiate and grow. Selders brings decades of leadership experience from UNFI and Tony’s Fine Foods, shaping how UNFI delivers fresh innovation and value to its customers today.PB