Strategic Merchandising of Dried and Freeze-Dried Fruits

Retailers can drive growth in this profitable and expanding category.

Dried and freeze-dried fruits stand out to consumers as a healthy and convenient snack. Not only are dried and freeze-dried fruits easy to toss into a lunchbox or briefcase, but they also have other uses, such as salad toppers.

And now, new technology is expanding the types of foods available in this category.

STRATEGIC PLACEMENT DRIVES SALES

Location matters significantly when it comes to dried fruit displays, according to Eric Healy, founder and chief executive of Bend, OR-based Branch Out Foods, who has observed varying success rates with different merchandising approaches. “I’ve seen a lot of produce departments place the dried commodity under the same fresh commodity,” says Healy. “They’ll have the bin of fresh pineapple, and then right under that display, they’ll have the pineapple chips.”

This strategic placement works because the produce department is the destination for fresh fruits and vegetables. This type of two-for-one display puts different formats of product in the location where shoppers already are. “The shopper is already kind of looking for products in that area,” explains Healy. “And in the case of the pineapple, it’s a different version — it’s like a snackable version.”

Healy says stand-alone displays positioned away from fresh produce tend to generate less visibility and engagement. Healy isn’t sure why that is, but it seems likely that if shoppers are seeking something like fresh pineapple, they would expect to have the different formats of pineapple near each other, rather than having to go to a separate display.

Robert Schueller, director of public relations, Melissa’s/World Variety Produce Inc., a produce wholesaler headquartered in Vernon, CA, emphasizes the importance of strategic timing and placement. “The biggest marketing opportunities we see in the dry fruit category are focusing on putting the products into the produce department during the lead-up to the peak holiday seasons.”

CROSS-MERCHANDISING INNOVATION

Clip strips — hanging strips designed to support lighter items — have proven particularly effective for cross-merchandising dried fruits. “Some stores present a lot of our dry fruits on clip strips,” Schueller says. “The clip strips for dried cranberries are very popular, especially in the fourth quarter.”

This strategy works particularly well when positioned near complementary items, such as bagged salads, croutons and salad dressings.

The category’s long shelf life makes it ideal for filling dead space in produce departments without requiring refrigeration. “The dry fruit category is not a shrink category,” Schueller explains. “It has over a six-month shelf life at least, and so it’s a great way to fill in dead space.”

PRODUCT INNOVATION

New packaging innovations are helping drive category growth. Branch Out Foods is introducing a “produce pack” concept of larger bags containing smaller, single-serve portions targeted at school lunches. “Each little pack is a couple servings of a fruit or vegetable,” Healy explains.

Melissa’s Produce is launching new organic offerings in early 2025, featuring clear clamshell packaging for easy stacking and merchandising. The clear packaging allows customers to see exactly what they’re buying, differentiating these products from traditional grocery aisle offerings. “It’s a huge product launch, with 13 new SKUs in that organic category of what we call snacks,” Schueller reveals.

Branch Out is now offering products, such as crispy Brussels sprouts, crunchy carrot sticks, red pepper sticks and color-retained banana products. “It’s a single ingredient dried banana, but we’re able to really retain the full color, whereas most dried bananas turn brown,” Healy explains.

LOOKING AHEAD

The dried and dehydrated fruits and vegetables category continues to evolve with new products and applications. Branch Out Foods is developing innovative salad toppers, including cherry tomatoes, mandarins and crispy avocado slices. “There hasn’t been a lot of innovation there,” Healy notes about current salad topper offerings. “For a long time, it’s just been traditional croutons and nuts.”

Meanwhile, Melissa’s Produce is expanding its organic line with new snack-oriented products launched in February 2025. This new line includes items such as dried mangoes and banana chips flavored with chile pepper. This expansion reflects growing consumer demand for organic options and convenient, healthy snacks.

According to Market Research Future, the market size of dehydrated fruits and vegetables was valued at $25.9 billion in 2023. The dehydrated fruits and vegetables industry is projected to grow from $27.08 billion in 2024 to $38.689 billion by 2032.

This increase is being led by an expanding awareness of healthy eating. Consumers recognize that these foods are affordable, convenient and nutrient-dense. Storing shelf-stable dried and dehydrated fruits and vegetables is also perceived by consumers as being a way to stay ahead of price volatility.