SEPC Releases ‘What’s New’ Annual Consumer Research Results

The Southeast Produce Council (SEPC) released its annual “What’s New? 2024″ consumer research in a sold-out educational session at Southern Innovations.

The interactive format combines the presentation of the research results by Anne-Marie Roerink of 210 Analytics with attendees discussing findings with fellow retailers and grower/shippers throughout the session. In addition to consumers’ views of the world, retailers and grower/shippers provided their industry viewpoint for a full 360 look at innovation in fresh produce. 

“The produce industry is delivering and delivering big,” said David Sherrod, president and CEO of the SEPC.

“The fourth edition of our research found that more consumers eat fresh produce daily, and this growth corresponds to a 2.6 percent increase in fresh produce pounds in the latest Circana data. Fresh produce is the strongest of the perimeter departments, and the study identified many more opportunities for produce growth in years to come.”

The “What’s New? 2024” top findings for each of the trends in the research are as follows:

Dollars and sense

“Shoppers today are constantly balancing budget versus needs and wants,” Sherrod said.

“The ultimate value equation is far more than the lowest price alone. In fact, 93 percent of consumers are willing to splurge a little when the time is right. Health, holidays, sustainability and convenience are important reasons for consumers to spend a little more than normal.” 

• Consumers recognize life is more expensive, and are making changes to how often they are dining out on the one hand, and what, how much and where they purchase produce at the store on the other hand. 
• Eight in 10 shoppers say they would buy more fruit and vegetables if money were no issue, and 65 percent say they would purchase restaurant food more often. 
• Consumers are shifting their produce dollars and trips to value-forward channels, with dollar share growth for mass/supercenters and club stores. 
• Special occasions are among the biggest reasons to spend a little more, and 88 percent of consumers are interested in holiday produce displays combining common fruits and vegetables for the occasion. A very similar 84 percent of retailers agree that holiday displays are worth the effort. 

Improving upon perfection 

“Price and promotions are important, but the ultimate purchase decision is far more complex,” Sherrod said. “In today’s fast-paced world, value-added and deli-prepared sales are growing, even with a price premium. There are no linear consumer purchase patterns, which makes the marketplace complex but also ripe with opportunities for growth.” 

• Convenience is making a comeback in consumers’ purchase decisions, while they continue to emphasize value, health and taste. Circana data confirms this finding with a 1.4 percent increase in value-added produce pound sales.
• Produce items sold in the deli-prepared food section of the store are also showing robust growth. 
• Retailers can provide more convenience by secondary produce displays throughout the stores, desired by 60 percent of consumers.  
• New item trial can drive greater consumption, with social media increasingly influencing produce purchasing decisions. Several TikTok trends are driving big volume sales increases in grapes and cucumbers. More than half, 52 percent of retailers market or merchandise against these kinds of TikTok trends online or in-store. Forty percent of grower/shippers do as well. 
• Forty-five percent of consumers are interested in new produce innovations, especially added nutrients and different eating experiences/textures. 

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Health and well-being

“In the eye of the consumer, fresh produce has long been linked to health and nutrition,” Sherrod said. “That said, the definition of health has evolved and consumers leverage shortcuts such as smoothies, supplements and bars to get to their five-a-day. These trends are big lessons for the fresh produce industry.” 

• Sixty-four percent of consumers say it’s very or somewhat easy to reach the recommended daily amount of produce. That leaves 36 percent who struggle or are unsure what the recommended amount even is.
• Seventy-one percent of consumers buy produce items specifically for their known health benefits and leverage Google/online searches (36 percent), on pack information (33 percent) and nutrition apps (33 percent) as ways to educate themselves.
• General wellness and energy are overriding goals for consuming fresh produce, but gut/digestive health, immunity and weight management are other important ones. 
• Eighty percent of consumers believe that veggie pasta, bars, supplements and beverages can help people reach their recommended daily amount of fruit and vegetables. Of consumers who buy these items, 72 percent say they sometimes or typically replace the consumption of fresh produce.  

Planet, people and produce

“The connection between produce, health and the environment is becoming clearer,” Sherrod said. “Despite economic pressures, consumers are still willing to spend more on items that are sustainably grown, reduce packaging or food waste, or contribute to positive social initiatives.”

• Eighty-eight percent of consumers are interested in knowing more about the who, where and how of store-bought produce with a key communication role for the package label and websites. 
• The survey identified an opportunity to share and educate, but also a need to keep it simple, using consumer-tested language to avoid misconceptions. When testing the carbon footprint claim, for instance, 39 percent of consumers incorrectly defined it as the amount of carbon dioxide absorbed or the amount of carbohydrates it contains – very much not the message growers focused on sustainability are trying to convey.” 
• One in five consumers struggle with fresh produce waste at home. 
• Fifty-two percent of consumers would love to see storage tips and learn more about what’s in season. 

The online study among 1,628 consumers, fielded in August, was conducted and presented by 210 Analytics. A complete copy of the findings can be requested by contacting Anna Burch at SEPC.