Nielsen: Opportunities abound for branded produce

In any grocery store, consumers are met with an abundance of produce to meet each and every one of their needs. Fresh produce that either falls into the organic category or has a farmer's market feel to it has become the main priority for consumers. As the number of these types of offerings has grown through the years, so have the number of opportunities available brands to make their presence known within this category — that’s according to a new report from Nielsen

The report notes that the produce department has grown by $13.2 billion between 2012 and 2016. Within that margin, branded produce dollar shares have increased an average 7.7 points, making up 38.5% of total produce dollars. This increase also has led to a growth in such produce snacks as fruit cups, dried fruit and nut snack mixes. The category is now a $1.1 billion market, with a $44 million increase and representation of 72% dollar shares. 

“Thirty-two percent of consumers want produce that is organic and doesn’t contain artificial ingredients. Thanks to their ability to communicate label claims on packaging and through larger marketing efforts, brands can clearly communicate exactly how products meet shoppers’ changing needs,” the report says.  

Communication is another key facet of this growth, with brands now being able to convey their message to consumers in an array of ways — in part due to social media and in-store advertising. The report highlights that within the last year, less than 10% of produce brands spent any budget on advertising, with only two companies accounting for 77% of produce media spent. 

A continuation of this strategy along with the implementation of engaging directly with the targeted audience could boost even further the sales and quantity of products being marketed to consumers.