Fresh produce is poised to play an increasingly pivotal role in the growth of U.S. grocery retail as competition among chains intensifies to meet consumers’ evolving demands for healthy, convenient food at competitive prices.
According to a recent report by FMI The Food Industry Association titled “The State of Fresh Foods 2026,” fresh departments accounted for a significant 41 percent of food retail sales in 2025.
Both meat and produce led this segment with a 10 percent share each, followed closely by dairy at 9 percent, and fresh prepared foods contributing an additional 4 percent.
However, the report suggests that the industry might be overlooking a major opportunity to boost sales by aligning more closely with consumer preferences.
The report, which draws on data from an industry survey of 70 U.S. and Canadian retail and wholesale companies, supplemented by public company filings and separate category research, highlights the potential for increased consumption of fruits and vegetables.
- Fresh produce sales accounted for 41% of U.S. food retail in 2025.
- Meat and produce each represent a 10% share of food retail sales.
- 44% of consumers eat fresh produce only a few times a week.
- Cost remains a barrier for many households to consume more produce.
- Retailers increasingly adopt technology to enhance inventory and operational efficiency.
It reveals that while almost a third of consumers eat fresh produce daily, a notable 44 percent consume fresh produce no more than three days a week.
Health remains a primary motivation for increasing consumption, yet cost continues to be a major obstacle, particularly for financially constrained households.
Additionally, digital technologies are reshaping how shoppers decide what to eat, with YouTube leading as a source of meal inspiration, and 18 percent of millennials utilizing ChatGPT or other AI tools for meal planning.
Reflecting shifting consumer demands, the report notes that fruits have driven category growth, accounting for an impressive 95 percent of overall produce growth.
Fruit dollar sales rose by 5.9 percent in the 52 weeks ending in November 2025, while vegetable sales saw a modest increase of just 0.3 percent.
In response to these trends, 48 percent of retailers plan to expand their organic assortments, and a significant 87 percent used local produce assortments to differentiate their offerings in 2025.
Supermarket chains are also allocating more space to fresh departments, with 40 percent planning to expand space for fruits and vegetables in the next two years, and 77 percent intending to enhance their fresh grab-and-go selections.
The strong value proposition of fresh produce compared to restaurant meals continues to attract retailers, as evidenced by its ability to generate $287 in sales per labor hour in 2025, compared to $218 across the store.
As part of their strategy to improve efficiency, retailers are increasingly turning to technology, with 44 percent already employing solutions for fresh food inventory and demand or production planning, and an additional 19 percent planning to adopt such technologies in 2026.
This technological shift underscores the sector’s ongoing commitment to enhancing operational efficiency and meeting consumer demands for fresh, healthy produce.
