Fresh produce is emerging as a critical driver of retail growth in the US grocery sector, as chains vie to satisfy consumers’ increasing demand for healthy and convenient food options.
According to a recent report by FMI The Food Industry Association, fresh departments accounted for a substantial 41 percent of food retail sales in 2025.
Within these departments, meat and produce led the charge with 10 percent each, while dairy followed closely at 9 percent.
Despite this growth, the industry may be missing a significant opportunity to boost sales by aligning more closely with consumer desires.
The report, drawing from an industry survey of 70 US and Canadian retail and wholesale companies, suggests a potential boost in fruit and vegetable consumption.
- Fresh produce drives retail growth in the US grocery sector.
- Fresh departments accounted for 41% of food retail sales in 2025.
- Health motivations fuel increased fresh produce consumption.
- Cost is a significant barrier for consumers purchasing fresh produce.
- Retailers are adopting technology for fresh food inventory management.
It reveals that while nearly a third of consumers eat fresh produce daily, 44 percent consume it no more than three days a week.
The leading motivation for increased consumption is health, but cost remains a substantial barrier, particularly for financially challenged households.
The influence of digital technologies is also noteworthy, with platforms like YouTube serving as primary sources of meal inspiration and 18 percent of millennials using AI tools for meal planning.
Category growth has been largely driven by fruit, which accounted for a remarkable 95 percent of overall produce growth.
Fruit dollar sales increased by 5.9 percent in the 52 weeks ending November 2, 2025, in stark contrast to a 0.3 percent rise in vegetable sales.
Reflecting this shift in demand, 48 percent of retailers plan to expand their organic assortments, and 87 percent utilized local produce to differentiate their offerings in 2025.
Supermarket chains are also dedicating 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 fresh grab-and-go selections.
The report highlights that retailers are committed to growing this segment, which offers significant value for shoppers compared to restaurant meals.
Produce generated $287 in sales per labor hour in 2025, compared to $218 across the store.
To improve efficiency, retailers are increasingly adopting technology solutions; 44 percent already use systems for fresh food inventory and demand planning, with an additional 19 percent planning to implement them in 2026.
This strategic focus underscores the importance of fresh produce in driving retail growth and meeting evolving consumer expectations.
