Retailers are increasingly prioritizing fresh foods, capitalizing on a growing consumer trend. According to the latest report from FMI – The Food Industry Association, titled “The State of Fresh Foods 2024,” fresh departments contributed 42% of food retailers’ sales in 2023. This trend reflects shopper preferences, as produce and meat departments both command 11% of fresh sales, followed by dairy at 8% and deli at 4%. While challenges like shrink and labor shortages persist, retailers are exploring innovative strategies to enhance their fresh offerings.

Notably, 79% of retailers are expanding space for grab-and-go fresh selections. This adaptation not only caters to rising demand for convenience but also indicates a shift in shopping behaviors, with more consumers gravitating towards healthier, locally-sourced, and minimally processed foods. Additionally, the report highlights the industry’s commitment to reducing food waste and improving inventory management through technology. Approximately 40% of surveyed retailers reported utilizing tech tools for fresh food inventory and production planning.

At the recent FreshForward conference in San Diego, FMI’s VP of Fresh Foods, Rick Stein, pointed out the need for retailers to balance immediate economic challenges with long-term growth opportunities. He emphasized that collaboration and harnessing consumer insights are essential for success in this dynamic market. Retailers who prioritize fresh foods not only meet current consumer needs but also position themselves strategically for future growth.