Week in Review: Consumption going in the wrong direction 

Fresh produce retail sales data released this week indicates the market is moving in the wrong direction and doesn’t look to be reversing soon. 

The International Fresh Produce Association’s monthly sales report using Circana data, and written by 210 Analytics, showed fruit pound sales fell 6.1 percent year-over-year and vegetables dropped 4.2 percent.

Unfortunately, many issues contributed to the rough August, not limited to dropping consumer confidence, lingering effects of the summer’s Cyclospora outbreak, record-high fuel prices, and persistent annual inflation above target numbers.

There were a few bright spots, as apples and avocados in fruit and potatoes and peppers in vegetables posted year-over-year gains, but all other high-volume categories dropped in August. 

There has always been an adage in the food industry that no matter how much the economy struggles, people never stop eating. They just adjust their spending. 

Now with the rapid rise of consumers taking GLP-1 medications to reduce weight,  estimated at one in six Americans, people are actually eating less. 

A bright spot for fresh produce is that those consumers are maximizing foods with protein and fiber, and fruits and vegetables pack a powerful fiber punch. 

More at risk is the CPG category, which has the world’s top 100 most valuable food brands facing a $73 billion shortfall, according to a report from Brand Finance, a brand valuation consultancy firm.

It appears the GLP-1 trend will continue to rise, so produce marketers and retailers need to evaluate how much to market to this group. 

It’s unclear whether consumers not taking the medication will be turned off by that marketing, but promoting protein and fiber is something that can appeal to every consumer.