Nielsen: 'We expect consumers' focus on fresh to sharpen'

"In the fresh food space, the four trends offering the most opportunity at a macro level are transparency, convenience, health, and snacking," ​noted Nielsen. ​

Demand for transparency, which consumers most strongly associate with sustainability-related claims, according to Nielsen, is becoming not only a 'nice-to-have' for products, but simply the cost of doing business. 

"Sustainability, which sits within the broader topic of transparency, is becoming increasingly important to many consumers—and the sales figures prove it: we’ve seen a 20% increase in sustainable product sales since 2014,"​ said Nielsen.

In addition, in 2018, sustainable products accounted for 22% of total store sales.

Dollars sales of fresh department organics, another certification closely tied to sustainability among consumers, grew 9% last year accounting for 40% of of total food growth across the store. 

"It’s also worth noting that sustainability spans well beyond what we eat. As we see more value-added products come to market for added consumer convenience, their packaging is just as much of a consideration as the food they contain," ​added Nielsen. 

Demonstrating how important sustainable packaging has become, 4,000 new produce products with sustainable or recyclable packaging were introduced last year, a 4.1% increase from the previous year.

Convenience is key

Convenient fresh food is gaining traction as consumers search for pre-made fresh food offerings (e.g. chilled soups, pre-cut or pre-'spiralized' veggies) to meal kits. 

Despite many meal kits companies having to restructure their market approach in recent years, dollar sales of meal kits increased 47% between 2017 and 2018, increasing household penetration from 9% to 12%. Value-add vegetables registered a 10% increase in dollar sales.

Another driver of fresh, convenient food products is the 8% increase in US consumers reporting that they follow a specific diet as part of a "healthy lifestyle."​

"In line with our quest for shortcuts and time-savers, many consumers have adopted regular snacking regiments given that they can be quick, easily prepared and take less time to eat than a full meal. In some cases, consumers are replacing full meals with snacks," ​stated Nielsen. 

Pre-made salads and deli items containing vegetables, increased by 5% and 6.2% in dollar sales respectively. 

Culturally diverse future for fresh food​

Beyond sustainability and making healthy swaps, consumers are broadening their fresh food horizons with globally-inspired products, according to Nielsen.

"The US is growing more culturally diverse​ as each new year comes along, and that diversity is having a notable impact on food preferences. In addition to seeing greater Hispanic influence across American flavor profiles, we’re also seeing the influence of Asian products as well,"​ noted Nielsen. 

The market sales data firm tracked a dollar sales rise in Asian, South American, and Middle Eastern products across the store, particularly with respect to fruits and herbs:

• Sales of guava (used for Mexican, Latin/South American, Asian and Middle Eastern dishes) increased at a compound annual growth rate of 15% over the past five years.
• Sales of pitaya, commonly known as dragon fruit (used in Mexican, latin/South American and Asian dishes), have increased at a compound annual growth rate of 33% over the past five years.
• Sales of fresh ginger (used in Asian and Middle Eastern dishes) have grown at a five-year compound growth rate of 9%
• Sales of fresh epazote, an herb native to Mexico, Central and South America, have grown at a five-year compound annual growth rate of 10%.
• Sales of fresh turmeric have grown at a five-year compound annual growth rate of 76%.

What else could be next?

Similar to cauliflower's rise to fame as a healthy swap, Nielsen has forecasted that sweet corn could mimic cauliflower's growth trajectory.

Plant-based meat alternative Jackfruit is having a moment, growing dollar sales by 79% in 2018, helped by national exposure by fast food chains such as Pizza Hut and Blackwood BBQ. 

"As the year progresses, we expect consumers’ focus on fresh to sharpen a bit as they seek to make their indulgent choices a little better for them," ​said Nielsen.