Report: 68% of Shoppers Will Pay More for Branded Produce

Brand Identify Boosts Fresh Produce Sales

A new study from the leading food marketing company Foodmix indicates that the majority of consumers shop for name brands they trust, even in the fresh produce aisle. The research surveyed more than 1,000 produce shoppers representing four generations, from Gen Z to Boomers, and revealed untapped opportunities in the marketing of fresh produce. More specifically, it found that authentic brand narratives that inspire consumer trust and engagement can translate into more robust sales and greater profits.

What the Majority of Shoppers Want
The majority of those surveyed reported that they place substantial value on branded produce department products, a revelation that debunks the misconception that younger shoppers are less conscious of brands. To the contrary, they consider it an important factor in their buying decisions. In fact, while close to 50% of those born before 1981 consider the brand of fresh produce important to them, more than 65% the younger Millennial and Gen Z demographic say they are more likely to buy fresh produce that is branded. In other words, brand affinity and loyalty appears to be not losing but gaining momentum over time.

A Fresh Opportunity for Grocers
Traditionally, grocers have not emphasized branded products, even when developing their own internal product lines. They opted to showcase produce with the look of a farmer’s market – while avoiding the costs associated with branded packaging and marketing. But today those strategies appear less effective, as branding fresh produce makes inroads to capture a greater market share. Almost 70% of grocery shoppers support brands whose stories emphasize the ways that their produce contributes to a healthier, more sustainable lifestyle. They also consume an increasing amount of conveniently packaged and prepared items that have recently driven buying trends, such as diced/sliced fruits and vegetables and packages salads.

The Demand for Branding Outweighs Supply
Nearly 60% of consumers express strong loyalty and satisfaction with a particular brand that resonates with them on an emotional level. However, they struggle to identify other competing brands that trigger a comparable response. But they want more of that healthy competition, and are willing to pay for it, because those sentiments are expressed by shoppers in the coveted demographic of consumers who spend at least $25 a week on fresh produce. 

The Bottom Line
Taken together, the various conclusions outlined in this new research reveal a way forward for those within the fresh produce industry. In today’s challenging market environment, effective branding can be leveraged into a major advantage to grow sales volume while still successfully capturing higher profit margins.