1. Fresh-Cut Fruits and Vegetables Market & Consumer Information
August 2014

2. U.S. Fresh-Cut Produce Is An Estimated $27 Billion Market and Sales Are Increasing
U.S. Market Size:
U.S. retail* sales growing for fresh-cut fruit and vegetables
Fresh cut fruit retail sales increase : % dollars, +13.9% volume
Fresh cut vegetable retail sales increase : +5.5% dollars and volume
Fresh-cut produce accounts for 16% of total retail produce sales
Foodservice accounts for the larger share of fresh cut sales (60%)
Note – Retail includes all grocery retail channels
Source: Freshcut.com, UC Davis 2012 Study, Roberta Cook “Trends in the Marketing of Fresh Value Produce and Fresh-Cut/Value-added Produce”; Nielsen 52 weeks ending July – *Select US Retailers

3. Share of U.S. Fresh-Cut Fruit & Vegetables by Category in Retail
Mixed fruit, apples, pineapple and watermelon account for the largest dollar and unit share of fresh cut fruit sales in U.S. grocery retail
Excluding bagged salads, carrots and mixed vegetables account for the largest dollar share of fresh cut vegetable sales in U.S. grocery retail

4. Share of U.S. Fresh-Cut Fruit & Vegetables by Packaging
Fresh-cut fruit packaging types and share of sales:
Fresh cut with no preservative (72.4%)
Characteristics include chunk, cubed, cored, cup, cut, wedge, spear, sliced, boat
Tray with plastic overwrap (19.3%)
Jars & cups with fruit in juice (8.2%)
Sold in a plastic cup or jar – fruit in juice or preservatives
Fresh-cut vegetable packaging types and share of sales:
Side dish (54.6%)
Can often be cooked in the microwave directly in the bag
Trays (19.4%) – vegetable only with or without dip
Meal prep (17.2%)
Diced, sliced, chopped and shredded items ready to incorporate into a meal or recipe
Snacking (8.8%) – single serve (5 oz. or less) typically for on the go
Source: FreshFacts on Retail Q – Vegetable excludes bagged salads

5. Aside From Convenience, New Eating Occasions & Quality Also Drive Fresh Cut Purchases in the U.S.
Fresh-cut produce offers consumers value for the following reasons:
Convenience – it is the #1 reason for purchase
Grab & go is needed for busy families
Shifting consumption patterns – more grab & go needed for breakfast & snacking
Option for a side dish
Quality – consumers know fresh-cut produce is ripe vs. figuring it out with the whole item
Barriers to consumers’ purchases of fresh-cut include price, poor quality from past
experience and limited shelf life
Retailers and Foodservice providers also find value in fresh cut produce
Fresh-cut reduces labor costs, stabilizes price and offers consistent sizing & supply
Source: Euromonitor International; Fresh Cut Magazine Jan 2014 “Food for Thought: Experts offer snapshots on fresh-cut industry”

6. Fresh-Cut Produce In the U. S
Fresh-Cut Produce In the U.S. Appeals To More Affluent, Upscale Consumers As Well As “Healthy Living Families”
Who consumes the most fresh-cut produce in the U.S.?
Affluent and suburban consumers
Upscale urban consumers
“Healthy Living Families” - households with children ranging from lower income to affluent
Large households
College-educated consumers
Primarily Caucasian consumers, but also Asian consumers
Source: Beth Padera, The Perishables Group January 2011