he Ontario Produce Marketing Association (OPMA) says that fruit outpaced vegetables in sales and tonnage growth, as well as inflation in 2021 according to its new Retail Market Annual Report.  The fruit market experienced a 2.3 per cent growth year-over-year with stable tonnage at 0.2 per cent -- the largest tonnage gain being from stone fruit (+9%). Total inflation for fruit increased by 2.1 per cent, with increases in most categories.

Diving deeper, the report shows that melons, cut fruit, and specialty fruit such as kiwifruit, persimmon and pomegranate were key drivers of year-over-year sales growth in Ontario retail produce departments in 2021. 

 “We have seen produce sales increase due to a continued pandemic-related shift away from in-person dining venues that began in 2020,” said Stephen Reid, OPMA president. “Produce suppliers and retailers continue to adapt and meet the changing needs of Ontario consumers.”

 The vegetable market experienced negative growth in sales and tonnage. Total sales growth and tonnage declined by 0.3 per cent and 1.4 per cent respectively, while total inflation on the price per kg for vegetables increased by 1.4 per cent, driven primarily by root vegetables, cooking greens, and field vegetables.

Organic produce outpaced conventional produce on sales growth with organic fruit sales increasing by 3.7 per cent compared to conventional fruit at 2.2 per cent. While organic vegetables sales increased by 4.7 per cent, conventional vegetables declined by 0.6 per cent.

The report identifies many opportunities for both suppliers and retailers. Suppliers can benefi­t from growth in emerging categories such as specialty fruit and international vegetables as a means towards filling supply gaps. There are also opportunities for retailers to begin or expand organic choices for consumers in core categories such as berries, bananas, mushrooms and root vegetables.

Mike Mauti, managing partner of Execulytics Consulting, noted: “Extraordinary events continue to shape consumer demand in unpredictable ways. Only by closely researching the market could produce professionals across the supply chain have discovered the re-emergence of cut fruit as a growth category or that mushrooms are moving closer towards becoming an organic-only category. The market research continues to identify key growth areas for produce suppliers and retailers as the province navigates through supply challenges.”

 This report is based on NielsenIQ MarketTrack data for fresh produce sold in Ontario grocery banner, mass merchandiser and drug channels for 52 weeks ending October 9th, 2021.

Additional analysis was conducted by Execulytics Consulting. Access to the full report is available to OPMA members at www.theopma.ca.

Source:  Ontario Produce Marketing Association March 10, 2022 news release