Low-priced bananas have long been a selling point in grocers’ produce aisles. But price competition alone no longer cuts it given shifting media and generational dynamics in produce shopping.
A third of produce shoppers recently surveyed said they discover new fruits and vegetables on social media, according to a new FMI — The Food Industry Association report. That means grocers need to ramp up digital engagement and shift their merchandising to appeal to these consumers, the trade organization said in its newly released Power of Produce report.
"Younger shoppers, particularly Millennials and Gen Z, are driving significant shifts in the produce industry," Rick Stein, vice president of fresh foods for the trade group, said in a statement. "Their preference for convenience, organic options and social media-driven discovery is reshaping how produce is marketed and sold.”
Sources of inspiration for meals, for example, vary widely between age cohorts, and as a result, grocers need to adapt the types of recipes, instructions and cuisine choices that grocers offer across different platforms, the report found. Almost half of the surveyed shoppers said they found new ways to prepare produce on social media, underscoring the influence that channel has on purchasing behavior.
Dragonfruit, which saw pound sales increase more than 22% in 2024 compared to the prior year, dominates the list of produce items social media users have discovered, according to the report, which was prepared by 210 Analytics. Some of the kitchen hacks respondents cited include making a healthy pizza using a watermelon slice as the base, making an all-natural cereal using berries and seeds, and cooking bananas in an air fryer.
Gen Z and millennials are the most digitally engaged consumer groups, with YouTube listed as their top source of inspiration followed by TikTok and Instagram, FMI found. Around 10% of Gen Zers and 13% of millennials are also trying out ChatGPT and other artificial intelligence applications to get meal ideas. To better reach these consumers, grocers can use social media to share shoppable recipes and highlight viral trends around new items or preparation techniques, FMI suggested.
While price and quality remain top considerations for shoppers, millennials and Gen Zers show strong preferences for convenient options, FMI found. While boomers prefer bulk over pre-packaged produce, Gen Z and millennial shoppers typically prefer packaged items, the report noted.
Younger consumers also tend to focus more on sustainability, with organic, “sustainably-grown” and “fair wage” among the top label claims they seek out. Millennials also prioritize regenerative agriculture, while the “locally-grown” and “Grown in the USA” labels have more sway with older shoppers.
“Younger generations are more focused on how the produce is grown, whereas Gen X and Boomers care more about where it was grown,” the report said.
Regardless of age, other tactics to better appeal to produce consumers, according to FMI, include:
- Use displays to increase visibility and ideation
- Create recipes for all meal occasions, including snacking and beverages
- Offer seasonal items
- Cross-merchandise products
- Highlight health benefits, explain portion sizes and provide tips to easily add fresh produce across meal occasions.
Fresh fruit and vegetable sales achieved a new record in 2024, hitting $92.3 billion, according to Circana data cited the report. Supermarkets are still the most widely shopped channel for produce purchases but saw unchanged household penetration from 2023. Meanwhile, mass retailers and clubs have grown their household penetration as consumers buy produce across two to three different channels, the report found.
The report is based on a survey of 1,609 grocery shoppers conducted by FMI in November 2024 and Circana data.
