TORONTO, ONTARIO, CANADA - As we at ANUK recently learned, 2021 was a year of impressive growth across Canada’s produce departments. A few key segments were the driving forces behind this growth, and the Ontario Produce Marketing Association (OPMA) recently released its Retail Market Annual Report revealing the details.
“We have seen produce sales increase due to a continued pandemic-related shift away from in-person dining venues that began in 2020. Produce suppliers and retailers continue to adapt and meet the changing needs of Ontario consumers,” said Stephen Reid, OPMA President.
Melons, cut fruit, and specialty fruit such as kiwifruit, persimmons, and pomegranates were key drivers of year-over-year sales growth in Ontario retail produce departments in 2021. Fruit reportedly outpaced vegetables in sales and tonnage growth, as well as inflation. The fruit market experienced a 2.3 percent growth year-over-year with stable tonnage at 0.2 percent—the largest tonnage gain being from stonefruit at 9 percent. According to a press release, total inflation for fruit increased by 2.1 percent, with increases in most categories.
Total sales growth and tonnage in the vegetable market declined by 0.3 percent and 1.4 percent respectively, while total inflation on the price per kg for vegetables increased by 1.4 percent, driven primarily by root vegetables, cooking greens, and field vegetables. On the other hand, organic produce outpaced conventional produce on sales growth, with organic fruit sales increasing by 3.7 percent compared to conventional fruit at 2.2 percent. While organic vegetables sales increased by 4.7 percent, conventional vegetables declined by 0.6 percent.
The report states that suppliers can benefit from growth in emerging categories like specialty fruit and international vegetables as a means toward 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.
“Extraordinary events continue to shape consumer demand in unpredictable ways,” Mike Mauti, Managing Partner of Execulytics Consulting, noted. “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 toward 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.”
The report draws from NielsenIQ MarketTrack data for fresh produce sold in Ontario grocery banners, mass merchandisers, and drug channels for 52 weeks ending October 9, 2021. Additional analysis was conducted by Execulytics Consulting, and access to the full report is available to OPMA members on its website.
We at ANUK will continue bringing you the latest news in the North American produce market and beyond.
