| FRESH PRODUCE |
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| Executive Summary |
| Fresh Fruit & Vegetable
The UK fresh fruit and vegetable market was valued at £7.41bn in 2000, having increased by 1.2% since 1999. Fresh vegetables are the largest market sector but the sector showing the strongest growth is fresh fruit. While processed foods are becoming more popular, fresh produce still accounts for 61.6% of the value of all fruit and vegetable sales.
Fresh fruit sales increased in both value and volume terms in 2000, boosted by a growing number of consumers shifting to healthier eating patterns. New product developments, such as mini varieties of some fruits, snack products and ready-to-eat fruit mixes, have helped sales. The supermarkets have been more imaginative in the category management of fresh fruit.
The fresh vegetables sector divides into three main subsectors: fresh green vegetables, other fresh vegetables, and fresh potatoes. The fresh green vegetables subsector experienced healthy value growth in 2000, although price increases have played their part. Again, new product developments have been crucial (led by more prepacked salad varieties, salad-based snacks and vegetable mixes). The other fresh vegetables subsector also recorded some growth in annual sales in 2000, but the fresh potato market continues to struggle, with growing competition from processed products.
The UK supplies a large percentage of its own fresh vegetable requirements but the poor weather of recent years — notably the mild but wet winters and spring — have reduced output and increased prices. The number of vegetable growers is falling. The fruit market, in contrast, depends heavily on imports and many cheaper imports helped to limit price increases in this subsector in 2000. Bananas and apples are the most popular fruits with consumers, and the prepacked banana market is a strong growth area.
The long-term trend shows a decline in per capita consumption of fresh vegetables but an increase in per capita consumption of fresh fruit. UK consumers still consume less fresh fruit per head than many of their European counterparts, so there is still considerable potential for growth. Fresh fruit consumption amongst the young is also low, and recent campaigns and government initiatives aim to encourage healthier eating amongst children and young adults.
The market trends of the last few years are likely to continue over the next few years, with fresh fruit consumption continuing to increase but fresh vegetable consumption still in decline. More fruit-based snack products and a wider range of exotic fruits, along with more campaigns to encourage fruit consumption, will help to maintain sales growth.
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