Quarter 1, 2026 - Insights to Action

2026 is off to a strong start, with first quarter dollar sales rising and fruit categories posting volume gains. Despite broader economic uncertainty, consumers continue prioritizing core produce items, which remain resilient, while vegetable category performance has softened.

Channel shifting, mighty melons this summer, and convenience is key

Produce: Produce dollar sales are up 1.4%, with volume trending 1.9% higher compared to last year.

Fruit: Fruit continues to outperform year over year, driven primarily by the Citrus category, which is up 3.5% in volume.

Vegetables: Year to date performance is flat. Herb growth is helping offset declines, while Cruciferous Vegetables continue to struggle at the register.

Produce YTD - U.S. multi-outlet and Quarterly produce performance
Bar graph of fruit, vegetables, produce, and edible YTD through 44 weeks
Regional performance YTD (44 weeks)

Channel Shifting: Traditional Grocery continues to see challenges in the marketplace as the increasing popularity of eCommerce and convenience of Club stores rise. The trend continues into 2026, with produce seeing the largest dollar-share growth in internet sales.

Bar graph of dollar share of market
Bar graph of top 10 fruits and vegetables YTD

Commodity spotlight: Melons

As the summer season approaches, melons are expected to gain prominence as a popular choice for family gatherings and seasonal events, offering a refreshing option as temperatures rise. Peak supply during this period will align with increased demand tied to the summer grilling season, while expanded availability of precut melon offerings is likely to enhance consumer appeal further.

Global and U.S. data show that melon consumption surges by over 45% during summer months
Melons performance

Convenience has become the defining characteristic of the modern grocery experience

By integrating same-day delivery and curbside pickup, retailers have come to dominate an increasingly competitive landscape. Retailers’ ability to replicate the in-store shopping experience through robust online platform sets them apart from many traditional grocery competitors.

Club stores have their recipe for modern success as well, taking advantage of bulk stock-up and competitive pricing. Customer loyalty remains at an all-time high at club stores.

Close up of driver's hands on the steering wheel with a banana in their hand

70% of U.S. consumers use online grocery at least monthly (as of 2026) ⁷

To remain competitive with club stores and mass retailers, traditional grocers must adapt by investing in advanced technologies. These investments include dynamic pricing capabilities, streamlined supply chain operations, and the development of a seamless and efficient digital presence.

Retail exclusive promotions remain one of the most common strategies traditional grocers use to retain repeat customers. “Members only” deals, in particular, provide retailers with opportunities to engage consumers more directly, foster long-term loyalty, and enhance the overall shopping experience.

Top promoted fruits: strawberries, mandarins, avocados and top promoted vegetables: cucumbers, potatoes, lettuce.
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