2025's Hottest Grocery Trends Revealed

🌱 Good afternoon, and welcome to today's fresh newsletter! 

👉 In today's email:

• Fresh Thyme Market Unveils 2025 Food Trends

• Texas Citrus Season Kicks Off With Strong Start

• 69% of U.S. Consumers Now Purchase Groceries Online

• Calavo Growers: The Avocado Giant Transforming Fresh Produce

TRENDS

Fresh Thyme Market Unveils 2025 Food Trends

Fresh Thyme Market, a Midwest grocer focusing on healthy options, has unveiled its food trend predictions for 2025.

Collaborating with SPINS, a retail data provider, the report identifies 10 trends that will shape Midwest grocery shopping, emphasizing functional ingredients, adaptogenic mushrooms, and sustainability.

The report highlights a shift towards functional foods with added health benefits, such as colostrum for immunity and probiotics for gut health.

Adaptogenic mushrooms like Chaga and Lion’s Mane are set to be pantry staples, while non-alcoholic beverages featuring mood-enhancing ingredients like kava and CBD are also on the rise. Spicier flavors, led by ghost chilies and Pepper X, will become more popular in sauces and seasonings.

Mangos are expected to become a grocery staple due to their vitamin C content, and natural sweeteners like honey and dates will see increased demand as cleaner alternatives to refined sugar. Fresh Thyme Market's dietitian, Meghan Sedivy, praises mangos as “nutritional powerhouses.”

President Liz Zolcak emphasizes the store’s commitment to curating innovative and fresh products. Brain health is also a focus, with interest growing in supplements like ginkgo biloba and GABA for cognitive enhancement.

Additionally, Korean flavors such as gochujang are expected to gain mainstream appeal.

Sustainability is another trend, with Controlled Environment Agriculture (CEA) practices, like greenhouse farming, offering eco-friendly produce. Protein will remain a dietary focus, with plant-based sources expanding into items like cereals and pasta.

Fresh Thyme, operating 70 stores across 10 Midwest states, aims to offer a diverse range of local and national health-focused products, supported by SPINS' market insights.

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CITRUS

Texas Citrus Season Kicks Off With Strong Start

The Texas citrus season has kicked off, with Lone Star Citrus Growers starting their harvest and production processes.

April Flowers, the company's Marketing Director, shared that production will gradually increase, reaching full capacity by November. Despite challenges from freezes in 2021 and 2024, the yield shows signs of recovery with new plantings now bearing fruit.

One significant change this season is the shift in citrus varieties. Due to past losses from freezes and shifting preferences, the cultivation of Navel oranges has decreased, with a focus on Valencias, which are more popular among farmers and consumers.

As a result, Lone Star Citrus anticipates its shipping operations to extend through late March, reflecting an adaptable approach to market demand and climate conditions.

A critical concern for Texas citrus growers remains water scarcity, as drought continues to affect the state. Although there has been some local rainfall, reservoirs are still alarmingly low, impacting water supply for agriculture.

Falcon Lake, a key reservoir, is at just 13.7 percent capacity, far below the necessary levels for crop sustenance.

While Lake Amistad has improved slightly to 27 percent capacity, it is Falcon Lake that growers rely on most. Hopes are pinned on October's typically rainy weather to help replenish the water sources, especially Falcon Lake.

Despite these environmental challenges, the market outlook for Texas citrus is promising, with strong demand as the season begins.

The timing of the Texas harvest coincides with a gap in California’s citrus season, providing a favorable market position for Texas growers.

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🌧️ ProduceIQ: Hurricane Milton To Cross Florida As Growers Stunned By Helene | ProduceBlueBook.com

🤝 The Role Of Transformative Partnerships In Creating A Sustainable Industry | TheProduceNews.com

🥑 Greater Supply Of AvocadosFrom Mexico Expected This Fall | FreshPlaza.com

💚 Bobalu Achieves Sustainability Milestone | AndNowUKnow.com

🧑‍🌾 Revolutionizing Fresh Produce | YouTube.com

INDUSTRY INSIGHTS

69% of U.S. Consumers Now Purchase Groceries Online

A recent survey by VTEX, a leading commerce platform, highlights a significant rise in online grocery shopping in the U.S., with 69% of consumers making grocery purchases online. 

The survey, conducted among 1,000 U.S. adults, underscores the growing adoption of digital channels and urges retailers to enhance their digital and omnichannel capabilities to meet evolving consumer demands.

Nearly half (47%) of respondents reported buying 26-50% of their groceries online, and 60% preferred home delivery. Price is a crucial factor, with 69% prioritizing cost when choosing an online grocery service.

Promotions like free shipping (68%), discount codes (65%), and loyalty rewards (53%) are attractive to shoppers, indicating opportunities for grocers to build price-sensitive customer bases through strategic promotions.

Transparency is also key; 45% of consumers value real-time order tracking, suggesting that implementing tracking systems could offer a competitive edge.

Dani Jurado, EVP of North America at VTEX, emphasized that grocers need robust, reliable online options and should focus on evolving their digital strategies to provide seamless experiences across all shopping channels.

The shift to online grocery shopping has opened new business opportunities for retailers. Vince Colatriano, EVP at HMart, noted that their online site acts as a marketplace, enabling the expansion of product offerings through third-party sellers.

The VTEX survey identifies four key focus areas for grocers: optimizing the digital shelf, scaling online operations, streamlining fulfillment, and fostering customer loyalty through unified commerce experiences. Addressing these will help retailers create a seamless omnichannel strategy and meet consumer expectations.

As the digital grocery market grows, retailers' ability to provide flexible, transparent, and value-driven experiences will be crucial for capturing market share. Those who adapt their digital strategies proactively stand to gain in this dynamic landscape.

The survey, conducted in August 2024, was fielded by Dynata and reflects a nationally representative sample of U.S. adults. VTEX, listed on the NYSE, supports over 2,600 B2C and B2B customers across 43 countries with a comprehensive commerce platform. Visit VTEX’s website for more information on online grocery trends.

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INDUSTRY SPOTLIGHT

Calavo Growers: The Avocado Giant Transforming Fresh Produce

Calavo Growers, Inc., established in 1924, has been at the forefront of the produce industry for nearly a century.

Based in Santa Paula, California, the company has carved a name for itself as a leader in the avocado market and a provider of high-quality fresh foods.

From its humble beginnings, Calavo has expanded to operate globally, with a presence in several key markets.

Over the years, it has diversified its product portfolio to include not only fresh avocados but also tomatoes, papayas, and a range of prepared foods like guacamole. This growth is reflected in its two main business segments: Grown and Prepared.

The Grown segment is particularly notable for fresh produce like avocados, which are the flagship product of the company.

Calavo sources avocados from a variety of locations, including California, Mexico, and other growing regions around the world, catering to diverse retail, foodservice, and wholesale markets.

The company prides itself on providing consistent, high-quality avocados year-round, which is achieved by leveraging its strong relationships with growers and focusing on optimal harvesting and packaging practices.

Additionally, the company sells fresh tomatoes and papayas, expanding its reach within the produce market.

The Prepared segment focuses on value-added products and ready-to-eat options. One of the hallmarks of this segment is its guacamole business, which has become a key product for Calavo.

The guacamole is produced using ultra-high pressure technology, a process designed to maintain freshness and flavor without preservatives.

The product is available in both frozen and fresh forms, catering to different customer preferences and offering versatile options for retail, foodservice, and club store customers.

Beyond guacamole, Calavo's prepared product line includes an extensive array of fresh-cut fruits and vegetables.

The company has strategically developed processing facilities across the United States, allowing it to offer products that can be delivered to retailers shortly after production, ensuring freshness.

These fresh-cut products include single-ingredient items as well as combinations, such as fruit blends and salads.

Calavo also produces an array of ready-to-eat items like sandwiches, wraps, salads, and parfaits, meeting the growing demand for convenient and healthy meal options.

Additionally, the company sells ready-to-heat entrées and various deli items, contributing to its diverse product portfolio.

The products in the Prepared segment are marketed under different brand names, including Calavo, Avofresco, Garden Highway Fresh Cut, Garden Highway, and Garden Highway Chef Essentials, as well as private labels.

This branding strategy allows the company to reach a variety of customers and markets, providing options for both retail and foodservice, as well as store-brand and private-label programs.

The company's marketing and distribution capabilities ensure that its wide array of fresh and prepared foods are available not only domestically but also internationally.

Calavo’s history is deeply rooted in the California avocado industry. Since its inception, the company has built strong relationships with growers and developed robust sourcing capabilities, which have allowed it to maintain a consistent supply of avocados year-round.

The company has extended its reach to Mexican growers, particularly from the regions of Michoacán and Jalisco, enabling it to offer a wide array of fresh produce throughout the year.

The ability to source from various locations has been key to Calavo’s competitive advantage, as it ensures that customers have access to high-quality produce irrespective of the season.

In recent years, Calavo's leadership has undergone some changes, with Lee E. Cole returning as CEO in March 2023. Under Cole’s direction, the company has reaffirmed its commitment to improving financial performance by honing in on its operational fundamentals, especially within the avocado business.

The renewed focus on the fundamentals of the avocado sector led to significant progress in fiscal 2023.

The guacamole business, in particular, experienced a rebound due to operational enhancements and lower fruit costs, while other divisions saw a gradual improvement throughout the year.

One significant decision made by Calavo's leadership in 2023 was the signing of a non-binding letter of intent to sell its Fresh Cut business to F&S Fresh Foods. This move was designed to sharpen Calavo’s focus on its core avocado and guacamole businesses.

While the sale of the Fresh Cut division will reduce Calavo’s top-line revenue, the strategic shift aims to streamline the company’s operations, creating efficiencies and ultimately enhancing shareholder value.

By narrowing its focus on its strengths, particularly the avocado and guacamole segments, Calavo is positioning itself to deliver compelling returns and strengthen its market standing.

Sustainability isn't just a buzzword for Calavo; it's woven into the very fabric of how the company operates. Rather than just ticking boxes, Calavo actively collaborates with its growers to implement sustainable and environmentally friendly practices.

This means focusing on resource efficiency and responsible agricultural methods at every step.

The company also embraces technology to enhance its product lines, a great example being the ultra-high pressure processing used for its guacamole. This innovation maintains the freshness and safety of the food without compromising its natural flavor and quality.

Quality is at the heart of everything Calavo does, and this shines through in both its product development and marketing. The company is not just reacting to trends; it's constantly researching and innovating to keep up with what consumers want fresh, healthy foods.

A key part of this commitment is Calavo’s expertise in ripening technology, which ensures their avocados hit the market at just the right moment for maximum flavor and enjoyment.

It's this passion for delivering top-quality produce and prepared foods that has fueled the company’s growth and helped it build lasting relationships with its customers.

Calavo has faced challenges, particularly with market fluctuations and operational hurdles within its Fresh Cut division.

However, its emphasis on operational excellence and quality, along with a diverse product assortment, has continued to set it apart from its competitors.

The company's relationship with growers and its ability to procure and distribute fresh produce efficiently and effectively are key factors that have helped it maintain its position as a leading provider in the market.

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TIP OF THE DAY

Create Educational Content To Help Customers Make Informed Decisions

Have you thought about creating educational content to help customers make informed decisions about your produce?

By sharing valuable information about your products, like storage tips, nutritional benefits, or how to select the best produce, you empower your customers to enjoy their purchases to the fullest.

Feature an “Expert Tip of the Week” in your newsletters and social media, offering short, practical advice on everything from how to ripen avocados to the health benefits of leafy greens.

You can use videos, infographics, or quick-written posts to make this content easily digestible and shareable, positioning your brand as both a source of fresh produce and knowledge.

Educating your customers not only enhances their experience but also establishes trust and positions your brand as an authority in the produce market.