Fruit and Vegetable Markets

Industry Snapshot

According to a 2009 D&B Marketing Solutions report, there were 7,610 fruit and vegetable stands in the United States, which employed 37,823 and generated annual revenues of $2.2 billion. Over 80 percent of the industry's establishments had four or less employees. However, the bulk of revenues was generated by firms that employed between 5 and 100 employees. These mid-sized businesses accounted for nearly 52 percent of industry sales. California and New York dominated the sector, with 1,086 and 883 establishments, respectively. Florida and Texas had 775 and 421 firms, respectively.

Consumption of fresh fruits and vegetables continued to grow more rapidly than that of processed fruits and vegetables, a trend that began during the last quarter of the twentieth century. Total fresh fruit and vegetable consumption per capita consumption grew steadily through the first decade of the 2000s, from 725.6 pounds in 2000 to 770.2 pounds in 2008.

Organic fruits and vegetables were the fastest growing sector. Sales of organic produce increased at an annual rate of at least 20 percent during much of the first decade of the 2000s. According to a survey sponsored by the Organic Trade Association, released in June 2009, some 73 percent of Americans buy organic produce, mostly for health reasons. Of that total, 31 percent reported that they had increased their year-on-year spending on organic. Although total revenues from organic produce topped $12.5 billion annually, only 2 percent of the U.S. food supply is grown using organic methods.

Riding these trends, many fruit and vegetable markets diversified throughout the first decade of the 2000s, adding organically grown varieties, fresh cut flower sections, and spaces for plants, firewood, birdseed, and items of seasonal, ethnic, and regional interest, as well as promotions for locally grown produce. In addition, produce stores followed the lead of supermarkets by featuring fresh-cut fruits and vegetables (especially varieties of lettuce) in plastic bags and containers.

Fruit and vegetable stands took advantage of several health scares related to contaminated fruits or vegetables in the late years of the first decade of the 2000s, which drove more consumers to buy their produce locally. The industry was also helped by a report released in 2009 by the U.S. Department of Agriculture that showed that as yield amount increased, nutrient values in commercially grown fruits and vegetables had declined through much of the twentieth century. For example, the calcium content of broccoli, which averaged 12.9 milligrams per gram of dry weight in 1950, had declined to just 4.4 milligrams per gram by the middle of the decade.

However, after enjoying steady growth during the first decade of the 2000s, by late in the decade, the industry expressed concerns that people may be cutting back on fruits and vegetables in a response to a recessive economy. Of particular concern was the impact of the economy on the produce-buying habits of low-income families, who needed to cut corners and tended to do so by buying less fresh fruits and vegetables.

Despite the conflicting trends affecting the fresh fruit and vegetable market, the outlook for local fruit and vegetable stands was relatively optimistic. Joseph Masabni, a commercial vegetable specialist at Texas A&M University, told Western Farm Press in 2009, "Consumers are interested in locally grown, better tasting fruits and vegetables. Opportunities exist for small farms, especially for farms near population centers."