California Strawberry Sales Surge: New Report Reveals Double-Digit Growth and Promotional Success
TL;DR
Strawberries achieved +11% volume growth, dominating the berry category and generating an additional +$235.9 million in category sales.
The report details the dominance of strawberries in the fresh berry category, with conventional strawberries accounting for 91% of total volume and organic strawberries showing impressive growth of +12%.
The strong performance of retail promotions and the growing consumer demand for fresh strawberries provide valuable opportunities for industry stakeholders and create success for strawberry farmers, shippers, and processors.
Strawberries held a 60% share of the berry category volume with +153.6 million pounds in incremental sales, and over 652 million pounds were sold at retail during peak season, generating $1.7 billion in category sales.
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The California Strawberry Commission has released its 2024 State of the Strawberry Category Report, revealing substantial growth in strawberry sales and underscoring the fruit's pivotal role in driving the berry category's performance. The report's findings demonstrate the strength of strawberries in retail, with implications for growers, retailers, and consumers alike.
According to the report, strawberries experienced an impressive 11% year-over-year increase in volume, outpacing all other berry varieties. This growth translated to an additional 153.6 million pounds of strawberries sold, securing a dominant 60% share of the berry category volume. In terms of dollar sales, strawberries contributed 43% of total berry sales, with a 5% increase amounting to an extra $235.9 million in category revenue.
The report highlights the success of promotional efforts, with over half of strawberry volume sold on promotion at an average price discount of 26%. These promotions drove a substantial volume lift of nearly 43%, indicating the effectiveness of strategic pricing in stimulating consumer demand. This data provides valuable insights for retailers looking to optimize their promotional strategies and maximize sales in the competitive fruit market.
While conventional strawberries continue to dominate with 91% of total volume, the organic segment showed robust growth of 12%, slightly outpacing conventional strawberries. This trend suggests a growing consumer interest in organic options, which could influence future production and marketing strategies within the industry.
Regional data reveals that the Southeast led in category development with a 14% volume increase, while the Northeast held the largest market share. This geographic variation in performance offers opportunities for targeted marketing and distribution strategies to capitalize on regional preferences and growth potential.
The report also provides insights into packaging trends, with 16 oz. and 32 oz. packages accounting for 98% of total strawberry sales. The 32 oz. package, in particular, saw a 15% increase in volume, indicating a consumer preference for larger quantities, possibly driven by value perceptions or increased at-home consumption.
Chris Christian, vice president of market insights at the California Strawberry Commission, emphasized the importance of these findings for industry stakeholders. The data not only reflects growing consumer demand but also provides a foundation for retailers, berry shippers, and other industry professionals to refine their strategies and capitalize on the strawberry category's momentum.
As the strawberry industry continues to evolve, this report serves as a crucial tool for understanding market dynamics and consumer preferences. The insights provided can help guide decision-making across the supply chain, from farm to retail shelf, ensuring that the strawberry category remains a strong driver of growth in the produce department.
Curated from 24-7 Press Release
