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RESEARCH PERSPECTIVE
Farmstands And Farmers Markets Enjoy Growing Appeal Among Shoppers
by rick stein, vice president, fresh foods, food marketing institute (fmi)
It’s road trip season across the United States, as many families take off on sum- mer vacations. Traf c is also picking up
this time of year at roadside farmstands and farmers markets in cities and towns virtually everywhere.
There’s a certain allure to produce stands, whether set up along a two- or four-lane byway or in the center of town in a municipal parking lot. It’s a slice of Americana and a reminder that in much of the nation, this is the ripe time to savor produce from local farms. I’ve stopped at my fair share of stands and markets over the years while on my way to a store visit or business meeting, because the taste of a drive-thru meal just can’t compare to some just-picked peaches or perfectly red cherry tomatoes.
The 2019 Power of Produce report from the Food Marketing Institute shows that what might seem to be a charming throwback is remarkably relevant to today’s shoppers. According to research conducted for FMI by 210 Analytics, LLC, farmers markets and roadside produce stands each draw a signi - cant share of shoppers’ spending on produce. What’s more (and perhaps surprising to some), Millennials represent a higher percentage of those who buy fresh produce on occasion from these vendors and directly from farmers.
In fact, 79% of younger Millennials say they buy produce from farmers markets, compared to 62% of Baby Boomers. Nearly three-fourths (72%) of older Millennials like to buy fresh fruits and vegetables from roadside stands, versus 58% of Gen-X consumers.
Although these occasional purchases aren’t nearly as large as in other traditional channels, strong interest among buyers, particularly younger consumers, indicates a competitive market for shoppers’ produce budgets. Also underscoring the signi cance of these buying behaviors, the latest Power of Produce found that 69% of people visit farmers markets speci cally to buy fruits and vegetables, making it a true and direct destination.
There are implications in the marketplace as these trends continue. Farmers markets
Strong interest among buyers, particularly younger consumers, indicates a competitive market for shoppers’ produce budgets.
and roadside stands can capitalize on such interest to grow their respective business. Traditional retailers, meanwhile, can look for ways to maintain their share of shoppers’ produce dollars.
Those traditional retailers may want to begin by taking a look at why farmers markets and roadside stands are so appealing to shoppers, including discerning buyers in the younger demographics that will drive future sales. The 2019 Power of Produce report shows that while the fun and inter- esting buying experience is one draw for these markets and stands, it’s what’s in those baskets and bins that is important to many shoppers: freshness is the top reason people shop at farmers markets, followed by a perception of better quality, desire to support local farmers and perceived better taste.
Supermarkets can tout the in-season freshness of their fruit and vegetable offer- ings as one way to stay competitive with nearby farmers markets and produce stands. This can be done through signage or, in a personal connection that’s also a hallmark of produce sold at small local vendors, talking with produce department staff about what just arrived from the farm or what’s coming next. This kind of information is increasingly important to consumers in general, with more than half of shoppers saying they are looking for expanded local and seasonal assortments.
During harvest season that lasts from mid-summer through early fall in most parts of the country, traditional stores can also keep their consumers engaged by creating a kind of farmstand experience in their produce department. This can be done by sharing the names or brief pro les of local farms and farmers where seasonal produce is sourced as one way to connect people with those who grow it and highlight the freshness of the products. This approach can be effective with
summer crops like tomatoes, peppers, sweet corn, peaches, blueberry and other seasonal items and continue the excitement through fall, with items such as local apple varieties, kale, potatoes and pumpkins, to name a few examples.
From a merchandising standpoint, stores can mimic a farmstand with elements like bushel baskets of recently harvested fruits or a chalkboard listing the latest produce arrivals. They can even create a pop-up farmers market onsite in an area of the store’s parking lot or front entrance on a designated day of the week or weekends.
Additionally, there are cross-merchandising opportunities that lend a roadside stand or farmers market charm to a traditional produce department. In my visits to such freestanding markets, I’ve picked up freshly made pies and jars of jam or jelly to take home to my family. I’ve also bought impulse goods like homemade apple cider doughnuts and freshly-squeezed juice to enjoy on the way. Why not bring some apple pies from the store bakery to the apple display in the produce section, or put out some salsa in a cooler display near the tomatoes, onions and cilantro?
Ultimately, the popularity of farm-to-table eating boosts the overall market for produce businesses, whether their crops are sold at parking lot and side-of the-road markets or supermarkets. Growing the category with fresh, quality fruits and vegetables is the perennial goal.
For more information, visit www.FMI. org/FreshFoods or follow Rick on Twit- ter @Ricks_FreshFood. Food Marketing Institute is a trade association that advocates on behalf of the food retail industry. FMI’s U.S. members operate nearly 40,000 retail food stores and
25,000 pharmacies. Through programs in public affairs, food safety, research, education and industry relations, FMI offers resources and provides valuable bene ts to more than 1,225 food retail and wholesale member com- panies in the United States and around the world.
12 / AUGUST 2019 / PRODUCE BUSINESS