all STORIES large retailers projected to cause increased demand in the fresh produce supply chain

Large retailers such as Costco signifying increased demand in the fresh produce supply chain

HazelBlog, the official produce waste awareness and fresh produce supply chain blog
Staff, Hazel Technologies
June 8, 2016 4:32 PM CST

Costco, the American wholesale food chain with over $100 Billion dollars in annual sales, has one specific sector of its business in particular that is gaining traction : the fresh produce sector.

Costco now has nearly $6 Billion in annual produce sales, according to the Packer

Costco now has nearly $6 Billion in annual produce sales, according to the Packer

According to a recent report from Pamela Riemenschneider of the Packer, a leading fresh produce industry publication, Costco's most recent projections show that fresh produce, both organic and non-organic offerings combined, accounts for nearly $6 billion dollars in annual sales.

This means that alone, Costco's fresh produce sales have a comparable size, on a yearly basis, to over 7% of the entire American wholesale produce market.

In comparison with Costco's other store departments, fresh produce is now the leader in the "fresh foods" category (meat, produce, deli, and bakery), and gaining ground on product categories such as apparel and small appliances.

Costco 2015 annual sales breakdown

Within the next year (see data below) fresh produce will most likely become the clear-cut best selling category in Costco's fresh foods department. This would mark the first time in the history of Costo that fresh produce has out-earned the traditionally higher-earning meat sector.

Fresh Produce is now a leading earner for Costco

As groundbreaking as this new accomplishment may seem, the rise of fresh produce demand by consumers has been steadily rising consistently over past 25 years.

Annual sales milestones such as the Costco data shown above are simply data points that serve as concrete validation for what we already know: the fresh produce market is growing steadily, and this is a trend worth betting on.

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