Fresh foods, and specifically produce, are the key to a successful food retail operation. So, to nobody’s surprise, the recently released Food Industry Association’s The State of Fresh Foods 2025 report demonstrates continued growth in the fresh foods space. The report explores the strident momentum of fresh food products and provides an optimistic look at the role the departments play in the advancement of food retail establishments in the coming years.

“Consumer preferences continue to evolve, and as demand shifts, fresh foods are key for the food industry to meet customer needs,” said Rick Stein, vice president of fresh foods at FMI. “Shoppers’ focus on nutrition and health positions fresh foods as a sales driver in food retail moving forward, and it is essential for the food industry to respond and remain focused on cultivating fresh food departments that spur customer engagement and shopping appeal.”

The analysis suggests that fresh food is a key consideration in the industry’s goal of excelling as a shopper destination. Perimeter departments are widely used by food retailers to build a competitive advantage and attract shoppers to brick-and-mortar operations, as evidenced by 42 percent of sales coming from fresh sectors in 2024. Retailers report fresh food as a top priority going into 2025 and cite successful innovative fresh product differentiation strategies.

Department narratives within the fresh food sector unveil a more complex story about fresh foods as a growth driver in food retail. The report notes that the meat department shows resilience in the face of economic concerns by remaining a top-performing perimeter department. Just below meat, produce also leads sales and showcases deep shopper engagement. The growth in sales in both departments highlights shoppers not just spending more, but buying more, and each sit at 11 percent of total store sales.

Foodservice achieved record-breaking sales of $56 billion last year, solidifying its role as a key differentiator for retailers in 2024. With shoppers prioritizing quality and convenience, 87 percent of retailers leveraged fresh-prepared foodservice programs, and 63 percent reported success. While seafood and bakery sales declined slightly — by 1.2 and 1.4 percent, respectively — both departments remain strategic priorities due to their strong shopper engagement and experiential appeal. Retailers are focusing on quality, promotion and innovation to drive growth in these high-potential categories heading into 2025.

“Fresh food is at the heart of many of our most important operational strategies, driving workforce investments, technological advancement, and customer engagement,” Stein said. "In 2025, foodservice is our top workforce expansion focus within fresh foods, with nearly a third of retailers planning to increase labor in this area. We’re also seeing fresh food play a leading role in ecommerce success — averaging 39 percent of online sales revenue — and in our tech investments, with growing use of inventory and demand planning solutions tailored to the fresh perimeter. As consumers continue to prioritize health and nutrition, fresh foods remain essential to delivering the quality, convenience, and experience shoppers expect.”

Albertsons announced a major milestone in its digital transformation journey — the launch of the Albertsons AI shopping assistant, an industry-leading web browser experience designed to make grocery shopping faster, smarter and more personalized. As the industry leans into agentic commerce, the Albertsons AI shopping assistant moves beyond search to execute complex end‑to‑end grocery tasks helping customers complete shopping, from recipe to cart, in minutes. Building on the success of the company’s Ask AI tool introduced earlier this year, the agentic shopping assistant is a customer-friendly

Lipman Family Farms is deepening its generational commitment to fighting hunger. Its latest $2 million investment will help to build a new facility for the Harry Chapin Food Bank of southwest Florida in Fort Myers. The center — set to break ground this November and completion by the end of next year — will expand the food bank’s ability to sort, pack and distribute fresh, nutritious food to thousands of families facing hunger. For Lipman, the gift isn’t just a financial pledge. It’s the next step in a decades-long relationship rooted in shared purpose. Based in Immokalee and still family-owned

The Fresh Produce & Floral Council will close out the year with one of its most anticipated traditions: the FPFC Holiday Reception, set for Dec. 11 at the Sheraton Park Hotel at the Anaheim Resort. Running from 4 to 7 p.m., the reception has long been considered a signature year-end gathering for the West Coast produce and floral industries, and this year’s event leaned even further into community, celebration and a focus on the industry’s future. Matthew Hayes, the council’s program and events director, said the event stood out because it “brought together the full breadth of the produce and

Sunny Valley International, a leading supplier of domestic and imported fruit on the East Coast, welcomed Kevin Lyons and Paul Pascal to its sales team on Dec. 1. Lyons brings more than 30 years of produce industry experience. Most recently, he was a produce sales manager with UNFI, leading a sales team and managing everything from sales and store merchandising to transportation and procurement. Prior to joining UNFI, he was at Baldor Specialty Foods, where he helped guide the expansion of their retail and fresh-cut business segments. He also brings extensive organic produce sales experience

We're not off to the smooth start we were hopeful for post-Thanksgiving. Load times in Yuma remain long as growers work through muddy fields and backed-up harvest schedules. Crews are doing everything they can to catch up, but customers should still expect delays at the cooler and a slower turn on trucks through early next week. The good news: product quality is improving every day, and weights are trending upward as the fields dry out and temperatures stabilize. On the lettuce front, desert Iceberg, Romaine and green leaf are all showing stronger quality than in recent weeks. There are still