Mike Neary, Manager, Horticulture Division, Bord Bia

The total grocery market is valued at €9.13 billion to the year ending November 2009 according to TNS. This represented a decline of 2% in the value of the market over the last 12 months. The rate of decline was more evident in the September to November 2009 quarter when a value decline of more than 5% was recorded. The volume in the market is more stable with consumers seeking to reduce spend without reducing the amount of groceries bought according to TNS.

Shoppers are grocery shopping on a more regular basis but are spending less on each occasion. The Smart Shopper behaviour includes buying more products on deals, buying more “every day low price” brands, buying more private label, trading down across retailers and cross border shopping.

The fresh produce retail market makes up 13% of the total grocery market. This market is now valued at €1.2 billon which is a 2.9% on the previous year ending September 2008. Over the last year the average spend per buyer eased by 6.2% to €744. However the average buying frequency increased by 6.3% from 156 to 166 trips. The fresh produce retail market comprises three key category areas, namely Fruit (46.4%), Vegetables (41.5%) and Potatoes (12.1%).

The prepared fruit and vegetable retail market has maintained its value to the year ending Sept 2009 with a value of €84 million, which represented a small increase on the previous year due to new shoppers entering the category and an increase in shopping frequency. However the last quarter has seen a decline in this market. The key category areas include the leafy and chilled salads products which make up two thirds of the market.