Italian market with significant downturns over the last 5 years
PE
Modern retail sector in Italy almost achieves 80% market share, while consumption dropped nearly 1 million tons over the last 5 years.
The Italian market of fresh fruit and vegetables has been facing significant changes and challenges over the last 5 years. Inflation and climate change are the main factors, according to Paolo Bruni, chairman of CSO Italy (Centro Servizi Ortofrutticoli), who presented a recent market report during last WUWM congress in Rimini.
Modern retail becomes dominant
Retail sector is the distribution channel barely maintained its level of sales of fresh fruit and vegetables, while its market share progressed from 67% to 78% over the last 5 years. The traditional retail sector experienced the higher loss of -48% in sales volume during the same period, almost similarly in value. Nevertheless the sales of organic products remained steady. Aging is other major issue, consumers over 65% represent also most half of the Italian consumption. Their consumption levels still reduced 56% between 2019 and 2023, -12% last year alone. To raise the consumption within the younger generations fully remains a challenge. More market research, innovation and targeted marketing are needed according to Mr Bruni. The relevant growth of new products like yellow and red kiwi demonstrates innovation is needed.
1 million tons of domestic consumption lost in 5 years
About 1 million tons of fruit and vegetables consumption diminished by 18% over the last 4 years from 6,15 million tons in 2019 to 5,12 in 2023. In the same time average retail prices increased +29% from €1,87 to €2,41 per kilo. Last year alone 900,000 tons of produce were lost, due to the drought. Only a few fruit did not lose consumption levels like apples, pears, bananas and avocados. Al the vegetables varieties have faced consumption reduction, except zucchini and cucumber.
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