FLV segment revenue expected to reach US$33.6 billion in 2029

The Brazilian FV market (fruits and vegetables) is expected to grow 5.45% per year over the next three years, reaching US$33.6 billion in 2029, according to data compiled by Abras (Brazilian Association of Supermarkets) based on its own projections combined with data from Nielsen and Mordor Intelligence.

The increase will be sustained by several factors, including the widespread use of weight-loss pens, which has contributed to the increase in demand for fresh food, the strategic partnership between retailers and suppliers and the investment of some producers who have created their own brands of fruits, flowers, vegetables and eggs (FFLVO).

During a forum promoted by IFPA (International Fresh Produce Association) at the APAS Show, an event from the super market chain, retail executives, rural producers and experts discussed important topics for the sector's growth, such as the use of technology, data intelligence and strategic communication to transform the category into one of the main growth levers in food retail.

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Fighting losses

According to data presented at the event, supermarkets with a greater share of fresh products can achieve up to 15% more profit. Despite the potential, the sector still faces challenges linked to logistics, demand predictability and operational losses.

"We are facing a great opportunity to reposition FFLV as a truly strategic category within retail", stated Valeska de Oliveira Ciré, country manager at IFPA in Brazil during the event.

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The use of artificial intelligence and data analysis to reduce waste are strategies that can improve supermarket margins. Data from the company Paripassu show that losses in the FLV segment in Brazil reach 4.73%.

Among the items that generate the most losses in retail, tomatoes stand out, with chain failures totaling 9.35%; eggs, with drops of 3.77%; the apple, with 6.43%; potatoes, with 6.99%; banana, with 3.8%; papaya, with 8.29%; strawberry with 13.1%; pepper, with 21.5%; grapes, with 4% and watermelon, with 12.5% of losses in the chain.

Reducing losses involves more efficient stock management, reformulation of display and replacement.

"FLV is an extremely complex category because it works with live and perishable products", says Christiano Sanguinetti, director of perishables at Cencosud Brasil. He explains that quick, information-based decisions are key to reducing losses and increasing operational efficiency.

Another possibility is to reduce supply. "Many markets prefer not to offer, or to offer less, than to offer too much and record losses", assesses Marco Perlman, director of Aravita.

Value of fresh food

Representatives from retail and industry defended investments in branding, healthiness and the shopping experience to strengthen the perception of value of fresh food.

In the egg segment, Guilherme Armanhe, director of the company Label Rouge, highlighted that consumers are more attentive to the origin, animal welfare and nutritional value of products. In the flower sector, Simone van Oene stated that retail needs to transform the segment into a permanent category of well-being and emotional experience.

The Forum also reinforced the importance of integration between suppliers and supermarkets to guarantee quality, predictability and less waste throughout the chain.

According to Rafaela Fava, investments in refrigeration and innovation made it possible to reduce banana losses to just 2% in her operation. Marcel Hiroi stated that consumers are increasingly looking for more information and traceability at the point of sale.

Another topic that caught attention at the meeting was the impact of weight-loss pens on eating habits.

Participants assessed that the search for healthier diets could boost the consumption of fruits, salads and proteins such as eggs, opening up new opportunities for the fresh food sector.

Chain representatives defended greater integration between producers, logistics, retail and industry as a way to increase competitiveness and consolidate FFLVO as a strategic category in retail.

Source: CNN