FRESNO, CA. – February 10, 2015 – Fresh fruits and vegetables are quickly joining the ranks of the most profitable and rapidly growing segments of online shopping. While still a relatively new entry in the United States, the report indicates that the segment is growing and could reach as much as $25 billion dollars by the year 2023. The new report by Rabobank’s Food & Agribusiness Research and Advisory group (FAR) titled “Online Produce-Potential Winners Act Early” goes on to examine what opportunities the fresh produce supply chain has to impact the e-grocery channel.
Roland Fumasi, Senior Analyst with FAR says that these opportunities are really surrounding the changes caused by e-grocery. “Members of the fresh produce supply chain are going to have an opportunity to become early solutions providers for many e-grocers” said Fumasi. “Those that help e-grocers achieve their goals will reap the benefits of this quickly growing channel.” The report goes on to outline the four key areas of change caused by e-grocery; Greater Retail Control Online, New Core Competencies at Retail, Virtually Unlimited Space, Lower Consumer Search Costs.
One of the main reasons fresh produce is expected to gain significant attention is due to the fact that in brick and mortar stores, produce is typically one of the highest gross margin items and a large contributor to net profit. “It is early yet in e-grocery adoption in the US,” says Fumasi. “That said, current retail players are increasing investing in e-commerce models and are driving the grocery sector toward a supply side tipping point. Progressive produce suppliers can take advantage of this and gain market share not only online, but in traditional channels as well.”
The full report is available exclusively to clients of Rabobank and to media upon request.
FAR Report Requests/Media Inquiries
About Rabobank, N.A.
Rabobank, N.A. is a California community bank and a leading provider of agricultural financing and full-service banking products to California consumers, businesses and the agriculture industry. With nearly 120 retail branches, we serve the needs of communities from Redding to the Imperial Valley through a regional structure that promotes local decision-making and active community involvement by our employees.
Rabobank, N.A. is a division of the Rabobank Group, the premier lender to the global food and agricultural industry and a financial services leader providing commercial, retail and agricultural finance solutions in 48 countries around the world. From its century-old roots in the Netherlands, Rabobank has grown into one of the world’s largest and safest banks. www.rabobankamerica.com
About Rabo AgriFinance
As a leading financial services provider for agricultural producers and agribusinesses in the United States, Rabo AgriFinance adds value using industry expertise, client-focused solutions, and by creating long-term business relationships. Rabo AgriFinance offers a comprehensive portfolio of services that gives producers the right products to prepare for, and take advantage of, market opportunities. Rabo AgriFinance representatives offer a wide array of financial services and knowledge to help customers realize their ambitions. This comprehensive suite of services includes loans, insurance, input finance and effective risk management products. Rabo AgriFinance is a division of Rabobank, the premier bank to the global agriculture industry and one of the world’s largest and safest banks.
About Rabobank International Food & Agribusiness Research and Advisory (FAR)
The Rabobank International Food & Agribusiness Research and Advisory (FAR) group is a global team of more than 80 analysts who monitor and evaluate global market events that affect agriculture worldwide. This international team works to collect key insights into commodity markets; conduct in-depth analysis of the factors that drive sector success (or failure); and examine the megatrends that ultimately influence clients’ business strategy. These analysts are internationally respected experts in sectors from protein to produce, inputs to oilseeds, and their knowledge is shared with Rabobank customers.