ARLINGTON, Va. — Fresh foods will remain a central force in driving food retail sales and innovation this year, according to The State of Fresh Foods 2025 report released by FMI – The Food Industry Association. The analysis shows fresh departments accounted for 42% of total store sales in 2024, with retailers prioritizing the category as a competitive differentiator.
“Shoppers’ focus on nutrition and health positions fresh foods as a sales driver in food retail moving forward,” said Rick Stein, FMI’s vice president of fresh foods. “It’s essential for the industry to cultivate fresh food departments that spur customer engagement and shopping appeal.”
Department Performance
Meat remained the top-performing fresh perimeter department in 2024, closely followed by produce. Both accounted for 11% of store sales and reflected growth in both spending and purchase volume. Foodservice operations achieved a record $56 billion in sales, with 87% of retailers offering fresh-prepared programs and 63% reporting strong results. While seafood and bakery posted slight sales declines of 1.2% and 1.4%, respectively, both continue to be strategic priorities due to their potential to engage shoppers.
Operational Focus
Fresh foods are shaping operational priorities for 2025, with nearly one-third of retailers planning to expand foodservice staffing. The category also represents 39% of online sales revenue and is influencing tech investment, particularly in inventory and demand planning systems tailored to fresh goods.
“As consumers continue to prioritize health and nutrition, fresh foods remain essential to delivering the quality, convenience, and experience shoppers expect,” Stein added.
