Israeli Greengrocers’ Market Share Increases
A changing trend: the chain stores' share of the fruit and vegetables market is no longer on the rise
Ministry of Agriculture and Rural Development, Ministry's Spokesperson Bureau, State of Israel
According to an analysis conducted by the Israeli Ministry of Agriculture, the chain stores’ share of this market has declined for the first time in about twenty years and a corresponding increase in the greengrocers’ market share was indicated.
In the recent past, an increase in the chain stores’ share of the market for fruit and vegetables was evident year after year, at the expense of the market share held by the greengrocery stores. An analysis conducted by the Ministry of Agriculture and Rural Development (based on the data available from the 2013 Israeli Household Expenditure Survey of the Central Bureau of Statistics) has shown that this increase in the chain stores’ share of the market for the sale of fruit and vegetables came to a halt in 2013, and compared to the previous year even declined to some extent.
A constant increase in chain stores’ share of the market for fruit and vegetables was evident during the period from 2000 to 2012. In 2000 the chain stores’ market share for vegetables was 30.8% and for fruit 31.9%, compared to 26.7% for both fruit and vegetables in stores specified as “greengrocers”. By 2012 the chain stores’ market share for vegetables had risen to 49.6% and for fruit to 51.4%, compared to 22.6% and 20.1% in stores specified as “greengrocers” for fruit and vegetables respectively.
However, in 2013 this trend was reversed as not only did the annual increase stop, but the chain stores’ market share actually declined with a corresponding increase in the greengrocers’ market share – as the market share of the chain stores for vegetables stood at 49.1% and for fruit at 51.2%, compared to 24% and 21.7% in the stores specified as “greengrocers” for fruit and vegetables respectively.
The Ministry of Agriculture and Rural Development explains the reason for this change in trend as the consumer’s growing preference for cheaper outlets on the one hand while on the other hand, their returning to buy produce at specialist stores offering good quality, fresh produce, personal attention, as for example at butcher shops, delicatessens and greengrocers.
