Fruit and Vegetable Industry Session N°11

Market dynamics in the F&V industry: The role of supermarkets and large retailers in shaping market trends and prices

Supermarkets and large retailers have become key players shaping the global fruit and vegetable (F&V) industry. Over the past two decades, the growing concentration of retail power has transformed supply chains, procurement systems, and pricing structures. In many OECD economies, the five largest supermarket groups control over 60% of grocery sales, including fresh produce, and similar trends are emerging in the Global South through franchising and strategic alliances.

Retailers act as both market makers and gatekeepers: their procurement policies and private standards covering pesticide residues, sustainability, appearance, and packagingdetermine which producers can access the market and at what cost. Meeting these requirements often demands significant investment, especially for small and medium suppliers. Price transmission between farmgate and retail levels also remains imperfect, with consumer prices responding asymmetrically to changes in producer prices, reflecting retailers’ strong influence over margins and market information.

At the same time, supermarkets drive modernization. Their investments in logistics, traceability, cold-chain systems, and packaging have improved food safety and efficiency but also marginalized smaller suppliers unable to meet strict standards. Consumer expectations around affordability, health, and sustainability reinforce this dominance, as promotions and product placement allow retailers to shape purchasing behaviour and market trends.

This retail consolidation raises important questions about fairness, transparency, and inclusion. Many smallholders face barriers of certification, scale, and negotiation power, while consumers remain exposed to price volatility. The key challenge is to balance the efficiency and innovation of retail transformation with more equitable participation and resilience across the value chain.