Betting on Bananas? Target Parents (and Kids) at Retail

Market growth potential is still strong for the fruit staple.

As a consistent produce category leader, bananas can easily be taken for granted. Consistently one of the most popular fruits in the U.S, banana consumption has never dropped below 22 pounds per person, according to analyst Statista, reaching 26.62 pounds per person in 2022.

With a category this popular, it’s easy to assume it sells itself, but effective in-store merchandising can capitalize on this popularity and even drive sales outside standard conventional Cavendish.

Based at the Philadelphia Wholesale Produce Market, M. Levin ripens and distributes more than 35,000 boxes of bananas every week for delivery along the entire Northeast corridor, meaning it is well-positioned to speak about how best to merchandise the fruit.

According to M. Levin Controller Tracie Levin, the most effective way of merchandising bananas to maximize sales is to keep them front and center in the grocery aisles.

“Showcasing various degrees of color also helps, as some consumers prefer greener fruit to riper fruit,” she says. “Bananas have the ability to sell themselves — so having plenty of them in the produce aisle is always a good idea.”

Noteworthy trends in bananas appear to be dominated by attempts to make bananas more appealing to younger consumers, principally in the form of eye-catching packaging.

“There have been a lot of merchandising trends lately produce-wide to market to kids, whether it be by having colorful boxes or by including characters from movies on stickers on the product. These ideas are all great at reaching the younger generations,” says Levin.

“Parents want to buy their children healthy foods to eat and what better way to entice children to eat bananas than by offering them a sticker to go along with their meal.”

CATEGORY IS STRONG, BUT PUSH FOR MORE

Business for Bronx, NY-based D’Arrigo New York has been relatively steady despite the occasional late shipment, according to the company’s vice president of marketing and communications, Gabriela D’Arrigo. “Bananas are typically an item that do not fluctuate all that much in price.”

Since acquiring Banana Distributors of New York in 2017, D’Arrigo New York has significantly expanded its banana business from its Hunts Point Market headquarters from “half a load” to “upward of consistently 25-30 loads a week.” The company now has two ripening facilities containing 16 rooms, and more expansion is planned. “Our banana business has been thriving since we took it over,” says D’Arrigo.

Jennie Coleman, president of Montreal, Canada-based Fairtrade banana specialist Equifruit, says the past 12 months have been “terrific” for the business, with landing a spot in the Globe & Mail’s Top Growing Companies in Canada for a third consecutive year, thanks to a 184% growth rate. “Our team is growing, our network of customers is growing, and our brand awareness is off the charts.”

Equifruit, says Coleman, asks retail partners to “go big” at point-of-sale (POS) to drive buy-in from consumers. “The data has shown us that bigger is better,” she explains. “When we test our displays on individual POS elements, recall has been low, but when we ask about the whole banana display, recall is in the high, around 70%.”

Coleman recommends bold messaging at the point of sale. Playing it safe, hoping to appeal to everyone runs the risk of making creative that is boring and vanilla, she argues.

“When we are surrounded by bland marketing messages, we stop paying attention,” continues Coleman. “Think about the last time you walked through the banana section of a grocery store. You expect to see bananas, perhaps a sign that says ‘bananas,’ a price tag, maybe some banana bread mixes merchandised close by. What you don’t expect to see is a shark. When you see a shark, you pay attention and that gives us a small window to tell our story.”

Likewise, Juliana Furlan, director of marketing at Fort Lauderdale, FL-headquartered Chiquita Fresh North America, says eye-catching displays are key to driving banana sales in retail environments.

“By positioning bananas in high-traffic areas, such as store entrances or near checkout aisles, retailers can capitalize on impulse purchases, especially for a product like bananas, which is a common household staple,” she says.

“These prominent placements ensure that bananas remain top of mind for shoppers as they move through the store, making it more likely that they’ll grab a bunch — even if they hadn’t initially planned to do so.”

In terms of trends, Furlan says there is growing demand for variety, particularly organic and snack-sized bananas, which appeal to health-conscious shoppers and those looking for convenience. “By offering these options, retailers can better meet diverse consumer preferences and maximize sales,” she says.

Ecuador’s Favorita, part of major Ecuadorian export group Reybanpac, is a major player in the global banana market, primarily in conventional, but also with a growing organic business.

To make the most impact on retail, Monica Molineros, sales manager at Reybanpac, recommends emphasizing product origin for both conventional and organic. “It’s very important to highlight the origin because Ecuadorian bananas, in general, have a good shelf-life — Ecuadorian bananas are stronger and more robust, thanks to the climate, the soil and the production conditions,” she says.

RIPENED/ALMOST RIPENED

But when it comes to bananas on the shelf, what’s the recommended color to sell? Are most consumers looking for ripened or almost ripened? And what’s the reality at retail?

“We typically see bananas at retail level at a 3.5 color: this is green and yellow, not yet beginning to spot up,” says Tracie Levin. “This color gives the consumer time to consume them all before they turn too ripe.”

Coleman at Equifruit agrees, recommending stage 3.5/4 to allow for a few days’ shelf life or instant consumption. Moreover, she argues that being conservative on color to minimize shrink leads to retailers losing sales.

“The conventional and organic shoppers both want the option for a ready-to-eat banana,” says Coleman. “The quicker they can eat it, the quicker they’re back in the store.”

While it’s true to say most retailers have a preferred color based on their shoppers’ habits, Bil Goldfield, director of corporate communications at Charlotte, NC-based Dole Food Company, recommends offering a broad color range for optimal sales.

“A cluster for immediate use and one for days later — organic shoppers generally purchase slightly greener fruit. Stage 3, a 50/50 ratio of green to yellow, is often found at the display,” he says.

Goldfield says the recommendations have been given further weight by the results of a national Dole Food Company survey in April 2024, which found that one-half of all banana consumers look for perfectly yellow fruit with no green or brown spots, while 29% like eating bananas that are at least partially green.

Citing the versatility of bananas, Gustavo Carranza, senior product manager (Bananas N.A.) at Coral Gables, FL-headquartered Fresh Del Monte Produce, says there are great applications for nearly every stage of ripeness.

“Stage 2 bananas, which have begun to transition from green to yellow, are ideal for savory dishes, such as Caribbean cuisine, while Stage 3 are firm and not overly ripe, making them the perfect grab-and-go snacks,” he says.

“Stage 4, which are bright yellow with small brown spots, are excellent for smoothies or frozen treats. Stage 5 and 6 are wonderfully sweet and make great ingredients in baked goods like banana bread.”

OPTIONS FOR VARIETIES?

For decades standard, conventional Cavendish has dominated the banana market, both at a production level and at retail, but is there room for expansion, especially when it comes to segments such as specialty bananas, small petite, organic?

M. Levin carries a variety of bananas, from conventional, fair trade and organics, both banded and bagged, as well as managing a foodservice business, which ripens petites and quad packs. In terms of specialties, the company also supplies baby and manzano bananas.

“There is demand for all bananas all the time, and we enjoy being able to provide our customers with bananas at their optimal stage of ripeness to best suit their needs,” says Levin.

Likewise, Furlan at Chiquita Fresh says plantain and manzanos are finding more favor with consumers, beyond traditional and organic.

Although traditional Cavendish continues to dominate the market, Carranza at Fresh Del Monte says there is a growing consumer interest in exotic banana varieties like Red Bananas, which offer a distinct flavor profile and interesting look, and Baby Bananas, known for their sweetness and convenience as a snack.

CROSS-MERCHANDISING POTENTIAL

According to Levin, bananas are always a great opportunity for cross-merchandising, advising that fruit placed in cross-merchandising aisles should be more ripe and ready to eat, as opposed to greener fruit.

As a Fairtrade-certified brand, Coleman says Equifruit has a unique opportunity when it comes to cross-merchandising. By positioning Fairtrade bananas alongside complementary products like Fairtrade coffee, chocolate or sugar, she says retailers can create a cohesive message that highlights the broader impact of ethically sourced goods.

“This not only elevates awareness of Fairtrade as a movement, but also appeals to consumers who prioritize sustainability across multiple purchase categories,” she says.

Carranza at Fresh Del Monte also emphasizes the effectiveness of cross-merchandising, including displaying bananas near the cereal aisle or as an impulse buy near checkout, or even placing bananas near the prepared foods and deli section.

“Through these secondary displays, retailers can enhance the shopping experience, boost sales, and encourage consumers to make healthier food and snack options,” he says.

Similarly, Furlan says secondary placements can act as a powerful tool to further boost sales by strategically pairing bananas with complementary products, such as cereal, yogurt, baking goods or smoothie ingredients.

“Bananas pair naturally with a wide variety of categories,” she says. “Secondary displays in these areas not only encourage impulse buys, but also inspire shoppers with creative recipe ideas they may not have considered before going to the store.”