U.S. Grocery Unit Sales Show Modest Growth in September, Led by Frozen Foods

What Drives U.S. Grocery Unit Sales

U.S. grocery unit sales were nearly flat in September, with a 0.1% year-over-year decline. This suggests that households continued to manage their budgets, prioritizing essential items over discretionary ones. However, certain categories, such as frozen foods, meat, and seafood, posted gains, while fresh produce and bakery struggled.

The results indicate that higher prices continued to support sales dollars, even as the volume of purchases remained under pressure. This trend is consistent with previous months, where higher prices have offset declining unit sales.

Behind the Numbers: Winners and Losers in September's Grocery Sales

Frozen Foods: The Bright Spot

Frozen foods were a standout performer in September, with unit sales increasing 1% and dollar sales rising 3% to $6.9 billion. Within this category, frozen fruit was a strong performer, with unit sales up 10.7% and pound sales increasing 8.5%. Frozen vegetables posted unit growth of 4.6%, while frozen potatoes and onion rings rose 3% in units.

Meat and Seafood: Gaining Ground

Total meat unit sales rose 1% as dollar sales increased 1.5% to $8.7 billion. Fresh meat outperformed processed meat, with unit sales up 1.6% and pound sales rising 1.6%. Processed meat unit sales declined 0.4%, while pound sales fell 0.4%. Seafood also recorded gains across fresh, frozen, and shelf-stable categories.

What This Means for Households and Retailers

For households, this means that they should continue to prioritize essential items, such as frozen foods, meat, and seafood, while being mindful of their budget constraints. Retailers should focus on offering competitive prices and promotions to attract price-sensitive customers.

Key metrics to watch include:

• Frozen foods unit sales growth
• Meat and seafood dollar sales
• Produce unit sales decline