CPG Chatter

On a gorgeous, crisp autumn morning there is nothing more exhilarating than a trip down to the Farmers Market. Because winter will soon be setting in here in the eastern United States, I only have a few more chances to visit my favorite outdoor venues. What the commentators and analysts are saying about people wanting more fresh and natural foods must be true. Each visit to the Farmers Market is like shopping at the mall on Black Friday. The major difference is the positive energy. People love the friendly atmosphere, recipes are exchanged, purchases happen quickly and always with a smile.

I go to a number of Farmers Markets in the area and they all seem to be very successful. It makes me wonder just how far they are going to evolve and how they are going to impact the CPG industry. Initial I found myself thinking, well, it’s just a small part of a shopper’s wallet and should have minimal impact on the industry. But then I started reading some interesting articles that suggest Farmers Markets could become something much, much more.

I found with great interest that the United States Department of Agriculture (USDA) has been assisting Farmers Markets for many years. One of the most involved units is the USDA’s Agriculture Marketing Services. This unit has numerous programs and objectives which include helping to provide better quality products to the consumer at reasonable cost, improving market access for growers with small-to medium sized farms and promoting regional economic development.

As an example of some of their work, The Farmers Market and Direct Market Research Branch (please make your own org chart, I did say it was a government operation) has been researching the business of Farmers Markets for nearly two decades, striving to provide farmers and consumers with information and tools to make better strategic decisions. By working with other units/branches of the USDA, they have analyzed Farmers Market locations, the amount (or lack) of competition in a particular region, how far people are willing to travel to reach one, what they buy and the reason for shopping there. The information is truly a business owner’s dream.

Our friends in Canada can also find assistance from Farmers’ Markets Canada whose mission is to promote Farmers Markets and develop national initiatives and partnerships to further the viability, growth and prosperity of the Canadian Farmers Market industry.

With this type of backing and commitment, you do have to consider just how big the Farmers Market concept could grow. Is it possible that our children and grandchildren will incorporate a trip to the Farmers Market as part of their everyday shopping experience? Given the traffic a market generates, might some retailer or other type of business attempt to incorporate one into their offering? Will evolving technology and social media platforms allow for a 1:1 marketing relationship between shopper and buyer?

Today’s consumer lives and shops smartly. If the value proposition of the Farmers Market is strong enough, the impact on the CPG industry could be more than most people expect. Now if my favorite outdoor market could only find a way to stay open year-round!