Retailers Can Add Crunch to Carrot Sales

Check out three ways to buy and sell more fresh carrots.

There was once a time when having a 3-pound bag of cello carrots on the shelf represented the entirety of the produce department’s carrot category. Sure, in some places, there might be a 2- or 5-pound bag in addition or, more likely, instead. But everyday SKUs didn’t reach a standard two until the advent of baby carrots in the late 1980s and widespread stockkeeping in the early 1990s.

Baby carrots — generally regular-size whole carrots that are cut, peeled and polished — opened the door to value-added innovation. Enter products like fresh-cut carrot sticks, shreds, chips and coins, creating enough SKUs for a sizable section of eye-catching orange.

These fresh-cut technologies have boosted carrot consumption, increasing from a per capita intake of 2.2 pounds in 1919 to 8.8 pounds in 2022, according to a report published by the U.S. Department of Agriculture’s Economic Research Service.

Organic carrots also give retailers another item to promote, as organic produce accounts for over 15% of U.S. fruit and vegetable sales. Top sellers include carrots, behind avocados, berries and apples, and ahead of packaged salad and bananas, according to the 2024 Organic Industry Survey, released last May by the Washington, DC-headquartered Organic Trade Association.

Last year, the carrot category ranked seventh among the top 10 vegetable categories in sales at $1.7 billion, with a 52%-dollar share of vegetable build, according to Circana Integrated Fresh, Total US MULO+, latest 52 weeks ending Oct. 6, 2024.

Growers are also tapping into the ever-changing ways consumers want to buy, cook with, and consume carrots with the innovation of new products. This spring, for example, Grimmway Farms, the Bakersfield, CA-based world’s largest grower, producer and shipper of carrots, introduced its Carrot Fries Air Fryer Kit. Consider that two-thirds of U.S. households had an air fryer, according to a 2023 study by market insights and analytics company, Circana, up from 11% in 2017.

Retailers can add crunch to their carrot category sales by offering a consistent, high-quality supply, a SKU for every customer, and eye-catching displays with year-round promotions.

ENSURE A STEADY SUPPLY

California produces over 85% of carrots grown in the U.S., according to the 2021-published report, Carrots, by the U.S. Agricultural Marketing Resource Center in Ames, IA. Four main production regions offer retail buyers year-round supply.

“The weather during planting was much better this year than last year,” says Rob Giragosian, sales manager at Kern Ridge Growers LLC., in Arvin, CA. “This has resulted in better yields, and the trend should continue for the coming months. All sampling indicates that the carrot crop should keep up with demand until at least late June.”

Grimmway Farms also supplies customers from its production area in Georgia, “reducing the number of miles and amount of time required to bring fresh carrots to customers in the eastern half of the U.S.,” says David Bright, vice president of marketing.

Michigan and Texas are also major carrot-growing states.

The U.S. also imports carrots, with some of the most significant volume from Mexico, Canada and Israel, according to the USDA’s Agricultural Marketing Service.

“Much of what we grow is based on demand from retail contracts,” says Ami Ben-Dror, the Melville, NY-based founder and chief executive of BDA/Dorot Farm, an exporter of fresh carrots from Israel, which also produces baby carrots in California. “This enables us to provide a consistent supply of carrots that are high quality and food-safe.”

Since carrots are a shopping list staple, a steady, high-quality supply is essential.

“We take a strategic approach to regional farming to ensure consistent availability across all carrot varieties, both organic and conventional,” says Karen White, vice president of marketing for Bakersfield, CA-based Bolthouse Fresh Foods Inc., in Bakersfield, CA.

“By leveraging multiple growing regions, we can adapt to seasonal changes and maintain a steady supply. This approach supports long-term retail partnerships and spot-buy opportunities, allowing retailers to plan ahead or quickly adjust to consumer demand.”

BUILD YOUR CATEGORY

Each carrot offering at the retail level will appeal to different end users, says Kern Ridge Growers’ Giragosian. “This is why having a diversified carrot offering at the store level is crucial to pushing movement. In my opinion, most retailers have a good handle on what their customers’ preferences are and what they need to satisfy their demand.”

According to White, whole carrots continue to appeal to budget-conscious consumers who prioritize meal prep and home cooking. “Their cost-effectiveness and versatility make them a reliable choice for consumers looking to incorporate fresh, nutritious vegetables into their meals.”

As meal solutions become a larger focus in grocery shopping, value-added carrots are crucial in expanding the category’s performance.
Karen White, vice president of marketing, Bolthouse Fresh Foods, Inc., Bakersfield, CA

Bolthouse offers whole carrots in conventional and organic bunches with tops on; in 1-, 2-, 3-, and 5-pound conventional bags; in 1-, 2-, and 5-pound organic bags; and 2-pound organic rainbow carrots.

Rainbow carrots continued to outpace category sales in the latest data published by Circana, according to Grimmway’s Bright. “We offer organic rainbow carrots in baby, whole, and several value-added cuts. Rainbow products have a unique visual appeal that brighten up any dish or snack.”

For retail, Babé Farms focuses solely on whole baby bunched carrots grown in six varieties, including French (Orange), Yellow, Purple, Pink, White and Round (Thumbelina).

“Our most popular items at retail are the Baby French Carrots for their petite size and classic look, as well as our Baby Mixed Carrots, which include a variety of colors (three-plus) to allow retailers to create a rainbow in their produce display,” says Matt Hiltner, marketing manager for the Santa Maria, CA-headquartered company.

“We anticipate good supplies of all varieties of our colorful carrots in the spring,” Hiltner adds. “While we dealt with a few minor challenges presented by recent rainy weather, the impact was minimal, and we expect to be on track for our peak carrot season (April-October).”

Spring and Easter are hot times of year for our varieties of colorful carrots.
Matt Hiltner, marketing manager, Babé’ Farms, Inc., Santa Maria, CA

Baby carrots drive sales in the carrot category, says Bright, and comprise more than 40% of retail sales, followed by whole carrots packed in bags.

Grimmway offers conventional and organic baby carrots in 1-, 2-, 3-, and 5-pound bags under its Grimmway, Bunny-Luv, Bunny-Luv Organic and Cal-Organic brands.

Snacking remains a key driver of carrot consumption, particularly with the increasing demand for convenient, grab-and-go, and portion-controlled options.

“Baby carrots’ ready-to-eat format makes them a go-to choice for lunchboxes, meal prep, and entertaining. Additionally, as more consumers seek portion-controlled and health-conscious snacking options, baby carrots align with low-calorie, high-fiber eating habits,” says Bolthouse Fresh Foods’ White.

The company offers its Fresh Carrot Shakers, single-serve packs of baby carrots with three flavors: Dill Pickle, Chili Lime and Ranch. There’s also a 5-count multipack.

Conventional carrot demand has always been higher than organic in the carrot category, says Kern Ridge Growers’ Giragosian, typically due to price points to consumers.

However, adds Grimmway’s Bright, “organic carrot sales remained resilient in the last 52 weeks, as shoppers made difficult financial decisions to stretch their grocery budget. Both dollar and volume sales for organic carrots were slightly higher than total carrot category sales, demonstrating shoppers’ commitment to the organic carrots.”

While snacking remains strong, growers see a notable shift in consumer behavior toward cooking applications.

The demand for value-added carrots is rising, explains White. “Pre-cut, prepped ingredients, such as crinkle-cut, matchstick, and shredded carrots cater to time-saving meal prep needs. Ready-to-cook formats, including products like Side Dish Sizzlers, align with consumers who seek convenience without sacrificing freshness.”

Side Dish Sizzlers is a three-item line of 10-ounce bags of crinkle-cut carrots with a sauce pack included. Sauce flavors are Garlic Herb, Sweet Honey Heat and Herb Vinaigrette.

“Ready-to-roast fresh-cut vegetables are popular with our shoppers,” says Max Maddaus, produce director at Kowalski’s Markets, an 11-store chain based in Woodbury, MN. “One of our offerings, created with our recipe, is rainbow carrots with olive oil and herbs.”

Grimmway’s Carrot Fries Air Fryer Kit is available in Mediterranean Herb and Chipotle Maple, tapping into consumers’ desire for bold flavors.

BOOST SALES THROUGH DISPLAYS & PROMOTIONS

Shoppers buy with their eyes, and BDA/Dorot Farms’ Ben-Dror recommends retailers create “a great presentation on the shelf,” and reminds that carrots need to be refrigerated on display.

Chris Harris, category director of produce and floral at New Seasons Market, a 22-store chain headquartered in Portland, OR, says few things are more photogenic than fresh carrots.

“We love to have fun with the colorful nature of the vegetable, including both the root and the stem. Our goal is to ensure they’re highly visible and featured alongside complementary ingredients that bring out the carrots’ natural sweetness, vibrant color and density, including fresh leafy greens and brassicas (like broccoli, cabbage and Brussels sprouts).”

Grimmway Farms recommends merchandising carrots as a “big wall of orange,” as the carrot category is a destination for shoppers.

“The ‘big wall of orange’ is a beacon for shoppers to find the usual products, typically baby or whole carrots, to add to their cart. This also exposes the shopper to other value-added carrot cuts and allows the retailer to upsell the shopper to an organic carrot product,” says Bright.

According to White, since carrots are a versatile, all-day vegetable that fits into multiple meal occasions, retailers can maximize sales and category performance by expanding carrot placement beyond the produce aisle to drive impulse purchases and increase basket size.

“In the deli and fresh snack sections, baby carrots can be displayed near hummus, guacamole, and other dips to encourage healthy snacking and entertaining purchases. Whole and crinkle-cut carrots can be cross-merchandised with poultry, beef, and seafood to inspire easy sheet pan dinners in the meat and seafood sections,” she says. “Grab-and-go areas also provide an excellent opportunity to showcase single-serve baby carrots alongside pre-packed cheese, protein snacks, and yogurt, catering to busy shoppers looking for healthy, convenient options.”

Promotions are key to sustaining and growing carrot category sales.

“It is important to understand the product and the demand seasonality to develop effective promotion strategies,” says Bright. “Some holidays, like Thanksgiving and Christmas, are seasonal consumption peaks that require little to no promotional discounts to drive additional sales, while holidays earlier in the year from April to September, like Easter, Mother’s Day, Memorial, and through Labor Day, can benefit from additional promotional support.”