The New Rules of Carrot Retail

Packaging, placement and purchasing channels are transforming demand for this everyday vegetable.

Carrots have long been a reliable performer in produce, yet today’s retail environment is anything but static. As shoppers embrace new buying habits — favoring convenience, packaging and digital options — retailers must adapt quickly to keep this category competitive.

The changing market for carrots, and particularly the advent of smaller-sized products and packages, has had a significant effect, as has online shopping for produce. Walk-away produce cups, single-serve carrot sticks and blended root-vegetable medleys are moving beyond specialty sales into mainstream positions in more supermarkets, according to the Carrots And Turnips Market Analysis published by market researcher Mordor Intelligence.

It’s important to keep in mind that more carrots are being purchased via websites, either for delivery or pickup. Retailers need to balance assortments to make sure they can offer products based on both use and shopping trends.

Consumers who shop in-store may prefer bulk options — whether standard or premium presentations, like green tops — but often choose packaged products when ordering online. This shift is driven by the ease of selecting a consistent size and concerns about unfamiliar shoppers handling fresh, unpackaged items.

Wegmans, headquartered in Rochester, NY, offers most of the same products it carries in-store online. “Our online SKUs are generally reflective of what we sell in our stores,” says Marcie Rivera, senior public relations coordinator.

Mike Servello of Bargain Grocery, Utica, NY, says although a lot of his customers are lower income, demand for smaller and more convenient options still resonates. “We do both, but we try to do packaged more with the uniformed, smaller carrots.”

As the market evolves, a successful carrot program depends on offering the right assortment — and often a broader range of options — while merchandising the category in multiple ways. This can include positioning carrots near complementary items, like salads, as well as incorporating them into convenient fruit and vegetable meal and snack solutions that appeal to younger consumers who favor multiple smaller eating occasions throughout the day.

THE CONDITIONS

Domestically, California is the leading carrot producer, planting 51,000 acres of the 62,000 acres in production in 2025.

At Babé Farms, Santa Maria, CA, marketing manager Matt Hiltner says supply is stable for its baby bunched carrots and hand-peeled carrots, “which allows retailers and foodservice distributors to plan promotions with confidence. Pricing has been relatively steady compared to other fresh produce categories that have been in flux.”

Sean Balog, director of sales and marketing, Hillside Gardens Ltd., Bradford, Ontario, agrees overall supply across North America is relatively stable, supported by multiple growing regions in Canada, the U.S., and Mexico, which help manage seasonal transitions.

“While production costs remain elevated compared to historical norms, carrots continue to deliver strong value per serving, which helps support consistent demand,” Balog adds. “Even in tighter market conditions, carrot volumes tend to hold or grow because of their role as a core household staple.”

“Even in tighter market conditions, carrot volumes tend to hold or grow because of their role as a core household staple.”
— Sean Balog, Hillside Gardens Ltd., Bradford, Ontario

But Charlene Newton, account manager at Vegco Groupe, Sherrington, Quebec, says carrot prospects for sales and transportation are not altogether aligned. “The global carrot market is experiencing a tight supply with strong pricing, but the demand is mediocre.”

She says weather conditions have significantly affected business and consumer activity across both Canada and the United States.

Jonathan Lisso, Nature’s Finest Produce, Pain Court, Ontario, says tight supply in much of North America looks to continue through spring, when imports arrive to fill the gap in domestic production. That means pricing is expected to remain firm throughout the winter/spring season.

Balog says that organic carrots remain an important part of the category, particularly among health-focused consumers, though demand has become more price sensitive and is strongest when quality is high and the premium is clearly justified.

Newton notes trends in the market have been influenced by concerns about the economy and personal finances. “We grow traditional orange carrots in a variety of formats to meet all needs, including 1-pound, 2-pound, 3-pound, 5-pound, 25-pound and 50-pound. Fifteen years ago, we grew multi-colored carrots and may have been ahead of the trend, but I believe it is a niche and consumers are being more cautious with their spending now.”

“Fifteen years ago, we grew multi-colored carrots and may have been ahead of the trend, but I believe it is a niche and consumers are being more cautious with their spending now.”
— Charlene Newton, Vegco Groupe, Sherrington, Quebec

Newton adds that consumers appreciate carrots as a staple, given their affordability and high nutritional value. “Our demand is up over last year and continues to increase.”

She warns retailers, however, that Millennials and Gen Zers are delivery-oriented and may not shop traditional products in the traditional way. Yet, change can be for the better, and the increased popularity of carrot smoothies and carrot juice can help the product category.

“We continue to expand our acreage in response to the growing demand for carrots,” says Newton.
Hiltner says securing products that match trends and emerging consumer preferences for wellness and convenience can help drive carrot sales.

“Carrots continue to perform well because they naturally align with today’s nutritional priorities. They’re nutrient-dense, affordable, versatile, and familiar, making them an easy choice for consumers looking to eat healthier without sacrificing flavor,” he says.

Convenience is a major factor, Hiltner adds, “and that’s where hand-peeled carrots come into play. They save labor in foodservice and prep time at home, making carrots more accessible, not only for snacking, but also for elevated applications, such as roasting, sautéing and pickling.”

Hand-peeled carrots have become more prominent at the retail level, he notes. “We’re already seeing colorful hand-peeled carrots at retailers like Costco, Trader Joe’s and Vons, just to name a few.”

PACKING UP

When it comes to packaging, carrots are now available in various sizes and designations, but companies in the produce sector must be aware of outside developments.

“Packaging continues to evolve to meet consumer demand and changing government regulations,” says Nature’s Finest Lisso. “Excessive plastics and difficult-to-recycle materials are being removed wherever possible.”

When considering how product comes down the supply chain, retailers should keep in mind that packaging is integral to produce merchandising and can be a prime consideration. “Eye-catching packaging is crucial,” says Newton.

Balog says packaging is evolving with an emphasis on performance and value protection. “Retailers and shoppers are prioritizing packaging that maintains freshness, reduces shrink and supports ease of use, such as resealable formats,” he explains. “Pack size architecture is becoming more intentional, with offerings that align to immediate snacking, weekly household use, and value-oriented cooking. Clear, simple communication on packaging and signage helps shoppers quickly understand how the product fits their needs.”

Having the right packaged product on hand is critical today, with a range of different forms and sizes on the rise, including meal-ready and small snacking sizes.

Hiltner says it’s important to track trends, both in retail and foodservice, when thinking about what should go on shelves.

“We’re seeing growth across all three areas — use occasion, form, and presentation — rather than one single driver,” he says. “On the foodservice side, carrots have firmly moved from a supporting side dish into a star of the show for small plates, especially when roasted. Chefs are highlighting carrots in different formats, including baby bunched carrots for a rustic, visual appeal, and hand-peeled carrots for consistency and efficiency in high-volume settings, such as banquets and catering.”

Retailers should think about what they have on hand that is promotable, he adds.

“At retail, merchandising is evolving to inspire cooking at home,” says Hiltner. “Displays that encourage roasting, with carrots cross-merchandised alongside hot honey, chile crisp, and fresh herbs, are driving engagement and incremental sales.”

REGIONAL CONTRASTS

Lisso says carrots are subject to regional contrasts, and it’s important to understand and respond to them. In Canada, that shows up in a particular way.

“From a Canadian perspective, smaller pack sizes and lower prices dominate from Ontario to the East Coast,” he says. “In the Western provinces, larger pack sizes and ‘club pack’ style items are more popular.”

Hiltner agrees regional and demographic differences exist in the carrot category. “Urban and suburban markets tend to favor premium options, rainbow baby bunched carrots and hand-peeled carrots, while more traditional carrot formats perform well across all regions.”

Local can be a factor in carrot sales, says Newton. “Quebecers take pride in their distinct cultural identity, and supporting local businesses preserves and promotes that identity, especially supporting local farms,” she says. “There is a trend in Canada toward purchasing Canadian-made products, driven by a combination of factors.”

Good handling completes the carrot supply chain. “I think it is important for retail to refrigerate carrots to maintain the freshness and extend the shelf life,” says Newton. “Showcasing images of farmers on the packaging is a new trend and highlights local farms and locally grown product.”

She suggests retailers “create vibrant displays next to onions and potatoes with signage that highlights their health benefits. They could include recipes or QR code with healthy recipes.”