Exciting Growth Potential For Fresh-Cut Baby Carrots

Carrots continue to dominate fresh-cut dollar sales in the USA, and have the potential to significantly grow produce department sales in New Zealand.

Research conducted last year by the Perishables Group showed that, despite being considered a mature market in the USA, fresh-cut carrots still hold the category leader position by a wide margin for fresh-cut produce and fresh-cut vegetables (not including packaged salads as they now have a category of their own).

During the 52 weeks ended June 2007, fresh cut carrots accounted for 45% of the dollar share of the fresh-cut vegetable category (compared to second placed Mixed Vegetables at 19%), and 24.6% of the dollar share of total US fresh-cut fruits and vegetables (compared to their closest competitor Mixed Fruits at 15.8%).

With the increasing demand for food items that are fresh, healthful and convenient, fresh-cut produce is one of the fastest growing categories in US produce departments.

NZ Fresh Cuts Managing Director, Stephen Dench believes the growth potential for fresh-cut baby carrots in New Zealand is huge. He says, “Whenever we go to the States we come back invigorated at the opportunities presented by fresh-cut baby carrots. If we look at the market penetration of baby carrots in the USA, we would have to grow our market more than ten times to be any where near their levels.”

The Perishables Group research also showed that overall market trends indicate that more consumers are being influenced by convenience needs and health concerns as they make their buying decisions. In the past ten years, US purchases of convenience foods has increased by 50%, while the average time spent preparing meals has dropped from 49 minutes to 31. At the same time, more than one third of shoppers say their food purchasing decisions are also influenced by a desire to reduce the risk of developing health conditions.

“If we pick up on this growing trend of convenience, taste and health – which is embodied by baby peeled carrots - then the growth potential for them in New Zealand is very exciting,” says Stephen.