Retailer Viewpoint: Onions
Onions have long been valued for their medicinal properties. The vegetable has been linked to numerous health benefits, including a reduced risk of cancer and cardiovascular disease. Research has found an association between vegetable consumption and lower risk of these common diseases, prompting scientists to investigate whether onions offer similar benefits.
According to the National Onion Association, studies have linked onion consumption to a reduced risk of stomach and brain cancers. The health benefits and flavor profiles of onions have resonated with consumers. Retailers are not only positioned to meet demand but have been closely watching shifts in consumer demand for onions over the past year.
“The clearest trend we’re seeing is continued growth in sweet onions. Shoppers are gravitating toward that milder, more versatile flavor profile and it’s continuing to grow,” offered Mike Roberts, Vice President of Produce Operations for Harps Food Stores.
“Onions remain one of the most stable and essential vegetable categories in our stores,” observed Leigh Vaughn, Director of Produce and Floral for Associated Food Stores. “While overall consumption remains strong, we’ve seen consumers become more deliberate in their purchase decisions, placing increased value on quality, freshness and a reduction of shrink at home. Shoppers continue to rely on the entire category as a meal-prep staple. We have seen an uptick in bagged product, as guests look for a dollar-stretching value. We’ve also observed that customers are cooking at home more intentionally, looking for ingredients that can stretch across multiple meals, which continues to support strong onion demand despite broader economic pressures.”
Consumer interest has expanded beyond traditional white onions to include organic, sweet, shallot, green, yellow and red varieties. Retailers are ready to help shoppers explore these options and learn how to use them while cooking. “We carry the full range—sweet, yellow, red, green, shallots—and sweet onions in particular continue to be the growth story in our stores,” Roberts said. “Organic hasn’t gained the same traction here; it’s just not a strong driver in our market area the way it might be in other parts of the country. Our approach leans on quality and consistency at the shelf to help shoppers feel confident trying different varieties, rather than heavy in-store education campaigns.”
“Traditional yellow onions remain the category leader, but we continue to see growing interest in specialty onion segments,” Vaughn explained. “Sweet onions, red onions, green onions and shallots have become more common as household ingredients as consumers explore different cuisines and seek restaurant-quality meals at home. This is especially true of the Hispanic shopper who is seeking affordable white onions and ‘knob’ onions for creating flavorful meals. Organic onions also continue to grow, particularly among younger families and health-conscious shoppers. We support consumer education through produce signage, digital recipes, social media content and cross-merchandising displays. Our main focus in the social arena, with in-store merchandising support, has been to promote the tearless ‘Smiley’ onion. It is growing in popularity and because of its seasonality, it is creating an increased demand when it is available.”
When choosing a new onion grower or supplier, retailers assess several key criteria. “Consistency and quality are what we build around,” Roberts commented. “We partner with Shuman Farms and their quality gives us a real competitive advantage—that reliability is what lets us merchandise onions with confidence week after week.”
“There is nothing new under the sun here; reliability, quality, food safety and consistent supply are always top priorities,” Vaughn offered. “We look for partners that can deliver high-quality onions with strong sizing consistency, appearance and shelf life. Equally important is the supplier’s commitment to food safety programs, traceability and transparent communication. We value growers who are proactive, responsive and willing to collaborate on merchandising opportunities and category growth initiatives. AFS is not the biggest fish in the pond, so we value long-term partner relationships because they allow us to work together through changing market conditions while maintaining a dependable experience for our retail customers.”
One unique challenge retailers face is balancing demand for locally grown onions with the need for a consistent, year-round supply. “We don’t currently have a local onion supplier, so our focus is on partnering with a grower who can deliver that same level of quality and consistency year-round, which is exactly what we get from Shuman Farms,” Roberts for Harps Food Stores said.
“This is an area where our geographic position creates a unique opportunity,” Vaughn revealed. “Associated Food Stores operates in the Intermountain West, surrounded by several significant onion-producing regions. Our customers strongly support locally and regionally grown produce and we actively promote those items whenever they are available. At the same time, consistency is critical. One advantage of our supplier relationships is that many of our grower partners can support both our local-season programs and our year-round supply needs. Rather than shifting to entirely new suppliers as seasons change, we often work with the same trusted partners across multiple growing regions and production windows. This approach allows us to maintain quality and continuity while still highlighting local onions when they are in season.”
Consumers appreciate knowing where their food comes from, but they also expect the category to be available every day of the year. We view local sourcing and year-round availability as complementary goals rather than competing priorities.”
Retailers are using a range of merchandising, packaging and cross-promotional strategies to boost in-store onion sales.
“Our cross-merchandising with Johnsonville Brats has been a real winner — that program is set up through our partnership with Shuman and it’s a natural pairing that drives incremental sales for both categories,” Roberts for Harps Food Stores said.
“Cross-merchandising continues to be one of the strongest drivers of onion sales,” Vaughn with Associated Food Stores said. “Onions naturally fit into numerous meal solutions, making them highly effective when displayed alongside grilling items, potatoes, peppers, tomatoes, avocados and other complementary produce. Meal-focused displays, especially during grilling season, football season and holiday periods, generate strong results. On the packaging side, shoppers continue to appreciate multiple options, including bulk, value bags and convenience-oriented, fresh-cut offerings. Providing a variety of package sizes allows us to serve both small households and larger families.”
Roberts of Harps Food Stores said weather will be the onion category’s biggest challenge, while growing consumer demand presents an opportunity.
“Weather is always the wildcard — a strong El Niño pattern could be a factor to watch this year and could influence supply,” he said. “That said, I expect overall onion consumption to keep growing and that growth is the biggest opportunity ahead for the category.”
Vaughn of Associated Food Stores said transparency and communication can help overcome challenges in the onion category.
“The biggest challenges will likely be related to labor availability, water resources, weather variability and overall production costs,” she said. “Maintaining a reliable supply of high-quality onions while managing these pressures will require continued collaboration between retailers, growers and value chain partners. The opportunity lies in continuing to educate consumers and elevate the category beyond a basic commodity purchase. There is room for growth through specialty varieties, organics, meal-solution merchandising and stronger consumer storytelling around growers and regional sourcing. Onions are one of the most important ingredients in home cooking and that foundational role gives the category tremendous long-term stability. Retailers who connect onions to meal inspiration, convenience and local agriculture will be well positioned for future growth.”
