This article appeared in the August 2001 issue of Vegetable Production and Marketing News,
edited by Dr. Frank J. Dainello, and produced by Extension Horticulture, Texas Cooperative Extension,
The Texas A&M University System, College Station, Texas.

Factors Affecting Onion Consumption
In The United States

The following is excerpted from an article by
Gary Lucien, Biing-Hwan Lin, and Jane Allshouse which appeared in the
‘Vegetables and Specialties Situation and Outlook’ (VGS-283/April 2001)
section of the Economic Research Service, USDA, web site.

According to per capita disappearance data compiled by the U.S. Department of Agriculture’s (USDA) Economic Research Service (ERS), both fresh and dehydrated onion demand have trended higher over the past three decades. While the trend in processed (dehydrated) onion use has been almost flat, with only a slight upward trend over the past 30 years, fresh onion consumption has experienced a strong upward trend, with use nearly doubling over the period. During the most recent 3 years (1998-2000), average use of all onions increased 74 percent over the 1968-70 period.

A combination of factors, including immigration trends and changes in America’s tastes and preferences, has likely contributed to rising per capita onion use. However, little is known about the demographics of fresh and processed onion consumption.

The purpose of this article is to provide unique basic information about the market distribution of fresh and processed onions, using data from USDA’s most recent food consumption surveys.

Although not a major plate vegetable, onions rank fifth among all vegetables in terms of both consumption and value. Total onion consumption in 2000 was, at 20.7 pounds per capita, just under the record high of 21.3 pounds set the previous year. However, since peaking in 1997, fresh use (includes freezing and canning) appears to have reached a plateau of about 19 pounds per person. The estimated retail value of onions is over $2 billion. The U.S. is the world’s third-largest producer of onions (behind China and India).

While the fresh market accounts for the largest share of onion use, other forms also account for a significant share. Most onions used in canning and freezing are taken from fresh-market varieties, while dehydrated products use separate varieties having higher solids content. Onions in frozen form are estimated to account for as much as 10 percent of all onions consumed. Both fresh-market and dehydrated onions (largely granulated and powder) appear in a wide variety of canned and frozen products such as salsa, soups, stews, salad dressings, and pickled products. Some fast-food hamburgers are topped with dehydrated (reconstituted diced/minced) onions. Dried and dehydrated onion products are manufactured for both domestic and export markets.

Onion demand during the 1970s rode the increasing popularity of fast-food hamburger chains that featured onions on burgers and onion rings as side orders. In the 1980s, the booming popularity of salad bars added another layer to onion demand. By the end of the decade, onion demand was gaining from the growing popularity of pizza, pasta, salsa, and other ethnic cuisine. The booming economy of the 1990s has propelled demand for away-from-home foods, many of which feature onions. Onions also have natural qualities that make them attractive to consumers, particularly in today’s health-conscious market. Research has shown that onions contain antioxidants, can reduce blood cholesterol levels, are low in calories, and are a source of dietary fiber. Bulb onions also provide vitamin C, with one medium onion providing 15 to 20 percent of the daily requirement.

The “at home” and “away from home” use delineation is based on where a food was obtained or prepared, not where it was consumed. Food at home is generally obtained at a retail store such as a supermarket, grocery store, or convenience store. Food away from home is generally purchased from food-service establishments, but can also be obtained in such places as school cafeterias, community feeding programs, or child/adult care centers.

Both home and away-from-home food can be consumed at or away from home. For example, a bagged lunch prepared at home and consumed at work is classified as home food. A commercially prepared pizza delivered and consumed at home is classified as food away from home.

The bulk (72 percent) of fresh and processed onions were purchased at retail stores and considered as home foods. Processed onions were more likely to be consumed at home (79 percent) than fresh-market onions (67 percent). This reflects both the strong use of fresh onions in the food-service industry and the predominance of onions in manufactured foods purchased from retail establishments.

As men and women approach middle age, their per capita use of all onions fades only slightly, with relatively strong consumption still evident. However, the survey indicated that total onion consumption begins to drop after age 59 for both men and women.

In summary, while much is known about the supply side of the U.S. onion markets, little is known about the consumer side of the market. Using data from USDA’s CSFII survey, we show where and how much fresh and processed onion products are consumed and link this consumption to consumers’ economic, social, and demographic characteristics. The important findings in this article include:

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