Year: 2018, 2019, 2020
Market size: $11.5 billion, $11.7 billion, and $13.0 billion, respectively
“Not everyone can be a truffle. Most of us are potatoes. And a potato is a very good thing to be.”
— Massimo Bottura, Massimo Bottura: Never Trust a Skinny Italian Chef
Despite Thanksgiving looking quite different this year due to the pandemic — minimal travel, smaller family gatherings, perhaps a smaller turkey too — there’s a good chance that whether mashed, baked, boiled, or fried, potatoes will still be on the menu.
Today’s market size shows total retail sales of potatoes for marketing years (MY) 2018 to 2020, July to June, in the United States. Figures include sales at supermarkets, drug stores, mass merchandisers, military commissaries, and select club and dollar chains. According to the U.S. Department of Agriculture, the United States produced 40.6 billion pounds of potatoes in 2019. More than 200 varieties are grown in the U.S. These varieties fall into 7 categories: russet, red, yellow, white, blue/purple, fingerling, and petite. Russets are the most preferred potato in the U.S. Potato production occurs in most states with Idaho producing the most in 2019, 15.9 billion pounds, followed by Washington (11.6 billion), Wisconsin (3.2 billion), Oregon (2.8 billion), and North Dakota (2.3 billion). A majority of potato farms in the United States are family-owned, including R.D. Offutt Farms, the largest potato grower in the United States. R.D. Offutt Farms operates farms in seven states growing more than 50,000 acres of potatoes annually.
Most potatoes bought at retail, however, have been processed in some way. For MY 2020, potato chips took the highest share in terms of volume (37%). Fresh potatoes followed with a 31% share and frozen rounded out the top 3 with a 17% share. In terms of dollar sales, potato chips garnered the top spot with $6.3 billion in sales, followed by fresh ($3.3 billion), and frozen ($1.9 billion). Sales for all retail categories of potatoes, except deli prepared sides, increased from the previous year. Many categories increased by double-digits. By volume, frozen potato sales increased the most, 15.3%; by value, dehydrated did (22.1%). Fresh potatoes increased 9.5% and 14.7%, respectively.
The United States also exports and imports potatoes. Exports totaled 7.7 billion pounds and imports totaled 6.1 billion pounds in 2019. The United States ranked sixth in the world among top raw potato exporters and importers. The U.S. exported the most potato products to Japan, $365 million worth. Potato products from the U.S. account for nearly 70% of Japan’s total potato product imports annually. Besides Japan, Canada, Mexico, the Philippines, and South Korea are top markets for U.S. potatoes. By fresh weight equivalent, frozen potatoes constituted more than half (51%) of exports during MY 2020, followed by dehydrated (27%), fresh (15%), potato chips (6%), and seed potatoes (1%). Because of reduced demand in the foodservice sector due to the coronavirus pandemic, total exports fell 2.2% (-2.6% by value) from the previous year. However, the drop in exports did not affect all categories. Dehydrated potato export volume rose by 1% over this time period. Sizeable decreases in exports to Thailand, the Philippines, Taiwan, and Central America were offset by significant increases in exports to the European Union, northern Africa, the Middle East, and South Korea.
By weight, more than 60% of potato product imports to the U.S. in 2019 were frozen French fries and potatoes. Fresh potatoes garnered 21.1% of total imports. Potato starch (8.0%), dehydrated potatoes (5.0%), seed potatoes (4.0%), and potato chips (1.5%) constituted the remaining. Despite a decline in demand from the foodservice sector due to the coronavirus restrictions from April to June 2020, imports increased 8% from MY 2019 to MY 2020. Dehydrated potato imports increased the most, 24%, followed by fresh potatoes (10%), potato chips (7%), and frozen and seed potatoes (1% each). Nearly 100% of fresh potato imports came from Canada, as did seed potatoes. Canada also imported the most frozen French fries and potatoes and potato chips. Most dehydrated potatoes came from Mexico. Most imported potato starch came from the Netherlands.
Sources: “Total Potato Sales: Marketing Year 2020,” Potatoes USA available online here; Daniel Workman, “Potatoes Exports by Country,” World’s Top Exports, July 6, 2020 available online here; Daniel Workman, “Potatoes Imports by Country,” World’s Top Exports, May 1, 2020 available online here; Annual Potato Yearbook, National Potato Council, 2020 available online here; “U.S. Imports of Potato Products Summary,” Potatoes USA, February 2020 available online here; “Food Availability (Per Capita) Data System,” United States Department of Agriculture, Economic Research Service, September 23, 2020 available online here; “Report: The US Dominates Japan’s Total Potato Product Imports,” Potato News Today, February 12, 2020 available online here; John Toaspern, “Dealing With Disruption,” Potato Grower, November 2020, page 37 available online here; “R.D. Offutt Company,” PotatoPro, October 15, 2013 available online here; “U.S. Potato Industry: U.S. Grower Profiles,” Potatoes USA available online here; “R.D. Offutt Company’s Proud Local History” available online here; M. Shahbandeh, “Preferred Potato Varieties in the U.S. 2019,” Statista, June 10, 2020 available online here; “Potato Types,” Potatoes USA available online here.Original source: IRI
Image source: Andreas Böhm, “potatoes-harvest-autumn-color-3783878,” Pixabay, November 1, 2018 available online here.