Market Monitoring Frozen Potato Products
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Potato Industry
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Market Monitoring Frozen Potato Products: Insights April 2022

Mathieu Geuskens published on July 19, 2022

In this monthly Frozen Potato Products update, our analysts will share valuable insights about the Frozen Potato Products industry. This month: Global trade volume up 11.0% YTD compared to 2021, prices up 11.1% YTD.

Market monitoring of frozen potato products

Market monitoring helps agri food companies to objectively evaluate their current position within the market and the development of that position. Furthermore, it helps to spot new growth opportunities and whether the market is saturated.

For the A-INSIGHTS MarketMonitor, we analyze the global trade in frozen potato products on a monthly basis. Derived from local customs agencies and statistics offices, the data gives us insight into monthly trade volumes and prices for all major importers and exporters. Combined with our sector expertise, we can provide you with an up-to-date view of the developments in the global frozen potato market.

Continued volume growth despite a record average trade price of €0.95/kg

After volume recovery in January and February and a record trading volume in March (+14.7% year-over-year), April volumes remain well above 2021 levels (+5.6%). The combined trading volume of the first 4 months of 2022 is up 11% compared to the same period a year earlier. At the same time, continued cost price inflations drive a further increase in trade prices, which reach an average of €0.95/kg in April: the highest price recorded in the analyzed period (since 2016) and 14.5% higher than in April 2021. At €0.90/kg, the average price for the first four months of 2022 is up 11.1% compared to the same period in 2021.

YTD overview-1

Figure 1. Global frozen potato trade volume in th. tonnes and price in €/kg, YTD until April

Price gap between European and North American exporters is shrinking

With trade prices reaching record levels, the price gap between European and North American importers is shrinking. The average trade price for Belgian exports increase by €0.18/kg, whilst the average price for exports from Canada increased by €0.05/kg.  Although this implies that European producers are losing part of their competitive edge due to sharp increases in energy prices, there can be a number of reasons for the relatively less steep price increase incurred by European exporters compared to their North American competitors. The latter tend to have a higher share of long-term contracted volumes for QSR, as well as a higher share of branded products where there may be more room in margins to soften cost price increases. 

Top exporters April

Figure 2. Top 5 exporters, volume in th. tonnes and price in €/kg, April 2022 compared to April 2021

Volumes increase for most major importers

Despite sharp price increases, volumes continue to increase in April for most major importers. Imports by the U.S. are up 13.6 thousand tonnes (+12.9%), with year-to-date volumes up 18.3%. This trend continues in May, with U.S. import volumes up 17.2% and prices up 12.8%. Whilst Mexico's volume decline is a normalization of inflated import volumes in 2021, imports by France show a steep decline compared to previous periods. The country's April import volume is down 35.8% compared to 2021, and lies lower than the import volume for April 2020, at the height of COVID lockdowns. However, year-to-date imports by France are comparable to previous years, implying that shipment timing may be a factor.  

Top importers AprilFigure 3. Top 10 importers, volume in th. tonnes and price in €/kg, April 2022 compared to April 2021

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Mathieu Geuskens

Associate Food & Agri / mathieu.geuskens@a-insights.eu