The frozen potatoes sector, which is anticipated to expand in the projected period of 2023–2028 at a CAGR of 4.4%, is the main growth driver of the global market for frozen potato-based products.
Europe accounted for a large share of the industry in the historical period and are expected to continue to be the leading regions in the forecast period. “This can be attributed to the higher consumption rate of potato-based products and frozen foods in the regions. Shortly, the Asia Pacific (APAC) region is expected to become one of the most profitable markets for frozen potatoes,” a recent EMR market analysis synthesis reveals.
In the same respect, due to the expansion of quick service restaurants (QSRs) in the region, the frozen potatoes market in APAC is expanding. Worldwide demand for frozen potatoes is rising because of rising fast food restaurants, improved food processing technology, rising disposable incomes, quick urbanization, and decreased import and export duties on frozen potatoes. Region-wise, North America is expected to hold a significant market share in terms of value in the forecast period, up until 2028, and that is owed to the growing fast food industry. According to the Food Empowerment Project (FEP), in 2015 the US fast food industry had reached USD200bn from just USD6bn in 1970. Therefore, growth of this segment should positively impact the French fries market in the years to come.
A Stable Potato Market
Meanwhile, the fresh potato market in Europe is reportedly stable, but exports are strong. UK exports to the EU increased by 13.2% to 902,151 tons in the year ending in October 2022. Although there have been a few ground touches of frost, conditions are “surprisingly good,” and the first Lady Rosetta variety for chipping is “imminently” going to be planted in the UK. Potato merchants are hopeful that prices will rise despite sluggish sales. Buyers are looking for high-quality samples, but they don’t want to pay for them. Premium potato varieties that undergo a washing and labeling process have seen sporadic price increases.
Throughout Europe, the potato processing markets are still robust, and export demand is high. Although some stores will need to be moved before sprouting gets out of control, ex-farm relocation is primarily contract related and growers only sometimes give free purchases. After the holiday break, the fresh potato market started to show signs of revival. There have been some price rises due to the difficulty in obtaining red potatoes and the emergence of several new purchasers from Holland this season. “In the UK chipping produce is quiet and «typical for the time of year». Buyers are looking for quality samples on repeat orders. The weakening of the sterling is making UK stock more accessible for export. Chipping contracts are moving ahead of program and although conversion rates are very good with almost no rejections, stocks are becoming extremely tight,” according to a IFA January report.
In Ireland, demand for bagging material is typical of this time of the year. Cold weather experienced recently should boost some orders. “Growers are currently weighing up their options for the upcoming season. Energy prices remain a primary concern for growers, and it is reported that many will not be able to avail of the Temporary Business Energy Support Scheme due to the reference period of the scheme,” the report reveals.
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