In this monthly Frozen Potato Products update, our analysts will share valuable insights about the Frozen Potato Products industry. This month: trade data shows that global trade volume was down 2.8% in February 2024 compared to 2023, and prices were up 6.4%.
Market monitoring of frozen potato products
Market monitoring helps agrifood 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 Market Monitor, 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.
Trade volumes remain pressured whilst prices stabilize
In February 2024, prices increased by 6.6% year-over-year, while volumes declined by 2.0%. The most significant difference was observed in Belgium, still reeling from the adverse weather conditions that led to poor crop years. Even though prices are higher compared to last year, they seem to stabilize, as prices remained at the same level at €1.33/kg compared to January 2024. Prices are expected to remain at a similar level, since demand in Europe remains tight and volumes are expected to decrease.
Looking ahead, The Netherlands witnessed a 7.4% decline in processed potato volume in April 2024 compared to the previous year, indicating that supply from one of the world’s largest processing countries remains limited. Additionally, in the Belgian market, supply does not meet demand, as reflected in the increased free market prices, which rose by 14% in May 2024. Conversely, US production is recovering from a poor crop year in 2022, with the quantity of potatoes processed increasing by 3.3% in April 2024 compared to 2023.
Belgium drives volume decreases
Export volumes in Belgium decreased to 259 thousand tonnes, a decline of 2.3% compared to February last year. Despite a recovery towards the end of 2023 after low export levels during the summer, the start of 2024 has remained challenging for Belgian exporters. Interestingly, Saudi Arabia gained prominence as one of the largest importers of Belgian products, while the share exported to the Netherlands decreased significantly. In addition to Belgium, the Netherlands also saw its exports of frozen potato products decline, a trend likely to continue, as processed potato output in April 2024 decreased by 7.4% compared to last year. Conversely, North American players demonstrated increases, reflecting the improved crop year in 2023 compared to 2022
UK demand does not meet supply
The market in the United Kingdom shows increasing demand for frozen potato products, with imports rising by 0.5% in February 2024 compared to the previous year. However, the price increase of €0.21 indicates that the country faces difficulties in importing the products. Meanwhile, France experienced a decrease in imports by 9 thousand tonnes, while exports increased, reflecting the utilization of their capacity expansions in 2023.
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