Market Monitoring Frozen Potato Products: Insights July 2023

Mathieu Geuskens
Published on
October 23, 2023

In this monthly FrozenPotato 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 7.0% in July 2023 compared to 2022, and prices were up 24.2%.

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 Market Monitor, we analyze the global trade in frozen potato products on amonthly 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 slump in July – recovery expected as new crop comes in

Global trade volumes dropped by 7.0% in July 2023, as key production countries in Europe and North America were starting to run out of raw potatoes of the 2022 crop. In Europe, producers have shut down plants for in between crop maintenance earlier than usual in response to high free market potato prices.

Figure 1. Global frozenpotato trade volume in th. tonnes and price in €/kg

Global trade prices remain on the high levels seen in the past months, but are starting to lap the price increases in 2022. The average trade price stood at €1.30 in July 2023, up 24.2% compared to July 2022 and still ~5% above the 12-month average of €1.24/kg.

United States continue to fill lower domestic supply from abroad

With the exception of the United States, all major importers see volumes decline slightly year-over-year in July. In the U.S., domestic supply continues to be unable to meet demand and shortages are filled with additional imports from Canada. In Europe, inflationary pressure has the potential to curb demand at current price levels.

Figure 2. Top 5 importers, July volume in th. tonnes and price in €/kg, 2022 vs 2021

Japan, a key importer of frozen potato products, is importing a significantly lower volume than in July 2022. A major driver for this import decline is the weak Yen, which has drastically increased import prices for the country.

US and EU exports decline, Canada continues to supply US shortages

The majority of export decline is attributable to Belgium and the U.S., whilst the Netherlands sees exports remain relatively stable. Canada continues to increase exports year-over-year, supplying shortages in the U.S. and markets that are traditionally supplied by now-reduced U.S. exports.

Figure 3. Top 5 exporters, May volume in th. tonnes and price in €/kg, 2022 vs 2021

In the coming months, EU exports are expected to increase as the new crop has started to come in. The 2023 crop in Europe is on par with multi-year averages, and current free market potato prices strongly imply that processors have contracted sufficient raw potatoes to meet raw material requirements. Therefore, a recovery of trade volumes is to be expected in the coming months, as the main crop is has started coming in in September.

Upcoming product updates: improved interface and Shipment Intelligence

In the coming weeks, we will implement two major updates to the MarketMonitor. You will receive a more detailed look into these improvements in the coming weeks, but we are thrilled to give a sneak peak before that.

Based on user feedback, we’ve improved the interface to better align with use cases. Key improvements include:

  • Focused on ease of use: no unclear drill downs, better focus on details
  • Visual guidance with a clear purpose per overview: build from a use case perspective
  • More visual appealing overviews such as country maps
  • Improved guidance on methodology and how to use the dashboard
  • New strategic topics added as focus: trade lanes world map, supply dynamics, product plant world map

Furthermore, we’re thrilled to announce our new feature Shipment Intelligence. Based on bill of lading data for 25+ countries and our proprietary data cleaning process, Shipment Intelligence provides a detailed insight in companies importing and supplying frozen potato products in over 75 countries. Key features include:

  • Cleaned data by our own unique cleaning process that allow you to extract the insights you seek
  • Product split to Frozen Fries Frozen Potato Specialties and other
  • Strongly improved visualizations to give insight into supplier relations and price information
  • Covering up to 75 countries - 22% of total global trade volume and 42.5% of trade volume in covered countries

Curious how A-INSIGHTS can help you to incorporate objective insights into your decision-making processes and how our MarketMonitor will empower your perspective? Schedule a call.

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