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 10.5% YTD compared to 2021, prices up 15.2% 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 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.
June: Prices continue to increase but so do volumes
At 738 thousand tonnes, the trading volume in June was up 10.4% compared to June 2021. Prices continue to soar in light of cost inflation and sustained logistical challenges: with an average trading price of €0.98/kg, prices in June were up 18.8% compared to June 2021.
Year-to-date, the price increase is 15.2% as lower trading prices in the first months of the year curb the price rise. Volumes are up over 10%, and the total is the highest it has ever been - showing the resilience of the frozen potato category.
Belgium shows largest increase in volume and price
Most of the additional trading volume in June is supplied by producers in Western Europe, who benefit from lower price levels and sustained raw potato supply. Despite price increases of 36.4% and 27.2% respectively, Belgium and the Netherlands see export volumes increase by 12.7% and 3.7% respectively in June.
Despite these significant price hikes, product from Belgium remains 8.2% cheaper on average than product from Canada, providing a competitive edge. Europeans however are starting to lose their price edge with the continued energy challenges on the continent. The question is if North Americans can benefit from this as they suffer from capacity and transportation (e.g. container availability) constraints.
Top 10 importers: increases across the board: Saudi price increase remarkable
Although the absolute volume increase in France is the highest, similar relative increases are found in most other top importers, with France, Germany, and the Netherlands import volumes up 27.5%, 22.0%, and 33.2% respectively. The largest relative increase is found in Saudi Arabia (+43.3%), with the average import price of the country up by €0.34/kg (+51.5%).
Most of this volume is supplied by Belgium, which sees its exports to the country triple in June. However, imports by Saudi Arabia were lower in the first months of the year, due to which the year-to-date volume is up 7.9%.
July: US import continues to be strong
As U.S. trade data is available earlier than that of European countries, we can see that import demand for of U.S remains strong in July, with up to 109 thousand tonnes, which is still 10.8% higher than in July 2021.
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