Consumers, North America, Promotion/Marketing, Retail, Trade/Markets/Prices, Trends

U.S. potatoes prove resilient: Retail dollar sales hit $16.9 billion for the 52-week period 2022-2023

Retail dollar sales of potatoes increased 16.8% from July 2022 to June 2023, closing with a robust quarter (April – June 2023) that witnessed a retail dollar sales growth of 14.5% compared to the same period last year. Dollar sales reached a staggering $16.9 billion for the 52-week period, marking the highest in five years, as Potatoes USA reports in a news release.

Potatoes Remain Affordable: Despite the annual price hike of 19.9%, potatoes continue to be a pocket-friendly choice for consumers, with an average price of $2.36/pound. The April – June 2023 quarter echoed similar trends, showcasing a price surge of 18.3% compared to the same period last year, settling at an average price of $2.56/pound.

Despite Slight Volume Declines, All Categories Show Uptick in Dollar Sales

All Potato Categories Flourish: Every category of potatoes, including Frozen (34.8% year, 39.3% quarter), Canned (19.1% year, 33.9% quarter), and Fresh (16.5% year, 12.4% quarter), witnessed an uptick in dollar sales for both the year and the quarter. Although there was a slight dip in volume sales for the 52-week period, they still remain 2.5% above pre-pandemic levels.

Retail Potato Prices Rise, Yet Remain a Consumer Favorite in 2022-2023

For fresh potatoes, the average sales price for the 52-week period stood at $1.01/pound, reflecting a 19.8% increase from the previous year. Fresh dollar sales saw an upward trajectory for all types, with the exception of white, fingerling, and purple potatoes. Yellow potatoes emerged as the sole contender in the fresh category to register growth in both dollar (21.4%) and volume (7.0%) sales.

Russet Potatoes Lead the Fresh Category: Dominating with 62% of all volume sales for the fresh category, Russet potatoes recorded a dollar sales boost of 23.5% and a volume dip of 3.3% for the year. Notably, Russet potatoes experienced the most significant year-over-year price augmentation in the fresh category, a whopping 27.7%, yet they continue to be priced under $1.00/pound at $0.83.

U.S. Potato Market Dynamics: Price Increases, Strong Sales, and Volume Insights

All pack sizes, barring those exceeding 10 pounds, observed a rise in dollar sales year-over-year. Bags weighing 5 pounds or less experienced growth in both dollar and volume sales for the period. Volume sales increments were fairly consistent across three pack sizes: 1 to less-than-2-pound bags (2.6%); 2-4-pound bags (2.4%); and 5-pound bags (2.5%). However, the most significant volume sales reductions for the 52-week period were seen in bags larger than 10 pounds (-49.1%) and 8-pound bags (-21.7%).

Source: Potatoes USA

Editor & Publisher: Lukie Pieterse

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