Fresh potatoes have struggled at foodservice outlets during the pandemic, but frozen potatoes have gained market share during the past year, according to a new report from Potatoes USA.
Called the 2020-21 Potato Volumemetric document, the study measures the potato volume data for both fresh and processed potatoes during the marketing year from July 2020 to June 2021 in the U.S. foodservice marketplace.
According to the report, fresh potato foodservice demand totaled 2.89 million pounds in marketing year 2021, down 344 million pounds from a year ago and off 1.12 billion pounds from marketing year 2019.
Fresh whole potatoes saw the greatest decrease in the full-service restaurant channel (FSR), according to the report, which represents the largest share of whole fresh volume. The FSR channel struggled throughout the pandemic due to closures and capacity limits, but the report said demand is slowly beginning to recover. Travel and leisure also recorded significant declines with whole fresh potatoes, according to the report.
Frozen strength
While restaurant sales took a significant hit in 2020-21, the release said frozen potatoes outperformed the foodservice industry as a whole. Limited-service restaurants (LSR) continue to represent the largest share of foodservice frozen potato volume. Since marketing year 2019, frozen potatoes have gained 4% points in volume share, now representing 64% of all potato products. Its concentration in the LSR segment has driven this share increase, according to the report.
Frozen potato shipments in marketing year 2021 totaled 6.39 billion pounds, down 256 million pounds from marketing year 2020 and down 1 billion pounds from marketing year 2019. Frozen potatoes lost the most pounds but declined the least in percent in 2021. In fact, french fry volume is up 122 million pounds to limited-service restaurants.
Frozen potato breakfast products continued to decline in 2021 due to the struggling breakfast segment (there were fewer commuters and travelers): hash browns (formed -8%, loose -14% year over year), other breakfast potatoes (-15% year over year).
