The U.S. potato industry continues to navigate shifting consumer preferences and economic challenges, as highlighted in Potatoes USA’s 2024 Foodservice Volumetric Report. While total potato volume in foodservice declined by 1.6% year-over-year (July 2023–June 2024), the sector’s market value increased by 2.4%, demonstrating resilience and sustained demand despite lower consumption.
Frozen Potatoes: A Slight Dip, But Fries Still Rule
Frozen potato products, the largest category, saw a 1.8% decline, totaling 11.38 billion pounds (5.16 million metric tonnes). However, French fries maintained their dominance, accounting for 81% of frozen potato sales. Other products like tots (6%), formed hash browns (5%), and loose hash browns (2%) held smaller shares. This trend aligns with broader foodservice demand for convenient, easy-to-prepare potato products in fast food and casual dining.
Potato Chips: A Snack Segment on the Rise
In contrast to frozen potatoes, potato chip volume grew by 1.3%, reaching 1.296 billion pounds (587,855 metric tonnes). This growth reflects strong demand in quick-service restaurants (QSRs) and non-commercial channels, where snackable, on-the-go options are thriving.
Refrigerated & Dehydrated Potatoes: Minor Declines
- Refrigerated potatoes saw a 0.75% drop, totaling 658 million pounds (298,464 metric tonnes).
- Dehydrated potatoes fell by 4%, with mashed products (59%) leading the segment, followed by loose dehydrated potatoes (34%).
Non-Commercial Sector: A Bright Spot
The non-commercial sector (healthcare, education, travel) added one million pounds in fresh weight equivalent, now representing 22% of total foodservice potato volume. This suggests recovery in institutional demand, likely driven by rebounding travel and school meal programs.
Resilience Amid Challenges
Despite modest volume declines, the U.S. potato market remains strong, with rising value indicating premiumization and sustained demand. Key takeaways:
- Frozen fries dominate, but innovation in shapes and forms could reinvigorate growth.
- Potato chips are gaining, signaling opportunities in snack-focused channels.
- Non-commercial sectors are recovering, offering growth potential for bulk and value-added products.
The industry must adapt to economic pressures and evolving preferences, but potatoes remain a staple in foodservice due to their versatility and affordability.
