Processed potato production gains global momentum

The global potato market is shifting rapidly, particularly due to the rising demand for frozen fries. Between 2019 and 2024, the export value of frozen potato products grew from USD 7.7 billion to USD 13.2 billion. That growth was driven by both increasing prices and expanding global demand. China and India, previously net importers, have now become exporters, thanks to significant investments in processing capacity.

Emerging markets gain ground

Potato processing is no longer concentrated in North America and Europe. Countries like Egypt, India, and China are now key players. China's frozen potato exports grew by 79% over five years, with India and Egypt following at 45% and 16% annual growth respectively. These countries now serve their own regions and compete in global markets.

While processed potato consumption is rising in emerging economies, per capita consumption still lags behind traditional regions. Meanwhile, in Western markets, fresh potato consumption is in decline. In the US, it dropped by 38% since 2000.

In the EU and the US, increasing yields per hectare is becoming more difficult. Climate pressures, regulatory limits, and shrinking acreage are holding back production. As a result, global production in 2024 is estimated at 372 million tonnes, showing no clear upward trend.

The Netherlands remains key player in seed potatoes

The Netherlands continues to supply around half of global seed potato exports. These are shipped across Europe, but also to markets in Africa and the Middle East. However, maintaining this position is becoming harder due to changing climate conditions and stricter regulations on water use and crop protection.

With processed products expanding quickly, the sector faces the challenge of aligning demand with supply. If demand growth fails to keep pace, downward pressure on prices and margins will persist. A balanced and adaptive strategy remains essential across the chain.

Read the entire article here: Rabobank