Foodservice Sales Drove U.S. Potato Utilization Growth Of 2.1 Percent

To help the industry understand the demand for domestically produced potatoes, Potatoes USA conducts a sales and utilization study annually.

This past year, the utilization of U.S.-grown potatoes increased by 2.1 percent (683 MM lbs.) during July 2021-June 2022 (FY22), bolstered by the foodservice channel. This growth is a strong indicator that the foodservice sector is recovering from the impacts of the pandemic.

Utilization shows the share of potatoes sold, by form (fresh, processed, dehydrated), from the domestically grown crop. All data is calculated using a fresh weight equivalent measurement to ensure we understand what happens to the total crop regardless of how the potato is used after harvest.

As mentioned earlier, foodservice bolstered the utilization of potatoes in FY22. Potato sales to foodservice grew 11.9 percent (1,963 MM lbs.). It was the only channel to grow this past year.

Retail sales declined 3.1 percent; however, compared to two years ago, retail sales were only down 0.6 percent. Exports were down 2.3 percent in FY22, while imports were up 8.7 percent. When calculating the utilization of U.S. potatoes, imports are deducted to ensure we’re only measuring the U.S. crop. The share of volume sales by form remained similar to the previous year: 39 percent of potatoes sold were frozen, 26 percent were fresh, 22 percent were chips, and 7 percent were dehydrated, with smaller categories making up the remaining 6 percent of sales.

Let’s now look at all potato sales in the U.S. during July 2021-June 2022. The following data includes imported potato products but excludes U.S. potatoes exported to other countries. This analysis shows how many potatoes were sold for consumption in the United States.

This past year, 54 percent of potatoes were sold to foodservice. This increase is a significant change from the prior year when sales were balanced between retail and foodservice—however, the sales of different forms varied by channel. The majority of fresh potatoes, 56 percent, were sold at retail, whereas the majority of frozen potatoes, 83 percent, were sold at foodservice. All forms of potatoes sold at foodservice grew in FY22, whereas domestic retail sales losses were across all formats.