During the second quarter of Potatoes USA’s Marketing Year 2022 (October – December 2021), potato sales increased in dollars by 3.5% but decreased in volume by 6.7%, compared to the same period in 2020. Elevated prices in grocery stores lead to an increase in dollar sales compared to 2020. Volume sales were below 2020 levels but remained higher than in 2019. Prices grew by 10.9% compared to 2020, growing five times faster than the previous two years.
While all categories fell in volume sales, compared to the previous year when many consumers were still doing everything at home, dollar sales grew in three categories. Chips had the largest increase in dollar sales at 8.3% due to the largest increase in the average price compared to the previous year. Refrigerated potatoes and deli-prepared sides also increased in dollar sales by 1.4% and 6.2%, respectively, as consumers continued to use these categories to supplement cooking from scratch at home. So far this marketing year, except July and August, all months have grown in dollar sales. And in October, dollar sales for potatoes started increasing by double-digits. Overall, sales for total store potatoes are still growing in a post-2020 world despite increasing prices.
The decline in fresh potato sales was largely impacted by russet sales, the category’s largest volume share, which fell by 2.7% in dollars and 11.2% in volume. The second largest fresh category, red potatoes, also fell in dollars by 2.9% and in volume by 7.3%. Bags of potatoes greater than ten pounds had the most significant price increase, with an average increase of 31.5%, leading to the growth in dollar sales. Volume sales for this category fell by 19.6%. On the positive end of the spectrum, yellow and petite potatoes grew in dollar and volume sales compared to 2020. One through four-pound bags of potatoes grew in dollar sales by 5%, with a slight decline in volume sales of 3.3%. Micro/steamer trays and regular trays of potatoes grew in both dollar and volume sales, showing that consumers continue to purchase value-added products.
These figures are compiled by IRI. Potatoes USA accepts no liability for the content of these reports, or for the consequences of any actions taken on the basis of any information contained herein.
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