Frozen potatoes market in South America

Earlier Report Observations

The South American frozen potato market volume increased from 261.5 thousand tons in 2018 to 325.4 thousand tons in 2021, a rise of nearly 25%. This growth was driven by heightened demand for frozen and ready-to-eat foods across the region, coupled with significant expansion of the food and beverage industry in key markets like Brazil and Argentina. Consumer preference for clean-label and organic products also supported market development during these years.

Market volume then contracted to 304.9 thousand tons in 2022 and further to 273.4 thousand tons in 2023, a cumulative decline of 16% from the 2021 peak. The downturn was primarily caused by an economic recession in Argentina, which sharply reduced sales, and by price pressures in Brazil due to increased potato supply in wholesale markets. Despite the slump, major investments in production capacity continued, such as Lamb Weston's 220 000-ton plant in Balcarce, Argentina, aimed at serving export markets in Latin America.

Production frozen potatoes in South America

In kind, 2017-2020, K t

Top producers of frozen potatoes, 2017-2020

World map of production of frozen potatoes, 2017-2020

Frozen potato production in South America has increased for the second consecutive year. In 2020, South America produced 306.9 thousand tonnes of frozen potatoes, marking a 5.0% increase compared to the previous year. Over the period from 2017 to 2020, production grew by 5.8%, with an average annual growth rate of 1.9%. The lowest production level was recorded in 2018 at 261.6 thousand tonnes. The largest decline occurred in 2018, with a drop of 9.8%, while the largest increase was observed in 2019, with growth of 11.7%.

Annual dynamics of production in South America in kind, 2017-2020, K t

In value, 2017-2020, M $ US

In 2020, the output value of frozen potatoes in South America was 620.7 million US dollars, showing a slight decline of 2.5% compared to the previous year. From 2017 to 2020, production value decreased by 11.1%, with an average annual decline rate of 3.8%. The largest decline was recorded in 2018 at 11.0%, while the largest increase occurred in 2019, with growth of 2.4%.

Annual dynamics of production in South America in value, 2017-2020, M $ US

Exports frozen potatoes from South America

Exports in kind, t

South America's frozen potato export volume has increased for the second consecutive year. In 2020, South America exported 1 217 tonnes of frozen potatoes, up by 6.8% from the previous year. Over the period from 2017 to 2020, exports grew by 12.8%, with an average annual growth rate of 4.1%. The lowest export volume was recorded in 2018 at 934 tonnes. The largest decline occurred in 2018, with a drop of 13.4%, while the largest increase was observed in 2019, with growth of 22.0%.

Annual dynamics of product's exports from South America in kind, 2017-2020, t

From 2017 to 2020, the United States, Japan, and Spain were the main markets for South America's frozen potato exports in volume terms. The United States accounted for 61.9% of exports, Japan for 14.6%, and Spain for 6.1%. Together, these three markets represented 82.5% of total export flows.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from South America in kind, 2017-2020

Exports in value, K $ US

In 2020, South America exported frozen potatoes worth 2 461 thousand US dollars, representing a small drop of 0.8% from the previous year. Over the period from 2017 to 2020, exports decreased by 5.2%, with an average annual decline rate of 1.8%. The lowest export value was recorded in 2018 at 2 218 thousand US dollars. The largest decline occurred in 2018, with a drop of 14.6%, while the largest increase was observed in 2019, with growth of 11.9%.

Annual dynamics of product's exports from South America in value, 2017-2020, K $ US

From 2017 to 2020, the United States and Japan were the key destinations for South America's frozen potato exports in value terms. Together, they accounted for 81.1% of total export flows, while other partners were individually much less significant.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from South America in value, 2017-2020

Imports frozen potatoes to South America

Imports in kind, t

In 2020, South America's frozen potato import volume was recorded at 693 tonnes, showing a strong decrease of 18.8% compared to the previous year. Between 2017 and 2020, imports decreased by 31.9%, equating to an annualized decline rate of 12.0%. The largest decline occurred in 2018, with a drop of 21.7%, while the largest increase was observed in 2019, with growth of 7.1%.

Annual dynamics of product's imports to South America in kind, 2017-2020, t

From 2017 to 2020, Belgium, the Netherlands, and the United States formed the core group of markets for South America's frozen potato imports in volume terms. Belgium accounted for 41.6% of imports, the Netherlands for 17.7%, and the United States for 10.7%. Together, these three markets represented 69.9% of total import flows.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to South America in kind, 2017-2020

Imports in value, K $ US

In 2020, South America imported frozen potatoes worth approximately 673 thousand US dollars, indicating a robust decline of 15.3% from 2019. Between 2017 and 2020, imports decreased by 30.6%, equating to an annualized decline rate of 11.4%. The largest decline occurred in 2018, with a drop of 22.5%, while the largest increase was observed in 2019, with growth of 5.7%.

Annual dynamics of product's imports to South America in value, 2017-2020, K $ US

From 2017 to 2020, Belgium, the United States, and the Netherlands were the key partners for South America's frozen potato imports in value terms. Belgium accounted for 36.6% of imports, the United States for 16.6%, and the Netherlands for 15.3%. Together, these three partners represented 68.4% of total import flows.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to South America in value, 2017-2020