Potato market in Iceland

Earlier Report Observations

The potato market in Iceland reached its peak volume of 11 500 t in 2019, a 24% increase from the previous year. This surge coincided with the expansion of product offerings by the major cooperative Þykkvabær, which introduced prepared potato dishes and convenience products, likely stimulating consumer demand. Strict seed potato regulations, requiring licensing and separation of seed from table potatoes, helped maintain planting material quality and supported domestic production stability.

After the peak, market volume declined to 9 540 t in 2020 and then recovered to around 10 300 t in the following years. The market stabilized near this level through 2023, aided by the recognition of leading food industry companies in 2022, which reinforced their market position. New traffic regulations effective from 2020 and the liberalization of taxi legislation in 2024 impacted transportation logistics, potentially influencing the distribution of potatoes and other food products.

Production potato in Iceland

In kind, 2018-2021, t

Top producers of potato, 2018-2021

World map of production of potato, 2018-2021

Potato production in Iceland has declined for the second year in a row. In 2021, Iceland produced 6,355 tonnes of potatoes, which represents a 13.9% decrease compared to 2020. Looking at the period from 2018 to 2021, overall production increased by 5.6%, translating to an average annual growth rate of 1.8%. The highest production level was recorded in 2019 at 8,200 tonnes, which also saw the largest annual increase of 36.2%.

Annual dynamics of production in Iceland in kind, 2018-2021, t

Exports potato from Iceland

Exports in kind, t

The export market for potatoes from Iceland showed an unstable trend over the observed period. The lowest point was in 2020 with only 2 tonnes exported, while exports peaked in 2021 at 18 tonnes, creating an 8.1-fold difference between these two years. In 2021, potato shipments from Iceland to foreign markets reached 18 tonnes, marking a dramatic increase of 709.3% compared to the previous year. The largest decline occurred in 2019, with a drop of 56.5%.

Annual dynamics of product's exports from Iceland in kind, 2018-2021, t

From 2018 to 2021, Greenland was the primary and nearly exclusive market for Iceland's potato exports in kind, accounting for 94.4% of total export flows.

Structure of product's exports in kind by countries, 2018-2021

World map of product's exports from Iceland in kind, 2018-2021

Exports in value, K $ US

Potato exports from Iceland in value terms have increased for the second consecutive year. In 2021, export volume totaled 7,000 US dollars, showing a substantial year-over-year rise of 20.0%. However, over the period from 2018 to 2021, exports decreased by 38.5%, which corresponds to an average annual decline of 14.9%. The lowest value was recorded in 2019 at 5,000 US dollars, which also experienced the largest decline of 61.9%. In contrast, the largest increase occurred in 2020 with a growth of 34.6%.

Annual dynamics of product's exports from Iceland in value, 2018-2021, K $ US

Between 2018 and 2021, Greenland remained the key and almost sole market for Iceland's potato exports in value terms, representing 94.2% of total export flows.

Structure of product's exports in value by countries, 2018-2021

World map of product's exports from Iceland in value, 2018-2021

Imports potato to Iceland

Imports in kind, t

The import market for potatoes in Iceland displayed an unstable trend throughout the timeframe. The lowest point was in 2020 with 2,163 tonnes imported, while imports peaked in 2021 at 3,973 tonnes, resulting in a 1.8-fold gap between these years. In 2021, Iceland imported approximately 3,973 tonnes of potatoes, marking an 83.7% increase compared to the previous year. The largest decline was recorded in 2020, with a decrease of 33.8%.

Annual dynamics of product's imports to Iceland in kind, 2018-2021, t

From 2018 to 2021, the United Kingdom (41.0% of imports in kind), France (28.7% of imports in kind), and Denmark (13.8% of imports in kind) were the largest contributors to Iceland's potato imports in kind, collectively accounting for 83.5% of total import flows.

Structure of product's imports in kind by countries, 2018-2021

World map of product's imports to Iceland in kind, 2018-2021

Imports in value, K $ US

Potato import volumes in Iceland have declined for the second consecutive year. In 2021, imports amounted to 1,728,000 US dollars, showing a modest decline of 8.4% compared to the previous year. Over the period from 2018 to 2021, imports decreased by 26.9%, with a compound annual growth rate of -9.9%. The highest value was recorded in 2019 at 2,962,000 US dollars, which also saw the largest increase of 25.3%. The largest decline occurred in 2020 with a drop of 36.3%.

Annual dynamics of product's imports to Iceland in value, 2018-2021, K $ US

During 2018–2021, the United Kingdom (39.6% of imports in value terms), France (30.7% of imports in value terms), and Denmark (12.6% of imports in value terms) continued to lead as the main suppliers of potatoes to Iceland in value terms, jointly accounting for 82.8% of total imports.

Structure of product's imports in value by countries, 2018-2021

World map of product's imports to Iceland in value, 2018-2021