Potato Farming in the US - Market Research Report

Hot potato: Potato farmers will continue limiting supply to increase product prices

This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.

The industry produces potatoes, sweet potatoes and yams for sale to fresh markets and food processors. Potatoes are the most widely produced vegetable in the United States and form a well-accepted component of prepared dishes and snack foods, including French fries and potato chips. In fact, over 50.0% of the annual potato crop is destined to become French fries, with about 70.0% of industry revenue stemming from sales to food processors in 2021 (latest data available). Overall, potato farmers have worked to reduce production to uplift potato prices, which has had a mixed effect on industry revenue growth. In recent years, per capita fruit and vegetable consumption has fallen, which has had a negative effect on industry revenue. But recent inflation in food prices have allowed the potato farming industry to return to growth after years of steady decline. Industry revenue has fallen an estimated CAGR of 0.4% to reach $5.2 billion in 2023, when revenue is expected to rise 1.5%. This industry grows potatoes, sweet potatoes and yams. Potatoes are a staple food product in many parts of the world and can also be used to in the manufacture of other products, including processed snack foods, alcoholic spirits and animal feed.