Updated Jan 10, 2023 13:09

Preserved Frozen Potato Market in Brazil

Market Overview
The Brazilian preserved frozen potato market dropped to $ in , declining by -% against the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers' margins, which will be included in the final consumer price). In general, consumption, however, showed a relatively flat trend pattern. Over the period under review, the market hit record highs at $ in 2013; however, from 2014 to , consumption stood at a somewhat lower figure.

In value terms, preserved frozen potato production shrank to $ in estimated in export price. Over the period under review, production saw a mild reduction. The pace of growth appeared the most rapid in 2009 when the production volume increased by % against the previous year. As a result, production attained the peak level of $. From 2010 to , production growth remained at a somewhat lower figure.


Consumption
In , the amount of frozen potatoes (prepared or preserved) consumed in Brazil contracted slightly to tons, dropping by -% on the previous year's figure. The total consumption volume increased at an average annual rate of +% from 2007 to ; the trend pattern remained consistent, with only minor fluctuations being observed in certain years. Over the period under review, consumption reached the peak volume at tons in , and then fell slightly in the following year.

The value of the preserved frozen potato market in Brazil declined to $ in , with a decrease of -% against the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers' margins, which will be included in the final consumer price). In general, consumption, however, saw a relatively flat trend pattern. Preserved frozen potato consumption peaked at $ in 2013; however, from 2014 to , consumption remained at a lower figure.


Market Forecast
Driven by increasing demand for preserved frozen potato in Brazil, the market is expected to continue an upward consumption trend over the next eight years. Market performance is forecast to retain its current trend pattern, expanding with an anticipated CAGR of +% for the period from to , which is projected to bring the market volume to tons by the end of .

In value terms, the market is forecast to increase with an anticipated CAGR of +% for the period from to , which is projected to bring the market value to $ (in nominal prices) by the end of .


Market Structure
Driven by a growing demand, the share of imports in total supply in Brazil increased significantly over the last fifteen-year period (from % to %). In , the share of imports in total consumption accounted for % in value terms and % in physical terms. The share of imports increased moderately ( percentage point) over the period under review.


Trade Balance
Brazil remains a net importer of preserved frozen potato; in physical and value terms, imports consistently exceeded exports from 2007 to . In , there was a significant trade deficit of tons, which was equal to $. This tangible trade deficit reflects the fact that the market remains dependent on imports, which is likely to continue in the medium term.