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Retail Market

5 August 2013

The Retail Market

Total potato sales are worth £2.1bn at retail (excluding crisps and snacks), with the fresh sector accounting for £1.2bn. The retail market is dominated by the major multiples, with the top 5 accounting for just under 75% of sales. Fresh potatoes account for 1.2% of sales from the multiples – and by volume are the largest category in fresh produce.  

Latest market report - Potato Retail Report July 2013

  • The latest 52 week figures from Kantar Worldpanel value the fresh potato market at £1.27 billion, which represents a 21.1% increase on last year. These gains continue to be driven by rises in average price, as volumes were 3.8% behind last year.
  • Frozen potato products continue to show strong volume growth, resulting in good value gains. The number of shoppers buying continues to rise and purchase frequency is also up year-on-year. Chips have performed well; expenditure growth was ahead of volumes due to average price increases.
  • In the year ending March 2013, the total out-of-home market was worth £49.5 billion, up 0.5% from last year. OOH traffic levels declined very slightly. Post-Christmas cutbacks, a continued sluggish economy and particularly cold weather contributed to the poor performance across the industry. Breakfast and weekend visits, however, reported some growth.
  • There were 1.79 billion potato servings OOH in the year to March 2013, which represents a 6.3% fall compared to a year earlier.

This monthly report is produced on the retail sector, based on KANTAR World Panel data. This report is available free-of-charge to levy payers. Email  potatoes.marketing@ahdb.org.uk to be added to the circulation list. To view the latest Potato retail report please visit the retail section of the knowledge hub.

AHDB Potatoes activity

The primary focus of AHDB Potatoes activity is on the consumer, which benefits all routes to market. Working with the major retailers and their supply chains does present a major opportunity to reach the consumer.

  • Research: AHDB Potatoes provides bespoke insights into the potato shopper which can be used to drive value and grow volumes.
  • Promotions: AHDB Potatoess campaigns provide a platform for retail activity, linking activity in store or the through promotions. National Chip Week (February) and Potato Week (October) provide two focus points. There is also TV activity in early summer which can present another key opportunity. 
  • Resources: for smaller retailers AHDB Potatoes has a range of posters and promotional literature available which can be used to help promote.

Market Information

Bespoke research has been commissioned to better understand shopper behaviour, as well as working with industry experts. Please contact us if you have a specific question, the following information is currently available:

  • Research was undertaken in 2010 in the five major retailers to better understand how shoppers behave. The research includes:
    • The shopper decision tree
    • Time spent in store
    • Key differences in approaches for convenience versus larger store formats
  • February 2011 Retail Conference focused on optimising the fresh potato category. Copies of the presentations from the day are available free of charge to levy payers, please email: potatoes.marketing@ahdb.org.uk