Main Drivers for South America’s Potato Consumption

The South American (SAM) demand for potatoes as food is rising as a result of the increased industrial growth seen especially in Brazil and at a slower pace in Argentina.
According to Gregory J. Scott and Ulrich Kleinwechter, the total demand for potatoes as food in SAM is projected to increase at rates between 0.7 and 1.7% until 2030.
Growth rates will be highest in Brazil, where per capita consumption of potatoes (16 kg/year) has been relatively low. This indicates a desire to continue dietary diversity as real earnings rise. In contrast, it is anticipated that the Southern Cone, which includes Argentina, will experience nearly flat (1%) growth rates in overall potato demand for the next decade.
According to their statistics, the total demand for potatoes in SAM is anticipated to rise by more than 4.6m tonnes to 19.6m tonnes in 2030. About 55% of that rise will occur in Brazil and Peru, continuing a pattern of demand that started to emerge towards the end of the last century and is increasingly affected by regional demographics and stark inequalities in per capita consumption.
“Relatively low levels of per capita intake of potato in Brazil combined with a relatively high estimated income elasticity of demand and projected economic growth will drive much of this increase. These trends will be further reinforced by the vast numbers of consumers in Brazil – half of all the consumers in SAM. Potato demand will remain strong in Peru, given the tuber’s unique cultural, economic, and gastronomic heritage among other reasons in that country,” Scott and Kleinwechter wrote in one of their papers prepared for the European Association for Potato Research (EAPR).
They project an almost stable total per capita demand for potatoes in Argentina under their most significant development scenario (baseline), and only moderate rises in other Southern Cone nations like Chile and Uruguay. These results reflect the higher and more mature consumption levels of these wealthier economies. They also are aligned with the declines from relatively high per capita consumption levels over the previous two decades as incomes increased.
The decreases from relatively high per capita consumption levels over the previous 20 years as earnings rose are likewise consistent with them. The great majority (75%) of the total demand for potatoes in SAM will continue to come from food demand, which includes the need for processed potatoes used for human consumption, such as raw potatoes, French fries, and potato flakes.
You can read the rest of this article in your complimentary e-copy of Issue 3 of Potato Business Digital 2023 magazine, which you can access by clicking here.