Feb 20, 2017
Foodservice now largest channel for US potatoes

In a recent industry update, Potatoes USA reports that over half of the U.S. food dollar is now spent at foodservice vs. retail, as more people go out to eat, rely on takeout or look for supermarket foodservice (convenient prepared food) options. Foodservice is now also the largest sales channel for potatoes in the U.S.

Technomic, a research company dedicated to the foodservice channel recently released their annual results report. The $845 billion-dollar foodservice industry grew 1.6 percent in 2016, with the sectors of fast food/quick service, fast casual, fine dining and convenience stores seeing the most growth.

All sectors are expected to grow in 2017 with overall sales projected to be up 1.7 percent.  The fastest growing segment should remain fast casual, with an expected sales increase of 6.1 percent in 2017, followed by an emerging sector, supermarket foodservice with projected 6 percent growth.  Noncommercial Foodservice (e.g. Healthcare, Schools) is also a bright spot, and is expected to continue to grow at a steady pace. Fine dining, which has been down in recent years, is expected to grow 3.1 percent in 2017.

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