Consumers going big with bagged potatoes

Bagged potatoes continued to far outsell bulk product in 2024. And consumers seem to be picking up larger pack sizes, too.

According to Denver-based Potatoes USA, bagged potatoes accounted for 80% of dollar share in the category and 87% of volume share last year. Five-pound bags were the most popular size, accounting for 48% of the dollar share and 56% of the volume. Ten-pounders were second, with 13% dollar share and 22% of volume.

Not only do consumers prefer bagged potatoes, but their preference for big bags is increasing. Sales of potatoes in 10-pound bags rose 22% last year. Sales of 5-pound bags rose only 0.6%.

“We are seeing that consumer shopping habits are shifting big time,” said Ross Johnson, vice president of retail for the Eagle-based Idaho Potato Commission.

“We know that 65% of consumers say they are switching to buy more large pack sizes,” he said.

The russet 10-pound bag that some retailers have eliminated has outpaced all other pack sizes in 10 of the last 15 months, Johnson said.

Retailers went through a period where they thought they could persuade potato shoppers to visit the grocery store more frequently by only selling 5-pound bags and charging a little bit more for them, Johnson said. But in the current economic situation, with the cost of eggs through the roof and ever-increasing beef prices, “people are really looking for those items that bring a value,” he said.

About 40% of the potatoes marketed by Idaho Falls, Idaho-based Eagle Eye Produce go to supermarkets in consumer packs, said Coleman Oswald, director of sales. The other 60% are packed for foodservice, wholesalers and processors in bulk.

Eagle Eye Produce packs everything from single-wrapped baking potatoes to 5-pound bags, 50-pound cartons and bulk bins.

“Most of our potatoes ship in 50-pound bulk cartons, but 5-pound bags are also strong sellers,” Coleman said.

Gary Shields, executive director of the Northland Potato Growers Association, East Grand Forks, Minn., said a lot of potatoes are displayed in bulk in North Dakota and Minnesota.

Potatoes sold in consumer packs are mostly in the smaller sizes — 3-, 5- and 6-pound bags — along with some specialty items, like baby potatoes.

Unlike 30 years ago, when consumers shopped once a month, today’s shoppers go to the supermarket much more often, and that drives smaller packaging, he said.

Many consumers pick up a few red and a few yellow potatoes and pack them themselves in the poly bags stores provide on the produce shelves, he said.

The trend to smaller packs in North Dakota and Minnesota seems to run counter to the national trend, but Shields said stores buy the packaging that works for them.

“Trends are different in different populations and different markets,” he said.

Yakima, Wash.-based Kwik Lok Corp. encourages members of the potato and onion industries to take advantage of closure labels for their packaging.

“There are a number of benefits that adding a label to your closure can bring to retailers and the consumer,” said Karen Reed, global director of marketing.

Kwik Lok can help both industries simplify tracing compliance with FSMA 204 and Sunrise 27, she said.

“We also have trusted data partners that can make sure your data stays safe, secure and available when needed,” she said.

Retailers and consumers can scan a Kwik Lok closure label with a two-dimensional code at any point after it leaves the packing plant to check for product safety, Reed said.

“The 2D code, managed by a trusted partner, will help identify and address potential risks throughout the supply chain, ensuring your products meet the highest safety standards,” she said.

During the COVID-19 pandemic, more of the potatoes sold by Eagle Eye Produce went into consumer packaging as retail demand spiked, Coleman said. But that has changed.

“Retail buyers and customers are now looking for more sustainable packaging with less plastic,” he said.

Sustainability is a priority for many customers of Eagle Eye Produce, where the company is actively working to reduce virgin plastic in its packaging, Coleman said.

“A major step forward was launching our Harvest Select potato bags this past year, which contain 25% recycled content,” he said. “We are always looking for practical ways to reduce single-use plastics while maintaining quality.”

No matter how they’re sold, you can’t go wrong with potatoes, Johnson said.

Not only are they value priced, but they won’t “wilt away in your fridge” in a few days.

“You don’t have that sense of urgency to consume them once you get home,” he said. “And they’re the perfect canvas for any recipe.”