Fast Food Growth Boosts Frozen Potato Consumption

U.S. Potato Consumption Fast Food Growth Boosts Frozen Potato Consumption

Biing-Hwan Lin Gary Lucier Jane Allshouse Linda Scott Kantor (202) 694-5458 (202) 694-5253 [email protected] [email protected]

otatoes are the most impor consumption of frozen potato prod capita basis, than other Americans. P tant vegetable crop in the ucts rose steadily to 63 pounds in Seniors favor consumption of fresh United States. The crop's 1999 1999 (fig. 1). Dehydrated potatoes and canned potatoes, while teen farm receipts totaled $2.7 billion, or (14 pounds), potato chips (16 agers consume more chips and 18 percent of all vegetable and pounds), and canned potatoes (2 french fries than other age groups. melon farm cash receipts. Potatoes, pounds) represented smaller seg These findings are taken from an rich in vitamin C, potassium, and ments of the market. analysis of the 1994-96 CSFII, other vital nutrients, are a staple The growth of the fast food indus USDA's most recent food consump food in the United States. The 1999 try spurred the shift toward frozen tion survey. Each year of the CSFII' s per capita consumption of vegeta potato products. USDA's 1994-96 3-year data set comprises a nation bles was 454 pounds, fresh-weight Continuing Survey of Food Intakes ally representative sample of nonin equivalent, of which 142 pounds, or by Individuals (CSFII) shows that stitutionalized persons residing in 31 percent, were potatoes. Pound for most U.S. fresh potato consump 50 States and Washington, DC. Sur pound among U.S. crops, potatoes tion-as well as consumption of vey respondents were interviewed are topped only by wheat flour in potato chips, dehydrated potatoes, in person on 2 nonconsecutive days importance in the U.S. diet. The and canned potatoes-occurs at and asked to recall all the food and most significant changes in potato home. Frozen french fries are sold beverages they had consumed in the consumption over the past several predominately for away-from-home last 24 hours. More than 15,300 indi decades have been the rise of frozen consumption, with fast food estab viduals provided dietary data for potato use and the decline of fresh lishments accounting for 67 percent both days. The respondents pro potato use. of the frozen french fry market, fol vided a list of foods consumed as In 1960, U.S. per capita consump lowed by a 13-percent share for well as information on where, when, tion of fresh potatoes was 81 restaurants. and how much of each food was pounds (farm weight) per year, CSFII data show distinct regional eaten. The survey collected an array while per capita consumption of all variations in the use of potato prod of economic, social, and demo processed potatoes was only 25 ucts. French fry consumption is graphic characteristics for each pounds per year. By 1971, per capita much higher in the South and Mid respondent. consumption of all processed pota west than in the Northeast and USDA's Agricultural Research toes, driven largely by frozen prod West. Consumers in the Midwestern Service (ARS) has developed recipes ucts, surpassed fresh potato con States consume more fresh potatoes, that list ingredients and their quan sumption. While consumption of potato chips, and dehydrated pota tities for over 7,300 foods. For each fresh potatoes has averaged about toes than consumers elsewhere. food, ARS has also developed the 50 pounds per person since 1975, Rural residents tend to consume number of servings relative to more potato products than con USDA Food Guide Pyramid dietary sumers living in metropolitan cities recommendations. Servings data and suburban areas. comprise the five major food Lin, Allshouse, and Kantor are agricultural econ CSFII data also show that African groups-grain, vegetable, fruit, omists with the Food and Rural Economics Divi sion, and Lucier is an agricultural economist with Americans consume more potato dairy, and meat-as well as their the Market and Trade Economics Division, Eco nomic Research Service, USDA. chips and french fries, on a per subgroups. For example, the

FoodReview • Volume 24, Issue l 38 U.S. Potato Consumption

Figure 1 Frozen Potatoes Now Outweigh Fresh Potatoes in Consumer Preference Pounds per capita 70

20 Chips ' ------;::::: : 7 - 10 ______Dehydrated Canned 0 1970 72 74 76 78 80 82 84 86 88 90 92 94 96 98 2000

Source: USDA's Economic Research Service. vegetable group has six subgroups, Figure 2 including potatoes. The ARS recipe Fresh Potatoes and French Fries Are Most Likely To Be Consumed files include 33 potato products. on a Given Day These 33 products are grouped into Percent of population six categories: fresh potatoes, chips, 30 dehydrated potatoes, frozen french fries (called french fries), other frozen potatoes (such as hash 25 browns and Tater Tots), and canned potatoes (see box on potato use in 20 the United States). Our analysis of the CSFII data shows that fresh potatoes and french 15 fries are the two most frequently consumed potato products in the United States. On a given day, more 10 than a quarter of consumers (26 per cent) ate fresh potatoes and 13 per 5 cent ate french fries (fig. 2). French fries accounted for about 95 percent of the total servings of all frozen 0 potatoes. About 1 in every Fresh Chips Dehydrated Frozen Other frozen Canned 12 consumers (8 percent) ate potato trench fries chips on a given day. Other potato products, including dehydrated, Source: USDA's CSFII 1994-96, 2-day dietary recall data. other frozen potatoes, and canned potatoes, were consumed less frequently.

January-Ap ril 2001 39 U.S. Potato Consumption

Potato Use in the United States Although there are numerous U.S. consumers, reflecting both the the fragile chips during trans potato varieties, most can be importance of potatoes in the portation. grouped into three general cate national diet and their incredible • Dehydrated potatoes are made gories: russet, white, and red. versatility. About 85 percent of the into extruded potato chips (such U.S. potato crop is used for food. • Russet potatoes account for about as Pringles and O'Boise' s ), The remainder of the crop is either 70 percent of the U.S. crop, with mashed potatoes, potato pancake lost (shrinkage and loss during stor production heavily concentrated mix, and some canned stews. age and handling) or used as seed in Western States. Russet vari These food products use 11 per or livestock feed. eties are used for the fresh mar cent of the U.S. potato crop. The major food uses of potatoes ket and for processing and are include the following: • Canned potatoes, 1 percent of the particularly well suited for french total U.S. potato crop, are used in fries. • Fresh (also called table potatoes) such canned products as small • White potatoes range in shape potatoes account for 27 percent of whole potatoes, corned beef from oblong to round and are the U.S. potato crop and are used hash, various stews, soups, grown nearly everywhere in the primarily for baked, boiled, or chowders, and commercial Nation, with the heaviest concen mashed potatoes. potato salad. tration in the Central and Eastern • Frozen french fries account for 29 States. White potatoes account percent of the U.S. potato crop. Less than 0.3 percent of the U.S. potato crop is used in foods as for about 25 percent of the U.S. • Other frozen potato products, crop. They are used primarily for potato flour and potato starch. such as Tater Tots, spiral fries, Potato flour is used in processed potato chips and fresh-market homefries, wedges, and frozen consumption. foods, such as breads, rolls, cake whole potatoes, use 6 percent of mixes, crackers, and pastries, and as • Red potatoes, named for their skin U.S. potatoes. a thickener for soup bases and color, are marketed largely in the • Potato chips (including canned sauces. Potato starch is used in fresh market. Red potatoes shoestring potatoes) use 10 per baked goods, such as specialty account for about 5 percent of the cent of the U.S. potato crop. The breads, rolls, and crackers, instant U.S. crop, with production con Nation's 116 chip manufacturing pudding mixes, and molding con centrated in the upper Midwest. plants are located regionally, fections, such as gum drops, jelly Potatoes are consumed daily in largely to minimize breakage of beans, and chewing gum. some form by about 54 percent of

Fresh Potatoes Prepared obtained or prepared, not where it ordered and picked up at a counter, at Home, French Fries was consumed. For example, a restal:lrants are places that have wait bagged lunch prepared at home and staff, and school cafeterias include Prepared Away consumed at work is classified as daycare facilities and summer food at home. A commercially pre camps. The category "other" is a Eating out is increasingly popular pared pizza delivered and con catchall category that includes com in the United States. In 1970, Ameri sumed at home is classified as food munity feeding centers, bars/ tav can consumers spent 33 percent of away from home. erns, vending machines, and other total food expenditures away from Food at home is generally sources of foods. home. By 1999, that number had obtained at a retail store, such as a CSFII data show that about 2 per risen to 47.5 percent. USDA survey supermarket, grocery store, or a cent of consumers did not eat any data show that fast food places and convenience store. Food consumed at-home food on a given day (table restaurants each accounted for only at other people's homes is also clas 1). More than half of consumers (55 3 percent of Americans' total caloric sified as food at home. Food away percent) ate at least one away-from intakes during 1977-78. By 1994-96, from home is generally purchased home food on a given day. The fast food places accounted for 11 from commercial foodservice estab most-frequented foodservice outlets percent of Americans' caloric lishments but can also be obtained were fast food establishments, with intakes, and restaurants accounted in such places as school cafeterias, 31 percent of consumers purchasing for 8 percent. community feeding programs, or at least one food item from these This study classifies foods as "at child/ adult care centers. In this places, followed by restaurants, home" and "away from home" study, fast food places are foodser with 17 percent of consumers pur based on where the food was vice establishments where food is chasing at least one food item there.

FoodReview • Volume 24, Issue l 40 U.S. Potato Consumption

Table 1 Potato Consumption Varies With Income, Gender, Region, and Other Demographics Potatoes Frozen french Other Item Population 1 Fresh Chips Dehydrated fries frozen Canned

Percent Food sources: At home 98 79 79 89 12 53 80 Away from home 55 21 21 11 88 48 20 Fast food 31 6 7 4 67 23 5 Restaurant 17 12 1 1 13 9 15 School 7 1 3 2 6 12 0 Other2 13 2 9 2 2 3 1

Census region: Northeast 20 18 20 16 16 13 20 Midwest 24 28 29 34 26 22 24 South 35 35 34 35 42 37 37 West 22 20 17 15 19 28 18

Metropolitan Statistical Area status: Metropolitan 32 27 31 33 31 33 30 Suburban 47 47 44 47 46 41 31 Rural 21 26 25 20 23 26 39

Race/ethnic origin: White, non-Hispanic 73 80 73 78 70 77 72 Black, non-Hispanic 13 8 17 13 16 12 4 Hispanic 11 9 7 7 9 9 8 Others 4 3 3 3 4 3 16

Household income as a percentage of poverty: 0 - 130 percent 19 17 18 22 19 19 16 131 - 350 percent 42 45 42 41 42 53 41 351 percent and above 39 39 40 38 39 28 43

Gender and age: Male: All 49 57 62 53 62 63 60 2 - 5 years 5 2 3 3 3 4 2 6 - 11 years 5 3 6 4 5 10 3 12 - 19 years 6 6 10 9 12 10 5 20 - 59 years 27 36 40 31 39 35 38 60 years and older 7 10 3 7 3 4 13

Female: All 51 43 39 47 38 38 40 2 - 5 years 5 2 3 3 3 4 3 6 - 11 years 4 2 5 4 5 6 2 12 - 19 years 6 4 6 5 9 4 3 20 - 59 years 28 25 22 29 20 20 22 60 years and older 9 10 2 6 2 4 10 1 The "population" column indicates the share of the U.S. population that ate at least one food item on any given day. 2 Six percent of chips came from vending machines. which are included in the category "other." Source: CSFIL 1994-96, 2-day dietary recall data.

January-Ap ril 2001 41 U.S. Potato Consumption

Seven percent of consumers ob consumption, with a 15-percent Potato Dishes Vary by tained at least one food item from a share for restaurants and a 5-percent school cafeteria on any given day, share for fast food places. Region and and 13 percent of consumers ob Away-from-home sources domi Urbanization ... tained at least one food item from nated the consumption of french other sources. fries with an 88-percent market CSFII data show distinct patterns During 1994-96, the bulk of fresh share during 1994-96. Fast food in the consumption of potato prod potatoes, potato chips, dehydrated places accounted for 67 percent of ucts among the four Census potatoes, and canned potatoes were french fries, and the amount of regions-Northeast (20 percent of purchased at retail stores for home french fries obtained at restaurants, population), Midwest (24 percent), consumption (fig. 3). In 1994-96, 21 13 percent, was more than the South (35 percent), and West (22 percent of fresh potatoes were pre amount purchased at retail stores, percent). With a 24-percent share of pared away from home, mostly by 11 percent. School cafeterias the U.S. population, the Midwestern restaurants. Like fresh potatoes, 21 accounted for 6 percent of french States accounted for 26 percent of percent of potato chips were fry consumption. french fry consumption, 28 percent obtained from away-from-home Slightly more than half of other of fresh potato consumption, 29 per sources, with other sources account frozen potatoes were purchased for cent of chips consumption, and 34 ing for 9 percent of the market. home consumption. Other frozen percent of dehydrated potato con Vending machines, included in potatoes include such products as sumption (table 1). By dividing the other sources, had a 6-percent share Tater Tots, homefries, and potato consumption share by the popula of the chips market. Eleven percent patties. Fast food places had a 23- tion share, we can compare relative of dehydrated potatoes were percent share of the market for other consumption, as shown in table 2. obtained away from home, with 4 frozen potatoes, followed by schools For example, table 2 shows that Mid percent from fast food places. Away with a 12-percent share and restau western States had the highest rela from-home sources accounted for 20 rants with a 9-percent share. tive consumption of fresh potatoes, percent of the total canned potato chips, and dehydrated potatoes.

Figure 3 Most Potatoes Are Consumed at Home Percent 100

80 r--~-~

60 Home

0 .___.____ Fresh Chips Dehydrated Frozen Other frozen Canned trench fries product

Source: USDA's CSFII 1994-96, 2-day dietary recall data.

FoodReview • Vo lume 24, Issue l 42 U.S. Potato Consumption

Southern consumers ate more and other frozen potatoes was low a per capita basis, rural area con french fries than consumers in each est in the Northeast. sumers ate 2.7 times as many of the other three regions. The About 47 percent of the U.S. pop canned potatoes as suburban con Southern States represent 35 percent ulation resides in suburban areas, 32 sumers. Consumption of fresh pota of the overall U.S. population and percent live in metropolitan areas, toes in rural areas was about 24 per accounted for 42 percent of french and 21 percent live in rural areas cent more than in suburban areas fry consumption, 37 percent of other (table 1). Rural area residents ate and almost 50 percent more than in frozen potato consumption, and 37 more potato products, except for metropolitan areas. percent of canned potato consump dehydrated products, than subur tion. Consumption of french fries ban or metro residents (table 2). On

Table 2 Relative Shares Highlight Differences in Potato Consumption Potatoes Frozen Other Fresh Chi s Dehydrated trench fries frozen Canned Percent Census region: Northeast 91 101 83 71 68 105 Midwest 118 125 145 108 93 101 South 99 97 101 120 105 107 West 90 77 66 86 127 84

Metropolitan Statistical Area status: Metropolitan 85 98 102 98 103 95 Suburban 100 94 100 98 87 67 Rural 124 117 96 107 125 183

Race/ethnic origin: White, non-Hispanic 110 101 107 97 106 99 Black, non-Hispanic 64 133 100 131 94 33 Hispanic 90 68 65 89 85 77 Others 69 64 65 95 59 363

Household income as a percentage of poverty: 0 - 130 percent 87 96 113 99 99 85 131 - 350 percent 107 101 97 101 126 98 351 percent and above 98 101 96 99 72 110

Gender and age: Male: All 117 126 109 127 128 123 2 - 5 years 44 62 67 65 81 32 6 - 11 years 59 127 76 111 216 62 12 - 19 years 110 178 154 213 169 94 20 - 59 years 132 147 116 144 131 141 60 years and older 153 39 96 36 53 185

Female: All 84 75 91 75 73 78 2 - 5 years 40 69 62 60 77 57 6 - 11 years 50 112 91 107 142 54 12 - 19 years 70 114 96 152 76 53 20 - 59 years 90 80 103 73 72 77 60 years and older 114 20 64 21 39 114 Source: CSFII, 1994-96. 2-day dietary recall data.

January-April 2001 43 U.S. Potato Consumption

... and by Race and ticular potato product. Hispanics may respond differently to a rise in Ethnicity accounted for between 7 and 9 per household income. For example, cent of the various potato products consumers having more to spend on According to the 1994-96 CSFII, consumed in the United States. food may decide to consume more non-Hispanic Whites represented 73 steaks and less ground beef. Simi percent of the U.S. population and, larly, households of different income compared with other racial/ ethnic Consumption of Chips levels may consume different groups, favored potatoes in fresh, and Fries Independent amounts of potato products. dehydrated, and other frozen pota of Income We classified households into toes. Relative to their proportion of three income groups. About 40 per the population, non-Hispanic Food consumption is determined cent of households had high Whites tended to consume slightly by several factors, including income. incomes-that is, incomes exceeding fewer french fries and canned pota Based on consumers' responses to 350 percent of the Federal poverty toes (fig. 4). Non-Hispanic Blacks an increase in income, foods can be level. (The Federal poverty level represented about 13 percent of the classified as inferior goods (con was $15,141 for a family of four in U.S. population. Compared with sumption declines when income 1995.) Forty-two percent of house other racial/ ethnic groups, this increases), normal goods (consump holds had incomes falling between group reported the highest con tion rises by a proportion smaller 131 and 350 percent of poverty level. sumption of potato chips and french than the rise in income), or luxury Nineteen percent of households fell fries but the lowest consumption of goods (consumption rises at a pro into the low-income group, with fresh and canned potatoes. portion larger than the rise in incomes no more than 130 percent Hispanics tended to eat fewer income). Consumption of staple of the poverty level. potatoes than other racial/ ethnic foods, such as cereals and potatoes, CSFII data show that consump groups. Hispanics represented about usually rises with income, but the tion of chips and french fries did not 11 percent of the U.S. population rise is smaller than the increase in vary much with income. Low and do not appear to have strong income. Within a food, there exist income households consumed, per preferences or dislikes for any par- products of different qualities that person, the least amount of fresh

Figure 4 Non-Hispanic Whites' Potato Consumption Is Higher Than That of Other Groups

Percent 100 Others

80 Hispanic Black, non-Hispanic

60 White, non-Hispanic

0 Total Fresh Chips Dehydrated Frozen Other frozen Canned population trench fries

Source: USDA, CSFII 1994-96, 2-day dietary recall data.

FoodReview • Volume 24, Issue l 44 U.S. Potato Consumption potatoes, chips, and canned potatoes with seniors age 60 and older re Outlook for Potato (table 2). Households with incomes porting the highest consumption for Consumption between 131 and 350 percent of the these two products. Consumption of poverty level had the highest per chips and french fries initially rose Over the last few decades, dining capita consumption of fresh and with age, peaking, not surprisingly, out has grown in popularity for frozen potato products. High in the teenage years, and then Americans. Close to half of con income households consumed more declined, with seniors consuming sumer food expenditures are now canned potatoes, per person, than fewer chips than even toddlers. spent on eating out. A number of other income groups. Consumption of other frozen factors contribute to this trend: a potatoes peaked at the 6-to-11-year growing number of women Gender and Age Affect old age group (children in elemen employed outside the home, more Potato Consumption tary school) and then declined with two-earner households, higher age. Such products as Tater Tots incomes, more affordable and con Males, perhaps because of their tend to be popular in school lunches venient fast food outlets, increased larger caloric intake, ate more of all and breakfasts. Seniors ate fewer advertising and promotion by large six potato products than did other frozen potatoes than toddlers. foodservice chains, and smaller females. This statistic may also Consumption of dehydrated potato American households. These factors reflect a long-held perception by products peaked for males during are expected to continue to boost some diet-conscious females that the teenage years. This statistic is eating out. As the bulk of fresh pota potatoes are a high-calorie, diet likely an extension of the popularity toes are consumed at home, and a unfriendly food. Males ate about 70 of potato chips and reflects the large proportion of frozen french percent more chips, french fries, and consumption of extruded chip prod fries is consumed away from home, other frozen potatoes than females ucts and those made from potato increased eating out will favor con (table 2). flakes. sumption of french fries at the Relative consumption of fresh and expense of fresh potatoes (see box canned potatoes increased with age, on nutrient comparisons).

Nutritional Content of Potato Chips, French Fries, and Baked Potatoes The shift from fresh potatoes to fries has 309 calories and 16 grams Certain foods are commonly con french fries conflicts with dietary of fat, 5 of which are saturated fat. sumed with potato products, such guidance advising Americans to The numbers for potato chips are as catsup with french fries, sour choose a diet low in saturated fat even more striking, with each 100 cream and butter with baked pota and moderate in total fat. Cutting grams packing 536 calories and 35 toes, and dip with chips. USDA's up a low-fat, nutritious potato and grams of fat, 11 of which are satu Nutrient Database lists nutrient pro frying it in oil adds calories and fat rated fat. On the positive side, files of these foods. The database (see table). One hundred grams of french fries and potato chips have can be accessed at baked potato (with the peel) has 108 more dietary fiber than baked pota www.nal.usda.gov/ fnic/ calories and almost no fat or satu toes, and higher levels of potassium foodcomp. rated fat, while 100 grams of french and folate.

Chips and Fries Are Higher in Fat and Calories Than Baked Potatoes Baked potatoes Baked potatoes Frozen Nutrient Unit without peel with peel Chips trench fries Food energy Calories 92.4 108.4 536.0 309.1 Protein Grams 2.0 2.3 7.0 4.0 Carbohydrate Grams 21.4 25.1 52 .9 38.6 Total fat Grams .1 .1 34.6 16.1 Saturated fat Grams .03 .03 11 .0 5.0 Dietary fiber Grams 1.5 2.4 4.5 3.2 Potassium Milligrams 388.7 415.6 1,275.0 712.0 Vitamin C Milligrams 12.7 12.82 31.1 5.3 Folate Micrograms 9.0 10.9 45.0 33.0 Vitamin A International unit 0 0 0 29.0 Source: Nutrient Data Laboratory, Agricultural Research Service, USDA.

January-April 2001 45 U.S. Potato Consumption

Other factors should be consid ment of Agriculture, Economic ered, however. Elderly people had Research Service, 1999. the highest consumption of fresh Plummer, C. "U.S. Potato Briefing and canned potatoes and the lowest Room." U.S. Department of Agricul consumption of potato chips, french ture, Economic Research Service, fries, and other frozen potato prod http://www.ers.usda.gov/brief ucts. On one hand, with the aging of ing / pota toes/ the Nation's population, consump Putnam, J., and J. Allshouse. Food tion patterns could begin to favor Consumption, Prices, and Expendi fresh potatoes. On the other hand, tures, 1970-99. U.S. Department of consumption patterns acquired dur Agriculture, Economic Research Ser ing young ages may change little as vice, forthcoming. consumers age. Today's teenagers Talburt, W.F. (ed) Potato could continue heavy consumption Processing, 4th Edition. New York: of french fries as they age. The Van Nostrand Reinhold Co., 1987. future, therefore, is unclear with U.S. Department of Agriculture, respect to the consumption growth Agricultural Research Service. 1994- Food companies market frozen french fries of fresh potatoes and french fries. 96 Continuing Survey of Food Intakes for home consumption, but close to 90 percent of french fries are obtained from by Individuals and 1994-96 Diet and fast food places, restaurants, and other Health Knowledge Survey. 1998. • away-from-home sources. References Credit: PhotoDisc. Lin, B.H., J. Guthrie, and E. Frazao. Away-From-Home Foods Increasingly Important to Quality of American Diet, Agricultural Informa tion Bulletin No. 749. U.S. Depart-

FoodReview • Volume 24, Issue l 46