Sweet Potato Prices Explained

The sweet potato market displays positive market trends due to continuous market need which elevates its prices. The increasing demand for convenient foods and the versatility of processed sweet potatoes provide a profitable market for this commodity.

Also, the increasing utilization of sweet potatoes in dietary supplements is an emerging market that provides significant opportunities for this commodity. As a result, market analysts expect a positive note in the coming years. This comes from unfavorable weather conditions which made sweet potato prices surge due to lower supply and high demand in the market.

Why are sweet potato prices fluctuating?

1. Decrease in Crop Yield

Crop yield reduction indicates a smaller area of land set aside for sweet potato production, which means there will be fewer sweet potatoes available. Therefore, due to the unbalanced production, demand will likely exceed supply, leading to higher sweet potato prices.

For instance, despite significant expansion over the previous 15 years, the United States sweet potato output decreased in harvested acreage from 163,300 acres to 156,800 acres as some farmers invested in highly profitable crops, like barley and oats.

2. Production Costs

Generally, one of the main reasons sweet potato products are more costly than those manufactured from average potatoes is the increased cost of raw materials. The difficulties in cultivating sweet potatoes, necessitate extra work and money up front, adding to the total cost.

Additionally, the price of raw materials which includes sweet potato seeds at $5.99 per kilogram has a significant impact on the cost of sweet potatoes. Therefore, any changes in this cost will have an impact on the price of sweet potatoes in general.

3. Availability of Substitute

Potatoes find extensive application in various culinary applications. On the other hand, sweet potatoes are less common than potatoes and have a smaller range of applications worldwide.

As a result, the potential for sweet potato expansion worldwide becomes limited due to the availability and adaptability of potato substitutes, ultimately influencing sweet potato prices as producers and customers favor potato-based goods.

4. Weather Conditions

Due to an exceptional rainy season, the U.S. commercial production of sweet potatoes encountered significant challenges as excessive rains resulted in large crop losses, delayed harvests, and lower yields. Overall, it led to less availability and higher costs of sweet potatoes, which negatively impacted consumers and farmers who depend on sweet potato farming.

Which variables impact the price of sweet potato?

• Decrease in Crop Yield
• Production Costs
• Availability of Substitute
• Weather Conditions
• Consumer Preference
• Regional Availability
• Limited Supply
• Quality and Variety

Where does sweet potato come from?

Sweet potatoes are members of the Morning Glory family and they are widely grown in tropical and warm temperate climates.

Additionally, there are edible flowers and leaves from plants that can be cooked in the same way as spinach. Furthermore, sweet potatoes come in various types, each having its distinct flavor, texture, and applications in cooking.

1. Orange Sweet Potatoes – These are widely consumed and easily recognized as their orange flesh and sweet flavor make them adaptable to a wide range of culinary applications.

2. White Sweet Potatoes – This variety has creamy-white flesh that tastes slightly softer than orange sweet potatoes. Also, it is commonly used in both savory and sweet recipes.

3. Purple Sweet Potatoes – They have bright purple flesh and taste slightly sweeter than orange sweet potatoes. While they offer a pop of color to meals, they also contribute a healthy component.

4. Japanese Sweet Potatoes – This variety is known for its chestnut-like flavor when they have reddish-purple skin and white or cream-colored flesh. As a result, these sweet potatoes are frequently used in Asian cuisines as they add a unique flavor to numerous meals.

5. Beauregard Sweet Potatoes – They are popular for their widespread appeal,  distinctive orange flesh, and sweet flavor. Also, they are frequently used as a versatile savory and sweet component in many culinary creations.

6. Hannah Sweet Potatoes – Sometimes called white sweet potatoes, they have light-colored flesh and tan skin. This variety has a unique flavor profile with a hint of sweetness and nuttiness.

What are the uses of sweet potatoes?

This commodity is a high-fiber food that has an excellent ability to adjust to different growing environments. As a result, its resilience guarantees a steady supply. Aside from being a food source, sweet potatoes are also used in a variety of industrial applications.

1. Starch Production – Generally, sweet potatoes are processed to release starch. Uses for sweet potato starch can be found in the paper, textile, and pharmaceutical industries.

2. Bioethanol Production – They are used in the manufacturing of bioethanol, a renewable fuel. Sweet potato starch can ferment and produce ethanol, which can be used as a fuel additive or biofuel.

3. Animal Feed – Its byproducts, such as leaves and vines are good in making nutrient-rich animal feed. Furthermore, the pulp left over after starch extraction is added to animal feed recipes.

4. Biodegradable Packaging – Sweet potato starch is a sustainable alternative to traditional plastic packaging as it’s used to produce biodegradable packaging materials.

5. Cosmetics – Its extracts are used in several cosmetic products because of their possible skin-benefiting properties. The antioxidant and moisturizing qualities of these extracts are added to skincare formulas.

What is the future price of sweet potato?

The growth of the sweet potato market is fueled by the rising health consciousness among consumers, leading them to opt for healthier alternatives such as sweet potatoes over locally available white potato varieties.

Additionally, the diversification of the food and beverage industries’ natural flavor profile propel sweet potato prices. The food and beverage industry uses sweet potato starch for thickening, gelling, and stabilizing. It is used in gluten-free noodles, soups, and sauces products. Furthermore, the pharmaceutical and textile industries utilize sweet potato starch for drug formulations and fabric sizing.

This application shift leads to a rise in the market for sweet potatoes since consumers seek out lower-calorie, plant-based, sugar-free, dairy-free, and gluten-free products.

Thus, the price of sweet potato will be $1.24 per kilogram in 2028 and its estimated global market size will reach $5870.6 million in the same year with a CAGR of 7.7% during the forecast period.