Myanmar Market Snapshot – U.S. Potatoes in International Markets

January 26, 2021

Myanmar Market Situation and Opportunities

U.S. agricultural exports are growing rapidly to Myanmar, one of the fastest-growing economies in Asia. With the food industry expanding and consumer purchasing power increasing in Myanmar (formerly known as Burma), there is great potential for growth for U.S. potato exports. Here is a snapshot of the current market situation, opportunities, and challenges:

• U.S. agricultural exports to Myanmar have grown more than 20 times since 2012, reaching a record of $174 million in value in 2019.
• Myanmar experienced real GDP growth from 6.3% in 2017 to 6.7% in 2018. The International Monetary Fund (IMF) forecasts annual real GDP growth will continue to increase and reach 7% by 2024.
• The hotel, restaurant, and institutional foodservice (HRI) sector is showing an increased interest in U.S. food products. Demand is strongest in urban areas and tourist destinations.
• Despite having one of the lowest per capita incomes in the region, Myanmar has a young and emerging middle-class with increasing income.
• Consumers have a growing preference for international brands, which can support U.S. potato products. Myanmar’s younger population is receptive to trends and willing to try new products that fit their increasingly westernized lifestyles.
• Importers are aware of the perception that U.S. products are very high quality.
• Consumer purchasing power is growing quickly, which will greatly impact food and beverage consumption.
• Frozen potatoes offer an expanding opportunity for U.S. exporters. Between 2014 and 2018, Myanmar’s frozen fry import volume increased 500%, reaching 792 MT valued at $980,000. U.S. market share of frozen fry imports increased from 44% in 2016 to 75% in 2018.
• As Myanmar’s middle class grows, so does the demand for potato products like fries, mashed potatoes, and chips.
• Because Myanmar consumers are very price-sensitive, there is currently little demand for more expensive fresh potato imports.
• Expatriates and tourists account for 75% of the consumption of imported potato products.
• Myanmar is an underdeveloped market, which presents some challenges, including a lack of cold chain infrastructure, uncertainties with the government’s regulatory framework, and limited knowledge of U.S. potato products. However, the increasing demand for frozen potatoes shows that the U.S. has potential to expand in the market.

Potatoes USA Programs in Myanmar

Myanmar has been among Potatoes USA’s target markets for several years and currently has foodservice and retail programs.

To kick off this marketing year, Potatoes USA joined FAS (Foreign Agricultural Services) Yangon in an episode of the Master Chef Myanmar TV program. MasterChef Myanmar competitors were challenged with a “Potatoes USA Master Class,” where they were educated on the benefits of U.S. potatoes before creating unique dishes featuring U.S. frozen potatoes. During MasterChef Myanmar’s last season, the average number of views was 102 million per episode, leading to excellent exposure for U.S. potatoes.

On the retail front, the industry has faced challenges with getting fresh U.S. table-stock potatoes into Myanmar stores, despite having market access. While Potatoes USA is working on addressing this issue, retail activities with a focus on frozen products have continued. In November-December 2020, Potatoes USA did an online promotion for frozen potatoes with City Mart, a major retailer in the country. Results of this promotion will come later in the year.

Data and information in this article were sourced from the Myanmar Overall Market Summary on Potatoes USA’s Global Review Database and the Union of Burma Exporter Guide on the Trade Regulation Database.

For more information on Potatoes USA marketing activities in international markets and to find out how you can get involved, please contact Tiffany Thompson at Tiffany@PotatoesUSA.com.