Time Series Forecasting (Prophet) fails with Too few data points to make a forecast

Problem: When executing time series forecasting (Prophet), the following error occurs: “Too few data points to make a forecast. You might want to select a smaller unit of time, or if in Test Mode, set a shorter Forecasting Time Period.”

Solution:

Error Causes

  • Seasonality Detection: Prophet models weekly, yearly, and custom seasonal patterns. For example, detecting annual seasonality requires at least 2 years of data.
  • Trend Identification: Identifying long-term trends requires sufficient observational data to distinguish consistent patterns from short-term fluctuations.

Solutions

  1. Add More Data The most robust solution is to collect more historical data.
  • Recommended Data Volume: Varies by data frequency, but general recommendations are:
    • Annual Seasonality: Minimum of 2 years of data required
    • Monthly Data: For 12-month forecasting, minimum of 18 months of historical data required
    • Daily Data: Minimum of 1 year of data required
  1. Reduce Time Unit Granularity When available data spans a long period but has few data points (e.g., only 20 monthly average data points over 2 years), change the forecasting time unit.
  • Example: Switch from monthly forecasting to quarterly forecasting to increase the number of observations per period.