Potato Chips Market - Forecasts from 2022 to 2027

The global potato chips market is predicted to grow at a CAGR of 4.47% from a market size of US$36,441.812 million in 2020 to a market size of US$49,483.131 million by the end of 2027.

The market is projected to grow in the forecast period with high consumption of potato chips in the form of snacks at the global level. Due to the high consumer demand, manufacturers worldwide are offering potato chips as organic and conventional, baked and fried, and in the form of plain and flavored chips, fueling the growth of the global potato chips market. The global consumption of beverages such as tea and coffee is offering strong growth prospects as potato chips are preferred on a wide scale to be served in the form of snacks with tea and coffee drinking. Also, with the consumption of alcohol and beer, snacks are preferred and the consumption of potato snacks holds significance. The growing food and beverage industry is further propagating the market growth providing a range of processed snacks, including potato chips. The growing preference for convenience food with the adoption of a busy lifestyle is further augmenting the market growth in the forecast period. Growing disposable income and increasing family income is providing a boost to market demand. On the basis of geography, the Asia Pacific region potato chips market is projected to experience high growth in the forecast period with the growing urbanization, adoption of modern living conditions, and the presence of the younger generation preferring potato chips along with beverages, tea, or coffee, in the form of healthy snacking.

Furthermore, with increasing health awareness, consumers are moving to the adoption of baked chips, which contain very little oil, hence fewer calories, further driving the market growth in the forecast period.

The growing popularity of potato chips in the form of appetizers, side dishes, and snacks is propelling the market demand during the forecast period.

At a cocktail party or at the time of a small gathering with family members or friends, potato chips serve as an excellent appetizer or a side dish with drinks and beverages. These chips with slight dressings with cream or sauces further add to the flavour and texture. The growing tea and coffee consumption is further augmenting the market demand as these can pair well with potato chips. It is because of the consumption of beverages; that salty snack manufacturers are provided with huge opportunities to produce potato chips of different flavours that can match different types of tea and coffee. Hence, with the growing popularity of tea and coffee among many individuals, including millennials at the global, the potato chips market holds strong growth prospects in the forecast period. The potato chips are a perfect meal accompaniment and a staple snack. They are also paired with fast foods like burgers and grilled sandwiches, further burgeoning the market growth in the forecast period.

Potato chips are the most popular snack in North America (especially in the United States and Canada), so they are celebrated on National Potato Chip Day on March 14th every year. Other countries celebrating this day include Japan, Hong Kong, Indonesia, Ireland, and Columbia. This day is celebrated by people by consuming crispy chips in the form of appetizers, side dishes, or as snacks. Apart from plain potato chips, other varieties of potato chips are also consumed with flavours such as cheese, herbs, and spices. Hence, this signifies the importance of potato chips as a widely celebrated snack, propagating the market growth in the forecast period.

The increasing consumption of convenience foods coupled with the adoption of modern living conditions is driving the market demand in the forecast period.

The consumption of convenience foods at the global level, especially in the developing regions of the world, is attributed to the growing per capita income, rapid urbanization, evolving dietary consumption patterns, and the growing popularity of convenience foods among the younger generation. The adoption of modern living conditions has given rise to the adoption of fast foods, and packed foods and beverages, which are healthy to consume and are filling even when consumed less. Hence, potato chips in such a scenario hold strong market demand, are filling and light, and are capable of satiating hunger. Furthermore, with the growing health consciousness among consumers, people are preferring organic chips in comparison to traditional ones. Also, baked chips with fewer calories are preferred over fried potato chips. Additionally, in the developing regions of the world, with the increasing middle-class population and increasing family income, with females entering the main workstream, the market is projected to hold strong growth perspectives with the growing demand for convenience-packed food.

Furthermore, the rising demand for convenience food is also attributed to the growing purchasing power of people who are keen to spend on premium food products along with a strong desire for testing new products. With the growing number of travellers, particularly, with the increasing number of air travellers, either on a business trip or on a leisure trip, portable food like snacks is quite convenient to carry while onboard, hence, this is also fueling the market demand in the forecast period. Consumption of convenience food also known as ready-to-go foods helps in saving time and energy during the time of travel. Thus, consumers look for foods that are easy to use, have sufficient nutritional value, and are delivered quickly. This is further providing heaps of opportunities for manufacturers to produce high-quality innovative convenience foods in order to meet the demand. Moreover, as consumers are moving on to replace consuming one or two meals a day with the consumption of snacks like potato chips, the manufacturers are working on this trend where customers look for healthy snacks and are cutting down on harmful ingredients like excessive salt, with high sodium content, and bad fat. This is because of the growing worldwide prevalence of chronic diseases, which include obesity, high blood pressure, and heart-related disorders due to the adoption of an unhealthy diet.

Key Developments in the Market

In February 2022, Ruffles extended its partnership with the NBA star, LeBron James, announcing a new flavoured potato chip - Flamin' Hot Cheddar and Sour Cream. Inspired by James' flavoured chips as a child, the chips are the perfect blend of sour cream and cheddar.

In February 2022, the partnership between Dinosaur Bar-B-Que and New York Chips resulted in the launch of new riffled chips - Dinosaur BBQ Chips. John Stage, the owner of the brand Dinosaur, announced that the licensing fee generated from every sold bag would be donated to the Food Bank of Central New York.

In October 2021, Ballreich Snack Food company and the Ohio State University announced their partnership with the introduction of the new Tailgate series. A collection of tailgating flavours are packed into bite-sized crispy potato chips and are available in four new flavours: Classic, Cheddar Slider, Buffalo Ranch, and Jalapeno Popper.

COVID-19 Insights:

COVID-19 had a positive impact on the global potato chips market. The mandated lockdown and social distancing measures had led to the stockpiling of ready-to-eat foods with more extended shelf-life, like potato chips, which increased the sales of potato chips in 2020. Furthermore, key players' innovative strategies and rapid adoption of the e-commerce segment to promote their brand had further fuelled the market growth amid the pandemic.

Segmentation:

By Type

• Organic
• Conventional

By Preparation Type

• Baked Chips
• Fried Chips

By Product Type

• Plain
• Flavoured

By Distribution Channel

• Online
• Offline
• Hypermarket/Supermarket
• Convenience Store
• Grocery Store

By Geography

• North America
• USA
• Canada
• Mexico
• South America
• Brazil
• Argentina
• Europe
• UK
• Germany
• France
• Spain
• Italy
• Middle East and Africa
• UAE
• Israel
• Saudi Arabia
• Asia Pacific
• Japan
• China
• India
• Australia
• Indonesia
• Thailand