Potato Processing Global Market Report 2024

Potato processing involves the production of convenient potato products, primarily achieved through processes such as washing, peeling, size reduction, and the removal of defective matter. These steps encompass a variety of heat treatments, cooling processes, dehydration, and stages of frying or freezing. Peeled potatoes undergo parboiling, air drying, par-frying, freezing, and are subsequently packaged after cutting. The finalized products are then packaged and stored according to specific product requirements.

The primary categories of processed potato products include frozen, dehydrated, chips and snacks, and others. Frozen products consist of potatoes stored in cold conditions to prevent spoilage. Fresh potatoes are diced and frozen to reduce cooking time, finding application in ready-to-cook and prepared meals, snacks, and as food additives in soups, gravies, bakery items, and desserts. These products are distributed through various channels, including food services, specialty stores, convenience stores, departmental stores, and others.

The potato processing market research report is one of a series of new reports that provides potato processing market statistics, including potato processing industry global market size, regional shares, competitors with a potato processing market share, detailed potato processing market segments, market trends and opportunities, and any further data you may need to thrive in the potato processing industry. This potato processing market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The potato processing market size has grown strongly in recent years. It will grow from $30.41 billion in 2023 to $32.13 billion in 2024 at a compound annual growth rate (CAGR) of 5.7%. The growth observed in the historic period can be attributed to the increased demand for ready-to-cook meals and frozen products, a rising preference for convenience food driven by changing lifestyles and busy schedules, an increase in the number of hotels and restaurants, heightened promotional activities, and the effectiveness of social media marketing strategies for potato processing products. Additionally, the availability of a wider range of potato processing products contributed to the overall growth in this sector.

The potato processing market size is expected to see strong growth in the next few years. It will grow to $40.61 billion in 2028 at a compound annual growth rate (CAGR) of 6.0%. The anticipated growth in the forecast period can be attributed to the increasing demand for healthy potato products, including items like sweet potato chips and baked potato chips. Other contributing factors include the expanding global food trade and globalization, a rise in health consciousness among consumers, the growth of the global population, and the increasing focus on sustainability and eco-friendly practices within the industry. Key trends expected in the forecast period include the innovation of new processing technology and advanced systems, the development of novel potato-based snack products, an emphasis on gluten-free and allergen-free offerings, and the promotion of clean label and natural ingredients in processed potato products.

The potato processing market is experiencing growth driven by the increasing consumer preference for convenience foods, aiming to save time and effort. Rapid changes in lifestyle, tastes, and consumer preferences are steering individuals towards convenience foods, driven by a lack of time for home-cooked meals and an openness to exploring diverse tastes. Processed potato products, known for their convenience and time-saving attributes, are integral to most convenience foods. A 2021 study conducted by OnePoll in collaboration with Farm Rich on 2,000 Americans revealed that over 69% of respondents expressed a preference for continuing with comfort foods in the post-pandemic era. The surge in consumer inclination towards convenience foods has consequently fueled the growth of the potato processing market.

Anticipated lifestyle changes are poised to further propel the growth of the potato processing market. Lifestyle changes involve significant alterations in daily routines, behaviors, and habits at both individual and community levels. The shift in dietary preferences towards processed and convenient foods, driven by busier lifestyles, has led to an increased demand for processed potato products. A report from the UK-based Government Digital Services indicated that in 2021, 80% of adults above the age of eighteen chose to modify their way of living. This shift in lifestyle preferences is a key driver behind the expanding potato processing market.

Major players in the potato processing market are investing in innovative technologies to enhance profitability. One such innovation is the E²E SteamClosure, introduced by Tummers – Food Processing Solutions, a Netherlands-based food processing company in July 2023. The E²E SteamClosure is a method focused on extracting moisture from potatoes and converting it into reusable water. This technology offers a more efficient and sustainable option for potato processing, contributing to energy conservation, emission reduction, and overall process enhancement.

Major companies in the potato processing market are introducing new products to boost their market position. An example is the fungicide product Quintect 105SC, developed by FMC Corporation, a US-based food processing company, in February 2023. Quintect 105SC is designed to control late blight in potatoes with high efficacy and a unique mode of action. This liquid formulation can be applied up to 8 fl oz per acre per application or 32 fl oz per acre per season. The product has been introduced in various locations in Indonesia, aligning with FMC Indonesia's efforts to provide farmers with effective solutions for their dietary needs and crop-related challenges.

In September 2023, Lamb Weston Holdings Inc., a US-based food processing company, acquired Crackerjack Foods for an undisclosed amount. This strategic acquisition enabled Lamb Weston to expand its market share in the Australian foodservice sector, aligning with its broader plan to enhance its clientele in the Asia-Pacific region. The acquisition was seen as strategically fitting due to shared commitments to quality, innovation, and similar product ranges between Lamb Weston and Crackerjack Foods, a US-based food processing company.

Major companies operating in the potato processing market include Lamb Weston Holdings Inc., The Kraft Heinz Co., McCain Foods Ltd., John Richard Simplot, Agristo NV, Key Technology Ltd., Urschel Laboratories Inc., Sormac B.V., The Little Potato Company Ltd., J.R. Short Milling Company, Agrana Beteiligungs-AG, Aviko B.V., Farm Frites International B.V., Idahoan Foods LLC, Pepsico Inc., Intersnack Group GmbH & Co KG, Calbee Inc., Kellanova Co., Old Dutch Foods Inc., Burts Potato Chips Ltd., Herr Foods Inc., Kettle Foods Inc., Snyder's-Lance Inc., Utz Quality Foods LLC, Wise Foods Inc., Ballreich Snack Food Company, Cape Cod Potato Chips, Gibble's Foods Inc., Zapps – Utz Quality Foods., Avure Technologies Inc., Idaho Pacific Corporation

Western Europe was the largest region in the potato processing market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the potato processing market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.

The countries covered in the potato processing market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA.

The potato processing market consists of sales of french fries, soups, salads, potato snacks. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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