Potato Processing Market Report 2025

This Potato Processing report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market’s historic and forecast market growth by geography.

The potato processing market size has grown strongly in recent years. It will grow from $32.13 billion in 2024 to $33.94 billion in 2025 at a compound annual growth rate (CAGR) of 5.7%. The growth in the historic period can be attributed to rise in demand for ready-to-cook meals and frozen products, increased demand for convenience food in line with changing lifestyles and busy schedules, rise in the number of hotels and restaurants, increase in promotional activities and social media marketing for potato processing products, availability of a wider range of potato processing products.

The potato processing market size is expected to see strong growth in the next few years. It will grow to $43.22 billion in 2029 at a compound annual growth rate (CAGR) of 6.2%. The growth in the forecast period can be attributed to growing demand for healthy potato products such as sweet potato chips and baked potato chips, increasing global food trade and globalization, upsurge in health consciousness, growing global population, sustainability and eco-friendly practices. Major trends in the forecast period include innovating new processing technology and advanced systems, development of new products, emergence of potato-based snack products, gluten-free and allergen-free products, clean label and natural ingredients.

The rising consumer preference for convenience foods, aimed at saving time and effort, is fueling the growth of the potato processing market. Consumers' lifestyles, tastes, and preferences are rapidly evolving. Many are increasingly leaning toward convenience foods due to limited time for preparing home-cooked meals and a desire to experiment with diverse flavors. Processed potato products serve as a significant source of daily nourishment and a time-saving solution, making them prevalent in convenience foods. For example, in April 2023, the National Association of Convenience Stores, a U.S.-based retailing industry organization, reported that in 2022, convenience store foodservice sales were distributed as follows: prepared food accounted for 67.3% of total foodservice sales, while commissary items made up 9.5%. Hot dispensed beverages represented 9.2% of the total, cold dispensed beverages accounted for 8%, and frozen dispensed beverages comprised 6%. Overall, foodservice sales averaged 25.6% of monthly in-store sales. Consequently, the increasing consumer preference for convenience foods has contributed to the growth of the potato processing market.

The rise in lifestyle changes is expected to drive the growth of the potato processing market in the future. Lifestyle changes refer to significant modifications in an individual’s or community’s living patterns, including daily routines, behaviors, and habits. Shifting dietary preferences toward convenience and processed foods, prompted by busier lifestyles, have resulted in greater demand for processed potato products. Consumers frequently choose these items as quick and easy meal or snack options. For example, in July 2023, the Office for National Statistics, a UK-based government department, reported that over 86.5% of adults in Great Britain indicated making lifestyle changes to address environmental concerns, based on survey responses collected from May to June 2023. This demonstrates a strong commitment to sustainability among the population. Thus, the increase in lifestyle changes is fueling the growth of the 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., Idaho Pacific Corporation.

Western Europe was the largest region in the potato processing market in 2024. 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.

Potato processing involves converting raw potatoes into a variety of products, including chips, fries, and mashed potatoes. This process is utilized to extend shelf life, enhance flavor, and provide convenient food options for consumers.

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 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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