The global market for processed potato products is poised for significant growth over the forecast period. The market is anticipated to witness a steady expansion driven by increasing demand across various sectors, particularly in the food and beverage industry. Processed potato products are gaining popularity due to their convenience, availability, and the growing trend of ready-to-eat meals. These factors are contributing to the rising consumption of processed potato products globally.The global market for processed potato products is projected to reach a value of USD 79.79 billion in 2024, with significant growth expected to push this figure to USD 125.3 billion by 2031, driven by a CAGR of 6.70%.
Several factors have been instrumental in pushing the global potato processing industry forward. These include the easy availability of processed potato products, convenient packaging, rising urbanization, improvements in the standard of living, changing lifestyles of the middle-class population, and increasing disposable incomes. These elements are collectively driving the expansion of the processed potato products market.
Moreover, ready-to-cook potato products such as fries and snacks are being marketed with labels like vegan or organic to boost sales. The demand for organic, plant-based flavors, and clean-labeled potato products has seen a significant increase in recent years, further driving market growth.
The increasing female workforce population, coupled with time limitations and a growing trend of socializing at home, is driving the sales of frozen potato products. Additionally, the rise of nuclear families and young professionals living alone has opened up new opportunities for market players to expand their reach. The acceptance of Western culture and the increasing demand for freshly cooked food are also contributing to the growth of the frozen potato products industry.
The demand for frozen potatoes has seen a significant increase due to the growth and expansion of QSRs. Frozen French fries, in particular, are in high demand at these establishments because they require less preparation time and are easy to use. The rising popularity of QSRs is, therefore, a key driver of the processed potato products market.
Maintaining a continuous or year-round supply of processed potato products at a fair price is another challenge faced by suppliers. These factors could potentially hinder the growth of the processed potato products market, despite the positive demand outlook.
In East Asia, the market for processed potato products is evolving rapidly. The market is expected to experience promising growth, with certain countries leading the charge. The growing demand for processed potato products in this region is a result of changing consumer preferences and the increasing popularity of convenience foods.
In terms of distribution channels, the food service segment holds a major value share in the global processed potato products market. This segment has been a key driver of growth, with the demand for processed potato products in the food service industry continuing to rise. The convenience offered by these products makes them a popular choice for food service providers.
Despite these challenges, the processed potato products industry witnessed consistent growth. The pandemic led to a rise in demand for frozen food products, which have a longer shelf life than fresh food items. The global shutdowns increased demand for frozen food products as consumers sought to minimize trips to the market. This factor contributed to the sustained demand for processed potato products during the pandemic.
For instance, a leading company signed a multi-year strategic supply arrangement to become the sole supplier and manufacturer of a popular potato product brand. Another major player acquired a frozen potato manufacturer to expand its global capabilities. These strategic moves highlight the competitive nature of the processed potato products market and the efforts companies are making to stay ahead.
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Consumption Analysis of Processed Potato Products
Historically, the global market for processed potato products has seen consistent growth, fueled by the increasing popularity of frozen French fries and other processed potato snacks. The demand for these products has been primarily driven by the fast-food industry, where convenience and quick preparation times are crucial. Additionally, the food and beverage sector has experienced a surge in the consumption of processed foods, thanks to improved farming practices, cost-effective availability, and changing consumer preferences toward convenience foods that save time and effort.Several factors have been instrumental in pushing the global potato processing industry forward. These include the easy availability of processed potato products, convenient packaging, rising urbanization, improvements in the standard of living, changing lifestyles of the middle-class population, and increasing disposable incomes. These elements are collectively driving the expansion of the processed potato products market.
What’s Driving Consumption of Processed Potato Products?
The market is expanding with excellent prospects, particularly due to the increasing popularity of vegan and organic food products in well-developed regions. This trend is a result of rising health consciousness and concerns for animal welfare. Health-conscious consumers are increasingly preferring healthier snacks, such as olive-baked potato chips, sweet potato fries, and organic potato chips, to meet their nutritional needs. Baked potato chips, for instance, are seen as a healthier alternative to regular potato chips, appealing to consumers looking for options with fewer calories and less fat.Moreover, ready-to-cook potato products such as fries and snacks are being marketed with labels like vegan or organic to boost sales. The demand for organic, plant-based flavors, and clean-labeled potato products has seen a significant increase in recent years, further driving market growth.
Rising Demand for Frozen Potato Products
Frozen potato products have emerged as a significant growth driver in the processed potato products market. These products have a long shelf life and retain several essential vitamins and nutrients in their natural preserved state. Frozen potatoes are rich in Vitamin B6, fiber, magnesium, and antioxidants. The processing of fresh potatoes at low temperatures using specialized equipment ensures that these nutritional benefits are preserved.The increasing female workforce population, coupled with time limitations and a growing trend of socializing at home, is driving the sales of frozen potato products. Additionally, the rise of nuclear families and young professionals living alone has opened up new opportunities for market players to expand their reach. The acceptance of Western culture and the increasing demand for freshly cooked food are also contributing to the growth of the frozen potato products industry.
Expansion of Quick Service Restaurants
The global processed potato products market is heavily influenced by the expansion of quick service restaurants (QSRs). These establishments, which serve mass-produced dishes, have become a necessity for many consumers. QSRs are gaining popularity due to the convenience they offer and the high quality of their food. They are also cost-effective in terms of both money and time, making them an attractive option for a growing number of customers.The demand for frozen potatoes has seen a significant increase due to the growth and expansion of QSRs. Frozen French fries, in particular, are in high demand at these establishments because they require less preparation time and are easy to use. The rising popularity of QSRs is, therefore, a key driver of the processed potato products market.
Challenges in the Processed Potato Products Market
Despite the positive growth outlook, the processed potato products market faces several challenges. Health concerns associated with the consumption of processed food items are a primary factor limiting market expansion. High levels of acrylamide in snack foods, which have been linked to potential health risks, are a significant concern for consumers. Additionally, the high cost of storage and transportation of processed potato products presents challenges for market players.Maintaining a continuous or year-round supply of processed potato products at a fair price is another challenge faced by suppliers. These factors could potentially hinder the growth of the processed potato products market, despite the positive demand outlook.
Regional Insights
The market for processed potato products varies significantly across different regions. In Europe, for instance, there is a strong demand for convenience foods that save time and effort. This region is witnessing high demand for ready-to-cook products and snacks, which is driving the sales of processed potato products.In East Asia, the market for processed potato products is evolving rapidly. The market is expected to experience promising growth, with certain countries leading the charge. The growing demand for processed potato products in this region is a result of changing consumer preferences and the increasing popularity of convenience foods.
Category-wise Insights
When analyzing the processed potato products market by type, frozen potato products hold the largest market share. Among these, potato chips and shoestrings are particularly popular, accounting for a significant portion of the market. This trend is expected to continue as consumers increasingly seek out convenient and easy-to-prepare snack options.In terms of distribution channels, the food service segment holds a major value share in the global processed potato products market. This segment has been a key driver of growth, with the demand for processed potato products in the food service industry continuing to rise. The convenience offered by these products makes them a popular choice for food service providers.
COVID-19 Impact on the Processed Potato Products Market
The COVID-19 pandemic created significant challenges across industries, including the global food and beverage industry. The supply networks were severely disrupted due to lockdowns, travel bans, and the stoppage of production plants, resulting in a decline in sales. The industrial sector also faced a product supply gap due to shortages of raw materials and labor.Despite these challenges, the processed potato products industry witnessed consistent growth. The pandemic led to a rise in demand for frozen food products, which have a longer shelf life than fresh food items. The global shutdowns increased demand for frozen food products as consumers sought to minimize trips to the market. This factor contributed to the sustained demand for processed potato products during the pandemic.
Competitive Analysis
Companies in the processed potato products industry are focusing on product development and facility expansions to secure their positions in the market. They are offering products that come with several certifications, ensuring quality and meeting consumer demand for healthier and more sustainable options.For instance, a leading company signed a multi-year strategic supply arrangement to become the sole supplier and manufacturer of a popular potato product brand. Another major player acquired a frozen potato manufacturer to expand its global capabilities. These strategic moves highlight the competitive nature of the processed potato products market and the efforts companies are making to stay ahead.
Key companies profiled
- McCain Foods Limited
- Lamb Weston Holdings, Inc.
- Farm Frites International B.V.
- PepsiCo
- J.R. Simplot Company
- Aviko B.V.
- The Kraft Heinz Company
- AGRANA Beteiligungs-AG
- Idahoan Foods, LLC
- Emsland Group
- J.R. Short Milling Company
- LENG-D'OR
- Limagrain Ingredients
- Intersnack Group GmbH & Co. Kg
- The Little Potato Company Ltd.
- Other Companies
Processed Potato Products Industry Research by Category
Processed Potato Products Market by Type:
- Chips & Shoestrings
- Dehydrated
- Frozen Potatoes
- Canned Potatoes
- Others
Processed Potato Products Market by Application:
- Ready to Cook Products
- Prepared Meals
- Snacks
Processed Potato Products Market by Distribution Channel:
- Retail
- Food Service
Processed Potato Products Market by Region:
- North America Processed Potato Products Market
- Latin America Processed Potato Products Market
- Europe Processed Potato Products Market
- South Asia Processed Potato Products Market
- East Asia Processed Potato Products Market
- Oceania Processed Potato Products Market
- Middle East And Africa Processed Potato Products Market
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Table of Contents
1. Executive Summary
2. Market Overview
3. Global Processed Potato Products Market Outlook, 2019 - 2031
4. North America Processed Potato Products Market Outlook, 2019 - 2031
5. Europe Processed Potato Products Market Outlook, 2019 - 2031
6. Asia Pacific Cassava Starch Market Outlook, 2019 - 2031
7. Latin America Processed Potato Products Market Outlook, 2019 - 2031
8. Middle East & Africa Processed Potato Products Market Outlook, 2019 - 2031
9. Competitive Landscape
10. Appendix
Companies Mentioned (Partial List)
A selection of companies mentioned in this report includes, but is not limited to:
- McCain Foods Limited
- Lamb Weston Holdings, Inc.
- J.R. Simplot Company
- PepsiCo
- The Kraft Heinz Company
- Aviko B.V.
- AGRANA Beteiligungs-AG
- Farm Frites International B.V.
- Emsland Group
- LENG-D'OR
- Idahoan Foods, LLC
- Limagrain Ingredients
- Intersnack Group GmbH & Co. Kg
- The Little Potato Company Ltd.
- J.R. Short Milling Company
Methodology
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