Global Processed Potatoes Market to grow over 5 percent annually according to Technavio report

Market Size Outlook (USD Billion)

Processed Potato Market Size Outlook (USD Billion)

六月 09, 2024

The processed potatoes market size is forecast to increase by USD 45 billion at a CAGR of 5.34% between 2024 and 2028. Market expansion is contingent on several factors, such as an increasing emphasis on expanding production capacities for potato processing. Additionally, the growth of organized retailing and the rising prominence of private-label brands are significant contributors.

These factors underscore a robust expansion in the market, driven by both consumer demand and industry initiatives. Furthermore, the market's growth is fueled by evolving consumer preferences and the industry's response to these trends.

The expansion of production capabilities, particularly in response to increasing demand, reflects a proactive approach to meeting market needs. It also includes an in-depth analysis of market trends and analysis, market growth analysis and challenges. Furthermore, the report includes historic market data from 2018 - 2022.

What will be the Size of the Market During the Forecast Period?

Market Dynamics and Customer Landscape

The market is experiencing growth due to factors such as the easy availability of potatoes, change in eating habits favoring convenience foods, and the young population seeking quick and nutritious options. The potato industry is supported by farmers adopting modern farming techniques and modernization processes. Key market players are implementing organic growth strategies and inorganic growth strategies to expand their presence.

Investment opportunities in the market are attracting attention, with analysts like Cedric Porter highlighting the sector's potential.

Overall, the market is driven by a desired goal to meet the demands of nutriment chains and consumers for French-fried potatoes and other products. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

Key Market Driver

The growing focus on expanding production capabilities for potato processing is notably driving the market growth. The global market is experiencing significant growth due to increasing consumer demand for convenient, on-the-go snacks in both developed and tropical countries.

The companies are expanding their production capabilities to meet this demand, with a focus on frozen potatoes for use in restaurants, hotel chains, retail sectors, and quickservice restaurants. Technologically advanced potato-producing countries are leading this trend, with mergers and acquisitions, joint ventures, and geographical expansions driving growth. 

Furthermore, these products are also finding a place in the wellness environment, with applications in dietary supplements, prepared meals, and convenience foods. Rapid urbanization and changing food preferences are contributing to the growth of the market, with a focus on vegetarian and vegan food items.

Health concerns, such as hypertension, cardiovascular disease, cancer, stroke, and obesity, are driving demand for transfat-free cooking oils. Key players in the market include Kraft Heinz and NotCo. Therefore, these factors are expected to aid in the growth of the market.

Significant Market Trend

The growing prominence of online shopping is a major trend in the market. The processed potatoes market has experienced substantial growth in the last decade due to the proliferation of e-commerce. This trend allows consumers in developed economies and tropical countries alike to access a diverse range of potato products through online platforms.

Potato processing includes frozen potatoes, which are popular in restaurants, hotel chains, and retail sectors. Potato-producing countries are adopting technologically advanced farming methodologies and storage and transportation solutions to cater to the increasing demand for processed potatoes. Health concerns, such as hypertension, cardiovascular disease, cancer, stroke, and obesity, have led to a shift towards vegetarian, vegan food items, and dietary supplements. 

Quickservice restaurants and prepared meals, including convenience foods, have become increasingly popular, especially among young people and those living in rapidly urbanizing areas. Mergers and acquisitions, joint ventures, and geographical expansions by companies like Kraft Heinz and NotCo are driving innovation in the processed potatoes market. Processed potato products, including potato chips and French fries, come in various flavors, with Asian flavors gaining popularity.

These foods are often high in transfats and cooking oil, which can contribute to health issues. However, efforts are being made to reduce the use of transfats and offer healthier alternatives. Cross-regional flavors and changing food preferences are influencing the market, with an emphasis on fast food and processed foods. Therefore, these factors are expected to drive the growth of the potato processing market during the forecast period.

Major Market Challenge

The stringent government regulations is a major challenge impeding the market growth. The processed potatoes market encompasses a wide range of potato products, including frozen potatoes, prepared meals, and convenience foods, in both developed and tropical economies. In developed economies, stringent regulations issued by agencies like the FDA in the US impact the manufacturing, marketing, and labeling of these products.

Tropical countries, with their focus on potato growing and farming methodologies, also contribute significantly to the market. Potato processing caters to various sectors, such as restaurants, hotel chains, retail, and sports and wellness environments. 

Furthermore, with rapid urbanization and changing food preferences, the demand for quickservice restaurants, dietary supplements, and vegan or vegetarian food items is on the rise. Mergers and acquisitions, joint ventures, and geographical expansions by companies like Kraft Heinz and NotCo further shape the market landscape.

Health concerns related to hypertension, cardiovascular disease, cancer, stroke, obesity, and transfat-rich cooking oils are driving the need for innovation in potato processing, storage, and transportation solutions. Therefore, these factors can hinder the growth of the potato processing market during the forecast period.

Key Market Customer Landscape

The market forecasting report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth and forecasting strategies.

 

Market Customer Landscape

Market Customer Landscape

Key Companies & Market Insights

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market. 

Calbee Inc. - The company produces and sells potato-based, flour-based, corn, and bean-based snack foods, and cereals. The key offerings of the company include processed potatoes. The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including: 

  • Burts Snacks Ltd.
  • Campbell Soup Co.
  • Cooperatie Koninklijke Cosun UA
  • Farm Frites International B.V.
  • Groupe Limagrain
  • Idahoan Foods LLC
  • J.R. Short Milling Co.
  • J.R. Simplot Co.
  • Kellogg Co.
  • Lamb Weston Holdings Inc.
  • LENG DOR S.A.U.
  • McCain Foods Ltd.
  • Old Dutch Foods Ltd.
  • PepsiCo Inc.
  • Pfeifer and Langen GmbH and Co. KG
  • Royal Avebe
  • SZVG eG
  • The Kraft Heinz Co.
  • The Little Potato Co.

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak. 

Market Segmentation

By Distribution Channel The market share growth by the offline segment will be significant during the forecast period. The market has experienced significant growth, driven by the expansion of supermarkets and hypermarkets, such as Aviko and Bavaria. Urbanization and rising standards of living have fueled the demand for frozen potato products, including snack foods and ready-to-eat meals. 

 

Processed Potatoes Market

Processed Potatoes Market

The offline segment was valued at USD 120.00 billion in 2018. Supply chain activities have been optimized through primary exploratory research and secondary desk research. The commercial foodservice industry, including processing technology, has been influenced by health and environmental consciousness, fitness trends, and fastfood businesses.

French fries, potato chips, hash browns, wedges, mashed potato, and other products are popular in hotels, cafes, quick service restaurants, and the snacks segment. Favorable climate and soil conditions have also contributed to the processing market's growth. Convenient packaging and busy schedules have driven consumer preferences toward prepared ready meals, chips, and snack pellets. Dehydrated potatoes are also gaining popularity in the market. Therefore, all of these factors will contribute to segment growth during the forecast period. 

 

Processed Potatoes Market by regions

Processed Potatoes Market by regions

APAC is estimated to contribute 30% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. 

Another region offering significant growth opportunities to vendors is North America. The industry in North America focuses on Chips and snacks as consumer demand for quick and convenient food solutions continues to rise. Potato products, including Soups, Gravies, Bakery items, and Desserts, remain popular in Foodservice and Food delivery channels.

However, the market faces challenges due to increasing health consciousness, leading consumers to opt for alternatives like nuts, berries, cereals, and yogurt. Companies must innovate and offer improved taste and quality in their products while maintaining competitive prices. Food additives play a crucial role in enhancing the taste and shelf life of potato products. 

Segment Overview

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.

  • Distribution Channel Outlook
    • Offline
    • Online
  • Product Outlook
    • Potato chips
    • Potato flakes
    • Potato starch
    • Frozen french fries
    • Others
  • End-user Outlook
    • Foodservice sector
    • Retail sector
    • Industrial sector
  • Region Outlook
    • North America
      • The U.S.
      • Canada
    • Europe
      • The U.K.
      • Germany
      • France
      • Rest of Europe
  • APAC
    • China
    • India
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa
  • South America
    • Chile
    • Brazil
    • Argentina

Market Analyst Overview

The market is influenced by various factors, including the demand from full-service restaurants and the hotel industry for convenient ready-to-cook & prepared meals. Publications like the World Potato Markets magazine track trends in the industry, including the impact of events such as the Corona-infection outbreak. 

Furthermore, leading market players are focusing on innovative products, leading to the introduction of patents in the sector. Promotional activities and social media marketing by Leading potato processing market players play a crucial role in promoting ready-to-cook potato products and attracting consumers, including vegetarians and vegans, who seek health benefits and prefer vegetarian and vegan food options to reduce the risk of cardiovascular illnesses associated with trans-fats and LDL cholesterol found in fried snacks.

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