How Has The Potato Processing Market Size Evolved In Recent Years?
The potato processing market has seen considerable growth due to a variety of factors.
• The size of the potato processing market has been experiencing robust growth in recent years. It is predicted to rise from $32.13 billion in 2024 to $33.94 billion in 2025, reflecting a compound annual growth rate (CAGR) of 5.7%.
The previous growth can be credited to the surge in demand for instant meals and frozen items, the growing popularity of convenience food congruent with evolving lifestyles and packed schedules, an increase in the number of hotels and eateries, a rise in promotional initiatives and social media marketing for potato processing items, and the availability of a broad spectrum of potato processing products.
What Are The Estimated Market Size And Expected Annual Growth Rates For Global Potato Processing Market?
The potato processing market is expected to maintain its strong growth trajectory in upcoming years.
• Strong expansion is anticipated for the potato processing market in the upcoming years, with its size projected to reach $43.22 billion in 2029, increasing at a compound annual growth rate (CAGR) of 6.2%.
Factors contributing to this predicted growth during the forecast period consist of rising demand for nutritious potato-based products including sweet potato chips and baked potato chips, escalating global food commerce and globalization, growth in health consciousness, increasing global population, and the commitment to sustainable and environmentally-friendly practices. Potent trends during the forecast period comprise the innovation of novel processing technologies and sophisticated systems, the creation of new products, the introduction of potato-based snack items, and gluten-free and allergy-friendly products, coupled with the focus on clean labels and natural components.
What Are The Essential Drivers Behind The Growth Of The Potato Processing Market?
The boom in the potato processing industry can be attributed to the rising consumer preference for convenience foods that save time and effort. Rapid shifts in consumer lifestyle, tastes, and preferences are a factor here. There's a growing trend of consumers gravitating towards convenience foods because of their hectic schedules, lack of time to cook at home, and their desire to sample and enjoy a variety of tastes. Processed potato products commonly feature in convenience foods as they provide daily nourishment and are time-efficient. For instance, the US-based National Association of Convenience Stores reported in April 2023 that 67.3% of foodservice sales in convenience stores in 2022 comprised prepared food, while commissary items took up 9.5%. Hot dispensed beverages contributed 9.2%, cold dispensed beverages were 8.0% and frozen dispensed beverages made up 6.0% of the sales in 2022. All in all, foodservice sales composed an average of 25.6% of monthly in-store sales. The current rise in the preference for convenience foods among customers has led to an upswing in the potato processing market.
How Is The Global Potato Processing Market Divided Into Key Segments?
The potato processing market covered in this report is segmented –
1) By Product: Frozen, Dehydrated, Chips And Snack Pellets, Other Products
2) By Application: Ready to Cook and Prepared Meals, Snacks, Food Additives in Soups, Gravies, Bakery, Desserts, Other Applications
3) By Distribution Channel: Food Services, Specialty Stores, Convenient Stores, Departmental Stores, Other Distribution Channels
Subsegments:
1) By Frozen: Frozen French Fries, Frozen Mashed Potatoes, Frozen Potato Wedges, Frozen Hash Browns
2) By Dehydrated: Dehydrated Potato Flakes, Dehydrated Potato Granules, Dehydrated Potato Slices
3) By Chips and Snack Pellets: Potato Chips, Potato Crisps, Potato Snack Pellets
4) By Other Products: Potato Starch, Potato Flour, Processed Potato Products
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What Trends Are Reshaping The Future Of The Outlook Market?
Key players in the potato processing market, such as Tummers - Food Processing Solutions, are adopting innovative technologies like E²E SteamClosure to bolster their market profitability. This unique system focuses on extracting moisture from potatoes and converting it into reusable water. In July 2023, this Netherland-based food processing company introduced the E²E SteamClosure specifically for potato processing, offering a more sustainable and efficient choice to the food processing domain. This revolutionary technology has the potential to save energy, reduce emissions, and improve the overall production process, mainly through moisture removal and energy transformation.
Who Are the Key Players in the Potato Processing Market?
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
What are the Regional Insights into the Potato Processing Market?
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 include Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.
