Potato Granules Market By Nature (Organic, Conventional) , By End Use (Household, Commercial) By Distribution Channel (Hypermarkets and Supermarkets, Specialty Stores, Convenience Stores, Online Retailers, Others) : Global Opportunity Analysis and Industry Forecast, 2024-2033
Potato Granules Market
The potato granules market was valued at $7.3 billion in 2023 and is projected to reach $12.1 billion by 2033, growing at a CAGR of 5.2% from 2024 to 2033.
Potato granule is a processed, dehydrated form of potato known for its versatility and extended shelf life. The dried granules are easily rehydrated using water and are used for the formation of soups, mashed potato, sauces, and convenience foods. The dehydration process prevents the growth of microbes and ensures that the granules remain non-perishable for extensive periods.
Rise in the popularity of convenience foods owing to surge in fast-paced lifestyles and busy schedules is a key driver of the potato granules market. In addition, expansion of the food service industry is augmenting the development of the market. This is attributed to the cost-efficient and easy-to-use characteristics of potato granules that enable restaurants & caterers to cook food on a large scale effectively. Furthermore, the processed food industry is a major consumer of potato granules as they are incorporated into the manufacturing of instant soups, ready-to-eat meals, and sauces. A key trend gaining prominence in the potato granules market is the infusion of different flavors to appeal to diverse segments of consumers. Manufacturers are considerably focusing on introducing different varieties such as herb-, cheese-, and garlic-flavored potato granules.
However, volatility in the prices of raw potatoes due to fluctuating climatic conditions and crop yields impacts the overall cost of granules. This leads to uncertainty in profits for manufacturers & retailers and hampers the development of the market. Moreover, persistent preference for fresh products among a broad base of consumers restrains the market growth significantly. On the contrary, rise in the export and import of potato granules is projected to present lucrative opportunities for the market. According to The Observatory of Economic Complexity—an online data visualization platform—potato granules were among the top traded products across the globe in 2022, with a total trade value of $824 million.
Segment ReviewThe potato granules market is segmented into nature, end use, distribution channel, and region. On the basis of nature, the market is bifurcated into organic and conventional. As per end use, it is divided into household and commercial. Depending on distribution channel, it is classified into hypermarkets & supermarkets, specialty stores, convenience stores, online retailers, and others. Region wise, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
Key FindingsOn the basis of nature, the conventional segment held a high share of the market in 2023.
As per end use, the commercial segment acquired a high stake in the market in 2023.
Depending on distribution channel, the hypermarkets & supermarkets segment dominated the market in 2023.
Region wise, Europe was the highest revenue generator in 2023.
Competition AnalysisThe major players in the global potato granules market include Lamb Weston Holdings, Inc., McCain Foods Limited, Idahoan Foods, LLC, Agrana Beteiligungs-AG, Aviko B.V., Emsland Group, J.R. Simplot Company, Pailan Group, PEPEES S.A., and Grupo Apex. These major players have adopted various key development strategies such as business expansion, new product launches, and partnerships to strengthen their foothold in the competitive market.
Key Market SegmentsBy NatureOrganic
Conventional
By End UseHousehold
Commercial
By Distribution ChannelHypermarkets and Supermarkets
Specialty Stores
Convenience Stores
Online Retailers
Others
By RegionNorth America
U.S.
Canada
Mexico
Europe
France
Germany
Italy
Spain
UK
Russia
Rest of Europe
Asia-Pacific
China
Japan
India
South Korea
Australia
Thailand
Malaysia
Indonesia
Rest of Asia-Pacific
LAMEA
Brazil
South Africa
Saudi Arabia
UAE
Argentina
Rest of LAMEA
Key Market PlayersLamb Weston Holdings, Inc.
McCain Foods Limited
Idahoan Foods, LLC
Agrana Beteiligungs-AG
Aviko B.V.
Emsland Group
J.R. Simplot Company
Pailan Group
PEPEES S.A.
Grupo Apex