Baked Chips Market - 2023-2030

Baked Chips Market - 2023-2030

Global Baked Chips Market reached US$ 1.53 billion in 2022 and is expected to reach US$ 2.34 billion by 2030, growing with a CAGR of 5.4% during the forecast period 2023-2030.

Baked chips are trending as healthy snacks. The change in consumer dietary preferences towards healthy and nutritious snacks has a positive influence on the global baked chips market. To compensate for the reduced use of fried chips due to their health concerns, people are adopting baked chips that are healthier and more nutritious.

With the increasing number of cases of various health diseases, consumers are demanding clean-label snacks. Low-sodium and organic chips from natural sources are highly in demand. The lower calorie and higher nutritive values of baked chips increase the product expansion in the global market. The new and innovative product launches with whole-grain and high fiber and protein-rich raw materials increased the product demand.

The increased health concerns made consumers choose free-from synthetic additives and healthy products. Increased launch of new and natural products positively drives market growth. For instance, in December 2021, Pop, a baked potato chip, was launched by an Indian-based TagZ Foods, a popped chips maker startup. The product is gaining popularity due to its gluten-free and preservative-free nature.

Dynamics

Raise in Acceptance of Baked Products

Rising awareness regarding the negative impact of fried chips increased consumer preference for baked chips. The fried chips are subjected to higher-temperature oils, reducing their value. Fried chips are loaded with excessive fat and calories. In contrast, baked chips have low fat and calories. The lower cholesterol levels in the baked chips increase consumer acceptance of baked chips over fried ones, driving market growth.

The new flavor launches in the baked chips category, increasing the spread of the product to consumers. Major players are focusing on introducing new and innovative flavors into the market. For instance, in April 2022, Popchips, a brand of VMG, announced the launch of new flavored baked chips into the market. The fiery buffalo and fully loaded flavors are gaining popularity in the market.

The Trend of Healthy Snacking

People with busy lifestyles depend on snacks to fulfill their hunger needs between meals. Quick and easy snacks are very popular among working professionals and people with hectic lifestyles. Convenient food products have great demand among the global population. The growing popularity of nutritious and healthy snacks among health-conscious people positively impacts the baked chips market.

Baked chips are sourced from fruits, vegetables, and grains. With the increasing adoption of clean-label products, baked chip manufacturers also readily release organic-based baked chips. For instance, in May 2023, a superfood company, Nourish Organic, launched 100% clean-labeled baked chips into the market. The product is claimed to be gluten-free and vegan, increasing its value in the market. The availability of the product in various ways expands its market size.

High Prices and Strong Competition

Baked chips are expensive compared to conventional fried chips. Baked chips are produced from costlier raw materials such as whole grains. The use of high-quality ingredients in the production of baked chips will increase the manufacturing costs of the product. The application of baking technology may add additional production costs.

The high prices of baked chips can hinder market growth as price-sensitive people look for alternative products that are affordable and tasty. Fried chips form greater competition to the baked chips market. The millennial population is habituated to traditional oil-fried chips and refuses to take up baked chip-snacking habits.

Segment Analysisn

The global baked chips market is segmented based on source, functionality, flavors, distribution channel, application, end-user, and region.

Increasing Cases of Celiac Disease

The global baked chips market is segmented based on its functionality into organic, gluten-free, low-calorie, and low-sodium. The gluten-free segment of the market held the largest share due to the rising prevalence of gluten intolerance among the global population. With the increased cases of obesity and excess weight issues, the low-calorie segment is holding onto the second largest segment of the global baked chips market.

Growing gluten intolerance prevalence drives the need for gluten-free products. According to World Population Review, in Finland, about 2.5 % of the adult population is gluten intolerant. The availability of gluten-free baked chips in the market by the major market players, such as Flaveo, helps in a wide spread of the segment into the market.

Geographical Penetration

Increased Demand for Convenient Foods

North America holds the largest share of the global baked chips market. The increased employment ratio in the region drives the demand for convenient and packed food products. According to the Bureau of Labor Statistics, U.S. has an employment-population ratio of 60.4 %. A high working population positively drives the market for on-to-go snacking habits.

According to the Centers for Disease Control and Prevention, 41.9% of the U.S. adult population is obese. With the increased cases of obesity and other lifestyle disorders, people in this region are adopting food products that are low in calories and nutrients. The rising disposable incomes of people positively impact the market growth. The availability of flavored baked chips in offline and online sales platforms has a greater impact on market expansion.

Competitive Landscape

The major global players in the market include Gulitfree Industries Limited, PepsiCo Inc, Dip Foods, Frito-Lay, Smith's, Calbee North America, Popchips, Hippie Snacks, Kettle Foods Inc and General Mills Inc.

COVID-19 Impact Analysis

The COVID-19 pandemic moderately impacted the global baked chips market. The scarcity of raw materials and other ingredients badly impacted product production. The lockdown regulation made it a critical challenge for the manufacturers to continue production activities due to limited resources and labor facilities.

The produce was delayed in reaching the end-users due to disrupted distribution channel activities. The disruption in the supply chain activities reduced the economic activity of the market players. The shutdown of the convenience stores and other offline sales platforms reduced the sales for the product. The pandemic created disturbances in the demand-supply chain activities.

Lockdowns restricted people to homes and increased increased demand for packed and convenient healthy food products. Increased health consciousness among people increased demand for healthy snacks. The rising consumption of packaged food, in turn, had a positive impact on the baked chips market. In addition, the increased use, accessibility and popularity of the e-commerce sector and the wide availability of these products in online sales increased the market demand.

Russia- Ukraine War Impact

The Russia-Ukraine war had a negative impact on many industrial sectors, including food. The war created unfavorable conditions for the food industries. Product production and distribution on a larger scale is halted. The war disrupted supply chain activities on a global scale. Product distribution channels were negatively affected, leading to decreased market growth.

International supply chain activities are reduced, creating food scarcity globally. The critical situations of the war interrupted the demand-supply. The war created import and export trade disruptions, resulting in economic disturbances. The political and economic uncertainty created by the war had a negative impact on the baked chips market.

By Source
• Fruits
• Vegetables
• Grains
• Other

By Functionality
• Organic
• Gluten-Free
• Low Calories
• Low Sodium
• Others

By Flavors
• Cream
• Herb & Onion
• Cheese & bacon
• Italian ketchup sauce
• French onion dip
• Salted
• Classic
• Barbecue
• Others

By Distribution Channel
• Compound Feed
• Fodder
• Forage
• Oilseed Meals

By Application
• Companion Applications
• Production Applications

By End-User
• Children
• Adults
• Elderly

By Region
• North America
U.S.
Canada
Mexico
• Europe
Germany
UK
France
Italy
Russia
Rest of Europe
• South America
Brazil
Argentina
Rest of South America
• Asia-Pacific
China
India
Japan
Australia
Rest of Asia-Pacific
• Middle East and Africa

Key Developments
• In March 2023, on National Potato Chip Day, Baked Lays, a brand of Frito-Lay company, collaborated with Subway, an American multinational fast food restaurant franchise, to launch an innovative 12-inch crisp.
• In February 2023, Kettle Brand, one of the brands of Campbell Soup Company, announced the launch of air-fried chips in U.S. market.
• In December 2022, PepsiCo's Lays brand, one of the leading potato chips brands in India, partnered with Shantanu-Nikhil, to launch a new range of baked chips into the market.

Why Purchase the Report?
• To visualize the global baked chips market segmentation based on source, functionality, flavors, distribution channel, application, end-user and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of baked chips market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as Excel consisting of key products of all the major players.

The global baked chips market report would provide approximately 85 tables, 98 figures and 225 Pages.

Target Audience 2023
• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies