Global Processed Potatoes Market - 2022-2029

Global Processed Potatoes Market - 2022-2029

Market Overview

Processed potatoes market size is forecasted to reach USD XX million by 2029, growing at a CAGR of 4.9% during the forecast period (2022-2029). Processed potatoes are highly used in the food & beverage sector due to increasing demand for processed foods, improved farming practices, low-cost availability, and changes in consumer preferences for convenience foods to save efforts and time, all of which have been pushing the global processed potatoes market. Easy availability, convenient packaging, rising urbanization, improvements in level of living, changing lifestyles of the middle-class population, and increasing disposable income are other factors driving market expansion.

Market Dynamics:

Increasing adoption of vegan and organic potato food products

The global processed potato products market is expanding with excellent prospects owing to increasing popularity of vegan food products in well-developed regions as a result of rising health consciousness and concerns for animal welfare. As of September 2021, there are an estimated 79 million vegans globally, which is just over one percent of the whole population. In the US, two percent of people identify as vegan. Three quarters of them are female. By 2040, it's projected that only forty percent of the world's population will eat meat. Moreover, health-conscious consumers increasingly prefer healthier snacks such as olive-baked potato chips, sweet potato fries, organic potato chips, and others to suit their nutritional needs. Baked potato chips have around ~14% fewer calories and ~50% less fat than regular potato chips, making them a healthier alternative that appeals to health-conscious consumers. Furthermore, ready-to-cook potato products such as fries and snacks are being sold with labels such as vegan or organic to increase sales. In recent years, there has been an increase in demand for organic, plant-based flavors, and clean-labelled potato products.

Market Segmentation:

Frozen potatoes segment accounted for the highest share in global processed potatoes market

Frozen potatoes have a long shelf life and include several vitamins and nutrients in their natural preserved state. Vitamin B6, fiber, magnesium, and antioxidants are also present. Frozen potatoes are created by processing fresh potatoes at a very low temperature using specialized equipment. Moreover, increasing female work force population as well as resulting time limitations and socializing at home are driving sales of frozen potato products. Increasing nuclear families and young professionals living alone have opened up new options for market players to increase their reach. Acceptance of the Western culture and increase in demand for freshly cooked food are seen to be factors for the demand growth of convenience food, which indirectly fosters the growth of the frozen potato products industry. Furthermore, demand for frozen potatoes has increased owing to the growth and expansion of these quick-service restaurants, or QSRs. Frozen French fries, shaped and stuffed or topped with potatoes and hash browns, are high in demand at QSRs since they require less preparation time and are easy to use. These restaurants are gaining popularity as a result of the convenience they provide and the high quality of their foods. They are also cost-effective in terms of both, money and time. Fast-food and quick service restaurants are growing in popularity because they meet the changing needs of consumers.

Geographical Penetration:

Asia Pacific is the dominating region during the forecast period

In 2021, Asia pacific had the highest revenue share of almost XX percent. Major developing countries like China and India held the largest market revenue. The estimated total world production for potatoes in 2020 was 359,071,403 metric tonnes, up 1.2% from 354,812,093 tonnes in 2019. China was the largest producer, accounting for 21.8% of world production, followed by India at 14.3%. The presence of large potato processing facilities in this region and a higher inclination towards convenience food is further projected to boost the processed potatoes market in the Asia Pacific region.

North America also has a high demand for the processed potatoes industry. Major countries in the region, like the United States and Canada, contribute the highest market share for processed potatoes market. Potato is the most important vegetable crop in the United States. Potatoes are grown commercially in 30 states, but Idaho grows more potatoes than any other state in the country, followed by Washington. States like North Dakota, Wisconsin, and Colorado are also leading producers of potatoes. Countries like Idaho and Washington produce more than half of the annual supply, totaling 424 million cwt in 2019, up slightly from the previous year and valued at $3.94 billion. About 63 % of potato sales are to processors for French fries, chips, dehydrated potatoes and other potato products. In 2020, 1 million acres of potatoes were harvested in the United States. A large number of potatoes were used for the processing and production of the products like frozen fries, tater tots, spiral fries, home fries, wedges and frozen whole potatoes. Some of the major key players in potato processing are Lamb Weston Holdings Inc., The Kraft Heinz Company, McCain Foods Limited, and J.R. Simplot Company are actively working in the United States.

Competitive Landscape:

There are several established participants in the industry and local manufacturers; hence, the market is fragmented. Some major market players are Lamb Weston Holdings, Inc., The Little Potato Company Ltd., Idahoan Foods LLC, Agrana Beteiligungs-AG, Burts Potato Chips Ltd., Farm Frites International B.V., Intersnack Group GmbH & Co. Kg and J.R. Short Milling Company among others. Some major key players follow a merger and acquisition policy to expand their business. For instance, in June 2019, Lamb Weston acquired Australian Frozen Potato Processor Ready Meals Pty Ltd. Ready Meals sells frozen potato products under the Harvest Choice brand and operates frozen potato processing and storage facilities in Hallam, Victoria. In July 2021, Lamb Weston invested $415 million in a new French Fry processing line in Idaho. They announced plans to add a new French fry processing facility at their local plant. This plant can produce more than 350 million pounds of frozen potato products annually.

COVID-19 Impact:

Negative impact on the global processed potatoes market

The outbreak of Covid 19 had a significant negative impact on the food service industry during Covid 19 pandemic. Due to the outbreak of the Covid supply chain suffered drastically. Manufacturers had raw materials stock, but they were not getting enough demand. Moreover, companies faced several issues with the supply chain of raw materials as most of the country was completely shut down. In this situation, manufacturers faced untimely availability of raw materials. At several parts, the manufacturers were struggling for raw material reach, while some were struggling to deliver the product. For a few manufacturers, the end-product was ready but could not reach their customers due to restrictions on transportation and thus losing revenue. The prices of potato varieties such as russet, yellow, red, white, fingerling, and purple or blue potatoes declined due to the outbreak of COVID-19. Asia Pacific region faced a shortage of potato chips during a pandemic. These factors negatively impacted the processed potatoes market. Retail shops are closed during the pandemic, which negatively hampers the market. Import and export of the commodities are completely closed due to the strict government regulations. These factors negatively impacted the market growth. The COVID-19 pandemic has broken most transportation chains and distribution mechanisms between suppliers, production facilities and customers. These factors negatively affected the market.

The global processed potatoes market report would provide an access to approximately 70 market data tables, 59 figures and 170 pages