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The organic chips market size is projected to increase by USD 3.37 billion, at a CAGR of 5.87% between 2023 and 2028
The organic chips market in North America, with the US as a focal point, witnesses a surge in demand, notably driven by vendors offering USDA-certified organic chip variants. Companies like Edison Grain and Lundberg Family Farms contribute to the market with organic offerings. The inclination toward Mexican cuisine and the rising number of millennial consumers opting for on-the-go eating options propel market growth. The trend of snacking, influenced by the younger generation's busy lifestyles and preference for convenience, significantly boosts the demand for organic chips over traditional meals. Campbell Soup Co, a key player, offers organic chips through its brands Cape Cod and Kettle, aligning with the evolving consumer trends and growth in the market.
The market shows an accelerated CAGR during the forecast period.
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The increasing prominence of private-label brands is notably driving market growth. Various retailers are selling different types of organic chips under their private-label brands to increase their profitability, which is contributing to the growth of the market. Globally, major retailers are introducing their brands of chips, including organic chips, thus capitalizing on the growing demand for organic chips among consumers. In the last decade, the private-label product segment has grown globally in terms of scope and size. Private-label products are priced lower than branded products.
Therefore, price-sensitive consumers are more likely to purchase packaged kale chips and similar products. Supermarket chains have started allocating more shelf space to their private-label offerings, including packaged kale chips, and are engaging in various in-house marketing and promotional activities to boost sales. The demand for private-label brands, particularly in organic chips and healthy snack categories like packaged kale chips, is expected to increase. This trend is anticipated to aid the growth of the market during the forecast period as consumers seek healthier alternatives and value-driven options in their snack choices. The expansion of shelf space and promotional efforts by supermarkets reflect the growing popularity and consumer preference for convenient, nutritious snacks such as packaged kale chips, contributing to the overall market dynamics in the snack food industry.
The rising number of vegan consumers is an emerging trend shaping market growth. Veganism is a way of life that eschews all forms of animal exploitation and cruelty in products such as food and clothing. The expanding global vegan population base is an important trend that can have a positive impact on the growth of the market. More people worldwide are adopting the vegan lifestyle, particularly for its health benefits and ethical reasons. The number of people adopting veganism and opting for vegan diets has increased by about 300% over the last decade.
For instance, as of January 2021, the total number of vegans globally was nearly 79 million, which was 3% higher than the total vegan population across the world in 2020. In North America and Europe, organic chips are certified as vegan products, which is making them increasingly popular among the growing vegan population. Thus, the rise in the vegan population will drive the growth of the market during the forecast period.
Fluctuations in food prices are a significant challenge hindering market growth. Organic chip vendors are currently trying to address the challenge of the fluctuations in food prices by entering into purchase contracts with manufacturers and suppliers of organic chips to ensure that prices remain fixed as per the contract execution date. Over the last few years, on average, food prices have increased by almost 2.7% annually in the US. Organic chips are healthy alternatives to regular chips, but their high price is a major challenge for consumers.
Additionally, prices of organically cultivated vegetables, grains, and cereals fluctuate due to drastic changes in weather conditions and the depreciation of the US dollar (which ultimately increases the production and logistics costs). Prices fluctuate every year, which hinders the growth of the market during the forecast period.
The offline distribution segment includes supermarkets and hypermarkets, discount stores, convenience stores, and individual retailers. Hypermarkets and supermarkets offer multiple organic chips from various brands. The high popularity of this distribution channel can be attributed to rapid urbanization and changing consumer lifestyles. Moreover, in-house promotions by retailers and easy ways to compare prices attract consumers to shop from hypermarkets and supermarkets. Moreover, the large shelf space allows the display of a large variety of products from various vendors, which gives consumers a wide array of products to choose from. Vendors in the market are focusing on expanding their geographical presence. This, in turn, is expected to boost the growth of the market during the forecast period.
The market share growth by the vegetable segment will be significant during the forecast period. Vegetable chips that are made from potatoes, carrots, kale, red onion, broccoli, and spinach are considered healthy snack options owing to their low fat and low sugar content and high nutritional value. Among all the organic vegetable chips, those made of kale, pumpkin, and carrot have lower levels of acrylamide, which is a toxic substance that increases the risk for several types of cancer, making it an extremely popular snack among health-conscious people.
The vegetable segment was the largest and was valued at USD 3.29 billion in 2018.
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Moreover, vendors are offering vegetable chips made with a variety of ingredients, such as superfoods, onion, and cinnamon, to enhance the taste and nutritional value of the product. For instance, in December 2023, Jackson's Chips announced the launch of its new healthier version of sweet potato chips with jalapeno and avocado oil. The new chip products are made with heirloom, non-GMO sweet potatoes, and have a hint of onion and garlic. Such product launches provide consumers with healthier and enhanced nutritional value, thereby spurring demand for vegetable chips among consumers. Therefore, the vegetable segment of the market is expected to grow significantly during the forecast period.
North America is estimated to contribute 37% to the growth of the global market during the forecast period
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Technavio's analysts have provided extensive insight into the market forecasting, detailing the regional market trends and analysis, and drivers influencing the market's trajectory throughout the forecast period. In North America, the US is the major market for organic chips in the region. Various companies operating in the market in focus offer USDA-certified organic variants of chips. For instance, Edison Grain and Lundberg Family Farms offer organic variants of chips. Some companies are planning to export their products to the region. Such factors are expected to drive the regional market growth during the forecast period.
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 forecasting growth and analysis.
The market growth and forecasting report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including Blife Srl, Campbell Soup Co., Dieffenbach's Potato Chips, FZ Organic Food, Gruma SAB de CV, Intersnack Group GmbH and Co. KG, Jacksons Food Company LLC, Karanth Foods, Kind LLC, Luke's Organic, PepsiCo Inc., PopChips, R.W. Garcia, Rhythm Superfoods LLC, Simply 7 Snacks LLC, The Hain Celestial Group Inc., The Planting Hope Company Inc., Utz Brands Inc., Wayanad Organic Research Pvt. Ltd, and Yellow Chips B.V.
The market analysis and report of 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.
The market research and growth report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 to 2028.
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Organic Chips Market Scope |
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Report Coverage |
Details |
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Page number |
163 |
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Base year |
2023 |
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Historic period |
2018-2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 5.87% |
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Market Growth 2024-2028 |
USD 3.37 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
4.99 |
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Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
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Performing market contribution |
North America at 37% |
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Key countries |
US, Canada, China, Germany, and France |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Blife Srl, Campbell Soup Co., Dieffenbach's Potato Chips, FZ Organic Food, Gruma SAB de CV, Intersnack Group GmbH and Co. KG, Jacksons Food Company LLC, Karanth Foods, Kind LLC, Luke's Organic, PepsiCo Inc., PopChips, R.W. Garcia, Rhythm Superfoods LLC, Simply 7 Snacks LLC, The Hain Celestial Group Inc., The Planting Hope Company Inc., Utz Brands Inc., Wayanad Organic Research Pvt. Ltd, and Yellow Chips B.V. |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period. |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product Type
7 Market Segmentation by Distribution Channel
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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