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The processed potatoes market size is forecast to increase by USD 45 billion at a CAGR of 5.34% between 2023 and 2028. The market is experiencing significant growth, driven by expanding production capabilities for potato processing and the increasing popularity of online shopping. However, the market faces challenges due to stringent government regulations aimed at reducing trans-fat content in processed foods. These regulations are a response to growing health concerns, particularly the link between trans-fats and increased LDL cholesterol levels, which is a risk factor for heart disease. Producers must adapt to these regulations by finding alternative ingredients or production methods to meet consumer demand while maintaining product quality and safety.
The market is experiencing significant growth due to the easy availability and convenient packaging of snack foods and ready meals. Rapid urbanization and a young population's increasing preference for quick and easy meals are key drivers. The potato industry benefits from farming techniques that ensure a consistent supply of high-quality potatoes. French-fried potatoes, chips, flakes, and ready-to-cook & prepared meals are popular categories. Consumers' desired goals of convenience and nutritional value are met through organic and inorganic growth strategies. Modernization of the potato industry and investment pockets in technology and innovation are essential for market expansion. Cedric Porter's Five Forces analysis reveals intense competition from restaurants and nutriment chains. Farmers and processors must adapt to meet consumers' evolving demands and maintain product quality. Starch, a crucial component of potato processing, is an area of ongoing research and development.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.
The offline segment is estimated to witness significant growth during the forecast period. The market has witnessed significant growth, particularly in the quick-service restaurants and hotel industries. The Coronavirus pandemic has led to an increase in the consumption of ready-to-cook and prepared meals, with French fried potatoes being a popular choice. Farmers have benefited from this trend, as the demand for potatoes has risen. Supermarkets and hypermarkets have emerged as the most preferred distribution channels for processed potatoes. The organized retail sector's expansion in both developed and developing countries has contributed to the growth of these channels. Consumers are drawn to the convenience of finding a wide range of products under one roof and the discounted prices offered by these outlets.
Furthermore, young population demographics also contribute to the market's growth, as they are more likely to dine out or order takeaway meals. Nutriment chains and restaurants are significant consumers of processed potatoes, further fueling market growth.
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The offline segment accounted for USD 120.00 billion in 2018 and showed a gradual increase during the forecast period.
APAC is estimated to contribute 30% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
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The market in the US, Canada, and Mexico is witnessing significant growth due to the increasing demand from the quick-service restaurants and hotel industry. The young population's preference for convenient and quick snacks is driving the market forward. However, the Coronavirus pandemic and the subsequent shift towards healthier eating habits have posed a challenge to the market. Consumers are increasingly opting for healthier alternatives such as nuts, berries, cereals, and yogurt. To cater to this trend, potato farmers and companies are innovating and introducing ready-to-cook and prepared meals with improved taste and nutritional value. Despite the challenges, the market is expected to remain competitive, with companies focusing on providing a diverse range of French-fried potatoes and other processed potato products at affordable prices.
Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The growing focus on expanding production capabilities for potato processing is the key driver of the market. The market is witnessing significant growth due to the easy availability and convenient packaging of these products. With rapid urbanization and increasing consumer preferences for snack foods and ready meals, the demand for processed potatoes is on the rise.
Furthermore, foodservice establishments, including full-service restaurants and food delivery channels, are major consumers of processed potatoes. Potato processing companies are expanding their production capacities to cater to this growing demand. The investments underscore the market's potential and the commitment of key players to meet the evolving needs of consumers.
The growing prominence of online shopping is the upcoming trend in the market. The market has experienced substantial growth in recent years, driven in part by the increasing convenience and ease of access offered through online distribution channels. E-commerce platforms enable consumers to purchase a wide range of processed potato products from various regional and global brands.
Furthermore, this trend is particularly notable in the snack food and ready meals sectors, as well as food service establishments that offer food delivery. The availability of processed potatoes through online platforms provides companies with increased market reach and allows consumers to explore multicultural flavors, such as Asian-inspired potato chips and French fries. As a result, companies are increasingly focusing on providing processed potatoes through e-commerce platforms to meet the growing demand for convenient and nutritious food options.
Stringent government regulations is a key challenge affecting the market growth. The market is experiencing significant growth due to the easy availability and convenient packaging of these products. Rapid urbanization and the increasing popularity of snack foods and ready meals are key drivers of market expansion. Potato processing technologies have advanced, enabling the production of a wide range of products, including french fries, potato chips, and instant mashed potatoes. These products are widely used in food service establishments, including full-service restaurants and quick-service outlets, as well as in food delivery channels.
However, the market growth is subject to regulatory challenges. Various government agencies in different countries issue strict rules and guidelines regarding the sales, marketing, and labeling of processed potato products. In the US, for instance, the Food and Drug Administration (FDA) plays a crucial role in regulating the manufacturing and distribution of these products. The FDA sets regulations on the number of ingredients that can be used and the types that must be disclosed on product labels. Adhering to these regulations is essential for market entry and maintaining consumer trust.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
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.
Calbee Inc. - The company produces and sells potato-based, flour-based, corn, and bean-based snack foods, and cereals. The key offerings of the company include processed potatoes.
The market research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:
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 is experiencing significant growth due to the easy availability and convenient packaging of potato products. Rapid urbanization and the increasing popularity of snack foods, ready meals, and food service have contributed to the market's expansion. Potato processing techniques have advanced, leading to the production of a wide range of products, including french-fried potatoes, chips, flakes, and starch. The potato industry has seen organic growth strategies, such as modernization and promotional activities, including social media marketing, drive market growth. Inorganic growth strategies, such as mergers acquisitions, and patents, have also played a role in market expansion. The retail landscape for processed potatoes is diverse, with quick-service restaurants, full-service restaurants, hotels, and restaurants, and nutriment chains being key consumers.
Furthermore, the young population's desire for convenience and health benefits has led to an increase in demand for ready-to-cook & prepared meals and frozen products. However, health concerns, such as hypertension, cardiovascular illnesses, cancer, stroke, and obesity, have raised awareness about the potential negative effects of cooking oil, trans-fat, and LDL cholesterol in processed potato products. Farmers continue to adapt farming techniques to meet consumer demands for organic and sustainable production. The processed potato products market includes fries, soups, snacks, and vegetarian and vegan options, catering to diverse consumer preferences. The market is expected to continue growing, with investment pockets in the development of new products and technologies.
Market Scope |
|
Report Coverage |
Details |
Page number |
194 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 5.34% |
Market growth 2024-2028 |
USD 45 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
4.95 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
APAC at 30% |
Key countries |
US, UK, Japan, Germany, and Canada |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Burts Snacks Ltd., Calbee Inc., Campbell Soup Co., Cooperatie Koninklijke Cosun UA, Farm Frites International B.V., Groupe Limagrain, Idahoan Foods LLC, J.R. Short Milling Co., J.R. Simplot Co., Kellogg Co., Lamb Weston Holdings Inc., LENG DOR S.A.U., McCain Foods Ltd., Old Dutch Foods Ltd., PepsiCo Inc., Pfeifer and Langen GmbH and Co. KG, Royal Avebe, SZVG eG, The Kraft Heinz Co., and The Little Potato Co. |
Market dynamics |
Parent market analysis, market growth inducers and obstacles, market forecast, fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, market condition analysis for the forecast period |
Customization purview |
If our market 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 Distribution Channel
7 Market Segmentation by Product
8 Market Segmentation by End-user
9 Customer Landscape
10 Geographic Landscape
11 Drivers, Challenges, and Opportunity/Restraints
12 Competitive Landscape
13 Competitive Analysis
14 Appendix
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