Global Potato Processing Market Pegged To Reach US$30.8 Billion

Wednesday, October 11th, 2017 | 1146 Views

The potato processing market is projected to grow at a CAGR of 5.3 percent from 2017 to 2022, according to market intelligence company Research and Markets.

The market is expected to reach a value of US$30.8 billion by the end of the forecast period.

The major factors that have driven the global potato processing market in recent years include easy availability, convenient packaging, rapid urbanisation, change in eating habits, and improvement in the standard of living. Other factors such as the growth in consumer preferences for convenience foods to save time and efforts, coupled with the rise in demand for applications such as snack foods and prepared ready meals, are expected to drive the growth of the market during the forecast period.

On the basis of type, the market has been segmented into frozen, chips and snack pellets, dehydrated, and others such as canned potato, potato granules, flour, and starch. The frozen segment dominated the market and this trend is expected to continue through the forecast period.

Frozen potato products are highly consumed owing to the increase in demand for french fries, served in restaurants and fast food chains worldwide. The expansion of quick service restaurants such as Kentucky Fried Chicken, Pizza Hut, and McDonald’s in countries such as India and China is expected to fuel the demand for frozen potato products during the forecast period. The chips and snack pellets segment was the second largest segment on the basis of type due to the growing popularity of potato chips among the younger generations and its ease of availability.

Based on application, the market is segmented into snacks, ready-to-cook and prepared meals, and others such as food additives in soups, gravies, bakery, and desserts. The consumption of processed potato products in ready-to-cook and prepared meals application is estimated to account for the largest market share in 2017.

Processed potato products used in ready-to-cook and prepared meals is a booming market due to the increase in consumer preference for convenience food products, busy work schedules, and on-the-go consumption habits.

Apart from ready-to-cook and prepared meals, processed potato products also find applications in the snacks segment, such as potato-based snacks with low carbs, low salt, air-dried, baked products with a number of flavours, which also drives the demand for potato processing market.

Based on distribution channel, the potato processing market has been segmented into foodservice and retail. Potato processing have been gaining importance in the foodservice segment due to the growth of food delivery channels and increase in demand for fast food.

Apart from the demand from full-service and quick service restaurants, increase in the number of national and international brands in the hotel industry is also expected to drive the demand for potato products in the foodservice industry during the forecast period.