Potato chips are thin slices of potatoes that are baked, fried, popped or kettle-cooked until they become crunchy. These chips are usually made of floury potatoes as they have lower levels of water and sugar. The colour of potato chips is yellowish-brown which is the result of the combination of amino acids and sugar. These chips are served as a snack, appetiser or side dish with the addition of other flavours and ingredients such as salt, cheeses and spices among others. A new research report by IMARC Group, titled “Potato Chips Market – Global Industry Trends, Share, Size, Growth, Opportunity and Forecast 2018-2023”, estimates that the market was worth more than US$ 28 Billion in 2017. The report further anticipates the market to cross US$ 34 Billion by 2023, at a projected CAGR of over 3.4% during the forecast period.
Global Potato Chips Market Drivers/Constraints:
- One of the major trends that has been witnessed in developing markets is the rise in the demand for packaged food on account of hectic lifestyles, changing dietary patterns and western influences.
- Over the years, consumers in developed regions, have started inclining towards the healthier alternatives of potato chips such as low-sodium and low-fat chips. This acts as a primary factor which is driving the growth of the market.
- As compared to other snacks, potato chips are easily available and can be purchased at lower prices. This, in turn, contributes towards an augmented demand of potato chips across the globe.
- Moreover, rising disposable incomes, escalating young population, introduction of new flavours and attractive packaging are some of the other factors which are positively influencing the growth of the market.
- However, the growth of the market is hindered by an increase in health consciousness among the consumers which has encouraged the shift towards healthier eating patterns.
On a geographical front, the United States enjoys a leading position in the global potato chips market, holding the majority of the market share. This is due to an availability of unique and new flavours along with the rising demand for quick snacks across the region. It is followed by the United Kingdom, Russia, China, Argentina, Brazil and India.
The highly fragmented market includes various large and small manufacturers who compete in terms of prices and quality. At present, it is difficult for small players to survive without the help of acquisition as there is an intense competition in the market. Some of the leading players operating in the market are:
- Kraft Foods
- General Mills
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