The global potato chips market size was worth US$ 29 Billion in 2018. The market is further projected to reach a value of US$ 35 Billion by 2024, growing at a CAGR of 3.3% during 2019-2024. Potato chips represent one of the most popular snack foods consumed across the globe. These are thin slices of potato which are seasoned after being fried until crisp. At the time of frying, the sugar present in potatoes combine with amino acids and turns brown which results in the yellowish-brown colour of potato chips. In addition to this, potato chips are processed and stored in such a way that they are inert towards any microbiological spoilage, chemical and enzymatic activities as well as moisture or other vapor migration. The taste, texture and colour of the chips remain unaltered for a long period of time. Apart from this, potato chips are generally packed and sold in air-tight plastic bags which significantly increases the longevity of the products.
Global Potato Chips Market Drivers:
- Potato chips are one of the most convenient food options currently available for people to keep pace with their busy lifestyle. It shortens the meal preparation time and can be served in the form of a quick snack or part of the meal.
- The raw materials that are used in the manufacturing of potato chips are potatoes, oil and salt, which are widely available in every part of the world. Hence, reliable supply of potatoes and other materials are ensured, thereby providing the potato chips market with a constant supply and efficient production planning.
- Developing countries are expected to drive the global potato chips market in the coming years. Earlier, the consumption of potato chips was largely confined to the western countries. However, with the emerging trend of westernisation of food consumption patterns in addition to growing economy, rise in middle class population and increasing urbanisation, the consumption of potato chips in developing countries is expected to grow at a significant rate.
- The growth of the organized retail sector is currently having a positive impact on the global potato chips market. Earlier, a number of global players were hesitant to sell their products in emerging regions because of lack of infrastructure, storage facilities, and appropriate knowledge about the developing markets. However, with an increase in the number of organised retail stores, many players are investing in these markets. This is anticipated to eventually result in the augmented consumption of potato chips during the next few years.
- Due to the rising health consciousness among global population, several potato chips manufacturers are launching value added products that are healthier as compared to traditional potato chips. This includes products with reduced fat and calorie content, fortified with healthy ingredients, lower cholesterol, etc. Chips that are gluten-free, non-GMO verified and made with sea salt, natural colours and flavours are gaining more popularity than the traditional ones. Other than this, potato chips manufacturers have also expanded their spending for various R&D activities to introduce more diverse products in the market so as to strengthen their product portfolio. These are some factors which are having a direct impact on the growth of the market.
Breakup by Product Type:
The potato chips market has been segmented on the basis of different type of product available for consumers including plain and flavoured. Currently, plain potato chips are the most preferred type of potato chips across the globe.
Breakup by Distribution Channel:
- Convenience Stores
- Specialty Food Stores
- Online Stores
Based on distribution channel, potato chips can be obtained by consumers through various means such as supermarkets/hypermarkets, convenience stores, specialty food stores and online stores. Amongst these, supermarkets/hypermarkets represent the largest segment on account of the availability of a wide variety of product types and brands.
- United States
- United Kingdom
On a geographical front, the United States represents the biggest market for potato chips, holding the majority of the share. This can be attributed to the snacking habit of people and increasing demand for convenient food across the region. The United States is followed by United Kingdom, Russia, China, Argentina, Brazil and India.
The global potato chips market is highly fragmented with the presence of numerous small and large manufacturers who compete in terms of prices and quality. Some of the leading players operating in the market are:
- Kraft Foods
- General Mills
This report provides a deep insight into the global potato chips industry covering all its essential aspects. This ranges from macro overview of the market to micro details of the industry performance, recent trends, key market drivers and challenges, SWOT analysis, Porter’s five forces analysis, value chain analysis, etc. The report also provides a comprehensive analysis for setting up a potato chips manufacturing plant. The study analyses the processing and manufacturing requirements, project cost, project funding, project economics, expected returns on investment, profit margins, etc. This report is a must-read for entrepreneurs, investors, researchers, consultants, business strategists, and all those who have any kind of stake or are planning to foray into the potato chips industry in any manner.
Key Questions Answered in This Report:
- How has the global potato chips market performed so far and how will it perform in the coming years?
- What are the key regional markets in the global potato chips industry?
- What are the key product types in the global potato chips industry?
- What are the major distribution channels in the global potato chips industry?
- What are the price trends of potato chips?
- What are the various stages in the value chain of the global potato chips industry?
- What are the key driving factors and challenges in the global potato chips industry?
- What is the structure of the global potato chips industry and who are the key players?
- What is the degree of competition in the global potato chips industry?
- What are the profit margins in the global potato chips industry?
- What are the key requirements for setting up a potato chips manufacturing plant?
- How are potato chips manufactured?
- What are the various unit operations involved in a potato chips manufacturing plant?
- What is the total size of land required for setting up a potato chips manufacturing plant?
- What are the machinery requirements for setting up a potato chips manufacturing plant?
- What are the raw material requirements for setting up a potato chips manufacturing plant?
- What are the packaging requirements for potato chips?
- What are the transportation requirements for potato chips?
- What are the utility requirements for setting up a potato chips manufacturing plant?
- What are the manpower requirements for setting up a potato chips manufacturing plant?
- What are the infrastructure costs for setting up a potato chips manufacturing plant?
- What are the capital costs for setting up a potato chips manufacturing plant?
- What are the operating costs for setting up a potato chips manufacturing plant?
- What will be the income and expenditures for a potato chips manufacturing plant?
- What is the time required to break-even?