Potato Chips Market

Market Overview:

The global potato chips market size reached US$ 33.3 Billion in 2022. Looking forward, IMARC Group expects the market to reach US$ 40.0 Billion by 2028, exhibiting a growth rate (CAGR) of 3% during 2023-2028. Significant growth in the organized retail sector, the emerging trend of westernization of food consumption patterns, and the increasing demand for convenient food options represent some of the key factors driving the market.

Considerable Growth in the Organized Retail Sector Augmenting the Market Growth

The organized retail sector's growth has significantly impacted the demand for potato chips worldwide. This sector has grown rapidly in many countries over the past few decades, particularly in emerging markets. One of the key drivers in the market is the increasing availability and accessibility of these products through organized retail channels. Organized retail is consolidating small, independent retailers into larger chains or supermarkets. Supermarkets and convenience stores stock a wide variety of snacks, including potato chips, making them easily accessible to consumers. This has led to increased consumption of potato chips as a convenient and popular snack option. Moreover, organized retail has enabled potato chip manufacturers to reach a wider consumer base and expand their distribution networks. As organized retailers often have their private label brands, they have been able to offer affordable and competitive prices, which has further increased demand for potato chips. In addition, the growth of the organized retail sector has also led to changes in consumer behavior, with consumers becoming more inclined towards packaged and processed foods. As potato chips have become popular and widely available snack, they have benefited from this trend and have become a staple in many households. Overall, significant growth in the organized retail sector has played a significant role in driving the demand for potato chips worldwide by increasing accessibility and availability, expanding distribution networks, and changing consumer behavior toward processed and packaged foods.

Competitive analysis such as market structure, market share by key players, player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided. The market structure is fragmented, with several large-, medium- and small-scale players currently operating in the global potato chips industry. The volume of new entrants in the potato chips industry is low due to the large players dominating the industry, stringent government regulations, and difficulty gaining access to distribution channels.

What are Potato Chips?

Potato chips, also known as crisps in some countries, are a popular snack made from thinly sliced potatoes that are deep-fried or baked until crispy. They are a convenient and satisfying snack that can be enjoyed on their own or as an accompaniment to other foods. Today, potato chips are a staple snack food enjoyed worldwide. They are available in a variety of flavors, including classic salted, barbecue, sour cream, onion, and many more. Some potato chip brands offer healthier options, such as baked or reduced-fat chips. They are a beloved snack food enjoyed by people of all ages and backgrounds.

COVID-19 Impact:

The outbreak of the COVID-19 pandemic slowed down the global potato chips market growth in 2020 due to lockdown restrictions imposed by governments across various regions of the world. However, with the easing of COVID-19-induced lockdown in most countries and consumers' shift towards e-commerce, the market started to recover gradually. The spread of COVID-19 and subsequent lockdowns across various regions adversely impacted consumer spending and, thus, the distribution of the products. The closure of the facilities and the distribution channels has resulted in supply shortages and has inadvertently impacted the total global sales in the first half of 2020. Consumers were also facing supply shortages, and a sharp decline had been witnessed in the offline sales of products across many regions. As a result, several retail stores are trying to expand their presence through e-commerce channels and offering their products at discounted prices to achieve high growth. The containment measures taken by the governments of various countries in response to control the outbreak of COVID-19 disrupted the entire supply chain by creating logistical interruptions, transportation restrictions, and product supply across borders. This lowered the demand for the import and export of dehydrated potatoes in Q1 and Q2 of 2020. However, the market witnessed growth in the second half of 2020.

Potato Chips Market Trends:

The convenience offered by potato chips has made them a popular snack food worldwide. The availability of diverse product varieties and regional flavors has also helped expand the market, particularly in emerging regions. Furthermore, the augmenting demand for potato chips has been increasing rapidly due to increasing disposable incomes and changing lifestyles. Value addition by manufacturers and improvements in the organized retail sector in the developing regions represent other growth-inducing factors. The raw materials used to manufacture potato chips are potatoes, oil, and salt, which are widely available worldwide. Hence, a reliable supply of potatoes and other materials is ensured, providing the potato chips market with a constant supply and efficient production planning. Developing countries are expected to drive the global potato chip market in the coming years. Earlier, the consumption of potato chips was largely confined to western countries. However, with the emerging trend of westernization of food consumption patterns in addition to the growing economy, rise in middle-class population, and increasing urbanization, the consumption of potato chips in developing economies is expected to grow significantly.

Key Market Segmentation:

IMARC Group provides an analysis of the key trends in each sub-segment of the global potato chips market report, along with forecasts at the global and country level from 2023-2028. Our report has categorized the market based on product type and distribution channel.

Product Type Insights:

• Plain
• Flavoured
   

The report has provided a detailed breakup and analysis of the potato chips market based on the product type. This includes plain and flavoured. According to the report, plain represented the largest segment. Customers are preferring traditional chips with less salt content owing to the rise in chronic diseases, the trend of combining conventional chips with gourmets, burgers, sandwiches, etc., and easy availability are the major factors driving the segment. With the rising health consciousness among the global population, several potato chip manufacturers are launching value-added products. This includes products with reduced fat and calorie content, fortified with healthy ingredients, made with sea salt, etc.

Distribution Channel Insights:

• Supermarkets/Hypermarkets
• Convenience Stores
• Specialty Food Stores
• Online Stores
• Others
   

The report has provided a detailed breakup and analysis of the potato chips market based on the distribution channel. This includes supermarkets/hypermarkets, convenience stores, specialty food stores and online stores. Amongst these, supermarkets/hypermarkets represent the largest segment on account of the availability of discounts on bulk purchases, rapid increase in the number of grocery stores, good quality chips at preferred prices, and no risk of bad debts. Supermarkets and hypermarkets provide a pleasant experience by infusing technology to address shoppers’ inquiries. In addition, innovative store design, ample selection, executional excellence, and exceptional service are also expected to propel the market demand for potato chips through these retail channels. Additionally, the increasing consumer health awareness and shifting preference of consumers from unbranded to branded products owing to their superior quality has also prompted the inclusion of premium potato chips brands across supermarkets and hypermarkets in the world, which is further anticipated to stimulate the market growth during the forecast period.

Regional Insights:

• United States
• United Kingdom
• Russia
• China
• Argentina
• Brazil
• India
   

The report has also provided a comprehensive analysis of all the major regional markets, which include the United States, the United Kingdom, Russia, China, Argentina, Brazil, and India. According to the report, United States was the largest market for potato chips. Americans have a large snacking habit, which is expected to continue to bolster growth in the potato chips market, along with the inflating disposable income levels of the masses and easy product availability across the country.

Competitive Landscape:

The report has also provided a comprehensive analysis of the competitive landscape in the global potato chips market. Some of the companies covered in the report include:

• Pepsico
• Calbee Inc.
• Intersnack Group GmbH & Co. KG
• Mondelez International
• Herr Foods Inc.
   

Please note that this only represents a partial list of companies, and the complete list has been provided in the report.

Report Coverage:

Key Benefits for Stakeholders:

• IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the potato chips market from 2017-2028.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the global potato chips market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's five forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the potato chips industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.