Potato chips Market is predicted to reach USD 50,286.00 million at a CAGR of 5.41% during the forecast period 2023-2032

Market Research Future (MRFR) has published on the “Global Potato chips Market”.

Market Synopsis

According to the MRFR analysis, the global potato chips market was valued at USD 32,998.62 million in 2023 and is projected to reach USD 50,286.00 million by 2032 at a CAGR of 5.41%.

The key factors driving the growth of the potato chips market include surge in snacking trends, and burgeoning demand for healthy snacks. The global potato chips market is expected to continue its expansion, driven by the increasing demand for clean label snacks across the globe.

COVID-19 Impact on the Potato chips Market

The COVID-19 pandemic has disrupted the potato chips market across the nations of the globe. The disruptions stemmed from several factors. As the pandemic raised the importance of health and immunity, there has been an increase in the demand for immune-boosting products, such as potato chips. Several consumers shifted to convenience products to fulfill their desire for on-the-go food products, which in turn led to increased sales of potato chips. In addition, the pandemic has disrupted the entire value and supply chains, shaping the availability of potato chips. Limitations on movement, closure of borders, and transportation disruptions led to challenges in sourcing and distributing these products. Due to lockdowns and social distancing measures, there was a substantial shift towards online retailing. This trend aided producers with a compelling e-commerce platform, allowing them to reach consumers directly despite constraints on physical retail retailers. The COVID-19 pandemic significantly disrupted the production of potato chips, a staple snack food globally. Lockdowns and social distancing measures led to workforce shortages in farms and processing plants, reducing the labor available for planting, harvesting, and processing potatoes. The pandemic has disrupted the global supply chain and interrupted the entire value chain, from raw material procurement to manufacturing, packaging, and distribution. 

The outbreak has negatively impacted the entire supply chain in the overall industry. During lockdown, the online and offline stores experienced major shortages of finalized goods owing to the closure of production units of the companies. Lockdown restrictions have increased transportation trouble, resulting in the untimely delivery of raw materials required to produce potato chips. However, the decreasing cases of the virus have provided some ease to the key manufacturers. The decreasing cases of COVID-19 have further aided the sound supply of associated raw materials to potato chips. The COVID-19 pandemic significantly impacted the pricing of potato chips due to disruptions in the global supply chain and shifts in consumer behavior. Lockdowns and social distancing measures led to labor shortages in agricultural sectors and processing plants, causing delays and reduced production capacities. Additionally, transportation restrictions and increased costs for logistics further strained supply chains. As demand for snack foods surged with more people staying at home, the combination of reduced supply and heightened demand drove prices up. 

The COVID-19 pandemic significantly impacted the application areas of potato chips, particularly in terms of consumption patterns and market dynamics. With widespread lockdowns and social distancing measures, there was a notable shift towards at-home consumption. As people spent more time indoors, snacking habits increased, leading to a surge in demand for potato chips as a convenient and comforting food option. Retail sales of packaged snacks saw a substantial rise, with consumers stockpiling non-perishable goods during the uncertainty. COVID-19 has had major impacts on the sales channels of products, with the closure of physical stores or operating under restrictions, e-commerce experienced a surge in demand. This has led to a surge in online sales for many products, including potato chips. Many brands and companies pivoted towards direct-to-consumer models to maintain sales during the pandemic. By bypassing traditional retail channels, companies can have more control over their distribution and customer relationships. COVID-19 has had major impacts on the manufacturers, & economies across the globe Lockdowns, travel restrictions, and border closures have disrupted global supply chains, leading to shortages of raw materials, components, and labor. Many manufacturers faced temporary closures or reduced operating capacity due to social distancing measures, labor shortages, or government-mandated shutdowns. Consumer behavior changed dramatically during the pandemic, leading to fluctuations in demand for certain products. Manufacturers had to adapt quickly to meet new demands or pivot production lines.

Competitive Landscape

The global potato chips market is driven and consists of several organized and unorganized industry players. The main companies in the global potato chips market are aiming at growth strategies such as development in high-quality and healthier products on a global level to gain a maximum share of the global market. The key players operating in the global potato chips market comprise PepsiCo (US), The Campbell Soup Company (US), EuropeSnacks (United Kingdom), LaSalle Capital (Chicago), KP Snacks (United Kingdom), Calbee Inc. (Japan), Kellanova (US), Priniti Foods Pvt. Ltd. (Haryana), Utz Brands Inc. (US), Bikaji Foods International Ltd. (Germany), among others.

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Segmentation

By Type

1. Fried: The worldwide potato chips market is expanding rapidly, driven mostly by innovations and customer preferences in the fried potato chips segment. This sector includes various frying processes, product developments, and adjustments to health trends, all of which help to drive market growth. Traditional deep-frying is the most prevalent method, which involves immersing potato slices in hot oil to create a crispy texture and rich taste. Despite worries about health risks associated with the substantial fat content, these snacks keep taking over owing to their deliciousness. Eye-catching package designs, as well as a narrative about the product's origin or production process, are important in attracting and maintaining customers.


2. Baked: The baked potato chips section includes potato chips that are oven-baked rather than deep-fried. This technique produces a snack with less fat and calorie content than its fried equivalent. Baked potato chips are generally regarded as a more nutritional alternative, appealing to individuals who are health-conscious and looking for guilt-free snack options. Customers' growing health worries are a key drive for the baked potato chips sector. With a rising number of consumers seeking more healthy snacking alternatives, baked potato chips provide a good that matches their nutritional needs, resulting in market expansion. The baked potato chips category is likely to maintain a high market share over the projection period, showing its importance to the entire market.

By Category

1. Organic: The organic segment of the potato chip industry includes chips manufactured from organically grown potatoes and additional goods that are devoid of chemical fertilizers, pesticides, genetically modified organisms (GMOs), and chemical additives. These chips are frequently viewed as a more nutritious substitute for traditional chips made from potatoes, which may have higher amounts of fat, salt, and harmful chemicals. A change in customer preferences toward nutritious food and conscious snacking has increased the popularity of organic chips made from potatoes. The sector targets a growing audience that values the quality and origin of their food. The organic category benefits from the clean label movement. Consumers are increasingly seeking clarity in labelling to guarantee that the products they consume are truly organic and devoid of dangerous ingredients. The advent of veganism and plant-based diets has helped expand the organic market.


2. Regular: The Regular section of the potato chips market includes classic potato chips that are often salted or barely seasoned. These chips are well-known for their traditional flavor and crisp texture and are frequently praised for their simplicity and global appeal. The Regular section contains plain or salted chips, which have been a food industry staple for decades. Regular potato chips are popular among a diverse variety of demographics, including all age groups, ethnicities, and geographies. Their ubiquitous popularity stems from their recognizable taste, easy packaging, and widespread accessibility, which have made them a favorite snack for people throughout the world.

By Flavour

1. Flavored: The Flavored section of the potato chip industry comprises chips seasoned with flavors other than the standard salted kind. This category appeals to people seeking diversity and novelty in their eating experiences. It has a broad variety of flavor qualities, from savory and spicy to sweet and acidic. Popular tastes include barbecue, sour cream and onion, cheddar, jalapeño, salt, and a solution of vinegar and ethnic-inspired spices. These flavors are intended to appeal to a wide range of palates, and they frequently reflect local culinary preferences and trends. Flavored potato chips are skilled at responding to geographic and cultural preferences, providing flavors that appeal to the local population. Manufacturers may better access varied markets and increase their worldwide reach by tailoring products to meet regional tastes. Seasonal products, such as pumpkin spice for fall or holiday-themed tastes, increase sales during various seasons.


2. Plain/Salted: Plain/Salted potato chips are those that simply have salt as a seasoning, with no other flavors or spices added. This section is distinguished by its simplicity and the pure taste of the potato, which is frequently favored by people who value the original flavor of potato chips. Plain/Salted chips are a food industry mainstay that sets the standard for quality and taste. Plain/salted potato chips have a global appeal that spans age, culture, and geography. Many people enjoy their basic and traditional taste, thus they're a go-to snack. This widespread acceptability assures continual demand, resulting in stable market expansion. Plain/salted chips are incredibly adaptable and go well with a variety of dips, sauces, and combinations due to their neutral flavor. Plain/salted chip varieties have a minimalistic appearance that complements the clean labeling movement, that stresses product simplicity and openness. Plain/salted chips are popular among consumers looking for products with less artificial additives and preservatives, resulting in increased sales.

By Distribution Channel

1. Supermarkets & Hypermarkets: Supermarkets and hypermarkets are big stores that offer a range of food and beverages, plus home items under one roof. In the potato chip market, this category refers to the sales channel via which consumers buy potato chips from these large retail venues. Supermarkets and hypermarkets have a wide reach and high attendance, giving them an ideal platform for potato chip sales. Their extensive distribution in urban and suburban regions guarantees that a significant number of consumers have easy access to a wide range of potato chips. Effective merchandising and eye-catching in-store displays are critical to increasing potato chip sales in supermarkets and hypermarkets. Shows, end caps, and eye-catching packaging have been planned to draw customer curiosity and encourage buying on impulse. These merchandising tactics improve product exposure and increase sales. Supermarkets and hypermarkets frequently sell their own private-label potato chip companies, which are generally less expensive than popular brands. As customer preferences shift, supermarkets and hypermarkets will continue to be a driving force in the potato chips business, assuring long-term growth and expansion.


2. Convenience Stores: Convenience stores are small shops that provide a variety of common commodities including groceries, snacks, confectionary, alcoholic beverages, cigarettes, and magazines. In the potato chips market, this category refers to potato chip sales made through these stores. They frequently sit in public regions and remain open for longer periods, giving customers convenient options for chips made from potatoes. Convenience shops are carefully placed in high-traffic places including city centers, transit hubs, and residential neighborhoods. Their proximity to customers allows for quick access to potato chips, resulting in impulse purchases and increased market demand. Many convenience stores operate 24/7, providing consumers with uninterrupted availability of chips made from potatoes. This prolonged accessibility appeals to customers looking for munchies throughout all hours of day and night, improving total revenue and market penetration.


3. Online: The online portion of the potato chip industry relates to the selling of potato chips via digital mediums such as e-commerce sites, online food stores, and direct to consumers channels. This category enables people to explore, compare, and purchase a diverse range of potato chip goods from the comfort of their own homes or while on the road, utilizing internet-connected devices. It comprises a variety of business types, including B2C, B2B, and DTC sales. Online platforms have a worldwide reach, allowing consumers from many countries to obtain a large range of potato chips. This worldwide accessibility broadens market reach and increases demand for potato chips across boundaries. Online platforms provide a wide range of potato chip brands, flavors, and packaging options. Consumers get access to a wide range of items that might not be accessible in their neighborhood retailers, resulting in increased demand and market expansion.

By Region

1. 
   

   North America: North America market value is expected to be USD 10,664.11 million in 2023 and USD 15,300.43 million in 2032 growing at a CAGR of 4.62% during the forecast period. North America includes the US, Canada as well as Mexico is all included in the analysis of the market. The US continues to hold a significant share in the global potato chips market owing to the growing working population across the country coupled with their increased preference for consuming potato chips. As a part of this, according to MRFR analysis, on average, 35.22 million Americans consumed sixteen or more bags of chips. According to a different survey, 86% of individuals in France and the United States consume potato chips or crisps. In addition, the employment rate in the United States was 60.3% in 2023. Those who worked for pay or profit during the survey reference week, those who performed at least 15 hours of unpaid labor in a family-run business, and those who were momentarily absent from their regular jobs due to illness, vacation, inclement weather, labor disputes, or other personal reasons are all considered employed. The employment-population ratio shows how much of the non-institutional civilian workforce is employed.

   
   


2. 
   

   Europe: The region accounted for 1.34 times growth during the forecast period. Europe includes Germany, the UK, France, Spain, Italy, and the Rest of Europe will witness moderate growth in the potato chips market in the upcoming years owing to the presence of major players across the region providing a range of potato chips along with the growing expansion policies adopted by them to cater the growing consumer demand.

   
   


3. 
   

   Asia-PacificAsia-Pacific market value is USD 9,807.19 in 2023 and USD 16,257.46 in 2032 growing at a CAGR of 6.52% during the forecast period. Asia-Pacific includes China, Japan, India, Australia & New Zealand, South Korea, and the Rest of Asia-Pacific are all included in the analysis of the market. India continues to hold a significant share in the global potato chips market, owing to the wide consumption of potato chips among the various consumer groups. As a part of this, according to MRFR analysis, potato chips are thought to account for around 85% of the roughly Rs 2500 crore salty snack food market in India. The modest potato chip, which appeals to both young and old, has proved more effective than any exotic product in capturing the Indian market. Branded chips taste amazing and appear to be less greasy. Furthermore, the increasing government support to strengthen the potato chip sector coupled with the growing expansion policies adopted by key players across the region is expected to open up huge opportunities for its market growth in the upcoming years.

   
   


4. 
   

   South America: South America holds a significant share of the potato chips market and is expected to grow at a CAGR of 6.24% during the forecast period. South America includes Brazil, Argentina, and the Rest of South America are all included in the analysis of the South America market. Brazil continues to hold a significant share in the global potato chips market owing to the increasing consumption of potato chips which in turn has increased its production eventually boosting its market growth in the upcoming years.

   
   


5. 
   

   The Middle East & Africa: The Middle East and Africa are anticipated to reach USD 4,296.02 million by 2032 and are expected to grow at a moderate pace during the forecast period. Middle East and Africa, consist of some of the major countries such as GCC Countries, Turkey, Northern Africa, and Southern Africa. The potato chips market is expected to grow across the region owing to the growing expansion policies adopted by major players and growing residential sector across the region is likely to increase the consumption of various types of potato chips, which in turn would boost its market growth in the future.