Dehydrated Potato Market Distribution Channel was valued at USD 5.8 Billion in 2023. The Dehydrated Potato indutry is projected to grow from USD 6.2 Billion in 2024 to USD 10.5 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 6.80% during the forecast period (2024 - 2032). Growing applications in the processed food sector and increased demand for ready-to-eat goods, are the key market drivers enhancing the market growth.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Convenience meals have become more popular as a result of the growing demand for ready-to-eat (RTE) food products. Food tasks including meal preparation, cooking, and post-meal activities can be made easier and faster for consumers by convenience foods. Rapid urbanisation and rising gross Household Disposable Income (GHDI) of customers have increased spending on processed and ready-to-eat food items. Convenience food consumption rose as a result of changing consumer tastes, a bettering consumer lifestyle, extended working hours, and the COVID-19 outbreak. The demand for these food products is also increasing as a result of this. As a result, makers of potato goods engage in a variety of commercial activities that aid in market expansion. To enhance the production of dehydrated flakes and other potato products, Iscon Balaji Foods, for example, planned to treble its contract farming activities in Gujarat (India), starting in May 2022. Three new types of European potatoes were released by the corporation in an effort to meet the segment's growing demand for such goods.
Due to an increase in demand for their uses in baked goods, sauces, soups, and other processed food products, the industry has experienced significant expansion. These dried potatoes have a number of qualities that make them useful in cooking. For making soups and gravies, for instance, dehydrated potato flakes or granules make a good base thickener. People with celiac disease or another gluten-related condition can benefit from using these potatoes in place of items that contain gluten.
Due to its longer shelf life and year-round availability, the processed food industry is the main source of the product's growing demand. Consumers are actively consuming processed foods that are high in nutrition, which is helping the market to rise steadily in recent years. Less than 50% of potatoes are consumed fresh, while the remainder are processed into value-added goods and dried potatoes, according to data from the Food and Agriculture Organisation (FAO). Significant market opportunities are anticipated to be generated by the rising demand for dehydrated and processed potatoes in the global processed food and beverage industry. Thus, driving the Dehydrated Potato market revenue.
The Dehydrated Potato Market segmentation, based on Form, includes flakes, powder, dices, shreds, and others. Powder segment dominated the global market in 2022. As a thickening agent, potato powder is frequently used in a variety of food preparations, including baked goods, ready-to-eat meals, and other foods. Convenience foods and items that are ready to cook have become very important recently. In this setting, potato powder will become well-liked as a product for mass consumption. As a result, this product has a lot of potential and room for growth in the expanding food market. In addition, it makes a fantastic substitute for wheat flour when used in place of gluten-free flour. It is currently mostly used in the food service sector, but due to the fact that it is used in meals like soups, gravies, and curries, acceptability in households is rising.
The Dehydrated Potato Market segmentation, based on Nature, includes organic and conventional. Conventional segment dominated the global market in 2022. Due to the product's numerous uses, commercial sellers now offer dehydrated potatoes in their most natural state. A sizable portion of the global market is anticipated to belong to the traditional segment. Consumers choose conventional foods to organic ones because they are more cheap. Traditional potatoes are mostly used in commercial food service enterprises, hence they are bought in large quantities. Since organic potatoes are generally more expensive at retail than conventional ones, the conventional market is expanding faster.
The Dehydrated Potato Market segmentation, based on Distribution Channel, includes food services and retail channel. Food services segment dominated the Dehydrated Potato Market in 2022. Hotels, restaurants, fast food restaurants, cafeterias, and other establishments fall under the category of food services. The rise of food delivery channels has increased the importance of product demand within the food service industry. The demand for the product is driven by the rising national and international brands of full-service and quick-service restaurants. Dehydrated goods are also easily accessible thanks to modern trade, use in commercial and industrial applications, and other retail forms, which supports the market's expansion.
Figure 1: Dehydrated Potato Market, by Distribution Channel, 2023 & 2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
By region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. The Asia Pacific Dehydrated Potato market dominated this market in 2022 (45.80%). Manufacturers of quick potatoes anticipate considerable contributions from the area. The highest market shares in the area are predicted to belong to China and India. In these nations, potatoes are a significant vegetable that are farmed both as a staple diet and as a source of revenue, particularly for farmers in hilly regions with poor soil. Potato flour is used to bind meat mixes, thicken gravies and soups, and dehydrated potato flakes are utilised as a snack ingredient in commercial mashed potato products. The demand for the commodity in the area is fueled by the rising usage of potato starch as a thickening for sauces and stews and a binding ingredient in dough, biscuits, and cake mixes. Moreover, China’s Dehydrated Potato market held the largest market share and the Indian Dehydrated Potato market was the fastest growing market in the Asia-Pacific region.
Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 2: DEHYDRATED POTATO MARKET SHARE BY REGION 2023 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
The North America Dehydrated Potato Market is expected to register significant growth from 2023 to 2032. The U.S. processed food business is expanding quickly, which in turn helps the local market expand. As the consumption of instant soups and salads increases in the region, the U.S. has the greatest market share in that area. To preserve the fresh-potato texture and flavour in the rehydrated product, the processors use cutting-edge techniques, technologies, and rigid standards. In response to consumers' growing worries about additives, American potato producers offer a number of clean-label dehydrated choices. Further, the U.S. Dehydrated Potato market held the largest market share, and the Canada Dehydrated Potato market was the fastest growing market in the North America region.
Europe Dehydrated Potato market accounted for the healthy market share in 2022. Due to the rising demand for prepared foods and snacks as well as the expansion of the fast-food business in the area, the U.K. is anticipated to take the top spot. The increase in the number of working people has fueled the desire for convenience foods, assisting with the growth of the industry in this area. Further, the German Dehydrated Potato market held the largest market share, and the U.K Dehydrated Potato market was the fastest growing market in the European region
Leading market players are investing heavily in research and development in order to expand their product lines, which will help the Dehydrated Potato market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, Dehydrated Potato industry must offer cost-effective items.
Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the global Dehydrated Potato industry to benefit clients and increase the market sector. In recent years, the Dehydrated Potato industry has offered some of the most significant advantages to medicine. Major players in the Dehydrated Potato market, including McCain Foods, Basic American Foods, Lamb Weston, Idahoan Foods, Pacific Valley Foods, Augason Farms, Idaho Supreme Potatoes, Birkamidon, Rohstoffhandels GmbH, J.R. Short Milling, and Rixona B.V., are attempting to increase market demand by investing in research and development Natures.
Frozen potato products are produced and marketed by McCain Foods Ltd (McCain). French fries, potato-based items, frozen-fresh potato products, appetisers, pizzas, green bean fries, frozen fruits and vegetables and desserts are all included in the company's product line. Additionally, it creates fertilisers and produces and distributes potato seeds. McCain supplies commodities to dining establishments, grocers, supermarkets, hypermarkets, department shops, and retail outlets. It collaborates with grower partners and suppliers to acquire potatoes and offers general freight, warehousing and distribution services for agricultural products. The corporation has business operations across the Middle East, Africa, Asia-Pacific, Europe, and the Americas. Toronto, Ontario, Canada serves as the headquarters of McCain.
The company Lamb Weston Holdings Inc. (Lamb Weston) produces and markets frozen potato goods. Fries, sweet potato fries, various potato goods and appetisers make up the company's product line. Products from Lamb Weston are available straight, sliced, diced, and mashed, among other forms. Lamb Weston, Lamb Weston Supreme, Lamb Weston Private Reserve, Lamb Weston Colossal Crisp, Lamb Weston Stealth Fries, Lamb Weston Seasoned, Lamb Weston Crispy on Delivery, and Sweet Things are some of the brand names under which the company sells its goods. Distributors, mass merchants, supermarket and specialty retailers, foodservice distributors, educational institutions, regional chain restaurants, individual restaurants, and convenience stores are among the recipients of its product distribution. In addition to the US, Singapore, Japan, Australia, China, Mexico, and Canada, the corporation also conducts business there.
Key Companies in the Dehydrated Potato market include
Dehydrated Potato Industry Developments
November 2022 McCain purchased the potato processing business Lutosa, and has just constructed a new flakes facility in Belgium. McCain Foods has invested USD 44.7 million in the new business.
| Report Attribute/Metric | Details |
| Market Distribution Channel 2023 | USD 5.8 Billion |
| Market Distribution Channel 2024 | USD 6.2 Billion |
| Market Distribution Channel 2032 | USD 10.5 Billion |
| Compound Annual Growth Rate (CAGR) | 6.80% (2024-2032) |
| Base Year | 2023 |
| Market Forecast Period | 2024-2032 |
| Historical Data | 2019- 2023 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Form, Nature, Distribution Channel, and Region |
| Geographies Covered | North America, Europe, Asia Pacific, and the Rest of the World |
| Countries Covered | The U.S., Canada, German, France, U.K, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled | McCain Foods, Basic American Foods, Lamb Weston, Idahoan Foods, Pacific Valley Foods, Augason Farms, Idaho Supreme Potatoes, Birkamidon, Rohstoffhandels GmbH, J.R. Short Milling, and Rixona B.V. |
| Key Market Opportunities | Increasing demand for plant based products |
| Key Market Dynamics | Increasing demand for ready-to-eat products and rising applications in the processed food industry |
Dehydrated Potato Market Highlights:
Frequently Asked Questions (FAQ) :
The Dehydrated Potato Market Distribution Channel was valued at USD 5.8 Billion in 2023.
The global market is projected to grow at a CAGR of 6.80% during the forecast period, 2024-2032.
Asia Pacific had the largest share in the global market
The key players in the market McCain Foods, Basic American Foods, Lamb Weston, Idahoan Foods, Pacific Valley Foods, Augason Farms, Idaho Supreme Potatoes, Birkamidon, Rohstoffhandels GmbH, J.R. Short Milling, and Rixona B.V.
The Powder Form dominated the market in 2023.
The Conventional Nature had the largest share in the global market.
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