Potato Chips Market Size

Global Potato Chips Market Overview

Potato Chips Market Size was valued at USD 32,998.62 million in 2023. The potato chips industry is projected to grow USD 34,7047 million from 2024 to USD 50,286.00 million by 2032, exhibiting a compound annual growth rate (CAGR) of 5.41% during the forecast period (2024 - 2032). The consistent demand for potato chips driven by surge in snacking trend. Increasing demand for clean label snacks and product innovation and diversification, thereby driving their demand globally. Moreover, the burgeoning demand for healthy snacks, serves as a significant driver of potato chips.

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Potato chips Market Trends

• Surge in snacking trend

Potato chips are the all-time favorite snacks of consumers around the world and are at the forefront position of the revolution in the snacks industry. The global market for potato chips is observing substantial growth, which is primarily driven by the surge in snacking trends among the population. This swing in the eating pattern of individuals is mainly prompted by changing lifestyles, a growing demand for convenient, & ready-to-eat food products, and evolving preferences. Potato chips are one of the most popular snacking products and have benefitted considerably from this trend. The primary growth driver for the snacking trend is the increasingly hectic lifestyle of the modern population. With a busy timetable and less time for traditional sit-down meals, consumers are shifting towards convenient, ready-to-eat snacks such as potato chips. 

This shift is specifically evident among younger populations, such as Gen Z, and millennials who focus on convenience and are more likely to snack throughout the day rather than adhere to traditional mealtimes. In addition, the rise of the global middle class has contributed to the growing demand for snack foods. As disposable incomes increase, more people can afford to purchase packaged snacks, including potato chips. This trend is not confined to developed markets; emerging economies are also witnessing a surge in snack consumption. For instance, in countries such as India and China, where the middle class is expanding rapidly, there is a significant uptick in the demand for potato chips. The market has also been propelled by continuous product innovation.

Manufacturers are constantly introducing new flavors and variations to cater to diverse consumer tastes and preferences. For instance, Lay’s, a leading potato chips brand, regularly launches limited-edition flavors and collaborates with other food brands to create unique offerings. Such innovations not only attract existing customers but also draw in new ones who are curious to try novel flavors. Moreover, health and wellness trends also have a major role in the growth of the potato chips market. While traditional potato chips are often viewed as an indulgent snack, the industry has responded to health-conscious consumers by offering healthier alternatives. Baked chips, chips made from alternative vegetables, and low-sodium or low-fat options are increasingly available. This diversification allows consumers to enjoy their favorite snack while adhering to their dietary preferences or restrictions. For instance, the Pop chips brand has gained popularity by providing a healthier, popped version of the traditional potato chip, positioning itself as a better-for-you snack option. The incorporation of such products entices consumers who are more concerned regarding health & wellness. Based on these factors it can be concluded that the snacking trend among consumers is skyrocketing the demand for the potato chips industry across the globe and is anticipated to grow during the upcoming years.

Segment Insights

Potato chips Type Insights

The Potato chips Market segmentation, based on type, includes fried and baked. The fried segment accounted for the largest market share of 74.44% in 2023 and is likely to register a CAGR of 5.05% during the projected period. The worldwide potato chips industry 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. Kettle-cooked chips, fried in tiny quantities, have a unique texture and flavor which distinguishes them from other typical fried chips.

Figure 1: Potato chips Market, by type, 2023 & 2032 (USD Million)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Potato chips Category Insights

The Potato chips Market segmentation, based on category, includes organic, and regular. The regular segment accounted for the largest market share of 77.69% in 2023 and is likely to register a CAGR of 5.08% during the projected period. The Regular section of the market of potato chips 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. This extensive acceptance creates steady demand in the worldwide market.

Figure 2: Potato chips Market, by category, 2023 & 2032 (USD Million)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Potato chips flavour Insights

The Potato chips Market segmentation, based on flavour, includes flavored, and plain/salted. The flavored segment accounted for the largest market share of 74.70% in 2023 and is likely to register a CAGR of 5.15% during the projected period. 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. The flavored category is at the cutting edge of industry innovation, always offering fresh and intriguing flavors. Manufacturers explore using a wide range of spices, even herbs and spices, ranging from conventional favorites like barbecue and sour cream and onion to more unusual flavors including truffle, sriracha, and mango chili.

Figure 3: Potato chips Market, by flavour, 2023 & 2032 (USD Million)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Potato chips Distribution Channel Insights

The Potato chips Market segmentation, based on distribution channels, includes Supermarkets & Hypermarkets, Convenience Stores, and Online. The supermarkets & hypermarkets segment accounted for the largest market share of 49.07% in 2023 and is likely to register a CAGR of 4.89% during the projected period. 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. Supermarkets and hypermarkets provide consumers with a one-stop shopping experience that is extremely convenient. Shoppers may get all their supplies, including potato chips, in one trip. This convenience promotes buying on impulse and improves the possibility of purchasing chips made from potatoes, resulting in growth in the market.

Figure 4: Potato chips Market, by distribution channel, 2023 & 2032 (USD Million)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Potato chips Regional Insights

By Region, the study segments the market into North America, Europe, Asia Pacific, South America, and the Middle East & Africa. North America potato chips market accounts for the largest market share 32.32% in 2023 and is expected to exhibit a 4.62% CAGR due to the growing working population in the US. 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. Besides this, the growing number of strategies adopted by key players are likely to open huge opportunities for its market growth in the upcoming years.

Figure 5: POTATO CHIPS MARKET SHARE BY REGION 2023 (%)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

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. As a part of this, ALTHO is a prominent leader in private labels and the manufacturer of nearly every brand found in France's grocery distribution. Every year, Bret’s own brand gains popularity and growth, positioning itself as the industry's top competitor for flavored potato chips. With a great price-to-quality ratio, its brand is consistently evolving, getting better, and becoming more distinctive. Using either private labels or the Bret's brand, the company is expanding its business internationally.

Asia-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 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 huge opportunities for its market growth in the upcoming years.

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 Potato chips industry owing to the increasing consumption of potato chips which in turn has increased its production eventually boosting its market growth in the upcoming years.

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 which would fuel its market growth in the future. Besides this, the 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. As a part of this, in February 2021, the US-Saudi Business Council anticipates that government investment in the residential real estate market will continue, to sustain the rate at which affordable housing projects are being constructed.

Further, the major countries and regions studied are: Canada, Mexico, Germany, UK, France, Spain, Italy, China, Japan, India, Australia & New Zealand, South Korea, Argentina, GCC Countries, Turkey, Northern Africa, and Southern Africa.

Potato chips Key Market Players & Competitive Insights

The Potato chips Market is a growing segment of the region's food industry. Potato chips, one of the favorite snacks of people of all ages around the world, have solidified their place in today's snack menu. Potato chips have grown from humble beginnings into a multibillion-dollar business. The market for potato chips is characterized by a variety of flavors, textures, and packaging options to suit many consumer preferences worldwide. With the rise of convenience foods and busy lifestyles, potato chips offer consumers a convenient and satisfying meal. From classic flavors like salt and vinegar to new varieties like barbecue, sour cream and onion, potato chip manufacturers are always striving to appeal to tastes and stay ahead of the rest in a competitive market. Moreover, the global impact of potato chips extends beyond taste, they are also representative of culture, consumed in all their health, including local desserts and cooking and drinking. In an age where snacking is as much about information as food and clothing, potato chips continue to hold an important place in the hearts and foods of consumers worldwide. Business Expansion, collaborations and product launch were also observed to expand the company's product portfolio as well as introduce new products. The growth of prominent industry players is dependent on various factors, such as market conditions, government support, and industry development. Key manufacturers in the potato chips market are focusing on developing high-quality and healthier products. It is also projected that a rise in investments in research and development (R&D) will also boost the market's growth in the upcoming future. 

Key Companies in the Potato chips market include

• 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)

Potato Chips Industry Developments

February 2024: PepsiCo India launched a sub brand under its main brand, Lay’s Shapez, which is a heart-shaped potato-based pellet format. Lay’s Shapez Heartiez portfolio includes masala flavor in addition to caramel flavor. This marks Lay’s foray into the sweet-flavored chip segment. The company aims to expand its potato chip snack portfolio with the launch of new products.

April 2023: Astar Network and Calbee Inc. partnered to launch an innovative NFT chip campaign. The campaign will be housed on the Astar blockchain and will feature changing NFTs modeled after the well-known Calbee potato chips.

March 2023: PepsiCo launched a crop intelligence model for India in collaboration with Cropin. unveiled a crop- and plot-level predictive intelligence model under the "Lay's" brand to assist farmers in maximizing potato yields and quality through useful dashboards on user-friendly mobile apps.

October 2022: KP Snacks has announced the launch of its reformulated non-HFSS (high in fat, salt, and sugar) popchips portfolio. The whole line of popchips, which includes the time-honored favorites Sea Salt, Sea Salt & Vinegar, Barbeque, and Sour Cream & Onion, is being published into stores in advance of legislation being filed.

Potato chips Market Segmentation

Potato Chips Type Outlook

• Fried


• Baked

Potato Chips Category Outlook

• Organic


• Regular

Potato Chips Flavour Outlook

• Flavored


• Plain/Salted

Potato chips Distribution Channel Outlook

• Supermarkets & Hypermarkets


• Convenience Stores


• Online

Potato chips Regional Outlook

• North America
  
  
  
  • US
  
  
  • Canada
  
  
  • Mexico
  
  
  
  


• Europe
  
  
  
  • Germany
  
  
  • UK
  
  
  • France
  
  
  • Spain
  
  
  • Italy
  
  
  • Rest of Europe
  
  
  
  


• Asia-Pacific
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia & New Zealand
  
  
  • South Korea
  
  
  • Rest of Asia-Pacific
  
  
  
  


• South America
  
  
  
  • Brazil
  
  
  • Argentina
  
  
  • Rest of South America
  
  
  
  


• Middle East & Africa
  
  
  
  • GCC Countries
  
  
  • Turkey
  
  
  • Northern Africa
  
  
  • Southern Africa