(I-BusinessNews.Com, April 10, 2022 ) The Global Potato Processing Market size was estimated to be $39,190.10 million in 2021 and is anticipated to reach a value of $53,577.22 in 2027, growing at a CAGR of 5.4% during the forecast period 2022-2027. Potato processing typically involves numerous steps such as cleaning, peeling, washing, slicing, and blanching of fresh potatoes to create products such as French fries, chips, flakes, and starch. Processed potato products are used by households, fast food chains, and restaurants to produce dishes such as French fries, soups, salads, and potato snacks while requiring only a fraction of the time as they are already partially prepared before reaching the end-user. The rapid growth of quick-service restaurant chains in both developed, as well as major developing countries and increasing penetration of online food delivery services during the COVID-19 pandemic, are some of the key factors that are set to drive the growth of the Global Potato Processing Market during the forecast period 2022-2027.
Global Potato Processing Market Segment Analysis – By Product Type:
Based on Product Type, the Global Potato Processing market can be segmented into French Fries, Chips, Flakes, Starch, and Others. The French fry segment accounted for the largest revenue market share in 2021. The segment is projected to grow at a CAGR of 5.2% during the forecast period 2022-2027. The growth of the segment can be attributed to the growing popularity of ready-to-cook French fries in urban households during the pandemic. Ready to cook French fries are typically sold in supermarkets or grocery stores and are preferred by consumers owing to their low preparation time and high convenience. However, the Starch segment is projected to grow the fastest with a CAGR of 7.1% during the forecast period owing to the growing applications in the pharmaceutical industry. They are mainly used as an excipient, a tablet and capsule diluent, a tablet and capsule disintegrant, a glidant, or as a binder.
Global Potato Processing Market Segment Analysis – By Application:
Based on Application, the Potato Processing market can be further segmented into Household and Food Service, and Industrial Applications. The Industrial applications segment accounted for the largest revenue market share in 2021 and is poised to dominate the market during the forecast period 022-2027 owing to their extensive use in the food products manufacturing industries for binding applications. For instance, dehydrated potato flour is used in the food industry to bind meat mixtures while potato flakes are used in the manufacture of retail mashed potato products. Furthermore, as processed potato starch is a fine tasteless powder with a superior mouth feel, they are being increasingly used as a thickener for sauces and stews, and as a binding agent in cake mixes, dough, biscuits, and ice cream. The Industrial Applications segment is also predicted to have the fastest CAGR of 5.7% during the forecast period 2022-2027.
Global Potato Processing Market Segment Analysis – By Geography
Based on Geography, The Asia pacific Potato Processing market accounted for 37.3% of the revenue share in 2021 and is poised to grow at a CAGR of 6.7% during the forecast period 2022-2027. The growth of the segment can be primarily attributed to the ample supply of high-quality raw potatoes for processing companies at low costs owing to the large-scale potato cultivation in the region. For instance, according to the United States Department of Agriculture (USDA), China’s fresh potato production was estimated to be around 99 million metric tons (MMT) in 2020. This was a 3% increase from the previous year owing to the expanding acreage. The South American segment is also anticipated to witness lucrative growth during the forecast period owing to factors such as the rise in the number of large-scale potato processing facilities and increasing per capita potato products consumption in the region.
Global Potato Processing Market Drivers
Rising Adoption Of Vegetarian And Vegan Food Products Aids In Market Growth:
The growing adoption of vegetarian and vegan food items in developed regions owing to the growing health consciousness and increasing concern towards animal wellbeing is anticipated to drive the demand for processed potato products during the forecast period. Moreover, ready to cook potato products such as fries, soups and snacks are being marketed with labels such as ‘vegan’ or ‘organic’ in order to boost sales. It is estimated that around 1.5 billion people or 22% of the global population are vegetarians in 2022. Besides, the number of people following a vegetarian diet increased by 1.19 million in Germany between 2014 and 2021. Their rising popularity in the media coupled with various health benefits is anticipated to increase the population of vegetarians and vegans during the forecast period.
The Growth And Recovery Of The Food Service Sector Are Boosting The Market Growth:
Growth and recovery of restaurant chains and quick-service restaurants are projected to increase the demand for potato processing as such food services make extensive use of French fries, potato snacks, and other such ready-to-cook meals. For instance, according to Restaurants Canada estimates, Annual sales at commercial foodservice establishments in the country increased from $54.9 billion in 2020 to $61.4 billion in 2021. The market is expected to reach pre-pandemic levels by 2023 when the industry will reach $78.6 billion. The growth is further augmented by the increasing penetration of online food delivery services as they enable such restaurants to deliver food products even when restrictions are placed owing to the COVID-19 pandemic.
Increasing Prevalence Of Ailments Owing To Consumption Of Fried Snacks Is Hindering Market Growth:
Increased consumption of potato chips has been linked to diseases such as hypertension, cardiovascular illnesses, and cancer. Besides, the risk of developing conditions such as stroke and obesity also significantly rise with high levels of fried potato products consumption. For instance, a study conducted on 4,440 individuals aged between 45-79, found that over a period of eight years, those who ate fried potatoes such as French fries, hash browns, and potato chips two or more times a week had double the risk of early death than those who did not eat fried potatoes. The higher risk is attributed to the presence of cooking oil, rich in trans-fat in fried potato products. Trans fat has been shown to boost levels of LDL cholesterol in the blood, which can lead to heart disease.
Global Potato Processing Industry Outlook:
Product launches, mergers and acquisitions, joint ventures, and geographical expansions are key strategies adopted by players in the Global Potato Processing Market. Global Potato Processing Market top 10 companies are:
Idohoan foods LLC
Lamb Weston Holdings Inc
JR Simplot Company
Partnerships / Expansions:
In July 2021, Lamb Weston Holdings, Inc. announced an increase in French fry processing capacity at its American Falls, Idaho facility. They hope to manufacture more than 350 million pounds of frozen french fries and other potato products per year as a result of this. The new line is projected to be completed by the middle of 2023, and it will create about 130 additional jobs.
In March 2021, Aviko finalized the acquisition of the majority share in the Bavarian family business Amberger. Aviko thus invests in further improving its position in the German and Austrian Foodservice market. The acquisition includes the production site of Oberdolling, regional brand Feldmühle, and the premium range of German potato products.
In December 2020, Farm Frites, through its subsidiary, Farm Frites Beheer B.V, announced plans to build a plant for the production of French fries in the Shu region of Kazakhstan. The cost of the plant to produce French fries is expected to be $145m. The plant is expected to be operational in 2023 and will employ 240 people.
Geographically, the Asia Pacific potato processing market accounted for the highest revenue share in 2021, and it is poised to dominate the market over the period 2022-2027 owing to factors such as high fresh potato production, rapid recovery of the foodservice industry, and increasing consumer spending on ready to cook meals owing to COVID-19 restrictions.
The growing demand for vegetarian and vegan food options owing to the increasing need for quality and sustainability is projected to drive the potato processing market. However, the increasing prevalence of ailments owing to the consumption of fried food products such as potato chips and French fries is anticipated to hamper growth opportunities for the Potato Processing Market.
In addition, the growth in the fast-food industry is also anticipated to increase the demand for processed potato products. For instance, according to NBC News, a fast-food chain, McDonald’s requires close to 9 million pounds of frozen French fries to feed around 69 million customers every day across the world.
Detailed analysis of the Strength, Weaknesses, and Opportunities of the prominent players operating in the market will be provided in the Global Potato Processing Market report.
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