Global Dehydrated potato Market - 2023-2030

Overview

Global Dehydrated Potato Market reached US$ 5.94 billion in 2022 and is expected to reach US$ 10.29 billion by 2030, growing with a CAGR of 7.12% during the forecast period 2023-2030.

The dehydrated potatoes are well known for their greater shelf life. Food processors can easily preserve these products for longer periods and use them in various food applications as an ingredient. The products are used as convenient and versatile ingredients in the production of bakeries and other snack items. The dehydrated potatoes serve as thickening agents in the preparation of soups and gravies.

Increasing demand for plant-based and gluten-free ingredients in food products positively impacts the market. According to U.S. Department of Agriculture survey, USD 183 million organic potatoes were sold in 2021. The rising trend of the use of organic ingredients made dehydrated manufacturers adopt organic potatoes in the production of dehydrated potatoes.

According to USDA, potatoes are mostly consumed in their value-added forms. USDA stated that about 63% of potatoes are sold for processors of chips, french fries and dehydrated potatoes. Various types of natural and conventional processing methods are used in the production of dehydrated potatoes that are easily used, transported and stored for their different applications.

Dynamics

Development of Sustainable Potato Dehydration Equipment

The sustainable approach of practises at the industrial level of potato dehydration expands the market growth. Many manufacturing companies are adopting smart and sustainable energy use in the production plant. For instance, Aviko Rixona is well known for its smart use of energy and water in the production of potato flakes. In 2022, the plant installed a heat pump in Warffum in the Netherlands, which makes the processes more sustainable.

In June 2023, Tummers Food Processing Solutions, in partnership with Solutherm Solutions, introduced E2E SteamClosure. Launching this innovative product helps convert potato dehydration plants into emissions-free factories by converting the emissions into energy. The product helps provide a cost-efficient and sustainable production process to the potato flake lines that use drum drying processes for potato dehydration. The new sustainable approaches expand the market growth.

More Investments in the Potato Dehydration Units

Dehydrated potatoes are used in various food applications such as soups, baked goods and other processed items. With the increasing demand for dehydrated potatoes, manufacturing companies are increasing their investments to expand their market. The various acquisitions and partnerships in the dehydrated potato market drive the market growth.

In September 2022, an American food processing company, Lamb Weston Holdings, Inc., invested USD 240 million to expand its French fry processing line in Argentina. The newly established manufacturing facility in Mar del Plata is expected to produce over 200 million pounds of frozen French fries and other dehydrated potato products annually.

Continuing its broader range of investments, McCain, a Canadian multinational frozen food company, acquired Lutosa, a Belgium potato processing company, in November 2022. The company invested USD 44.7 million in constructing a new unit facility for potato flake production, with improved working conditions to increase the production range of the plant.

Price Fluctuations

Potatoes are the raw materials for the production of dehydrated potatoes. Climate change and disruptions in the supply-demand chain may cause price fluctuations in the potato, directly affecting the dehydrated potato market. According to FRED, in January 2023, the cost per pound of potatoes was 0.991 U.S. Dollars, which increased to 1.005 U.S. Dollars in July 2023.

Organisations and national governments impose trade restrictions on most of the products. The trade regulations implied the export and import transitions of potatoes and dehydrated potato products, contributing to price fluctuations. Further, adopting new and advanced equipment in processing dehydrated potatoes may contribute to higher production costs for small-scale manufacturers, causing fluctuations in processed food products.

Segment Analysis

The global dehydrated potato market is segmented based on form, product, nature, flavor, processing methods, distribution channel, application, end-use and region.

High Demand in the Food Processing Industry

The dehydrated potato flakes have wide applications in the food processing industry. These products are used to manufacture potato snack pellets and texturised potato products. Potato flakes are widely used as an alternative product for cornstarch or wheat flour in some of the products. They act as a thickening agent and have applications in preparing gravies and soups.

Manufacturers are increasingly adopting new varieties of potato variants for product production. Iscon Balaji Foods is one of India's largest manufacturers of potato products. The company introduced new varieties of European potatoes in Gujarat, India. In May 2022, the company doubled its contract farming activities to increase the production of potato products such as dehydrated flakes.

The technological advances in the dehydrated potato flakes market drive the segment expansion. For instance, in March 2023, Lamb Weston, one of the leading potato processors, announced the construction of a new potato flake factory to expand the production of dried potato flakes to deal with the increasing demand for these products. The company incorporated a new system from Gpi process equipment into their production line that helps deliver additive lines easily.

Geographical Penetration

High Production

The Asia-Pacific dehydrated potato has the largest share of the global dehydrated potato market. The favorable climate conditions of this region drive the production of potatoes. According to FAO, China and India are the largest potato producers in the world. As of 2021, China produced about 94 million tons of potatoes, followed by India, which produced about 54 million tons. The greater the potato production, the larger the availability of raw materials for dehydrated potato products.

The region holds some of the major players in the dehydrated potato market. For instance, Agistin Biotech Pvt. Ltd is one of the largest dehydrated potato products manufacturers and suppliers. The company is well known for its dehydrated potato flakes. Similarly, Agristo Masa Pvt. Ltd also possesses a greater role in the expansion of dehydrated potato flakes. In China, Gansu Xuejing IMP & EXP Co.Ltd and Hailar Maifulao Co. Ltd hold a greater role in the dehydrated potato market growth.

The availability of various dehydrated potato products in the form of powder, granules and flakes expands due to the larger industrial base driving the market in this region. Dehydrated potato is an essential ingredient in various processed food product applications. The increased demand for ready-to-eat food products drives the use of dehydrated potato forms in their production.

Competitive Landscape

The major global players in the dehydrated potato market include Idaho Pacific Holdings, Solan Investment Sp. z o.o., R.K. Dehydration, Lamb Weston, Emsland Group, Pacific Valley Foods, Augason Farms, Idahoan Foods, Rixona B.V. and Basic American Foods.

COVID-19 Impact Analysis

The outbreak of the COVID-19 pandemic moderately impacted the global dehydrated potato market. The COVID-19 pandemic created disruptions in supply chain activities, which caused reduced availability of raw materials for the market. The reduced raw materials and labor availabilities halted production activities at the industrial level.

The strict regulations from the government resulted in the shutdown of food service sectors that use dehydrated potato products as their ingredients. The decreased demand for dehydrated potatoes from processed food production plants badly impacted the market. The lift down of strict regulations and continuation of production at an industrial scale with controlled conditions started the production of these products.

On the other hand, packed and convenient product demand increased during the pandemic, which positively impacted the market. The rising consumption of packaged food, in turn, had a positive impact on the dehydrated potato market, due to its higher use in the food service sectors. In addition, the increased use, accessibility and popularity of the e-commerce sector and the wide availability of these products in online sales increased the market demand.

Russia- Ukraine War Impact

The Russia-Ukraine war had a negative impact on many industrial sectors, including food. In 2021, Russia exported $19.4M to Ukraine, Belarus and other places. Similarly, in 2021, Russia imported $ 218 M in potatoes from Egypt, Pakistan and Georgia. The war created import and export trade disruptions, resulting in economic disturbances. Potatoes, being the primary ingredient for the dehydrated potato market, had a negative impact in the market.

By Form

• Flakes
• Powder
• Dices
• Shreds
• Others

By Nature

• Organic
• Conventional

By Flavor

• Regular Potatoes
• Sweet Potatoes

By Processing Method

• Natural
  • Sun Drying
• Conventional
  • Solar Dehydrator
  • Air-Drying
  • Freeze-Drying
  • Drum Drying
  • Others

By Distribution Channel

• Hypermarkets/Supermarkets
• Convenience Stores
• Online Retailers
• Others

By Application

• Food Processing
• Bakery
• Snacks & Savories
• Soups & Salads
• Others

By End-Use

• Household
• Food Manufacturer
• Food Service

By Region

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Russia
  • Rest of Europe
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Asia-Pacific
  • China
  • India
  • Japan
  • Australia
  • Rest of Asia-Pacific
• Middle East and Africa

Key Developments

• In August 2023, Idahoan Foods, the leading producer of packed potato products, introduced Potato Shreds, with various flavors including Hidden Valley, Original Ranch and Triple Cheese. The launch of new products expanded the company's product portfolio.
• In August 2022, U.S. Department of Agriculture National Institute of Food and Agriculture funded the Texas A&M Potato Breeding Program, to introduce new potato varieties with high starch for their use in the French fry market.
• In September 2021, McCain, a Canadian multinational frozen food company, invested in the French-based Bethune factory to improve the efficiency and sustainability of industrial manufacturing. The investment mainly focussed on modernising the facility and establishing a new packaging facility for french fries.

Why Purchase the Report?

• To visualize the global dehydrated potato market segmentation based on form, product, nature, flavor, processing methods, distribution channel, application, end-use and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of dehydrated potato market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as excel consisting of key products of all the major players.

The global dehydrated potato market report would provide approximately 93 tables, 99 figures and 234 Pages.

Target Audience 2023

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies