Market Research Report
Potato Processing Market Forecasts to 2028 - Global Analysis By Application (Snacks, Ready-To-Cook & Prepared Meals, Other Applications), Distribution Channel (Retail, Foodservice) and By Geography
|Potato Processing Market Forecasts to 2028 - Global Analysis By Application (Snacks, Ready-To-Cook & Prepared Meals, Other Applications), Distribution Channel (Retail, Foodservice) and By Geography|
Published: July 1, 2022
Stratistics Market Research Consulting
Content info: 200+ Pages
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According to Stratistics MRC, the Global Potato Processing Market is accounted for $33.72 billion in 2022 and is expected to reach $54.41 billion by 2028 growing at a CAGR of 8.3% during the forecast period. Potato processing means the preparation of convenience potato products which are primarily made by washing, peeling, size reduction and the removal of defective matter. Subsequent steps may involve a wide combination of heat treatments, cooling processes, dehydration steps, frying systems or freezing stages.
According to World Potato the EU total exports of processed potato products (frozen, flakes, flour and dehydrated - including chips) were €1.788 billion. Frozen fries and potato specialties alone represented 75% of the total (€1.338 billion). The sector is a fast-growing export industry thanks to the advantages of large scale agriculture, high yields of potato crop in Europe and large production facilities. Total EU exports to all destinations, including within the EU, were €6.472 billion in 2019, which was up 95% compared to 2009. Frozen fry exports accounted for 70% of that total (€4.507 billion). 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.
Increasing acceptance of vegetarian and vegan food products
The growing acceptance of vegetarian and vegan food items in advanced provinces owing to the rising health awareness and growing concern towards animal wellbeing is anticipated to drive the demand for the 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' to boost sales. Besides, the rising popularity in the media coupled with several health benefits is predicted to increase the population of vegetarians and vegans during the forecast period.
High Cost Incurred for Storage and Transportation
The high cost of storage and transportation associated with processed potato, the trends that growers storing potatoes are incurring huge increased costs owing to soaring energy bills which eventually increased the storage cost are expected to restrain the growth of potato processing market during the forecast years.
The growth and recovery of the food service sector
The growth and recovery of restaurant chains and quick-service restaurants are anticipated to increase the demand for potato processing as such food services make widespread use of French fries, potato snacks, and other ready-to-cook meals. 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. As food services like fast food establishments make extensive use of French fries, potato snacks, and other such ready-to-cook meals, the growth, and recovery of restaurant chains and quick-service restaurants are expected to create ample opportunities for the market.
Potato chip eating has been related to diseases such as cardiovascular disease, hypertension, and cancer. Moreover, high levels of fried potato product consumption increase the risk of developing conditions such as stroke and obesity. Those who ate fried potatoes like French fries, hash browns, and potato chips two or more times a week had twice the risk of dying young as those who did not eat fried potatoes. The higher risk is accredited to the presence of trans-fat-rich cooking oil in fried potato products.
The Frozen segment is expected to be the largest during the forecast period
The Frozen segment is expected to be the largest during the forecast period, owing to the increased demand for French fries served in restaurants and fast-food chains around the world. The expansion of Quick Service Restaurants (QSRs) such as KFC, Pizza Hut, and McDonald's in countries such as India and China is expected to fuel demand for frozen potato products. The growing popularity of potato chips among young people and the ease with which they can be obtained are motivating the segment growth.
The Food services segment is expected to have the highest CAGR during the forecast period
The Food services segment is expected to have the highest CAGR during the forecast period, owing to rising number of quick service restaurants and international hotels. Rising number of food delivery services and increase in working population in the urban areas is anticipated to bolster the demand for processed potato in the food service segment. Modern trade and other retail formats provides with easy access to the frozen products that help for the growth of the potato processing market.
Region with highest share:
Europe is projected to hold the largest market share during the forecast period, owing to a thriving food processing industry and the presence of major companies in countries such as Germany, the United Kingdom, France, the Netherlands, and Belgium. Besides, factors such as lesser time required for the preparation of meals and the growing preference of consumers for convenience foods are some of the factors propelling the market growth in the European region.
Region with highest CAGR:
Asia Pacific is projected to have the highest CAGR over the forecast period, owing to factors such as high fresh potato production, fast recovery of the foodservice industry, and increasing consumer spending on ready-to-cook meals. The growing demand for vegetarian and vegan food options due to the increasing need for quality and sustainability is predictable to drive the market. Additionally, the demand for French fries is also increasing due to the rising demand for frozen potatoes in the APAC regions, French fries contain nutrition and also have attractive color, and the growth of the fast food industry is expected to drive the market growth in the region.
Some of the key players profiled in the Potato Processing Market include Webtrends, AT Internet, Verto Analytics, Talend, Splunk,Oracle, Microsoft, Jumpshot, IBM,HPE, Google, Connexity, SAP, Adobe and Vlocity.
In February 2021: Aviko acquired the majority stake in the Bavarian family business Amberger. As a result, Aviko invests in further strengthening its position in the German and Austrian foodservice markets. The acquisition includes the Oberdolling production site, the regional brand Feldmuhle, and a premium range of German potato products..
In July 2021: Lamb Weston Holdings, Inc. announced a capacity increase in French fry processing at its American Falls, Idaho facility. As a result, they hope to produce more than USD 1,050 million of frozen french fries and other potato products per year. The new line is expected to be completed by the middle of 2023, creating approximately 130 new jobs.
Distribution Channels Covered:
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Table17 Global Potato Processing Market Outlook, By Desserts (2020-2028) (US $MN)