ID: MRFR/F-B & N/9207-CR | September 2021 | Region: Global | 99 pages
The global potato chips & crisps market is projected to register a CAGR of 4.39% and reach a value of USD 50.1 billion by 2028. Potato chips and crisps are thin slices of potato that have been deep-fried or baked until crunchy. These are consumed as a snack globally. Potato chips and crisps come in two varieties, flavored and plain. The high demand for ready-to-eat snacks products supports the rise in the sales of potato chips & crisps among the consumers.The high demand for snack products among consumers is expected to drive the growth of the global potato chips and crisps market during the forecast period. Furthermore, continuous R&D innovation by the manufacturers is further expected to witness the growth of the global potato chips & crisps market during the forecast period. However, the availability of healthy alternatives is expected to hinder market growth in the coming years.
COVID-19 Impact Analysis
The advent of the global pandemic, COVID-19, resulted in a global crisis. Impacting over 210 countries, the outbreak has already created an economic backdrop worldwide. With over 165 million COVID-19 cases worldwide, along with 3.4 million fatalities during the fourth week of May 2021, the global pandemic COVID-19 is deemed to create a chaotic environment, thereby resulting in global rescission. With the rapidly rising cases, the global potato chips & crisps market is affected in many ways.
With the outbreak, there was a spike in essential goods such as sanitizers and masks, and customers stocked up household essentials like toilet paper and bread. Most of the customer's budget was shifted to essential goods, and a major downfall in non-essential businesses was observed. As more cities went into lockdown, non-essential businesses were ordered to remain closed during the first half of the pandemic.The unavailability of the workforce disrupted the supply chain of the global potato chips & crisps market, as the lockdown and the spread of the virus pushed people to stay indoors. The performance of the potato chips & crisps manufacturers and the transportation of the goods are interdependent. Halt in manufacturing led to a halt in transportation and, by extension, the entire supply chain. The loading and unloading of the products, i.e., raw materials and end products (ingredients), which require manpower, was also heavily impacted due to the pandemic. From the manufacturing factory gate to the warehouse or from the warehouse to the consumers, the entire supply chain has been severely threatened due to the outbreak.
The global potato chips & crisps market has witnessed a significant growth rate over the last few years and is projected to register a 4.12% CAGR during the forecast period. Various factors like the high demand for snacks among the population is majorly driving the market growth of potato chips & crisps. Continuous R&D and innovation in the market also contribute to the market growth during the forecast period. Moreover, rising demand for organic products and growth of online sales channels are the factors creating an opportunistic market for the market players to grow and expand. However, healthy alternatives made available in the market are restricting the growth of the market. Also, the branding issue creates a challenging situation for the market players in the potato chips & crisps market.
The changing lifestyles, availability of convenience food, and evolving dietary patterns play an important role in defining consumers' food choices. The trend of consuming snack products such as potato chips & crisps that began in the western world, rapidly spread to other regions across the globe. Owing to the rise in busy lifestyles, the fixed "three-meals a day" model is no more relevant and the population across the globe, especially millennials and Gen Z, hasadopted snacking attitudes. Consumers look for various snack choices to indulge in to satisfy their cravings until their next meal. Also, potato chips & crisps have become one of the most popular snacks globally as it is the most preferred snacking option among all age groups. Increasing urbanization and the growing need for an on-the-go snack among people with hectic work life has propelled the demand for snack products such as potato chips & crisps.
Healthy snacking has been gaining popularity in recent years as consumers seek convenient foods that satisfy hunger while also supporting their physical and mental wellbeing. Potato is one of the most popular ingredients among snack consumers, but there is a fast-growing interest in superfood vegetables. Raw materials with a health halo, such as kale, parsnip, beet, and spinach, are increasingly used as an alternative to traditional potato, driven by healthy snacking. Manufacturers are also turning to superfood fruits, like banana, kiwi, or mango, to expand their offering in healthy snacking. Moreover, legumes such as chickpeas and lentils are also gaining huge popularity among the health-conscious population for snacking options. Thus, such shift in consumer taste and preferences has influenced market players in potato chips & crisps to expand product offerings containing health-benefiting ingredients. This factor proves to be a major restraint for the market during the forecast period.
The sales of potato chips & crisps are not only limited to store-based distribution channels but are also equally available in the non-store-based or e-commerce channel. The grocery sites have enhanced the customer experience by making the grocery delivery process easy and efficient. The consumers can easily select delivery slots preferred by them. This results in the timely delivery of products as per the requirement of the consumers. Gen-Z population across the globe are majorly opting for online purchases of groceries. The Gen-Z population is the most tech-savvy and is ready to pay a premium to avail online services, including same-day delivery of products. Additionally, some of the key players for online groceries, such as Walmart Inc. and Amazon.com, Inc., along with various regional players, are boosting the sales of potato chips & crisps through an online channel in the global market. Furthermore, post COVID-19 pandemic, most of the population are inclining towards online sales for convenience.
Based on type, the global potato chips & crisps market has been divided into flavored and plain. The flavored segment accounted for a larger market share in 2020, while plain is expected to register the higher CAGR of 4.70% during the forecast period.
By function, the global potato chips & crisps market has been segmented intoconventional and organic. The organic segment is projected to exhibit a higher CAGR of 4.48% during the forecast period.
By Distribution Channel
Based on distribution channel, the global potato chips & crisps market has been segmented into store-based and non-store-based. The store-based channel is further segmented into supermarkets & hypermarkets, convenience stores, and others. The supermarkets & hypermarkets accounted for a larger market share in 2020 and are expected to register 3.98% during the forecast period.
Global Potato Chips & Crisps Market Share, by Region, 2020 (%)
Sources: MRFR Analysis
By region, the global potato chips & crisps market has been dividedinto North America, Europe, Asia-Pacific, andthe Rest of the World.North America accounted for the largest market share of 33.39% in 2020. Asia-Pacific was thesecond-largest market in 2020 and is projected to exhibit a CAGR of 4.53% during the review period.The market in Asia-Pacific is expected to register the highest CAGR during the forecast period.
North America is an attractive region among the manufacturers of potato chips &crisps. The region accounted for a 33.39% market share in 2020 and is projected to expand at a rate of 4.20% during the forecast period, 2021–2028. An increase in demand for ready-to-eat snacks and convenient foods due to the hectic lifestyle of the people in the region is expected to boost the growth of the North America potato chips & crisps market during the forecast period. Moreover, several manufacturers in the region are focusing on launching innovative flavors that offer a wide variety of flavors, tastes, and textures of chips to consumers, further boosting the growth of the North America potato chips & crisps market during the forecast period. Moreover, key manufacturers are emphasizing the promotional activities to create strong awareness among the consumers regarding the new product launch, which will accelerate the growth of the North America potato chips & crisps market during the forecast period.
Asia-Pacific accounted for the second-highest market share of 28.22% in 2020 and is expected to be the most lucrative regional market for potato chips & crisps during the review period. The regional market is projected to exhibit the highest CAGR of 4.53% during the review period. The growing trend of consuming snack products such as potato chips & crisps supports the Asia-Pacific potato chips & crisps market during the forecast period. The rise in demand for packaged foods in emerging countries such as China and India further supports the Asia-Pacific potato chips and crisps market. Key manufacturers of potato chips & crisps find massive opportunities in Asia-Pacific. The manufacturers are introducing new products to capture the competitive market share in the region. The increasing massive growth of online grocery is anticipated to be one of the significant factors for the rising sales of potato chips & crisps market during the forecast period.
The market comprises tier-1, tier-2, and local players. The tier-1 and tier-2 players have reach across the globe with diverse product portfolios. Companies such as PepsiCo, Inc., Kellogg Company, Burts Potato Chips Ltd, Calbee Inc., and Utz Quality Foods, Inc.dominate the global market due to brand reputation, product differentiation, financial stability, strategic developments, and diversified regional presence. The players are focused on investing in research and development. Furthermore, they adopt strategic growth initiatives, such as expansion, product launches, joint ventures, and partnerships, to strengthen their market position and capture a large customer base.
Prominent players in the global potato chips & crisps market include PepsiCo, Inc. (US), Kellogg Company (US), Burts Potato Chips Ltd (UK), Calbee Inc. (Japan), Utz Quality Foods, Inc. (US), Great Lakes Potato Chip Co. (US), The Lorenz Bahlsen Snack-World GmbH & Co KG (Germany), Herr Foods Inc. (US), The Campbell Soup Company (US), and Intersnack Group GmbH & Co. KG. (Germany).
Few developments occurred in recent times, influencing the market growth of potato chips & crisps are listed below:
Scope of the Report
Global Potato Chips & Crisps market, byType
Global Potato Chips & Crisps market, by Category
Global Potato Chips & Crisps market, by Distribution Channel
Global Potato Chips & Crisps market, by Region