Potato Chips Market Research Report By Type (Flavored and Plain), By Category (Organic and Conventional), By Distribution Channel (Store-Based, and Non-Store-Based), And By Region (North America, Europe, Asia-Pacific, And Rest Of The World) – Market Forecast Till 2030

Global Potato Chips Market Overview

The Gobal Potato Chips Market Size was valued at USD 35.5 billion in 2021. The potato chips market revenue is projected to grow from USD 36.92 Billion in 2022 to USD 48.58 billion by 2030, exhibiting a compound annual growth rate (CAGR) of 4.00% during the forecast period (2022 - 2030). Increasing personal disposable income, the emerging trend of westernization of food consumption patterns, as well as a growing economy, and an increase in worldwide demand for snacks, are the primary market drivers driving the expansion of the potato chips market.

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

Potato Chips Market Trends

• The emerging trend of westernization of food consumption patterns to boost the market growth

According to market dynamics, increasing personal disposable income, the emerging trend of westernization of food consumption patterns, as well as a growing economy, and an increase in worldwide demand for snacks, are the primary drivers driving the expansion of the potato chips market. Increased personal disposable income and rising demand for snack goods as a result of the world's growing population are the primary reasons driving the potato chips market's expansion.

Another key element influencing potato chip market growth is the increase in the number of organized retail stores and the growth of the organized retail sector. The introduction of many flavor variants, as well as the rising demand for convenience foods, will generate further attractive growth potential for the potato chips market revenue.

However, fierce competition from other healthier food alternatives in the market would offer a significant hurdle to the industry's growth. Rising health consciousness among the people would further slow the growth pace of the potato chips business. Changes in consumption habits and fluctuations in raw material prices will further hamper the market growth.

Figure 1: Sales of potato chips in the UK in 1000 kilos  

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

Furthermore, due to the increasing healthy snacking trends, competitors in the potato chips industry have begun offering nutritious or fortified potato chips. Prataap Snacks Ltd, for example, sells Omega-fortified potato chips under the Yellow Diamond brand. In addition, recycled sweet potato chips called Uglies Sweets were added to the Uglies Kettle Chips product line in May 2022. Sweet potatoes were kettle-cooked in small quantities and lightly salted for the chips. According to the maker, these chips were a good source of vitamin A, gluten-free, non-GMO Project certified, kosher, vegan-friendly, and prepared in a nut-free facility. Furthermore, due to adults' hectic schedules and desire for a quick meal or snack, there is an increasing demand for healthful foods.

Potato Chips Market Segment Insights

Potato Chips Type Insights

The potato chips market segmentation, based on type, includes flavored and plain. According to market statistics, the flavored Potato Chips segment held the majority share in 2021, contributing around ~65-67% with respect to the Potato Chips market revenue. Increasing product innovations in taste and flavor, one of the key growth factors for the flavored potato chip market is anticipated to be customers' shifting preferences toward a healthy diet and way of life.

For instance, in October 2018, Birds Eye, a snack manufacturer in the United Kingdom, introduced sweet potato waffles made with mildly seasoned sweet potatoes. These innovative waffles are prepared with no artificial colors, flavors, or preservatives and are made with gently seasoned sweet potatoes and potato mash.

McCain Foodservice UK, a McCain Foods subsidiary, debuted gluten-free chips and sweet potato fries in February 2019.

For instance, Good Health Natural Products has created products with wholesome components like oleic acid-rich avocado oil and olive oil that don't include artificial colors, hydrogenated oils, trans fats, or gluten. Such product range offerings advancements will be one of the primary trends that will gain traction in the potato chips industry over the next few years.

Potato Chips Category Insights

The Potato Chips market data has been bifurcated by category into organic and conventional. According to the market forecast, the organic segment dominated the market in 2021 and is projected to be the faster-growing segment during 2022-2030. Customers are opting for snacks that are loaded with healthy nutrients, including vitamins, minerals, and proteins, rather than conventional meals. Manufacturers are launching organic products under different categories, such as low salt and fat-free snacks, to attract more consumers, especially the millennial and gen-z population.

Figure 2: Potato Chips Market, by Category, 2021 & 2030 (USD Million)

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

Potato Chips Distribution Channel Insights

Based on distribution channels, the potato chips industry has been segmented into store-based and non-store-based. Store-based held the largest segment share in 2021 and are predicted to increase at the highest market CAGR in the forecast period. The expansion of the organized retail sector is now benefiting the worldwide potato chips business. Previously, a lot of  players were unwilling to sell their products in emerging markets due to a lack of infrastructure, storage facilities, and proper knowledge of new markets. However, as the number of organized retail establishments grows, numerous firms are investing in these marketplaces. This is expected to result in increased consumption of potato chips.

Potato Chips Regional Insights

By region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. In North America, the Potato Chips market accounted for the largest share at 42.90%, and the market was USD 15.22 billion in 2021. During the forecast period, North America is expected to contribute substantial contributions to the  potato chips and crisps market. Given the Region's busy lives, the expansion of the regional market is mostly tied to an increase in demand for convenient and ready-to-eat goods. Furthermore, the presence of major market players throughout the Region is another essential factor expected to support regional market growth. Furthermore, the top market participants create unique items and flavors, raising product demand throughout the region.

Further, the major countries studied in the market report are The U.S., Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 3: POTATO CHIPS MARKET SHARE BY REGION 2021 (%)

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

European potato chips market is the second largest market. This can be ascribed to people's snacking habits and an increase in demand for convenient food across the European continent. Potato chip consumption varies greatly across countries worldwide and is significant in the salty snack category. Asia-Pacific was the fastest-growing area, owing to the rapid expansion of contemporary distribution channels such as supermarkets and hypermarkets. Changes in lifestyle, technical advancements, increasing investment in the region's affluent countries, and a taste preference all contributed to the expansion of the potato chips sector. Further, the Germany potato chips market held the largest market share, and the UK potato chips market was the fastest-growing market in the region

During the forecast period, the Asia-Pacific potato chips market is expected to grow with the fastest CAGR. The growing popularity of snack foods is expected to boost regional market expansion. Furthermore, increased demand for packaged goods in emerging regions such as China and India is likely to drive future market growth. Furthermore, the Region's leading rivals are investing heavily in the development of novel flavors and products, which is projected to give revenue-generation prospects in the Asia-Pacific potato chips market. Moreover, the China potato chips market held the largest market share, and the India potato chips market was the fastest-growing market in this region.

Potato Chips Key Market Players & Competitive Insights

Major market players are spending a lot of money on R&D to increase their product lines, which will help the Potato Chips market grow even more. Market participants are also taking a range of strategic initiatives to grow their worldwide footprint, with key market developments such as new product launches, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations. According to the market competitive landscape, palyers in the potato chips industry must offer cost-effective items to expand and survive in an increasingly competitive and rising market environment.

One of the primary business strategies adopted by manufacturers in the potato chips industry to benefit clients and expand the market sector is to manufacture locally to reduce operating costs. The Potato Chips markets major players such as Burts Potato Chips Ltd., Calbe Inc., PespsiCo Inc., Great Lakes Potato Chip Co., The Kellogg Company, Herr Foods Inc., Intersnack Group GmbH& Co. KG, Utz Quality Foods Inc., and others are working on expanding the market demand by investing in research and development activities.

SpudLove said that its new goods were thick-cut organic potato chips that were USDA-certified organic, non-GMO Project confirmed, and gluten-free. The potato chip market is a fast-paced one. With multiple participants in the market competing for sales, corporations are always reinventing their products and employing various techniques, such as unique selling propositions. SpudLove Organic Thick-Cut Potato Chips, for example, announced ambitions to expand throughout the United States in all 509 Whole Foods Markets in June 2022 as the business continues to grow.

Also, the corporation that established the Lay's potato chip brand in the United States is also known by that name. Since Lay's and Fritos are both distributed by the Frito-Lay corporation, a wholly owned subsidiary of PepsiCo since 1965, the brand is also known as Frito-Lay.Lay's increased its reach in India in 2022 by offering a variety of new flat-cuts and its thinnest range of chips, Lay's Wafer Style.

Key Companies in the Potato Chips market include

• Burts Potato Chips Ltd.


• Calbe Inc.


• PespsiCo Inc.


• Great Lakes Potato Chip Co.


• The Kellogg Company


• Herr Foods Inc.


• Intersnack Group GmbH& Co. KG


• Utz Quality Foods Inc., among others

Potato Chips Industry Developments

August 2022: Lays Gourmet, a premium potato chip line, was introduced in August 2022. In addition to the launch, the corporation released a TV commercial to promote and differentiate its goods among buyers.

May 2022: Walkers (United Kingdom) premium potato crisp brand sensations offered a variety of unique flavors for the Queen's jubilee in May 2022. Spit-roast pig and apple sauce, as well as baked cheese and sweet honey, were among the flavors introduced by the company.

April 2022: Utz Brands Inc. announced two new potato chip options in April 2022, both of which were limited-time-only. In collaboration with Grillo's Pickles, the company introduced Classic Drill Pickle flavored chips.

Potato Chips Market Segmentation

Potato Chips Type Outlook

• Flavored


• Plain

Potato Chips Category Outlook

• Organic


• Conventional

Potato Chips Distribution Channel Outlook

• Store-Based


• Non-Store-Based

Potato Chips Regional Outlook

• North America
  
  
  
  • US
  
  
  • Canada
  
  
  
  


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


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


• Rest of the World
  
  
  
  • Middle East
  
  
  • Africa
  
  
  • Latin America
  
  
  
  

Report Scope:

Report Attribute/Metric	Details
Market Size 2021	USD 35.50 billion
Market Size 2022	USD 36.92 billion
Market Size 2030	USD 48.58 billion
Compound Annual Growth Rate (CAGR)	4.0% (2022-2030)
Base Year	2021
Market Forecast Period	2022-2030
Historical Data	2018 & 2020
Market Forecast Units	Value (USD Billion)
Report Coverage	Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends
Segments Covered	Type, Category, Distribution Channel, and Region
Geographies Covered	North America, Europe, Asia-Pacific, and the Rest of the World
Countries Covered	The U.S, Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil
Key Companies Profiled	Burts Potato Chips Ltd., Calbe Inc., PespsiCo Inc., Great Lakes Potato Chip Co., The Kellogg Company, Herr Foods Inc., Intersnack Group GmbH& Co. KG, and Utz Quality Foods Inc.
Key Market Opportunities	Increase in worldwide demand for snacks
Key Market Dynamics	Increasing personal disposable income An emerging trend of westernization of food consumption patterns

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