Fried Potato Chips Market

Fried Potato Chips Market Size, Share, Growth (2023-2028)

fried potato chip market would be worth at USD 30.7 Billion in 2023 and is expected to reach USD 39.52 Billion by 2028, with a CAGR of 4.3% during the forecast period from 2023-2028. 

Fried Potato Chips Market Overview:

Fried potato chips are thinly cut slices of peeled potatoes that are deep-fried in an oil bath, air fried, or baked to give them a crispy and crunchy texture. The potatoes are cooked until they have a nice golden brown color and make a crack on the bite. They are also called crisps in some North American parts of the world and are heavily used as a side dish, snack, or appetizer at various events. Potato chips also come in different flavorings and have an extensive range. Although the chips originally started in the 19th century, they were made as an attempt to satisfy some unhappy customers by a chef in new york city. The customers complained that the french fries were too thin and that they wanted something thin and crispy. Therefore, the first chips ever made had salt flavoring, and now they have evolved to the point of having multiple artificial flavorings. Today, potato chips are the number one convenience store snack and contain bags filled with chips, added flavors, oils, starch, and preservatives to keep them on the shelf for a longer time. 

REPORT COVERAGE:

Fried Potato Chips Market Drivers:

The high production and consumption rate worldwide drives the potato chip market growth. Due to the high demand for the snack worldwide, there has been increased production since its first mass-produced in the 20th century bringing profits for the companies. For example, according to the latest surveys, chip production in the U.S. has been growing by 4.6% yearly since 2018, and Canada has registered a 4.82% growth rate. Additionally, the popularity of the snack spreading across America and worldwide has led to more profits for the market. As a result, all continents and countries consume potato chips in one form or another, leading to market growth. Additionally, the increasingly busy lifestyles of populations due to growing inflation and the need for full-time jobs drive market growth. As people become busier, they done have any time to prepare healthy snacks at home and end-up buying preservative-filled foods at convenience stores, supporting the growth of the market. The addictive flavors of the chips and their variety drive market growth. Fried chips now come in various unique flavors for the public to choose from, giving them options. Some of the most bizarre flavors are pringles, cinnamon, sugar crisps, lays oregano chips, ketchup chips, kettle maple bacon chips, etc. Additionally, chips have been culturally modified in different parts of the world to the palettes of the consumers in that region. For example, lays in India sells flavors like Indian masala, which is very popular as it is an Indian masala-based flavor. Likewise, chips, companies in Asian countries sell chips in seafood flavors like squid and octopus, along with sweet potatoes and seaweed. They also sell fried snacks in the flavors of their cultural foods, like thai sweet chili for Thailand; therefore, due to the multiple modifications made to chips, they have become quite addictive for populations. Additionally, fried potato chips market share contain the same foods that scientifically give instant happiness to the consumer as the consumption of starch, fats, and salts are proven to release an enzyme called dopamine in the brain that gives instant happiness. Therefore, the addiction to this feeling of contempt and happiness, leading to more cravings, drives the growth of the market.

The easy-making procedures drive market growth. Additionally, fried potato is one of the most accessible snacks to make, and it takes minimal effort and time for bulk production, driving the market's growth. They are also the cheapest available snacks and do not cost excessively to consume, hence are very affordable. The affordable price point for the product succeeds in covering a broad economic customer range reeling in market revenue. Additionally, potato chips are ubiquitous and sold in almost all retail and general stores, along with super and hypermarkets and some exotic flavors online as well. The latest trend of trying different countries' snacks spreading on the internet also drives the demand for the market. Additionally, the latest frozen chip varieties, which can be brought home and quickly consumed, also support market growth.

Fried Potato Chips Market Restraints:

Although fried potato chips market are delicious and easy to consume, they have been associated with multiple health problems on several accounts. The artificial flavoring, fats, and preservatives in these products may lead to harmful effects on health in the long term. Their consumption may support diabetes, obesity, cholesterol-related heart problems, and high blood pressure. Fried and preserved foods are never considered healthy for the body, and overconsumption may lead to adverse effects. Additionally, as populations start looking for alternative healthier options instead of fried potato chips market growth, the business has some tough competition. With the increasing preference toward protein crips which also come in multiple flavors and are much healthier than regular chips, the market is expected to face drawbacks from this trend. 

Impact of Covid-19 on the fried potato chips market:

The pandemic significantly impacted the markets worldwide and caused several downfalls. The impact of covid-19 on the fried potato chips market has been positive and negative. Due to the lockdown and restrictions on production and sales, consumers began stocking up on snacks like potato chips with a longer shelf life and would be alright. Additionally, the loss of jobs and revenue meant budget cutting, and these shelf foods with high storage life became popular food among populations who were on a tight budget. Potato chips are easy to consume and store, hiking their demand during the pandemic. However, as consumers started worrying about eating healthier and a trend was born for making healthy food choices, the potato chip market faced severe drawbacks.Furthermore, some research papers stated that consuming foods that had excessive amounts of fats and sodium could make it easier to contract the virus, further scaring people into being more cautious toward the food. Therefore, it was advised to avoid any packaged foods and eat healthily to boost immunity leading to a market decline. Therefore, the pandemic has had a mixed impact on the market. 

Key Developments:

• In February 2023, Doritos, released by Frito-lay, is now the largest tortilla chip distributor in the world, and their success did not come by luck or overnight. The company implied multiple strategies and attempted to make its product stay on the shelves of retailers and remain popular. The company has always listened to the customer's opinions and made modifications based on them to create such popular flavors. Before the launch of Doritos in the U.K., multiple surveys were conducted to create them according to the tastes of the U.K. population, which resulted in massive profits for the franchise. 

• In January 2023, The price points for potato-based snacks in Australia skyrocketed due to the shortage of the products. An Australian supermarket franchise, Woolworths, has confirmed the news. The markets predict that these insane costs result from the heavy rainfall and flooding, which led to the destruction of about 25% of all potato production leading to a shortage. There has also been a rule for the limited per-person purchase of frozen potato condiments as people rush to buy in bulk. However, Woolworth supermarket has decided against limits to selling potato chips, and the consumers are free to buy in bulk. Still, due to the high costs of the products, consumers have resorted to buying chips for special occasions or at some discount. 

• In February 2023, Frito-lay, the giant chips company, released a Superbowl commercial for their popped corn snacks called "Popcorners." These air-fried snacks are being promoted in a creative ad involving the cast and setup of the "breaking bad" series. The ad is titled "breaking into something good," The company is trying to showcase how different things would have been if the talented characters from breaking bad used their intelligence for something good, just as how good it would be if people chose to have their air-fried healthy snacks. 

Fried potato chips market segmentation:

By Type:

• Flavored

• Salted

• Plain

• Others

The flavored chip segment is expected to dominate the market during the forecast period due to its popularity among consumers. In addition, the preference for flavored varieties, as it allows the consumers to choose according to their tastes, supports the market's growth. Additionally, the growing inventions of new and unique flavors worldwide support segment growth. 

The salted and plain segment is also expected to have some sizable revenue due to the types being authentic and original. In addition, several groups of people who stick to the base flavor of things chose to consume plain or salted chips over artificial flavoring leading to segment growth. 

By end-user:

• Restaurants & Cafes

• Household 

• Others

The Households segment has the largest share in the market as populations primarily consume fried chips out of air-sealed packets. Snacks that are in packet size, easy to carry, and have long shelf lives are dominating the market due to their convenient nature. However, the restaurants and cafes segment is also expected to have revenue due to the growing involvement of chips as side dishes, burgers, fish and chips, etc. 

By Distribution Channel:

• Specialist Stores

• Online Retail Stores

• Convenience Stores

• Super Markets

• Other Distribution Channels

The supermarkets and convenience stores segment is expected to dominate the market during the forecast period due to the high influx of consumers and the availability of a wide variety in the stores. However, due to the growing concern toward preservatives, people also prefer specialty stores selling freshly made chips. In addition, online convenience stores are also on the rise due to the digitalization of the world. 

Fried potato chips market Regional Analysis:

• North America

• Europe

• Asia-Pacific

• Latin America

• Middle East and Africa

The North American region is expected to dominate the market during the forecast period due to the region's high consumption rates of fried potato chips. Furthermore, the presence of multiple flavor options and key market players in the region support the growth of the market. Additionally, the growing lifestyle changes in the region promote the need for instant snacks promoting the market growth. Additionally, the rising demand for compact and portable snacks in the region and the introduction of new products like fried chips with less fat content promotes the region's market growth. As a result, the countries like the U.S. and Canada hold a massive market share. 

The market in Europe and Asia-Pacific is also expected to grow due to the growing culture-based and population-based modifications of potato chips. Additionally, the growing popularity of packaged foods in Countries like the U.K., France, Germany, India, China, Japan, etc., drives the region's market growth. Additionally, increasing digitalization and disposable incomes in the regions support the market's growth. 

Fried Potato Chips Market Key market players:

1. Burts Potato Chips Ltd.

2. Calbee Inc.

3. PepsiCo. Inc.

4. Utz Quality Foods Inc.

5. Nestle

6. Diamond

7. Kraft Foods

8. Great Lakes Potato Chip Co.

9. ITC

10. Intersnack Group GmbH & Co. KG

11. Herr Foods Inc.

12. The Kellogg Company.