Potato Processing Market

Potato Processing Market Size, Share, Growth (2022-2027)

Potato Processing Market size was estimated at USD 22.74 billion in 2021 and is expected to reach over USD 30.85 billion by 2027 with a CAGR of 5.3% throughout the forecast period 2022 - 2027.

Potato Processing Market Overview:

The potato processing industry is booming and experiencing a period of growth due to the growing global demand for vegetarian food products, the growth of the HoReCa sector, hotel restaurants, the growth of the processed food industry, and the demand of consumers of higher quality and sustainability. Fresh potatoes are boiled, fried, or baked and used in a variety of mind-blowing recipes such as potato pancakes, potato dumplings, mashed potatoes, two-times baked potatoes, potato soup, and many other recipes. But global consumption of vegetables as food is shifting from fresh potatoes to processed food products. Food processing is done to improve the taste, flavor, and shelf life of the potato. One of the main products in the processed potato segment is frozen potatoes, which are served in most fast-food restaurants (QSR) worldwide. Another processed product, potato chips, is considered a leader in snacks in developed countries. Potato flour is used in the food industry to join meat mixtures and thicken sauces and soups. In some countries, potato starch is converted to fermentable sugars that are used in alcoholic beverages, for example, vodka and akvavit. 

Potato Processing Industry REPORT COVERAGE:

Global Potato Processing Industry Growth Drivers and Restraints:

Growing consumer awareness of different potato applications and their health benefits is helping to increase demand in the potato processing market. In addition, the increasing demand for different potato snack products helps to increase demand for the potato processing market. Additionally, the expanding use of potatoes to make alcoholic beverages such as brisket, akvavit, vodka, and animal fodder is helping to increase demand for this market. Furthermore, the increasing application of potato starch in the food industry as thickeners and binders for soups, sauces, and bakery products is helping to increase demand in the global potato processing market. However, the availability of various potato substitutes for a different application limits the growth of this potato processing market. 

The growing disposable income of young and middle-class consumers around the world and the increasing desire to eat different types of processed potato products, such as potato chips, snacks, and more, are expected to expand this market in the near future. The rapid expansion of the frozen potato trade and the growing demand for snacks such as potato chips will spur the development of the potato processing industry for years to come. Besides, the increasing popularity of ready-to-eat foods, as well as an increase in supply chain activities, will favor the penetration of products worldwide. The rapid growth observed in the fast-food sector is likely to influence the business landscape. 

In addition, rapid urbanization, an increase in the standard of living, the easy availability of products, and attractive packaging will become a high demand for the product. Apparently, the consumer's top trend toward convenience will drive market gains for years to come. However, the substantial player costs due to potato storage and transportation will slow the expansion of the market. In addition to this, growing health problems like obesity and diabetes due to the consumption of processed potatoes will further hinder the growth of the market in the coming years.

Potato Processing Market Regional Share Analysis:

1. North America

2. Europe

3. Asia Pacific

4. Latin America

5. Middle East and Africa

North America is a prominent player in the potato processing industry, due to the presence of several food processing companies in this region, which are actively involved in the processing sector. Also, the presence of a large number of consumers who love snacks in this region and innovation continues to conquer the new market, and new consumers contribute to the continued growth of the potato processing market in this region. Europe potato processing market is estimated to have the largest share of the global business, in terms of value and volume, in 2019, due to the boom in the food industry and the presence of large companies in these countries such as Germany, the United Kingdom, France, the Netherlands, and Belgium. 

The Asia-Pacific potato processing market is foreseen to grow to the highest CAGR during the forecast period. The most dominant factor in the region that affects the potato processing market is the population density in most countries, along with high potato production. Government policies, such as foreign direct investment (FDI) in developing economies, as well as an increase in the number of commercial transactions, such as mergers, acquisitions, and investments, have contributed to the development and growth of products value-added potato processing. Tremendous growth is seen primarily in the processed potato industry in Southeast Asia. The increasing urbanization in countries like China and India is supporting the growth of the potato processing market in this region.

Potato Processing Market Recent Developments: 

1. In collaboration with Tolsma-Grisnich, an organization with hands-on experience in storing and harvesting potatoes, Kiremko is creating two new guards. They launched these new frames at Interpom, a universal potato opportunity held in November 2018 in Kortrijk, Belgium.

2. Key Technology, a renowned manufacturer of digital sorting, inspection, transportation and other processing equipment, and a member of the Duravant family of operating companies acquired Herbert Solutions, enhancing its portfolio of potato and vegetable equipment solutions.

3. EAGLE, IDAHO - Lamb Weston Holdings, Inc. has entered into an agreement to acquire Ready Meals Pty Ltd., a frozen potato processor based in Hallam, Victoria, Australia. Financial terms have not been disclosed.

4. WESTCHESTER, ILL. - Ingredion Inc. acquired the activities of Western Polymer, a private producer of native and modified potato starch for food and industrial applications. 

Potato Processing Market Segmented and Sub-segmented as following below:

Based on Type:                              

• Chips and Snack Pellets     

• Frozen      

• Dehydrated            

• Other Types           

• Potato

• Potato granules

• Flour

• Starch

Based on Application;                 

• Ready to Cook and Prepared Meals             

• Snacks       

• Other Applications               

• Food Additives in Soups

• Gravies

• Bakery

• Desserts

Based on Distribution Channels:                            

• Foodservice            

• Retail         

Leading Key Companies Covered in this market report are:

1. Lamb Weston Holdings, Inc. (U.S.)

2. The Kraft Heinz Company (U.S.),

3. J.R. Simplot Company (U.S.)

4. McCain Foods Limited (U.S.)

5. Agristo NV (Belgium)

6. Farm Frites International B.V. (Netherlands)

7. J.R. Short Milling Company (U.S.)

8. Intersnack Group GmbH & Co. KG (Germany)

9. Idahoan Foods, LLC (U.S.)

10. AGRANA Beteiligungs-AG (Austria)

11. Aviko B.V. (Netherlands)