Potato Chips Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

Market Overview

The global potato chips market is projected to grow at a CAGR of 4.40% during the forecast period (2021 - 2026).

The outbreak of COVID-19, resulted in unprecedented stress on the supply chain of potatoes, resulting in negative impact on the overall growth of the potato chip of the market. For instance: Exports of dehydrated potatoes declined by 16%, and fresh by 13% in 2020 as compared to fiscal year 2019 in United States.

Despite the disruptions in the supply chain of potatoes, the forced lockdown across the globe and extended work form home scenario, actively supported the at-home food consumption as well growth in snack products which in turn augmented the demand for potato chips. The COVID-19 pandemic has resulted in the generation of opportunities for many private players to emerge in the markets, in order to cater to the inflated demand for potato chips.

Furthermore, the pandemic has accelerated the shift towards a more digital world and triggered changes in online shopping behaviours that are likely to have lasting effects. Thus, the sales of potato chips through online channel is expected to grow at a faster rate and is expected to benefit the overall growth of the market.

Some of the largest markets for fried potato chips across the world include the United States, Canada, Mexico, Russia, and China, with the United States being one of the most matured markets.

The market is highly consolidated with PepsiCo Inc. holding major market share, with its popular brand - Lays. The Kellogg Company is another major player with its brand Pringles, which is considered in the premium segment across many countries.

Some of the other companies, holding prominent market share, include Calbee Inc., Intersnack Group GmbH & Co. KG, The Campbell Soup Company, and Orkla ASA, among others.

Scope of the Report

Potato chips are thin slices of potato that have been either deep-fried or baked until crunchy. They are commonly served as a snack, side dish, or appetizer. The global potato chips market is segmented by product type, flavor, distribution channel and geography. Based on product type. the market is segmented into fried and baked. By flavor type, the market has been segmented into plain and salted chips and flavored chips. By distribution channel, the market studied can be segmented into hypermarkets/supermarkets, convenience stores, online channels, and other distribution channels. Furthermore, the report also takes into consideration the market studied in the established and emerging economies, including North America, Europe, Asia-Pacific, South America, and Middle East & Africa. For each segment, the market sizing and forecasts have been done on the basis of value (USD million).

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Key Market Trends

Increasing Expenditure on Savoury Snacks

Due to changing lifestyles, consumers are not only opting for easy food options but also looking for authentic and natural snack options with health & wellness attributes, which is influencing per capita expenditure in savory snacks products including potato chips. Additionally, the per capita expenditure on savory snacks products is growing in developing economies such as India and China and is supported by the sales of potato chips in the market studied. According to Defra, the average expenditure per person per week on crips and potato snacks in the United Kingdom increased by a growth rate of 2.55% during the time period 2009 to 2016 which is supporting the market growth in Europe region. In developed economies, consumers are trading up and spending more on premium and healthy varieties of savory snacks, while consumers in emerging countries including Brazil, China and India, typically base their snack choices on product availability and experimentation.

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