Bolder flavors and crunchier textures are aiding demand for potato chips, reports Jonathan Thomas.

Potato chips (or crisps, as they are more frequently called in markets such as the UK) remain one of the most popular forms of snack food throughout the world. The market remains sizeable – it is currently valued at around USD29bn, with annual growth is expected to average more than 3% until the middle of the present decade, when sales should reach around USD35bn. This is despite the competition the sector faces from other forms of snack foods, many of which are gaining traction in many parts of the world. Examples include nuts, popcorn, confectionery, fruit, biscuits, dairy products (e.g. yoghurts and cheese) and hot-eating snacks (such as microwaveable sandwiches). Some of the world’s largest markets for potato chips and crisps include western countries such as the US and the UK, as well as various emerging economies (e.g. China, Brazil and Russia). Value sales in the US are worth around USD9bn per year, equivalent to around a third of the total market for salty snacks. Despite its size and maturity, the US market continues to expand, with value sales increasing by around 2% per annum. In the UK, meanwhile, penetration amounts to around 93% of the population, with consumers eating around 178 packets of crisps per annum on a per capita basis. According to data from Kantar, value sales were worth around £950m in 2019.

Flavor Trends

Flavor remains an important selling point for potato chips and crisps throughout the world. In many western markets – such as Western Europe and North America – the market is experiencing greater innovation and experimentation with hotter, bolder flavours which provide more novel and interesting taste sensations. Much of this is being driven by younger consumers.

In the UK market, for example, sales of potato crisps with ‘hot’ flavors are currently growing by around 29% per annum. As further evidence, the Max Strong range owned by PepsiCo’s Walkers (which is marketed as a suitable accompaniment to beer and includes flavors such as Chilli & Lime and Hot Chicken Wings) is growing by 21% year-on-year. To further illustrate the current popularity of spicy crisps, the McCoys range was extended with a new Fiery Steak flavor in February 2020. This was launched in response to data from Nielsen which claimed that flavor was the leading purchase driver within the potato crisps category. Early the previous year, the Walkers range had been extended with new BBQ Pulled Pork and Sriracha varieties. These were developed after the company used insight tools to identify which flavors were trending amongst UK consumers.

Partly due to recent innovation efforts such as these, there now exists a huge and diverse range of flavors within the UK potato crisps sector – for example, there are believed to be up to 75 varieties of cheese and onion, as well as over 120 for meat-based flavors. Despite these recent trends, however, traditional favorites continue to dominate the UK market. In value terms, plain and/or ready salted varieties accounted for over a quarter (26%) of overall sales in 2019, according to data from Kantar. This ranks well ahead of cheese and/or onion and meaty flavours, both of which held a 17% value share during this time. This figure decreases to 10% for salt and vinegar.

You can read the rest of this article in your complimentary e-copy of the March-April Issue of Potato Processing International magazine, which you can access by clicking here.