Processed Potato Products Are on the Rise Globally
Consumers are still looking for processed potato products and the market for such products is on the rise, the analysts from Research and Markets say.
The potato processing market is projected to grow at a CAGR of 5.3% from 2017, to reach USD30.85bn by 2022.
Factors such as the increasing demand for convenience and processed potato-based food products, and growth in distribution channels such as quick service restaurants (QSRs) and retail stores are the driving the consumption rise.
Growth in the demand for potato chips and increasing demand for frozen potato products are fueling the demand for potato processing. However, the market for potato processing is expected to fluctuate due to its high dependency on a regular supply of potato varieties at a reasonable price for uninterrupted operations. Also, the health issues associated with the consumption of processed potatoes such as obesity and diabetes, along with high costs incurred for storage and transportation can pose as a restraint for the market growth.
Snacks Grow More
In terms of both value and volume, the snacks segment is projected to grow at the highest rate between 2017 and 2022. The increase in demand for snacks such as potato chips and extruded snacks/snack pellets in urban and semi-urban areas, the competitive pricing strategies of the players, and availability of a wide variety of flavors are factors driving their demand in both, developing and developed markets. The robust consumption of packaged foods in regions such as North America and Europe and new product launches in the snacks segment are expected to increase the demand for potato processing in the snack segment in the coming years.
In the global potato processing market, Asia-Pacific is estimated to be the fastest-growing region, in terms of value and volume, between 2017 and 2022. This region comprises developing economies such as China and India which occupy a significant share of the global potato processing market.
High volumes of potato production in the Asia-Pacific countries-mainly India and China-for the potato processing industry, the inflow of foreign direct investments, increase in the number of mergers and acquisitions, and inexpensive labor are the main factors contributing to the growth of the Asia-Pacific potato processing market. The active developments strategized by the dominating players in Europe and the U.S. also acts as a driving factor in tapping the potato processing market in Asia-Pacific countries.
The increase in consumer demand for processed and convenience foods in the North American and European regions drive the demand for potato processing. The presence of several key players, coupled with advanced processing and packaging technologies also contribute to the increasing demand for potato processing in these regions.
