Americas, the largest market for potato chips
The potato chips market in the Americas is growing steadily, as supermarkets and hypermarkets accounted for 77% of the total sales of potato chips in the US in 2015, according to the research company Technavio.
The acceptance of quick meals such as burgers and sandwiches is one of the major factors driving the market in the Americas. Chips are widely accepted and consumed as a favorite combination with burgers and sandwiches. Also, the busy lifestyle of people leads to the demand for snacks such as potato chips in the region.
Some potato chips are available in flavors unique to Canada, such as ketchup and “all-dressed” flavors. Canadian consumers prefer BBQ-flavored hickory sticks and potato chips.
One of the popular brands and flavors launched in 2015 is Ruffles all-dressed flavor, which has garnered consumer interest in the Americas for its unique Canadian flavor. In April 2014, Lay’s Canada announced the return of its Do Us a Flavour contest, which invites fans across the country to submit their flavor ideas to be the next great potato chip flavor. “The rising number of flavors and increasing demand for quick snacks are expected to contribute to the market demand during the forecast period,” says Arushi Thakur, one of Technavio’s industry experts for research on food sector.
Potato chips market in Europe
In Europe, countries such as the UK and the Netherlands are the major contributors to the potato chips market in terms of imports and consumptions. The savory snacks market in Europe was valued at USD26.77bn in 2015 and is expected to reach USD34.62bn by 2020. The consumption of savory snacks, including potato chips, varies from country to country in Europe.
The savory snacks market in the UK was valued at around USD5.65bn in 2015. There is a growing demand for frozen potato chips, private labels, and numerous varieties from the UK, boosting the overall potato chips market in Europe. Private labels accounted for 22% of the packaged food market in Europe in 2015.
Potato chips market in APAC
The market in APAC has been experiencing strong growth over the last few years, and the same growth is expected to continue during the forecast period as well. India, China, and South Korea are the major contributors to the growth of the market in APAC. An increase in disposable income and busy lifestyle are the two factors driving the market in APAC. “In addition, the potato chips market in APAC has benefited from localization of flavors in Japan as consumers prefer buying local flavors available in their country. However, compared to cookies and candy, Chinese still consume a relatively small amount of potato chips. Therefore, there is huge potential for market growth in China,” states Arushi.
Potato chips market in MEA
An increase in disposable income and busy lifestyle are the major two factors boosting the potato chips market in MEA. It is expected that consumers’ spending on food in the Middle East will reach USD 110 billion by 2020. Consumers’ spending on food in the UAE alone was USD 21.3 billion in 2013 and is expected to increase to USD 25.1 billion by 2016.
In countries such as Saudi Arabia, Egypt, Turkey, Jordan, Bahrain, and Qatar, PepsiCo’s Frito-Lay division holds the major share of the market. Notion Group, a snacks manufacturer, expanded its manufacturing facilities in Dubai and Saudi Arabia in 2013 to fulfill the rising demand for chips and chocolates. The company is experiencing a huge demand for its products from other Muslim countries because its products have Halal certification.