Global Frozen Potato Market Poised to Hit 127m Metric Tons by 2025
China (37%), India (31%), the U.S. (13%) and Pakistan (5%) were the world’s largest frozen potato markets in 2017 (based on physical terms), a report from IndexBox has revealed. From these countries, India recorded the highest annual rates of growth of 1.4% when it comes to frozen potato consumption over the period under review. The other territories experienced a modest pace of growth.
While China and India were found to be the largest frozen potato markets, their annual per capita consumption at 30.1kg and 27.3kg per person was lower than that in the US at 48.3kg per person.
Overall, global frozen potato consumption increased with 6% in 2017 compared to the previous year, hitting USD106bn. The figure encompasses the total revenue of producers and importers (excluding logistics costs, retail marketing costs, and retailers’ margins, which will be in included in the final consumer price). The report states that over the last ten years (2007-2017), the frozen potato market experienced mild fluctuations. Over the period the most recent period of 2016-2017, the market experienced a healthy growth by 13.5% after a period of decline in the previous year. In physical terms, the global frozen potato consumption reached 117m metric tons in 2017 (IndexBox estimate).
IndexBox estimates the frozen potato market to continue growing in the next eight years, expanding with a CAGR of +1.0% from 2017 to 2025. The market volume is poised to hit 127m metric tons by the end of the forecasted period.
Frozen potato demand was fueled by the foodservice sector, especially quick service restaurants (QSRs) and casual dining restaurant chains. In the U.S. frozen potatoes like French fries are well-established products thanks to the popularity of QSR chains. However, since the market is already saturated, IndexBox does not expect to see sharp market growth in the region.
The report paints a different image when it comes to the fast-developing Asian countries. Since consumption of frozen potatoes in the region is lower than in the U.S. or Europe, IndexBox signals robust potential for growth. As a result of rapid urbanization and the increasing popularity of Western cuisine, global and local QSRs are the main drivers for frozen potato consumption in Asia.