Potato Processing in APAC: Health, Convenience, and Growth

The potato processing market in the Asia-Pacific (APAC) and Australia-New Zealand (ANZ) regions is witnessing sustained growth, driven by rising demand for convenience foods, evolving consumption habits, and advancements in processing technologies. As populations expand, particularly in urban areas, and disposable incomes rise, the market for processed potato products is expected to grow substantially, offering significant opportunities for both product manufacturers and equipment suppliers. Recent market analysis points to strong growth trends, with projections showing this momentum continuing in the coming years, especially within the snack food sector and frozen products category.
Market Overview
According to recent data, the APAC potato processing market was valued at approximately USD15.09bn in 2022 and is forecasted to reach USD22.63bn by 2030, growing at a compound annual growth rate (CAGR) of 5.3% between 2023 and 2030. This is consistent with broader global trends, where the overall potato processing market, estimated at USD39.19bn in 2021, is expected to expand to USD53.58bn by 2027, reflecting a CAGR of 5.4% over the forecast period.
Growth in the APAC and ANZ regions is particularly noteworthy because these markets are home to a rising middle class, especially in countries like China, India, and Southeast Asian nations. This demographic is increasingly adopting Western food habits, driving the demand for processed potato products, including French fries, potato chips, and other snack foods. In New Zealand and Australia, which already have high levels of processed potato consumption, growth is being driven by product innovation and increasing demand for premium, organic, and healthier potato-based snacks.
Key Market Drivers
A combination of population growth, urbanization, and shifting consumer preferences is at the heart of the potato processing market’s expansion in the APAC and ANZ regions. As urban populations grow, so does the demand for convenient, ready-to-cook, and frozen potato products. Consumers in these regions are leading increasingly busy lives, which is driving demand for easy-to-prepare foods. This is especially true in countries with rapidly growing middle-class populations, such as China and India, where processed potato products have become a staple in households and quick-service restaurants (QSRs).
In fact, frozen potato products, particularly French fries, are expected to dominate the market, capturing an estimated 67.24% of the market share by 2023. The food service industry, especially fast-food chains and restaurants, is one of the largest consumers of processed potato products, driving this market expansion. As QSRs continue to penetrate new markets and expand their operations across urban and rural areas, the demand for frozen and ready-to-cook potato products will only intensify.
Moreover, potato starch, a key segment of the market, is projected to grow at an even faster pace, with a CAGR of 7.1% over the next several years. This growth is driven by the increasing use of potato starch in non-food sectors, including pharmaceuticals, paper, and textiles. In the food industry, potato starch is gaining popularity as a gluten-free thickening agent and is used in a variety of processed foods, further boosting the segment’s growth.
To read the complete article, please refer to our latest September–October 2024 print issue of Potato Processing International.