Unlocking the Potential of the South American Potato Processing Industry
The market for processed potato products is expanding in South America (SAM) due to several factors, including the growing demand for potatoes for uses such as snack foods and prepared meals as well as customer preferences for convenience foods that save time and effort.
Brazil and Argentina are exhibiting a rise in industrial growth, which is driving up the need for processed potatoes in the area. The market demand for potatoes is also being driven by the fact that the current potato processing facilities are extending their production lines into new geographic areas to fulfill the increasing demand for processed potatoes.
The SAM potato processors are motivated by competition to enhance their processing technique and quality of products. Argentina’s processing sector has developed technologically, setting new benchmarks for output and caliber. Argentina’s market for potato production has expanded as a result of increased exports to nations including the US, Brazil, Italy, and the Netherlands. Chile’s potato processing and packaging equipment businesses have grown significantly as a result of the country’s rise to prominence in the global agriculture and processed food markets.
Both local and foreign businesses in the potato processing industry may benefit greatly from the development prospects found in SAM. In terms of potential for exports as well as domestic sales, Brazil is among the most alluring markets. Due to its enormous consumer market, processed potato consumption is likely to expand significantly in this country.
Brazil, whose per capita potato consumption has been relatively modest (16 kg/year), will see the largest growth rates. This suggests that when actual wages grow, there will be a desire to maintain dietary diversification. On the other hand, for the next period, it is predicted that the total demand for potatoes in the Southern Cone, which includes Argentina, will rise at almost a constant pace of 1%.
Gregory J. Scott and Ulrich Kleinwechter wrote in one of their papers prepared for the European Association for Potato Research (EAPR) that by 2030, the total demand for potatoes in SAM is expected to increase by about 4.6m tonnes, reaching 19.6m tonnes. The demand pattern that began to develop towards the end of the past century and is increasingly influenced by regional demographics and dramatic disparities in per capita consumption will continue, with Brazil and Peru accounting for almost 55% of that surge.
They project an almost stable total per capita demand for potatoes in Argentina under their most significant development scenario (baseline), and only moderate rises in other Southern Cone nations like Chile and Uruguay. These results reflect the higher and more mature consumption levels of these wealthier economies. They also are aligned with the declines from relatively high per capita consumption levels over the previous two decades as incomes increased.
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