Potato Chips Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The global potato chips market is projected to register a CAGR of 4.4% during the forecast period (2022 - 2027).

The outbreak of COVID-19 resulted in unprecedented stress on the supply chain of potatoes, resulting in a negative impact on the overall growth of the potato chip of the market. For instance, exports of dehydrated potatoes declined by 16% and fresh by 13% in 2020 as compared to the fiscal year 2019 in the United States.

Despite the disruptions in the supply chain of potatoes, the forced lockdown across the world and extended work from home scenario actively supported the at-home food consumption as well growth in snack products, which, in turn, augmented the demand for potato chips. The COVID-19 pandemic has resulted in the generation of opportunities for many private players to emerge in the markets to cater to the inflated demand for potato chips.

Furthermore, the pandemic has accelerated the shift toward a more digital world and triggered changes in online shopping behaviors that are likely to have lasting effects. Thus, the sales of potato chips through online channels are expected to grow at a faster rate.

Key Market Trends

Rising Popularity Snacking Product

Potato chips are one of the most convenient food options currently available for people to keep pace with their busy lifestyles. It shortens the meal preparation time and can be served in the form of a quick snack or part of the meal. Crisps are savory snacks that are particularly popular in Western countries, they constitute a significant part of the snack food market. As of 2020, 57 percent of surveyed British individuals stated that they had skipped meals and consumed snacks instead. Furthermore, 30 percent pointed out that they had considered snacking as an easier nutrition choice. With the increasing consumption of potato chips, every year major market players introduce new flavors with various health benefits because of the Covid-19 outbreak people are more concerned about their health. Product variety, a mix of regional snacks flavors, changing consumer lifestyles, and growth in distribution channels are major factors contributing to increasing sales of potato chips across the globe.

Asia-Pacific Remains the Fastest Growing Region

The consumption levels for potatoes chips vary extensively across regions across the globe and have a massive scale in the salty snacks category. Asia-Pacific was the fastest-growing region due to the rapid growth of modern distribution channels, such as supermarkets and hypermarkets. Change in lifestyles, technological improvements, increased investment in developed countries of the region, and a taste preference contribute to the rise of the potato chips industry. The growing popularity of snack foods in Asian countries has compelled the regional players to adapt strategic advancements to gain a competitive edge in the snack food market. For instance, Universal Robina Corporation acquired Snack Brands Australia in order to gain a competitive advantage, in addition to its reputation in the market. The product and packaging innovation strategies are further expected to drive the growth of the potato chips market in Asian countries. The local players from Singapore are launching exotic flavors of potato chips, owing to the demand for the same in the local market. This factor is majorly driving the potato chips market in the Asia-Pacific region. For example, Flavors of the East launched Hainanese Chicken Rice and Singapore Laksa flavors from a temporary booth, which are now being sold in hypermarkets and exported to Japan.

Competitive Landscape

PepsiCo. Inc. is one of the undisputed market leaders, with a stronghold over the majority of the fried potato chips market. Through its portfolio of strong brands in the potato chips market, PepsiCo has been creating a separate consumer base in every market it enters. The leading potato chips brands for the company are Lay’s, Miss Vickie’s, Red Rock Deli, Ruffles, and Munchos. The other leading market players across the world include The Kellogg Company, Calbee, Intersnack Group, The Campbell Soup Company, and Orkla. In order to strengthen their hold in the market, these companies are innovating their flavors, expanding their target markets, and strengthening their distribution channels.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

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