A study of the processed potato products market conducted by Persistence Market Research shows the market has seen significant growth in the past few years and is projected to reach $67 billion by 2019 end. Driven prominently by the thriving convenience food trend, the market will continue its growth at a stable 4% CAGR through forecast period of 2019-2029, the report states.
The factors expected to predominantly drive market growth in the next decade are the wide consumption of mashed potatoes, potato rolls, loaded sweet potatoes, smoked and fried potatoes by a majority of the consumer base; the preference for cutlets, mashed potatoes, and tater tots by children; and the increasing popularity of ready-to-eat, ready-to-cook, and frozen meals.
Further findings include:
According to USDA statistics, usage of potatoes for processing applications in the country grew at the average rate of 1% during 2015-2017.
- Baked potato chips, instant mashed potatoes, and organic potato products are expected to gain traction during through 2029.
- Current trends such as snackification, shift to organic and non-GMO diets influence consumers in their product preferences.
- Emerging countries are expected to offer lucrative opportunities for the processed potato products market as the processed food industry is growing at higher rates in developing regions including Latin America, South Asia, and Africa.
- Retail sales for processed potato products are gaining momentum.
- Despite holding a major share in the processed potato products market, the U.S. is projected to witness only moderate growth rate in the processed potato products market.
Manufacturers can profit from introducing processed potato products that offer health benefits along with taste as the market focuses on the impacts of the increasing shift to low-carb diets such as keto diet that continue to pose a major threat to product sales.
Manufacturers of processed potato products are developing market strategies in response to current trends in market, the researchers stated. Prominent manufacturers are emphasizing technological advancements to manufacture and market innovative processed potato products in terms of taste and texture. Leading market players use strategies such as strengthening their supply chains and increasing the production capacity of their units.
Global manufacturers are keen on expanding their presence in the global market whereas regional and small manufacturers are focusing on product diversification and improving their brand awareness. One example given is that of McCain Foods which announced investments worth of $100 million to build a new production plant in Brazil (2019). The company plans to establish this plant in Araxa which will particularly boost the company’s capacity and sales in Latin American region.