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Unlocking Opportunities in the Potato Processing Market: 2025-2034 Forecast Report
Potato Processing
What Will the Potato Processing Industry Market Size Be by 2025?
There has been a significant expansion in the market size of potato processing in the past few years. The market cap, which is predicted to be $32.13 billion in 2024, is expected to increase to $33.94 billion in 2025, marking a compound annual growth rate (CAGR) of 5.7%. Several factors have contributed to this growth during the historic period. These include an upsurge in the demand for ready-to-cook and frozen products, a rise in the preference for convenience food due to evolving lifestyles and hectic schedules, an increase in the number of eateries and hotels, an escalation in the promotion activities and social media marketing for potato processing goods, and the availability of an extensive range of potato processed products.
What's the Long-Term Growth Forecast for the Potato Processing Market Size Through 2029?
In the coming years, it is anticipated that the potato processing market will experience substantial growth, escalating to a market value of $43.22 billion by 2029, with an annual compound growth rate of 6.2%. The predicted growth within this period can be associated with the heightened demand for wholesome potato products such as baked and sweet potato chips and the expansion of the global food market and globalization. Further contributing factors include an increase in health awareness, a growing worldwide population, and the implementation of sustainable, environmentally-friendly practices. Key trends to look out for in this period encompass the innovation of new processing techniques and sophisticated systems, the introduction of fresh products, the rise of potato-based snack items, products free of gluten and allergens, and those featuring clean labels and natural ingredients.
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What Are the Key Growth Drivers Fueling the Potato Processing Market Expansion?
The escalating inclination towards ready-to-eat foods to conserve energy and time is fueling the expansion of the potato processing industry. With rapidly shifting lifestyle trends and consumer preferences, there is an increasing trend towards easy, ready-to-eat foods, largely prompted by time constraints for home cooking and the curiosity to try various flavors. Processed potato products, offering both nourishment and time-efficiency, feature significantly in such convenience foods. For example, a report from the National Association of Convenience Stores, an American retail conglomerate, stated that in 2022, food service sales in convenience stores were broken down as follows: Prepared food made up 67.3% of total sales, with commissary items contributing 9.5%. Hot beverages represented 9.2% of sales, while cold beverages accounted for 8.0% and frozen beverages 6.0%. Consequently, food service sales made up an average of 25.6% of monthly in-store sales. The shift in consumer preference towards convenience foods has resulted in notable growth in the potato processing industry.
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What Are the Key Trends Driving Potato Processing Market Growth?
Leading businesses in the potato processing market, including Tummers - Food Processing Solutions, are developing cutting-edge technologies like the E2E SteamClosure to boost their profitability. This innovative technology focuses on extracting moisture from potatoes and converting it into reusable water. For example, in July 2023, the Netherland-based food processing company introduced E2E SteamClosure, specifically designed for potato processing. The E2E SteamClosure offers a superior and more sustainable solution for the food processing industry. This state-of-the-art technology could potentially save energy, reduce emissions, and improve the overall production process by prioritizing moisture removal and energy transition.
How Is the Potato Processing Market Segmented?
The potato processing market covered in this report is segmented -
1) By Product: Frozen, Dehydrated, Chips And Snack Pellets, Other Products
2) By Application: Ready to Cook and Prepared Meals, Snacks, Food Additives in Soups, Gravies, Bakery, Desserts, Other Applications
3) By Distribution Channel: Food Services, Specialty Stores, Convenient Stores, Departmental Stores, Other Distribution Channels
Subsegments:
1) By Frozen: Frozen French Fries, Frozen Mashed Potatoes, Frozen Potato Wedges, Frozen Hash Browns
2) By Dehydrated: Dehydrated Potato Flakes, Dehydrated Potato Granules, Dehydrated Potato Slices
3) By Chips and Snack Pellets: Potato Chips, Potato Crisps, Potato Snack Pellets
4) By Other Products: Potato Starch, Potato Flour, Processed Potato Products
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Which Companies Are Leading the Charge in Potato Processing Market Innovation?
Major companies operating in the potato processing market include Lamb Weston Holdings Inc., The Kraft Heinz Co., McCain Foods Ltd., John Richard Simplot, Agristo NV, Key Technology Ltd., Urschel Laboratories Inc., Sormac B.V., The Little Potato Company Ltd., J.R. Short Milling Company, Agrana Beteiligungs-AG, Aviko B.V., Farm Frites International B.V., Idahoan Foods LLC, Pepsico Inc., Intersnack Group GmbH & Co KG, Calbee Inc., Kellanova Co., Old Dutch Foods Inc., Burts Potato Chips Ltd., Herr Foods Inc., Kettle Foods Inc., Snyder's-Lance Inc., Utz Quality Foods LLC, Wise Foods Inc., Ballreich Snack Food Company, Cape Cod Potato Chips, Gibble's Foods Inc., Zapps - Utz Quality Foods., Idaho Pacific Corporation
Which Regions Are Leading the Global Potato Processing Market in Revenue?
Western Europe was the largest region in the potato processing market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the potato processing market report include Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.
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