Dehydrated Potato Products Market

Global Dehydrated Potato Products Market Size (2024 to 2032)

The global dehydrated potato products market size was valued at USD 6.30 billion in 2024 and is expected to reach USD 9.31 billion by 2032, growing at a CAGR of 5% during the forecast period 2024 to 2032.

Dehydrated potato products are processed potatoes made from the process of dehydration, where the water content is removed from the potato. This is done by various methods, such as drum drying, air drying, and freeze drying, to make it more crispy, lightweight, and flaky so it can be stored for longer without getting contaminated. These dehydrated potatoes are used in a wide range of food applications, such as in mashed potatoes, soups, stews, baked goods, and snacks. Along with this, it is commonly used in food aid programs due to its nutrient-rich, shelf-stable, and easy-to-prepare properties. Dehydrated potato products include potato granules, potato starch, and potato flour. These products are a versatile and convenient way to indulge in the taste and nutrition of potatoes.

The dehydrated potato products market has increased market growth due to the expansion of e-commerce channels, which has made it easier for consumers to purchase dehydrated potato products and thus led to the rise in the demand for dehydrated potato products. Due to digitalization and an increase in e-commerce platforms, it has become possible for consumers to purchase dehydrated potato products from a wide variety of online retailers. This expansion of online shops propelled the dehydrated potato products market share and created an opportunity for various manufacturers. In addition to this, purchasing dehydrated potato products online can also be more sustainable. This is because online retailers typically use less packaging to ship their products directly to consumers, reducing the need for transportation. Overall, the expanding e-commerce channels have a positive impact on the dehydrated potato products market.

Global Dehydrated Potato Products Market Drivers

The increasing demand for convenience and healthy food products is one of the major driving factors for the growth of the dehydrated potato products market. As consumers are increasingly having busy and hectic schedules, it led to consumers seeking products that are easy to prepare and consume, with nutrition, and hence it caused a huge demand for dehydrated potato products. These dehydrated protein products are quickly and easily rehydrated by adding water, making them a convenient option for snacks and meals. With water, these dehydrated potatoes can be used for making shakes, soup, and stews. Moreover, along with convenience, dehydrated protein is a good source of vitamins, minerals, and fiber, and it is also low in fats and calories.

Along with this, there is a rising popularity of processed foods where dehydrated potatoes are versatile and convenient ingredients that can be used in a wide variety of processed foods. These are ideal and popular choices for food manufacturers due to their affordable prices. This attribute is enhancing the dehydrated potato products market growth rate. 

Most processed foods, such as instant mashed potatoes, contain dehydrated potato flakes made simply by adding water or milk. These instant mashed potatoes are quick and easy to prepare. Other processed foods include potato chips, a popular snack that is prepared by all age groups and is a go-to snack. Frozen French fries are another famous processed food that is made from dehydrated potatoes. These frozen French fries are a quick and easy side dish enjoyed with meals. Other processed foods include cakes, cookies, and cereal. Therefore, the rise in the demand for processed foods has led to the size of the dehydrated potato products market. These dehydrated products are convenient and have consistent taste and texture, which makes them ideal for use in food service establishments. Hence, these factors have fuelled the dehydrated potato protein market share.

Global Dehydrated Potato Products Market Restraints

The dehydrated potato products market poses a significant limitation in market growth with the easy availability of fresh and frozen potatoes at lower costs. The association of fresh potatoes with high nutritional value leads to minimum demand for dehydrated potato products, especially by health-conscious consumers. Also, frozen potato products, such as fries and hash browns, have gained immense popularity because of their flavor, taste, and longer shelf-life. Hence, this competition from the frozen and fresh potato products impacted the dehydrated potato products market share.

REPORT COVERAGE

This research report on the global dehydrated potato products market has been segmented and sub-segmented based on form, nature, distribution channel, and region.

Global Dehydrated Potato Products Market By Form

• Flakes
• Powder
• Dices
• Shreds
• Others

The powder segment dominates the market share, as potato powder is a versatile ingredient that can be used in a wide range of food products, including bakery goods, snacks, soups, sauces, and easy-to-prepare meals. Moreover, its smooth texture and creaminess contribute more to its increasing demand. The flakes segment has the largest market share, as it is used in preparing soups and stews and provides convenience for consumers who prefer nutritious food in less time.

Global Dehydrated Potato Products Market By Nature

• Organic
• Conventional

Based on nature, the dehydrated potato products market is divided into organic and conventional. The conventional segment dominates the dehydrated potato products market with over 90% share. Since conventional dehydrated potato products are less expensive than organic products, they are more widely available as they are produced by a large number of manufacturers. Meanwhile, the organic segment has a low market share compared to the conventional segment, as it is mostly preferred by health-conscious consumers.

Global Dehydrated Potato Products Market By Distribution Channel

• Food Services
• Retail Channel

Based on the distribution channel, the dehydrated potato products market is divided into food services and retail channels. The food service segment dominates the market share, and this is due to the increasing demand for dehydrated potato products in a variety of food service establishments, such as restaurants, fast food outlets, and hotels. The retail segment has a significant market share, as dehydrated potato products are available in a variety of retail stores, including supermarkets, hypermarkets, and convenience stores. Most often, consumers purchase dehydrated potato products from stores due to convenience and affordability.

Global Dehydrated Potato Products Market By Region

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East and Africa

North America's dehydrated potato market held 30% of shares. The United States is one of the largest consumers of processed foods in the world. The US and Canada are majorly elevating the demand for market growth. Europe has the largest market share next to North America, with the rapid adoption of ready-to-eat food products. Asia Pacific has a significant market growth rate with the rising disposable income and increase in the population. Latin America has steady market growth, as dehydrated potato products are part of ethnic cuisines and dishes.

KEY MARKET PLAYERS

Major Key Players in the global dehydrated potato products market are McCain Foods (U.S.), Basic American Foods (U.S.), Lamb Weston (U.S.), Idahoan Foods (U.S.), Pacific Valley Foods (U.S.), Augason Farms (U.S.), Idaho Supreme Potatoes (U.S.), Birkamidon Rohstoffhandels GmbH (Germany), J.R. Short Milling (U.S.), Rexona B.V. (Netherlands)

RECENT HAPPENINGS IN THE MARKET

• In November 2022, Lutosa, a potato processing company acquired by McCain, inaugurated a state-of-the-art flakes production facility in Belgium. McCain Foods invested a substantial sum of $44.7 million in this project. This modern facility has been established to increase the worldwide demand for dehydrated products, elevate working conditions, and expand its product offerings.
• In September 2022, Lamb Weston Holdings, Inc., a global leader in American food processing, invested significant capital of $240 million into establishing a new French fry processing unit in Mar del Plata, Argentina. This facility manufactures more than 200 million pounds of frozen French fries and various other dehydrated potato products on an annual basis.