Potato Chips and Crisps Market

Global Potato Chips and Crisps Market Size (2024 to 2032)

The global potato chips and crisps market size was estimated at USD 37.03 billion in 2023. The global market size is expected to grow at a CAGR of 4.3% from 2024 to 2029 and be worth USD 54.09 billion by 2032 from USD 38.62 billion in 2024.

Current Scenario of the Global Potato Chips and Crisps Market

The potato chips and the crisp market has seen significant growth and become worth billions of dollars in recent years. Potato chips and crisps are one of the most popular snacks around the world. Potato chips and crisp fries are thin slices of potatoes fried in oil or baked until crisp. Potatoes are a rich source of healthy ingredients like vitamins, minerals, potassium, and vitamin C. They have many health benefits, such as preventing heart disease, reducing inflammation and cancer, gaining weight, relieving high blood pressure, and stimulating brain function.

MARKET DRIVERS

The growing popularity of potato chips and crisps and the increasing consumption of these products among people are boosting the global market growth.

Rapid urbanization, increased demand for packaged foods, and rising disposable incomes are other factors that are expected to drive global Potato Chips and Crisps Market growth in the coming years. In addition, manufacturing companies offering a wide variety of foods in attractive packaging to attract the greatest consumer interest is another factor that is expected to have a positive impact on world market growth over the foreseen period. Increased consumer propensity for healthy food and an increase in the workforce are factors that are expected to accelerate market growth during the outlook period. Rising demand for packaged foods, urbanization, rising disposable incomes for consumers, and economic growth in developing countries are driving the growth of the global potato chips and crisps market in general.

Increased health awareness among consumers has encouraged the transition to healthier eating patterns, such as fruit cookies and whole grains. This is likely to threaten the global market for Potato Chips and Crisps. Over the decades, rapid socioeconomic development has caused diseases such as heart disease, cancer, and diabetes in various sectors of the population. Due to the growth of health awareness, consumers prefer fortified Chips and Crisps. Antioxidants are added to potato chips to increase the shelf life of frying oil. The shift in lifestyles fuelled by a growing and mobile trend to replace meals with smaller nutritious snacks is shifting from daily diets to increased consumption of potato chips. The attractiveness of the market attracted the attention of many consumer companies. Consumer companies are funding more in research and marketing activities to create an in-depth understanding of the changing consumer taste preferences. The taste of numerous brands and products is one of the main trends that have a positive impact on the growth of the global market.

Furthermore, market participants are driving innovation due to the expanded development of new products. The influx of new companies has complicated the product on the global Potato Chips and Crisps Market. The market boom is characterized by the availability of both existing players and local players. Participants in this industry are forming groups based on taste, product, and health benefits. Along with industry efforts to develop products tailored to consumer tastes and requirements, changes in consumer trends and lifestyles are expected to further increase product confusion in this area. Due to lifestyle changes, consumers are not only looking for easy food options but also authentic and natural snack options with health and wellness features. This affects the per capita consumption of delicious snacks, including potato chips. In addition, per capita spending on salty snack products is increasing in developing countries and is supported by higher disposable income in the country. Consumers in developed countries trade and spend more on premium, healthy salty snacks, while consumers in emerging countries often choose snacks based on product availability and experimentation. The increase in research activities to create and innovate fragrances made with natural ingredients is boosting the global Potato Chips and Crisps Market.

MARKET RESTRAINTS

In emerging nations, the ongoing launch of healthier alternatives like low-fat and low-sodium snacks hinder the growth of the global potato chips and crisps market.

Manufacturers in the industry are planning to combat this threat by producing healthier snacks. Additionally, there are many substitutes for potato chips and crisps available on the market, which can be a major threat and can hinder worldwide market growth to some extent over the estimated period.

REPORT COVERAGE

SEGMENTAL ANALYSIS          

Global Potato Chips and Crisps Market Analysis By Taste          

The flavored segment holds the majority of shares under this category of the potato chips and crisps market. Considering the busy work schedules and limited family time, the biggest advantage it provides is portability, a wide variety of taste options, less time to consume, and, to some extent, a boost in mood. Also, people are looking for such foods or sacks that they can eat while coming back home from the office or during any road trip or picnic. Another factor fuelling the market growth is the easy availability of potato chips and crisps with different flavors. They are strategically placed in the aisles of the grocery store or while checking out, office snack vending machines, casual lunch locations and even at airports and midair flights. Moreover, the application of several flavorings causes significant attraction, and any innovation in taste, texture, or appearance will propel around 30 percent of fresh or latest product announcements in this industry. Furthermore, the taste and texture standards are achieved by the kind of crisps and chips frying techniques that are used. This accelerates the company sales and also further expands the flavor segment.

According to the U.S. Department of Agriculture, around 279 million cwt potatoes were utilized for processing in 2022 and about 62.1 million cwt for chips and shoestrings, which is 3 percent higher than in 2021. Also, 169 million cwt raw potatoes were used for frozen french fries and other frozen items, and for dehydrating totaled 37.9 million cwt.

Global Potato Chips and Crisps Market Analysis By Type

The sliced segment is dominating the potato chips and crisps market under this category. This is because of its established and famous nature sliced chips are extensively eaten and favoured by customers around the world. Besides this, the market share of this segment is also growing owing to the higher demand for extra special tastes and unique flavors coupled with the increasing trend of gourmet chips. Another factor fuelling the expansion is the eating habits of American and European people.  A US individual eats food faster than a person from Europe. It feels like they are always in a hurry and have less time to consume food or meal and getting pleasure or enjoyment from that is not in their consideration. Whereas the Europeans like to be sophisticated and be present at the table for simple breakfast, lunch or dinner. So, we can say that in Europe, eating is a conventional enjoyment and a requirement for US people.

Global Potato Chips and Crisps Market Analysis By Distribution Channel

The supermarket segment is the leading subcategory of the potato chips and crisps market. This is because of its broad reach and the vast array of goods it offers. These large retail outlets provide everything under one roof to the customers seeking comfort and a wide range of quick bites or snacks. This consists of several flavors and potato chip brands. Moreover, they give buyers a wonderful and practical shopping experience by allowing them to search, compare, and choose items as per their needs or likeness. In addition, it helps FMCG and various other companies to make systematic and strategic positioning, marketing and discounts of their products and consequently gain higher brand visibility and customer attention. Also, the layout of the supermarkets is designed in such a way that most of the time, it compels people to do impulse shopping, and they end up buying products which they had no such intention earlier.   

Additionally, the advent of online delivery platforms is giving supermarkets stiff competition as now people are more tech-savvy and want convenience, time-saving and doorstep delivery. But this is mainly popular in urban areas and not much in tier 2 or 3 cities where supermarkets or departmental stores. As per a survey, about 29 percent of people find new snack items such as chips, crisps, and confectionery products through in-store marketing, 15 percent through TV ads, and 12 percent via word-of-mouth suggestions.

REGIONAL ANALYSIS

The North American market is expected to account for a large share of the global potato chips and crisps market worldwide and is foreseen to maintain its leadership over the projection period. This is primarily due to the growing demand for potato chips and crisps in the workforce and rising disposable income in North America. Additionally, increased consumer preference for healthy snacks to increase energy in countries such as the United States and Canada is driving growth in the region's target market.

The Asia Pacific market is expected to record the fastest growth in the target market due to population growth and emerging economies such as India and China. Developing countries are presumed to lead the global potato chip and crisps market during the expected period. Initially, the consumption of potato chips and crisps was mainly limited to Western countries. As infrastructure development such as subway stations, cinemas and airports increases, their demand rises, especially in developing countries of India and China. Additionally, there are a growing number of unorganized chip manufacturing facilities in this developing country, offering cheaper potato chips and crisps compared to leading multinational players. Potato chips and crisps markets in Europe, Latin America the Middle East, and Africa are deemed to represent modest growth throughout the forecast period.

KEY PLAYERS IN THE GLOBAL POTATO CHIPS AND CRISPS MARKET

Companies playing a leading role in the global potato chips and crisps market include Calbee Foods, Herr, Intersnack Group, PepsiCo, Snyder’s-Lance, and UTZ Quality Foods.

RECENT HAPPENINGS IN THE MARKET

• In April 2024, the construction of the new 55-million dollar factory of Taste of Maine Potato Chip Co. formally began on paper, and it is expected to commence building by July 2024. It will be 80000 square feet in size at 250 Northcutt Road.
• In December 2023, Altho Brets announced the plan to start the construction of a new manufacturing factory in the 2nd half of 2024, which is anticipated to open by 2025 end.
• In September 2023, Pepsi released a press release stating that it will finance 95 million dollars for the advancement of Lay’s India potato chips Nalbari plant in Assam, India. It will commence activities in 2025.

DETAILED SEGMENTATION OF GLOBAL POTATO CHIPS AND CRISPS MARKET INCLUDED IN THIS REPORT   

This research report on the global potato chips and crisps market has been segmented and sub-segmented based on taste, type, distribution channel, & region.            

By Taste          

• Plain
• Salted
• Chili
• Flavored

By Type

• Sliced
• Compound
• Baked
• Dehydrated

By Distribution Channel

• Supermarkets
• Convenience stores
• Independent retailers

By Region 

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