Global Potato Processing Market is projected to reach USD 30.85 Billion by 2022, at a CAGR of 5.3% during the forecast period.
The potato processing market indicates a major growth due to the rise in demand for applications such as snack foods and prepared ready meals and with the increase in consumer preferences for convenience foods to save time and efforts. Increase in the number of retail channels such as hypermarkets and supermarkets, rapid growth of the fast food industry, industrialization policies initiated by governments to develop economies such as India and China. These factors are expected to drive the growth of Potato Processing Market during the forecast period. Frozen potato products are considered as the most widely used potatoes because of their extended shelf life and the lesser time required for meal preparation. The increasing demand for French fries in regions such as Asia-Pacific, the Middle East, and South America due to the expansion of quick service restaurants (QSRs) and retail channels are growth factors attributed. Foodservice segment accounted for a larger share of the Potato Processing Market, in terms of value and volume in 2016. McDonald’s, Burger King, Dunkin’ Donuts, and Subway are some of the major QSRs contributing to the growth of the frozen potato market.
Rising number of national and international brands in the hotel industry along with high contribution of quick service restaurants is expected to drive the demand during the forecast period. Asia-Pacific market is projected to gain highest CAGR during forecast time. The most dominant factor in the region affecting the Potato Processing Market is the dense population across most of the countries, coupled with the high production of potatoes.
Government policies such as foreign direct investment (FDI) in developing economies, along with an increase in the number of business deals such as mergers, acquisitions, and investments have assisted in the development and the growth of value-added potato processing products. Urbanization in countries such as China and India shall support the growth of potato chips market in this region.