The processed potatoes market is estimated to grow at a CAGR of 5.2% between 2022 and 2027, according to recently released report by Technavio. The size of the market is forecast to increase by USD 41.71 billion.
The growth of the market is said to depend on several factors, including a growing focus on expanding production capabilities for potato processing, growth of organized retailing, and increasing prominence of private-label brands.
Prominence of private-label brands
According to the report, private-label processed potatoes are becoming a key focus area for retailers globally. Globally, major retailers are introducing their brands of processed potato products, such as potato chips, potato granules, powder, starch, and flakes, to capitalize on the growing demand for processed potatoes among consumers. In the last decade, the private-label product segment has grown in terms of scope and size. For instance, China-based Alibaba sells a variety of products, such as potato flakes and dehydrated potato granules, under its own brand.
Furthermore, private-label products are priced lesser than branded products. Hence, price-sensitive consumers are more likely to purchase such products. Supermarket chains have also started allocating more shelf space to their private-label offerings and various in-house marketing and promotional activities. Therefore, the demand for private-label brands is expected to increase during the forecast period, which, in turn, is expected to aid in the growth of the global potato processing market.
Online shopping: A significant processed potato market trend
The growing prominence of online shopping is also a major trend in the market, according to Technavio. The online distribution channel, also known as e-commerce, has significantly fueled the growth of the global market in the last decade. E-commerce enables customers to access regional and global brands of processed potatoes. In addition, through e-commerce, customers can opt for multicultural products, which is also boosting cross-regional flavors in the product, especially Asian flavors in potato chips and French fries, among customers.
In addition, online platforms also provide an opportunity for vendors to expand their market reach in different regions that they cannot reach physically. Owing to these benefits, certain vendors of processed potatoes have started using online channels to sell their products and inform potential consumers about their products.
Source: Technavio. More information here
Photo: Credit Photo by Matthew Reyes on Unsplash
