According to a newly released report by Research and Markets, the frozen potato market, valued at $60.30 Billion in 2021, is primed to expand to $92.70 Billion by 2031, boasting a steady CAGR of 4.2% from 2021 to 2031.
China’s Growing Influence
Research and Markets says in a news release that China’s surging purchasing power is propelling an expansive boom in the Chinese market, fueling a surge in fast-food eateries and coffee shops offering a diverse array of frozen potato delights in developing nations. Major players in the fast-food and hotel sectors have strategically invested to expand their presence in the Asia-Pacific and other burgeoning regions.
Latin American Market Dynamics
According to Research and Markets, Latin American markets, such as Brazil and Argentina, are also witnessing rapid expansion due to heightened spending on premium food products. A crescendo of fast-food restaurants, augmented food processing capacities, growing disposable incomes, urbanization, and eased import/export taxes on frozen potatoes are collectively fuelling the global demand for these products.
Shift in Developed Economies
However, in developed economies, growing health concerns have reshaped consumer preferences, shifting the focus towards healthier alternatives. With increasing cases of childhood obesity, the allure of fresh, non-vegetarian options has grown stronger, challenging the growth of frozen potato products. The evolving demand for healthier foods like low-cholesterol desserts, organic high-fiber breads, and fresh fruits and vegetables is anticipated to curtail the market for frozen foods, including potato products.
Global Income Trends
With an upswing in global per capita income, especially in emerging economies, the demand for food, particularly from restaurants, is witnessing a pronounced surge. Forecasts suggest that the per capita income growth in the coming decade will outpace that of developed countries, notably impacting the frozen potato industry’s growth.
Role of Quick-Service Restaurants
The surge in disposable incomes, especially in developing economies, is expected to be a pivotal driver of market growth. Quick-service restaurants (QSRs), often offering frozen potato products, serve as budget-friendly options for individuals seeking convenient away-from-home dining.