The global frozen potato market is on a trajectory to reach a staggering $92.63 billion by 2030, growing from its $65.06 billion valuation in 2022, reveals a new report by The Insight Partners.
This growth, representing a Compound Annual Growth Rate (CAGR) of 4.6% from 2023 to 2030, is fueled by a surge in demand for frozen food products and the rising popularity of ready-to-eat convenience items.
Innovative products and ready-to-eat consumer trend
Key industry players, including Bart’s Potato Company, Aviko B.V., Agristo NV, Lamb Weston Holdings Inc. and others are expanding their market presence through strategies such as mergers, acquisitions, and innovative product launches. For instance, Lamb Weston Holdings recently acquired the remaining equity interests in its European joint venture, Meijer Frozen Foods, and introduced waffled hash browns in 2019.
The rising preference for ready-to-eat, microwavable, and ready-to-prepare food products is attributed to the increasing number of dual-income families in developed nations and the challenges of managing work and household chores.
Additionally, the growth in single or two-person households, especially in countries like the US and Canada, has led to a surge in demand for portion-controlled, ready-to-eat foods. In 2020, single-person households in the US accounted for 28% of all households, further driving the demand for frozen potato products.
Frozen potato products, such as French fries and wedges, have gained immense popularity, especially among the younger generation. The convenience of these products, combined with their availability in retail outlets, fast-food chains, and quick-service restaurants, has significantly contributed to market growth.
Opportunities offered by emerging economies
Emerging economies in the Asia Pacific region, particularly China and India, offer lucrative opportunities for market players. The shift in consumer lifestyles, increased disposable income, urban migration, and the rise of quick-service restaurants have amplified the demand for frozen potato products in these countries.
The residential sector has witnessed a notable increase in the consumption of frozen potato products, driven by changing lifestyles and the growing population of working women. The convenience and longer shelf life of these products, coupled with their widespread availability in supermarkets and online retail platforms, have further boosted their demand.
Resurgence of home cooking
While the COVID-19 pandemic initially disrupted the supply chain and impacted the foodservice industry, the trend of home cooking saw a resurgence.
A report by The American Frozen Food Institute and Food Industry Association in 2021 highlighted that frozen food sales in North America increased by 21% in value in 2020 compared to the previous year.
With these trends and market dynamics, the frozen potato industry is poised for significant growth in the coming years.