Potato Chips Market

Surge in snacking trend

Potato chips are the all-time favorite snacks of consumers around the world and are at the forefront position of the revolution in the snacks industry. The global market for potato chips is observing substantial growth, which is primarily driven by the surge in snacking trends among the population. This swing in the eating pattern of individuals is mainly prompted by changing lifestyles, a growing demand for convenient, & ready-to-eat food products, and evolving preferences. Potato chips are one of the most popular snacking products and have benefitted considerably from this trend.

The primary growth driver for the snacking trend is the increasingly hectic lifestyle of the modern population. With a busy timetable and less time for traditional sit-down meals, consumers are shifting towards convenient, ready-to-eat snacks such as potato chips. 

This shift is specifically evident among younger populations, such as Gen Z, and millennials who focus on convenience and are more likely to snack throughout the day rather than adhere to traditional mealtimes. In addition, the rise of the global middle class has contributed to the growing demand for snack foods. As disposable incomes increase, more people can afford to purchase packaged snacks, including potato chips. This trend is not confined to developed markets; emerging economies are also witnessing a surge in snack consumption.

For instance, in countries such as India and China, where the middle class is expanding rapidly, there is a significant uptick in the demand for potato chips. The market has also been propelled by continuous product innovation.

Manufacturers are constantly introducing new flavors and variations to cater to diverse consumer tastes and preferences. For instance, Lay’s, a leading potato chips brand, regularly launches limited-edition flavors and collaborates with other food brands to create unique offerings. Such innovations not only attract existing customers but also draw in new ones who are curious to try novel flavors. Moreover, health and wellness trends also have a major role in the growth of the potato chips market. While traditional potato chips are often viewed as an indulgent snack, the industry has responded to health-conscious consumers by offering healthier alternatives.

Baked chips, chips made from alternative vegetables, and low-sodium or low-fat options are increasingly available. This diversification allows consumers to enjoy their favorite snack while adhering to their dietary preferences or restrictions. For instance, the Pop chips brand has gained popularity by providing a healthier, popped version of the traditional potato chip, positioning itself as a better-for-you snack option. The incorporation of such products entices consumers who are more concerned regarding health & wellness.

Based on these factors it can be concluded that the snacking trend among consumers is skyrocketing the demand for the potato chips industry across the globe and is anticipated to grow during the upcoming years.

The Global Potato Chips Market Industry experiences a notable surge in consumer demand for convenient snack options. As lifestyles become increasingly fast-paced, consumers seek quick and easy snacks that fit their busy schedules. Potato chips, with their variety of flavors and textures, cater to this need effectively. In 2024, the market is projected to reach 34.8 USD Billion, reflecting a growing preference for snack foods. This trend is particularly pronounced among younger demographics, who favor innovative flavors and healthier options. The industry's ability to adapt to these preferences is likely to drive further growth in the coming years.

The Global Potato Chips Market Industry benefits from the expansion of distribution channels, which enhances product accessibility for consumers. Retailers are increasingly diversifying their offerings by including potato chips in various formats, such as online platforms and convenience stores. This trend is particularly relevant in urban areas, where consumers prefer quick access to snacks. The growth of e-commerce has also played a pivotal role in this expansion, allowing brands to reach a broader audience. As distribution channels continue to evolve, the industry is poised for sustained growth, potentially achieving a compound annual growth rate of 4.9% from 2025 to 2035.

Globalization significantly influences the Global Potato Chips Market Industry by facilitating cultural exchange and the introduction of diverse flavors. As consumers become more adventurous in their snack choices, manufacturers are capitalizing on this trend by offering international flavors and unique combinations. This not only caters to local tastes but also introduces consumers to global culinary experiences. The growing popularity of international cuisines has led to an increased demand for exotic flavors in potato chips, thereby expanding the market. This cultural exchange is likely to continue shaping consumer preferences and driving growth in the industry.

In response to the evolving consumer preferences, the Global Potato Chips Market Industry is witnessing a wave of health-conscious product innovations. Manufacturers are increasingly introducing baked, reduced-fat, and organic potato chips to cater to health-aware consumers. This shift aligns with the broader trend of healthier eating habits, as consumers become more mindful of their dietary choices. The introduction of these innovative products not only attracts health-conscious individuals but also expands the market reach. As a result, the industry is expected to grow significantly, with projections indicating a market value of 58.9 USD Billion by 2035, driven by these health-oriented innovations.

Sustainability initiatives are increasingly becoming a focal point in the Global Potato Chips Market Industry. Manufacturers are adopting eco-friendly practices in sourcing, production, and packaging to meet the rising consumer demand for sustainable products. This includes using locally sourced potatoes, reducing waste, and implementing recyclable packaging. Such initiatives not only appeal to environmentally conscious consumers but also enhance brand loyalty. As sustainability becomes a critical factor in purchasing decisions, the industry is likely to see a positive impact on growth, with companies that prioritize these practices potentially gaining a competitive edge.

By Region, the study segments the market into North America, Europe, Asia Pacific, South America, and the Middle East & Africa. North America potato chips market accounts for the largest market share 32.32% in 2023 and is expected to exhibit a 4.62% CAGR due to the growing working population in the US. According to a different survey, 86% of individuals in France and the United States consume potato chips or crisps. In addition, the employment rate in the United States was 60.3% in 2023.

Those who worked for pay or profit during the survey reference week, those who performed at least 15 hours of unpaid labor in a family-run business, and those who were momentarily absent from their regular jobs due to illness, vacation, inclement weather, labor disputes, or other personal reasons are all considered employed. The employment-population ratio shows how much of the non-institutional civilian workforce is employed. Besides this, the growing number of strategies adopted by key players are likely to open huge opportunities for its market growth in the upcoming years.

Figure 5: POTATO CHIPS MARKET SHARE BY REGION 2023 (%)

Source: Secondary Research, Primary Research, Market Research Future Database and Analyst Review

The region accounted for 1.34 times growth during the forecast period. Europe includes Germany, the UK, France, Spain, Italy, and the Rest of Europe will witness moderate growth in the potato chips market in the upcoming years owing to the presence of major players across the region providing a range of potato chips along with the growing expansion policies adopted by them to cater the growing consumer demand. As a part of this, ALTHO is a prominent leader in private labels and the manufacturer of nearly every brand found in France's grocery distribution.

Every year, Bret’s own brand gains popularity and growth, positioning itself as the industry's top competitor for flavored potato chips. With a great price-to-quality ratio, its brand is consistently evolving, getting better, and becoming more distinctive. Using either private labels or the Bret's brand, the company is expanding its business internationally.

Asia-Pacific market value is USD 9,807.19 in 2023 and USD 16,257.46 in 2032 growing at a CAGR of 6.52% during the forecast period. Asia-Pacific includes China, Japan, India, Australia & New Zealand, South Korea, and the Rest of Asia-Pacific are all included in the analysis of the market. India continues to hold a significant share in the Potato chips Market, owing to the wide consumption of potato chips among the various consumer groups.

As a part of this, according to MRFR analysis, potato chips are thought to account for around 85% of the roughly Rs 2500 crore salty snack food market in India. The modest potato chip, which appeals to both young and old, has proved more effective than any exotic product in capturing the Indian market.

Branded chips taste amazing and appear to be less greasy.  Furthermore, the increasing government support to strengthen the potato chip sector coupled with the growing expansion policies adopted by key players across the region is expected to open huge opportunities for its market growth in the upcoming years.

South America holds a significant share of the potato chips market and is expected to grow at a CAGR of 6.24% during the forecast period. South America includes Brazil, Argentina, and the Rest of South America are all included in the analysis of the South America market. Brazil continues to hold a significant share in the Potato chips industry owing to the increasing consumption of potato chips which in turn has increased its production eventually boosting its market growth in the upcoming years.

Middle East and Africa, consist of some of the major countries such as GCC Countries, Turkey, Northern Africa, and Southern Africa. The potato chips market is expected to grow across the region owing to the growing expansion policies adopted by major players which would fuel its market growth in the future. Besides this, the growing residential sector across the region is likely to increase the consumption of various types of potato chips, which in turn would boost its market growth in the future.

As a part of this, in February 2021, the US-Saudi Business Council anticipates that government investment in the residential real estate market will continue, to sustain the rate at which affordable housing projects are being constructed.

Further, the major countries and regions studied are: Canada, Mexico, Germany, UK, France, Spain, Italy, China, Japan, India, Australia & New Zealand, South Korea, Argentina, GCC Countries, Turkey, Northern Africa, and Southern Africa.

The Potato chips Market is a growing segment of the region's food industry. Potato chips, one of the favorite snacks of people of all ages around the world, have solidified their place in today's snack menu. Potato chips have grown from humble beginnings into a multibillion-dollar business. The market for potato chips is characterized by a variety of flavors, textures, and packaging options to suit many consumer preferences worldwide. With the rise of convenience foods and busy lifestyles, potato chips offer consumers a convenient and satisfying meal.

From classic flavors like salt and vinegar to new varieties like barbecue, sour cream and onion, potato chip manufacturers are always striving to appeal to tastes and stay ahead of the rest in a competitive market. Moreover, the global impact of potato chips extends beyond taste, they are also representative of culture, consumed in all their health, including local desserts and cooking and drinking. In an age where snacking is as much about information as food and clothing, potato chips continue to hold an important place in the hearts and foods of consumers worldwide.

Business Expansion, collaborations and product launch were also observed to expand the company's product portfolio as well as introduce new products. The growth of prominent industry players is dependent on various factors, such as market conditions, government support, and industry development. Key manufacturers in the potato chips market are focusing on developing high-quality and healthier products. It is also projected that a rise in investments in research and development (R&D) will also boost the market's growth in the upcoming future.