Potato Chips Market Size and Share Analysis - Growth Trends and Forecast Report 2024-2032

Global Potato Chips Market Trends & Summary

The global potato chips market was valued at US$ 35.23 billion in 2023 and it has an expected to reach US$ 49.07 billion, with a compound annual growth rate is 3.75 percent from the year 2024 to 2032. Due to the continuous demand in convenience foods and snack foods, the potato chips market is expected to hold huge growth potentials in the next ten years.

The report Potato Chips Market & Forecast covers by Product Type (Plain Chips & Flavored Chips), Distribution Channel (Supermarket/Hypermarket, Convenience Stores, Specialty Stores, Online Stores, Others), Country and Company Analysis 2024-2032.

Global Potato Chips Market Outlooks

Potato chips are thinly cut or shred of potatoes either fried or baked until crispy. These are among the Worldwide most famous snack foods that are quite convenient and accessible in different tastes like Salted, Barbeque, Cream Sulphur, and Cheese. Simple in preparation and made from basic ingredients, potatoes, oil and seasonings, potato chips are easy to carry, easy to eat and are capable to remain fresh for long periods of time. Developed way back during the late 19th century, they are now well-loved snack by both the young and the old worldwide.

Population demand for snacks has been growing and potato chips are perceived as convenient to consume ready to eat snacks. This has been influenced by new trends such as increased pace of life, advancement in urbanization and changing customers’ preferences towards processed foods. Sky-high demand has been reported in global markets from North America, Europe or even emerging Asia-Pacific markets. Moreover, the continuous introduction of flavours and new and healthier products like the baked or low-fat chips also contributes to this growth making potato chips to become a force to be reckoned with in the world snack market.

Growth Driver of the Potato Chips Industry

Rising Demand for Convenient Snack Options

Highly busy world today’s society has been a major factor in the push towards more convenience foods such as potato chips. Consumers are now looking for products that they can eat and do not need to be cooked hence making potato chips the best and most preferred snack. Everyone loves that snack which comes in handy whether to be eaten at home or while on the go, and that’s potato chips. With this convenience, there has been an encouragement of the demand and consumption occasioned by better packaged foods that are easily accessible and first and foremost, the growth has been particular in the urban population and the youthful population. Yellow Diamond brand of Prataap Snacks Ltd has omega-fortified potato chips. In May 2022, expanded the product portfolio with Uglies Sweets – sweet potato chips made from waste, or upcycled, and joined the famous Uglies Kettle Chips brand. The sweet potatoes that were used to prepare the chips were kettle cooked in small portions and the chips where slightly salted. They are gluten-free, reviewed by Non-GMO project, kosher, vegan, and made in a nut-free plant and contains vitamin A.

Flavor Innovation and Product Variety

One of the key factors that has defined the growth of the potato chips industry has been through invention of new flavors and textures for the product. New and exotic flavors are introduced into the market consistently through adding spice, tangy or even regional flavor to the products to meet various customers’ taste buds. Variation in products such as low fat, baked or organic affects the health-conscious customers. This makes consumers remain always interested and to remain loyal to the brands that they are using. In March 2024, Lay's launched a campaign called Lay's® Flavor That Hits Home, bringing back four fan-favorite offerings: Lay’s Crispy Taco, Lay’s BLT Sandwich, Lay’s Fried Pickles with Ranch, Lay’s Kettle Cooked Lime & Cracked Pepper in USA.

Expanding Distribution Channels

As a result of the increased expansion of departmental stores and online shops, potato chips have also penetrated the various classes of people. Grocery stores, hyper grocery markets as well as convenience stores makes sure there is always food security for consumer especially the potato chips in the urban and provincial regions. Potato chips have also benefited from mobile application sales and groceries through e-commerce sites as the online shopping business grew. Thanks to the availability across the various channels, the product has promoted increased sales and market coverage across the world.

Challenges in the Potato Chips Market

Health Concerns and Growing Demand for Healthier Alternatives

The main challenge in the potato chip market is the increasing demand for healthier snack alternatives among consumers. Increasing awareness about obesity, heart disease, and diabetes has led to a shift among many consumers towards baked, air-fried, or vegetable-based chips. Traditional potato chips contain high levels of fat, sodium, and preservatives, resulting in declining sales among health-conscious consumers. This shift has made manufacturers innovate and introduce healthier options, but the traditional potato chips still face criticism, which negatively impacts the overall market growth.

Fluctuating Raw Material Prices and Supply Chain Issues

Potatoes, vegetable oils, and seasoning ingredients are subjects to real price shocks from unpredictable weather conditions, breaks in supply chains, and increased transportation costs. Crop yield instability can cause shortages, therefore limiting production and pricing. Supply chain issues such as labor shortages and international shipping delays also challenge raw material supply. All these increasing costs lead to higher retail prices, thereby curtailing consumer demand and squeezing manufacturers' margins.

Plain Potato Chips Market

Plain potato chips are one of the mainstay varieties in the snack industry, as they are of basic and old flavor. Being simple and classic, these potato chips have a wide consumer following because they can be enjoyed singly or paired with dips and sauces. Major brands go about the product's consistency, crispiness, and salt balance to meet the demand of customers. Plain potato chips have remained popular as they are often nostalgic and very widely available, despite the flavored varieties. Innovations such as reduced-sodium and kettle-cooked options also continue to contribute to the sales of branded and private-label products. In February 2024, PepsiCo India launched a subbrand under Lay's - Lay's Shapez, the heart-shaped potato pellet. The Shapez Heartiez line contains masala and caramel flavors. This is a new entry in the sweet-flavored chip market for Lay's, looking to expand their snack selection of potato chips.

Online Stores Potato Chips Market

The potato chips market in the online store is seeing rapid growth as the trend for e-commerce and digital shopping grows. Consumers can order their favorite snacks online from the comfort of their homes. They get benefits such as discounts on bulk orders, subscription models, and doorstep delivery. Several flavors and brands may not be in the local physical stores, which are made possible by online platforms. Also, digital marketing, personalized recommendation, and social media promotions all have a good way of exposing a brand and also engaging with its customers. Still, issues of freshness maintenance, shipping cost, and the packaging durability remain critical to satisfying online sales. Aug 2024, Lay's takes the foodies on a global journey with its new Global Flavors range,

North America Potato Chips Market

United States Potato Chips Market

Americans consume about 6.5 pounds of potato chips per year with the interest in production with non-standard components and distinct tastes. Nonetheless, the base and plain flavours are common and therefore, industries related to potato chips have become highly developed and more saturated due to its low prices and highly demanded product by all the ages but especially the increasing young generation. As a form of snacks, potato chips also cut across erratically enjoyable and quickly consumable in between activities, making them even more popular because there is no preparation time needed before consuming them. Campbell Soup Company’s Kettle Brand introduced a new product type in the US market in February 2023, Air Fried Chips. These chips are the first that have been kettle cooked, air fried with 30% less fat than the traditional chips. They come in Sea Salt & Vinegar, Jalapeno, and Himalayan Salt varieties out of which I have tried the Sea Salt & Vinegar, Jalapeno, and the Himalayan Salt.

Europe Potato Chips Market

Germany Potato Chips Market

In Germany, chips are popular is the fashion accessories that most people love taking particularly the children. This is because the variety of the flavors and their affordability to consumers who can easily access them in supermarkets, gas stations amongst other places. Germany has a cut throat chip market that has most international chips brands such as Lay’s, Pringles, and Doritos other than regional chips available under the Lorenz and FunnyFrisch brands that equally sell a significant market percentage. This competition stems from factors such as product differentiation, coming up with new flavors and the use of quality ingredients. Some of the trends that characterize the chip market in Germany include; and, Unger for healthy and natural snack foods. These include consumers demanding fewer processed additives and better quality for ingredients including the vegetarian and vegan kinds. Moreover, the consumers’ preference to chips with specialty and regional tastes is on the rise. In March 2024, Burts is launching another novel product – a spicy barbecue potato chip flavor which is to be a part of the company’s limited series of products. The chips will only be sold for a few weeks on amazon, and in independent stores, cafes, delis, pubs.

Asia Pacific Potato Chips Market

India Potato Chips Market

The Indian potato chips market is growing with changing consumer lifestyles, rising disposable incomes, and urbanization. Demand for packaged snacks has gone up manifold with a young demography and the increasing middle class. Domestic and international brands compete in this space, offering a variety of flavors tailored to Indian taste preferences, such as masala and spicy variants. However, the market faces competition from traditional Indian snacks like Namkeen and samosas. Companies also focus on healthier alternatives like baked chips and lower-fat options to attract health-conscious consumers, further diversifying the market landscape. Feb 2024, PepsiCo India is increasing the Lay's Shapez brand by a heart-shaped potato-based snack.

Saudi Arabia Potato Chips Market

Saudi Arabia potato chips market is witnessing growth because of the young population, the rising Western food influences, and the increased popularity of convenience snacks. The consumers of Saudi Arabia like a mix of both classic and bold flavors with the local and international brands fighting for the market share. Well-known retail distribution channels, such as supermarkets, hypermarkets, and online platforms are also in strong support of markets. Premium snack options, and healthier snacks- low-fat organic chips, the demand for healthy snacks is gradually increasing. A challenge for any manufacturer to upgrade their product lineup is cultural or regulatory policies and food ingredients to be used on the label or not. Nov 2023, PepsiCo is investing over SAR 200 million (approx. $53.3 million) in its Dammam snacks facility in Saudi Arabia to meet rising local and export demand.

Potato Chips Company News

In Sept 2024, Akij Food and Beverage Ltd (AFBL) launched the new O’Potato Chips & Crackers.

In April 2024, Lay’s is launching a limited summer release of special new potato chips with a "zesty" and "rich" tomato-based flavor profile.

In June 2024, Herr Foods Inc., a local snack maker in Pennsylvania, introduced new potato chip flavors as part of the Flavored by Philly Contest. People are invited to buy, try, and vote for their favorite flavor to determine the winner.

In July 2024, Samyang Foods introduced three new flavors of potato chips - Original Buldak, Four Cheese, and Habanero & Lime - priced at USD 1.23 per 55-gram pack. They are available in major Japanese supermarkets.

In February 2024, Lay’s launched a new flavor of potato chips called Sweet & Spicy Honey, combining sweet and spicy tastes into Swicy. The brand introduced this unique flavor to celebrate the month of love, hoping it will be a hit with its fans.

Potato Chips Market Segments

Product Type - Market breakup from 2 viewpoints

1. Plain Chips
2. Flavored Chips

Distribution Channel - Market breakup from 5 viewpoints

1. Supermarket/Hypermarket
2. Convenience Stores
3. Specialty Stores
4. Online Stores
5. Others

Country- Market breakup from 25 viewpoints

North America

1. United States
2. Canada

Europe

1. France
2. Germany
3. Italy
4. Spain
5. United Kingdom
6. Belgium
7. Netherlands
8. Turkey

Asia Pacific

1. China
2. Japan
3. India
4. Australia
5. South Korea
6. Thailand
7. Malaysia
8. Indonesia
9. New Zealand

Latin America

1. Brazil
2. Mexico
3. Argentina

Middle East & Africa

1. South Africa
2. Saudi Arabia
3. United Arab Emirates

All companies have been covered into 4 viewpoints

• Overviews
• Key Person
• Recent Developments & Strategies
• Product Portfolio & Product Launch in Last 1 Year

Company Analysis

1. General Mills
2. Kellogg’s Company
3. Kraft Heinz Company
4. PepsiCo Inc.
5. Mondelez International
6. Herr Foods Inc.
7. Calbee Inc.
8. Utz Brands, Inc.

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