Potato Processing Market, By Product Type (Fresh, Frozen, and Dehydrated), By Application (Processed food, Glue, Animal feed, Biofuel, and Others), and By Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa) was valued at US$ 39.42 Bn in 2023 and is expected to exhibit a compound annual growth rate (CAGR) of 5.4% during the forecast period (2024-2031), as highlighted in a new report published by Coherent Market Insights.
Potato is a starch-containing root that is used as a vegetable. Potato processing is carried out to meet the significant demand arising from various applications of processed potato, such as processed food, animal feed, biofuel, and glue. Processed foods such as potato fries and chips are gaining popularity among the consumers primarily owing to its taste. Also, potato starch is used as an adhesive. In addition, potatoes finds applications in the generation of biofuel and as a feed for dairy cattle.
Potato Processing Market – Impact of Coronavirus (COVID-19) Pandemic
The COVID-19 pandemic had a negative impact on the market. With many shutdowns, the demand for products like French fries has decreased, leading to a backup in the supply chain. The pandemic has also caused a shift from foodservice to retail, with increased sales of potato products in retail outlets. The prices of potato products have been affected differently in various parts of the world due to the COVID-19 pandemic. In the U.S., the demand for raw materials such as potatoes has been significant, with an increase in the prices of some potato varieties. However, the closure of restaurants and food service establishments has led to a reduction in the demand for processed potato products, causing a decline in prices in Western countries, where most potatoes are bought by food businesses. On the other hand, the shift from foodservice to retail has increased the sales of potato products in retail outlets, leading to a surge in the demand for snacks such as potato chips and tortilla chips.
Key Developments
- In March 2023, The Kraft Heinz Company, in collaboration with BEES, announced the extension of their partnership to boost the B2B marketplace. The Kraft Heinz Company, commonly known as Kraft Heinz, is a U.S.-based multinational food company. The aim is to unlock approximately 1 million new potential points of sale across Latin America particularly in Mexico, Colombia, and Peru. The new agreement in the Latin America region is expected to act as a driving force for Kraft Heinz to achieve its emerging markets strategy by expanding its points of distribution and providing more products to retailers in the region.
- In February 2023, according to a statement from Lamb Weston Holdings Inc., the remaining equity interests in the company's European joint venture with Meijer Frozen Foods B.V. have now been fully acquired. The final transaction consideration included 1,952,421 shares of Lamb Weston common stock and US$ 615.6 million in cash, subject to certain adjustments. In October 2022, the company declared its intention to acquire a stake in the company. This acquisition has helped the company be more competitive in the market and gain a new consumer base.
Browse 24 Market Data Tables and 28 Figures spread through 150 Pages and in-depth TOC on “Potato Processing Market”- Forecast to 2031, Potato Processing Market, By Product Type (Fresh, Frozen, Dehydrated), By Application (Processed food, Glue, Animal feed, Biofuel, Others), and By Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa).
Link: https://www.coherentmarketinsights.com/market-insight/potato-processing-market-725
Key Takeaways of the Market:
- Europe dominates the market, and it is expected to continue its dominance over the forecast period as well. Considering this trend, major players are investing heavily in the region.
- Asia Pacific is projected to be the fastest growing region. According to India Brand Equity Foundation (IBEF), a trust established by the Department of Commerce, Ministry of Commerce and Industry, government of India, consumer spending on processed food will reach US$ 3.6 trillion by 2020 in India. Furthermore, Xisen Potato Industry along with experts from the James Hutton Institute of Scotland, are planning to set up a US$ 3.8 million potato laboratory in China during the next decade.
- Processed food is a dominant application segment of the market. The high demand for processed food is driven by certain advantages such as easy cooking or immediate consumption and ease of handling, preservation, and storage.
- Various organic and inorganic growth strategies are adopted by the leading market players in the market in order to strengthen their foothold
