PUBLISHER: Market Xcel - Markets and Data | PRODUCT CODE: 1522728
PUBLISHER: Market Xcel - Markets and Data | PRODUCT CODE: 1522728
Global potato flake market is projected to witness a CAGR of 6.65% during the forecast period 2024-2031, growing from USD 8.11 billion in 2023 to USD 13.57 billion in 2031. Factors such as the applicability of potato flakes in soups, curries, and snacks for the purpose of thickening or adding a crunchy layer, the increasing popularity of processed potatoes and potato-based convenience foods, and the rising prevalence of mashed potatoes are fostering the growth of the potato flake market in the forecast period. Also, the trend of vegan and vegetarian diets is driving consumers toward seeking more potato-based foods, fueling the market growth.
The potato flake market has been gaining immense popularity among different segments of consumers, increasing its utility and applicability. The market is witnessing steady growth and demand among consumers. For instance, between 2021 and 2022, the global export of potato flakes, granules, and pellets increased by 10.9%.
According to the Observatory of Economic Complexity, in 2022, potato flakes, granules, and pellets were among the most traded products, ranking 2,410th globally. The top exporter was Germany contributing to the total export of USD 269 million. The largest importer was Italy, with a total import value of USD 67.7 million. Additionally, potato flakes, granules, and pellets hold the 1,270th position in Product Complexity Index.
The demand for the potato flake market is highly driven by the commercial sector as potato flakes are utilized largely in quick-service and fast-food restaurants to enhance the taste and texture of dishes along with its applicability in enabling the restaurants to cook and prepare meals in lesser time and facilitate quick delivery service to their customers.
The rising trend of expansion of production capabilities among the key players is driving the growth of the market immensely. The manufacturers are establishing new production units in different regions and expanding their existing production capabilities to meet the rising demand of consumers for potato flakes. For instance, in February 2024, Emsland Group announced its plans to double its production capacity of potato flakes in Germany. Moreover, with major focus on sustainability, an additional line of production will consist of new roller dryers and new facilities for the purpose of washing, peeling, smashing, and bagging the potatoes.
Technological Advancement in Potato Flake Processing is Augmenting Growth
Advancements in the technology for the production of potato flakes have been in the trend currently, which is promoting the growth of the market. Some of the key developments have been the automation of the production process by the incorporation of artificial intelligence and robotics within the production units, resulting in an increase in efficiency and consistency in production.
Additionally, the advancements in equipment have enabled the manufacturers to optimize various processes to create potato flakes, such as blanching, drying, slicking, and packaging, resulting in the provision of high-quality potato flakes for consumers.
Moreover, a lot of focus has been put on sustainable manufacturing processes, with the incorporation of energy-efficient machinery, environmentally friendly practices, and waste reduction strategies. The process of drying the potato puree for the production of potato flakes releases steam, which results in the wastage of energy and pollution. Thus, various advancements in technology have been witnessed to eliminate steam emissions during the process of potato flake production. For instance, in June 2023, Tummers Food Processing introduced E2E SteamClosure to ease the process of manufacturing potato flakes. The company claims that the latest innovation in technology will eliminate the emission of steam, making it an energy-efficient technology. The reduction in steam emission makes the production process sustainable and cost-efficient.
Flourishing Demand for Ready-to-Eat Products is Expanding the Market
Ready-to-eat food items are gaining popularity among consumers, driving the growth of the potato flake market. Potato flakes are a convenient option for professionals as they make the process of cooking, such as meal preparations, cooking, and post-meal activities, faster and easier. Potato flakes fulfill this requirement as they can be rehydrated easily using water and other liquids as well, eliminating the need for extensive preparation during cooking. For preparing gravies and soups, potato flakes serve as a thickening agent in the curry base. It has more culinary applications in ready-to-eat products such as providing a crispy coating for snacks, further fostering the demand for potato flakes. The global ready-to-eat food market is expected to grow with a CAGR of 5.28% from 2023 to 2030. This is expected to impact potato flake sales in the overall market.
Additionally, the rising personal disposable income of consumers and rapid urbanization have induced consumers to demand processed and ready-to-eat food items such as potato flakes. The hectic lifestyle of consumers and broadening consumers' preferences for time saving solutions is expanding the demand for ready-to-eat options. As a result, the market for potato flakes is experiencing growth in the forecast period.
Innovation in Agriculture is Driving the Growth
Innovation in agriculture is a crucial factor driving the growth of the potato flake market. The advanced agricultural practices, such as improved crop management and precision farming techniques, are enriching the yields and quality of potato. With the help of precise equipments, farmers can optimize the inputs such as water, pesticides, and fertilizers, resulting in the higher yields of potato per hectare.
In November 2023, McCain Foods Limited introduced Presia Ag Insights to make advancements in agricultural technologies. This technology was launched with the aim of supporting farmers in building resilience within their operations. With this technology, the crop-sourcing individuals, along with the farmers, can evaluate their crop yields in a better way and optimize the timing of their harvest to conduct sustainability practices.
Moreover, the development of disease-resistant potato varieties and improved breeding agricultural techniques are expanding the resilience of potato crops to boost the production of potato flakes further. Furthermore, the incorporation of technology in agriculture is leading to the minimization of production costs, resulting in an overall improvement in the quality of potato flakes.
Asia-Pacific Holds Dominance in the Production
Rising potato production is driving the growth of the potato flake market as it helps the manufacturers in providing an abundant supply of raw material to produce potato flakes. As consumers prefer convenient food options, such as potato flakes, the market is poised to expand due to the rising potato production to meet the growing demand of consumers efficiently.
Globally, Asia-Pacific dominates the potato flake market production as China is the largest potato-growing region globally, owing to its strong agricultural supply network.
According to Food and Agriculture Organization, in 2021, the total global potato production amounted to 376 million tons, with China contributing 94 million tonnes, followed by India, amounting to 54 million tons.
Following Asia-Pacific, Europe tops the chart in terms of potato production, with a total harvested production of 47 million tons of potatoes throughout the region, ranking it second in global potato production according to the European Potato Processers' Association.
Future Market Scenario (2024 - 2031F)
The market is expanding at a steady rate and is anticipated to witness a surge in the forecast period. With technological advancement, innovation, and better agricultural equipment, the market is expected to flourish exponentially.
Technological advancements are contributing to the positive trajectory of the market by increasing productivity and improving the quality of potato flake production. Key players are introducing the latest technologies for this purpose. For instance, in March 2024, Asandas and Sons Pvt Ltd closed a tripartite deal at the Vibrant Gujarat Global Summit 2024 for the establishment of a production facility in Gujarat where they are planning to build a line of potato flakes using Kiremko Technology.
Key Players Landscape and Outlook
Key players in the market are helping in the growth by focusing on continuous product innovation, retail expansions, and strategic marketing. The manufacturers are actively expanding their product portfolio, increasing their customer base, and catering to their evolving needs.
A market trend of the extension of production capacities by the key players of the potato flakes market is being witnessed, wherein the manufacturers are establishing themselves at new locations with existing manufacturing technologies or introducing new technologies at existing locations.
For instance, in November 2022, Lutosa, a brand of McCain Foods Limited, opened a new potato flake factory in Leuze-en-Hainaut. This expansion is planned by the company to meet the rising global demand for dehydrated potato flakes. The factory individually represents an investment of USD 47.96 million.
All segments will be provided for all regions and countries covered
Companies mentioned above DO NOT hold any order as per market share and can be changed as per information available during research work.