U.S. Potato Chips Market – Industry Trends and Forecast to 2031

U.S. Potato Chips Market, By Product Type (Baked, Fried, Dried, and Others), Type (Extruded, Diced/Sliced, and Others),  Source (Russet Potatoes, Yellow Potatoes, White Potatoes, Red Potatoes, Purple Or Blue Potatoes, Fingerling Potatoes, New Potatoes, and Others), Flavor (Regular, Single Flavor,  and Blended Flavor), Category (Organic and Conventional), Packaging Size(30 Oz), Price(Regular and Premium), Packaging (Pouches, Bags, Cans, Cardboard Boxes, and Others), Brand (Branded and Private Label), End User (Retail/Household and Food Service Sector), Distribution Channel (Store-Based Retailing and Non-Store Retailing) – Industry Trends and Forecast to 2031.

U.S. Potato Chips Market Analysis and Size

The market is a significant segment of the snack food industry, characterized by strong competition and a wide variety of products. The market is driven by changing consumer preferences, innovative product offerings, and marketing strategies. The growing demand for healthier snack options, leading to the development of baked and low-fat potato chips, is driving the market. There is also a trend towards exotic flavors and premium ingredients, catering to consumers looking for unique and high-quality snack experiences. The market is also influenced by economic conditions, consumer purchasing power, and lifestyle trends.

The U.S. potato chips market size was valued at USD 23.89 billion in 2023 and is projected to reach USD  34.08 billion by 2031, with a CAGR of 4.54% during the forecast period of 2024 to 2031. In addition to the insights on market scenarios such as market value, growth rate, segmentation, geographical coverage, and major players, the market reports curated by the Data Bridge Market Research also include in-depth expert analysis, geographically represented company-wise production and capacity, network layouts of distributors and partners, detailed and updated price trend analysis and deficit analysis of supply chain and demand.

Report Scope and Market Segmentation       

Market Definition

Potato chips, also known as crisps in some countries, are thin slices of potatoes that are fried, baked, or roasted until they become crispy and crunchy. They are typically seasoned with salt and other flavorings. Potato chips are a popular snack and are available in a wide variety of flavors and styles. They are commonly served as a snack or side dish and are often enjoyed with dips or condiments.

Potato Chips Market Dynamics

Drivers

• Innovative Flavors and Varieties  

The potato chips market has seen a surge in innovation by introducing new and exotic flavors, catering to consumers seeking novel snacking experiences.Brands continuously explore unique flavor combinations, spanning from spicy to sweet, and drawing inspiration from global cuisines, which has appealed to consumers who want to discover diverse taste experiences. Unique product varieties, such as ridged chips and organic options, further enhance the appeal of potato chips, making them a versatile and exciting snack choice for consumers of all ages, driving the market growth.

• Convenience and On-the-go Consumption 

Potato chips are a convenient snack choice that can be easily enjoyed while on the move, at work, or during travel. The rise in demand for single-serve and portable packaging formats reflects this trend, as consumers seek snacks that fit seamlessly into their fast-paced lifestyles. The availability of small, resealable packs and snack-sized portions makes potato chips an ideal choice for consumers looking for a convenient and satisfying snack option, a major factor driving market growth.

Opportunities

• Healthy and Functional Ingredients 

Incorporating healthy and functional ingredients in potato chips has become a growing trend in response to increasing consumer demand for healthier snack options. Brands are now introducing potato chips made with whole grains, vegetables, and plant-based proteins, offering a healthier alternative to traditional potato chips. These ingredients not only enhance the nutritional value but also attract health-conscious consumers seeking snacks that fit their dietary preferences, which is creating new opportunities for the market.

• Innovative Packaging Solutions  

Sustainable and eco-friendly packaging solutions are becoming increasingly important in the potato chips market as consumers become more environmentally conscious. Brands are exploring innovative packaging options, such as compostable or recyclable materials, to reduce their environmental impact. These sustainable packaging solutions help differentiate products on the shelf and appeal to consumers looking for ways to reduce their carbon footprint. Brands can appeal to environmentally conscious consumers and contribute to a more sustainable future by adopting innovative packaging solutions, creating innovations and demands in the market.

Restraints/Challenges

• Supply Chain Challenges     

Fluctuations in potato prices, influenced by factors such as weather conditions, demand fluctuations, and crop diseases, can pose challenges for manufacturers in maintaining stable pricing and supply. Seasonal variations in crop yields also significantly affect the quantity and quality of potatoes available for chip production.  Transportation delays or labor shortages can further complicate the supply chain, leading to potential delays in production and distribution. This can impact the availability and cost of raw materials for production, which can be challenging for the market.       

• Quality Control     

Maintaining strict quality control measures throughout the production process, from selecting the right potatoes to monitoring frying temperatures and packaging, is essential to ensure uniformity and meet consumer expectations. Variability in factors such as potato size, moisture content, and frying conditions can lead to differences in chip texture, flavor, and appearance, which can impact consumer perception and brand reputation and these quality control challenges can restraint market growth.

This potato chips market report provides details of new recent developments, trade regulations, import-export analysis, production analysis, value chain optimization, market share, impact of domestic and localized market players, analyses opportunities in terms of emerging revenue pockets, changes in market regulations, strategic market growth analysis, market size, category market growths, application niches and dominance, product approvals, product launches, geographic expansions, technological innovations in the market. To gain more info on the insect protein market contact Data Bridge Market Research for an Analyst Brief, our team will help you take an informed market decision to achieve market growth.

Impact and Current Market Scenario of Raw Material Shortage and Shipping Delays

Data Bridge Market Research offers a high-level analysis of the market and delivers information by keeping in account the impact and current market environment of raw material shortage and shipping delays. This translates into assessing strategic possibilities, creating effective action plans, and assisting businesses in making important decisions.

Apart from the standard report, we also offer in-depth analysis of the procurement level from forecasted shipping delays, distributor mapping by region, commodity analysis, production analysis, price mapping trends, sourcing, category performance analysis, supply chain risk management solutions, advanced benchmarking, and other services for procurement and strategic support.

Expected Impact of Economic Slowdown on the Pricing and Availability of Products

When economic activity slows, industries begin to suffer. The forecasted effects of the economic downturn on the pricing and accessibility of the products are taken into account in the market insight reports and intelligence services provided by DBMR. With this, our clients can typically keep one step ahead of their competitors, project their sales and revenue, and estimate their profit and loss expenditures.

Recent Developments

• In July 2023, Burts revamped its Guinness-flavored potato chips in partnership with the Irish dry stout brewer, building on a successful collaboration spanning a decade
• In June 2023, Kellogg's launched its newest product, Pringles Harvest Blends, which combines the richness of multigrain with the wholesomeness of sweet potato
• In May 2023, Utz collaborated with America's top hot honey brand, Mike's Hot Honey, to create the Utz Mike's Hot Honey Potato Chip

Potato Chips Market Scope

The market is segmented on the basis of product type, type, source, flavor, category, packaging size, price, packaging, brand, end user, and distribution channel. The growth amongst these segments will help you analyze meagre growth segments in the industries and provide the users with a valuable market overview and market insights to help them make strategic decisions for identifying core market applications.

Product Type

• Baked
• Fried
• Dried
• Other

Type

• Extruded
• Diced/Sliced
• Others

Source

• Russet Potatoes
• Yellow Potatoes
• White Potatoes
• Red Potatoes
• Purple or Blue Potatoes
• Fingerling Potatoes
• New Potatoes
• Others

Flavor

• Regular
• Single flavor
• Blended flavor

Category

• Organic
• Conventional

Packaging Size

• < 10 Oz
• 10–20 Oz
• 20–30 Oz
• >30 Oz

Price

• Regular
• Premium.

Packaging

• Pouches
• Bags
• Cans
• Cardboard Boxes
• Others

Brand

• Branded
• Private Level

End User

• Retail/Household
• Food Service Sector

Distribution Channel

• Store-Based Retailing
• Non-Store Retailing

Competitive Landscape and Potato Chips Market Share Analysis

The market competitive landscape provides details of competitors. Details included are company overview, company financials, revenue generated, market potential, investment in R&D, new market initiatives, regional presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, and application dominance. The above data points provided are only related to the market.

Some of the major market players operating in the market are:

• Calbee North America (U.S.)
• Frito-Lay North America, Inc. a Division of PepsiCo (U.S.)
• Utz Quality Foods, Inc. (U.S.)
• Martin's Snacks (U.S.)
• Great Lakes Potato Chips (U.S.)
• Herr Foods Inc. (U.S.)
• Kellanova (U.S.)
• General Mills Inc. (U.S.)
• J&J SNACK FOODS CORP (U.S.)
• PepsiCo (U.S.)
• The Kraft Heinz Company (U.S.)
• Nestlé (Switzerland)
• Prataap Snacks Ltd. (India)
• CAMPBELL SOUP COMPANY (U.S.)
• Burts Potato Chips Ltd (U.K.)
• Intersnack Group GmbH & Co. KG (Germany)
• Calbee (Japan)
• The Lorenz Bahlsen Snack-World GmbH & Co KG (Germany)
• KETTLE BRAND (U.S.)
• Old Dutch Foods (Canada)
• KOIKE-YA Inc. (Japan)