Global Potato Chips Market Size, Share, and Trends Analysis Report – Industry Overview and Forecast to 2031

Potato Chips Market Analysis

The potato chips market is evolving with cutting-edge advancements, driven by consumer demand for healthier and diverse snack options. Advanced technologies such as vacuum frying, which reduces oil content while preserving crispiness, and hot-air puffing are gaining traction, offering consumers lower-fat alternatives. Innovations in flavors and natural ingredients are boosting market appeal, as brands adopt methods to avoid artificial additives and offer bold, exotic flavors that attract a wider demographic. In addition, automated production technology is enhancing efficiency, from peeling to frying, allowing manufacturers to increase output while minimizing waste and energy use.

In packaging, sustainable materials and nitrogen-flushed technology extend shelf life without preservatives, reducing spoilage. Digital labeling, using QR codes label for product transparency, caters to health-conscious consumers who prefer detailed ingredient information. The market's growth is fueled by the rising popularity of grab-and-go snacks, with demand spiking in urban areas. Overall, technology-focused advancements and health-conscious product diversification are helping the potato chips market expand steadily, ensuring long-term growth and adaptation to consumer needs for convenience and healthier options.

Potato Chips Market Size

The global potato chips market size was valued at USD 25.15 billion in 2023 and is projected to reach USD 35.49 billion by 2031, with a CAGR of 4.40% 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, pricing analysis, brand share analysis, consumer survey, demography analysis, supply chain analysis, value chain analysis, raw material/consumables overview, vendor selection criteria, PESTLE Analysis, Porter Analysis, and regulatory framework.

Potato Chips Market Trends

“Rise in Unique Flavor Innovations”

One significant trend driving growth in the potato chips market is the demand for unique and unconventional flavors. Consumers, especially younger demographics, are seeking bold and exotic tastes that set brands apart. In response, companies are launching flavors inspired by global cuisines, including spicy sriracha, tangy kimchi, and even unexpected dessert-inspired flavors such as cinnamon sugar. For instance, in February 2024, PepsiCo India has expanded its snack offerings by launching a sub-brand called Lay’s Shapez, featuring heart-shaped potato-based pellets. This innovative product line includes two unique flavors: a savory masala and a sweet caramel. With this move, Lay’s ventures into the sweet-flavored chip segment, aiming to diversify its potato chip portfolio and attract new consumer segments with creative snacking options.

Report Scope and Potato Chips Market Segmentation

Potato Chips Market Definition

Potato chips are thin slices of potato that are deep-fried or baked until crispy. They’re a popular snack known for their crunchy texture and savory taste, often enhanced with salt, seasonings, or flavors like barbecue, sour cream, and onion. Versatile and easy to enjoy on-the-go, they’re typically packaged in bags and available in a variety of shapes, thicknesses, and textures, from kettle-cooked to ridged styles.

Potato Chips Market Dynamics

Drivers

• Rising Health-Conscious Consumers

The potato chips market expands with the introduction of healthier alternatives such as baked or low-fat variants, appealing to health-conscious consumers. These options align with evolving dietary preferences, accommodating those seeking nutritious snack choices. This diversification broadens the market appeal, driving growth by meeting the demand for healthier options within the snacking industry. For instance, in August 2022, Lay's introduced its premium potato chips line, Lay's Gourmet, accompanied by a vibrant promotional TVC campaign. This new line aims to elevate the brand’s positioning among discerning consumers looking for high-quality snacks. With an emphasis on gourmet flavors and premium ingredients, Lay's Gourmet is designed to capture the attention of snack enthusiasts seeking unique and sophisticated taste experiences in the competitive chip market.

• Growing Marketing and Branding Attract Consumer

Effective marketing strategies and strong branding efforts play a pivotal role in the potato chips market. Through engaging advertising campaigns, strategic placement in stores, and captivating packaging designs, companies enhance consumer awareness and influence purchasing decisions. These efforts create brand loyalty and drive demand, solidifying the position of potato chips as a popular snack choice worldwide. For instance, in March 2023, PepsiCo India introduced an advanced crop intelligence model designed to support local farmers in optimizing potato yields and quality. Collaborating with Cropin, the initiative provides predictive insights through user-friendly mobile applications. This model, part of the Lay's brand strategy, offers crucial data at the crop and plot levels, empowering farmers with valuable information to enhance their agricultural practices and boost productivity.

Opportunities

• Growing Snacking Culture for Convenient Options

The thriving snacking culture, fueled by hectic lifestyles and urbanization, propels the popularity of potato chips. As consumers seek convenient and satisfying options, the portability and diverse flavors of potato chips make them a preferred choice. This trend aligns with the demand for quick, enjoyable snacks, driving continuous growth in the potato chips market. For instance, in April 2023, Astar Network and Calbee Inc. teamed up to launch a groundbreaking promotional campaign called NFT Chips, integrating blockchain technology into the snack industry. This innovative campaign, hosted on the Astar blockchain, features dynamic NFTs that are modeled after Calbee’s popular potato chips. By combining digital assets with physical products, the partnership aims to engage tech-savvy consumers and create a unique marketing experience in the snack sector.

• Expansion of Retail Channels

Potato chips' accessibility is strengthened by their presence across diverse retail channels such as supermarkets, convenience stores, and online platforms. This widespread availability caters to consumer convenience, ensuring easy access to the snack. Such extensive distribution networks enhance accessibility and contribute significantly to the market's growth by reaching a broader consumer base efficiently. For instance, in May 2021, Kellogg Co. introduced an exciting new Pringles flavor, Pringles Wendy’s Spicy Chicken, as part of a collaboration with the popular fast-food chain Wendy’s. This partnership enhances Kellogg’s product appeal by offering consumers a unique flavor experience inspired by a beloved menu item. The launch aims to attract fans of both brands, capitalizing on the popularity of Wendy’s signature flavors to boost sales in the snack aisle.

Restraints/Challenges

• Fluctuation in Raw Material Costs

Fluctuating raw material costs, influenced by unpredictable weather conditions and crop yields, pose a significant challenge to the potato chips market. Sudden price hikes or shortages in potato supply can disrupt production schedules, increase manufacturing expenses, and compress profit margins for chip manufacturers, leading to pricing instability and potential loss of competitiveness in the market.   

• Growing Availability of Snacking Alternatives

The availability of diverse snacking alternatives adversely affects the potato chips market. With an array of snack choices such as nuts, pretzels, and popcorn, consumers have varied options to satisfy their cravings. This saturation of options diverts consumer preferences, impacting the traditional dominance of potato chips in the snacking market.

This 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 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.

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
• Others

 Type

• Extruded
• Diced/Sliced
• Others

  Source

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

 Flavor

• Plain/Salted
• 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 Label

End User

• Retail/Household
• Food Service Sector

 Distribution Channel

• Store-Based Retailing
  • Supermarkets/Hypermarkets
  • Convenience Stores
• Non-Store Retailing

Potato Chips Market Regional Analysis

The market is analysed and market size insights and trends are provided by country, product type, type, source, flavor, category, packaging size, price, packaging, brand, end user, and distribution channel as referenced above.

The countries covered in the market report are U.S., Canada, Mexico in North America, Germany, Sweden, Poland, Denmark, Italy, U.K., France, Spain, Netherland, Belgium, Switzerland, Turkey, Russia, Rest of Europe in Europe, Japan, China, India, South Korea, New Zealand, Vietnam, Australia, Singapore, Malaysia, Thailand, Indonesia, Philippines, Rest of Asia-Pacific (APAC) in Asia-Pacific (APAC), Brazil, Argentina, Rest of South America as a part of South America, U.A.E, Saudi Arabia, Oman, Qatar, Kuwait, South Africa, Rest of Middle East and Africa (MEA) as a part of Middle East and Africa (MEA)

North America is expected to dominate the potato chips market during the forecast period, driven by the introduction of innovative flavors and a rising demand for convenient snack options. This trend reflects changing consumer preferences toward flavorful and on-the-go snacking solutions.

Asia-Pacific is expected to show significant growth in the potato chips market during the forecast period, driven by rising urbanization and westernization, increased demand for potato chips in developing countries, and growing personal disposable income among consumers in the region.

The country section of the report also provides individual market impacting factors and changes in regulation in the market domestically that impacts the current and future trends of the market. Data points such as down-stream and upstream value chain analysis, technical trends and porter's five forces analysis, case studies are some of the pointers used to forecast the market scenario for individual countries. Also, the presence and availability of global brands and their challenges faced due to large or scarce competition from local and domestic brands, impact of domestic tariffs and trade routes are considered while providing forecast analysis of the country data.

Potato Chips Market Share

The market competitive landscape provides details by competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, global presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, application dominance. The above data points provided are only related to the companies' focus related to market.

Potato Chips Market Leaders Operating in the Market Are:

• General Mills Inc. (U.S.)
• Kellogg Co. (U.S.)
• J&J Snack Foods Corp. (U.S.)
• PepsiCo (U.S.)
• The Kraft Heinz Company (U.S.)
• Nestlé (Switzerland)
• Prataap Snacks Ltd. (India)
• Utz Brands, Inc. (U.S.)
• Campbell Soup Company (U.S.)
• Burts Potato Chips Ltd. (U.K.)
• Herr Foods Inc. (U.S.)
• Intersnack Group GmbH & Co. KG (Germany)
• Calbee (Japan)
• Great Lakes Potato Chips (U.S.)
• The Lorenz Bahlsen Snack-World GmbH & Co KG (Germany)
• Frito-Lay North America, Inc. (U.S.)
• Kettle Brand (U.S.)
• Kellogg NA Co. (U.S.)
• Old Dutch Foods (U.S.)
• Koike-ya Inc. (Japan)

Latest Developments in Potato Chips Market

• In September 2023, PepsiCo made headlines by announcing a substantial investment of USD 95 million to establish a new potato chips manufacturing facility in Assam, India. This strategic investment is part of PepsiCo’s broader initiative to enhance its production capabilities and cater to the growing demand for its snack products in the region. The new facility will create jobs and support local farmers by sourcing quality potatoes for production
• In October 2022, KP Snacks announced the launch of its reformulated non-HFSS (high in fat, salt, and sugar) popchips portfolio, emphasizing healthier snack options. The updated range includes popular flavors such as Sea Salt, Sea Salt & Vinegar, Barbeque, and Sour Cream & Onion. This launch is strategically timed ahead of upcoming legislation aimed at reducing unhealthy snack consumption, reflecting the company’s commitment to healthier eating habits among consumers
• In April 2023, Calbee Inc. partnered with Astar Network to roll out the NFT Chips promotional campaign, leveraging the popularity of its potato chips. This innovative initiative combines the appeal of collectible NFTs with Calbee’s iconic snack products, engaging consumers in a digital format. By embracing blockchain technology, the campaign aims to attract a younger audience and promote brand loyalty in an increasingly digital marketplace
• In June 2022, Mondelez International announced its plans to reopen its potato chips manufacturing facility in Ukraine, which had suffered damage due to ongoing conflict. This decision marks a significant step toward restoring local production capabilities and supporting the Ukrainian economy. The reopening will enable Mondelez to resume serving its customers in the region and demonstrate the company's commitment to long-term investment and recovery efforts in Ukraine
• In April 2022, Utz Brands Inc. unveiled a limited-time offering of potato chips featuring a distinctive Classic Dill Pickle flavor, developed in collaboration with Grillo's Pickles. This unique partnership combines the beloved taste of dill pickles with the crunch of Utz’s potato chips, targeting flavor enthusiasts. The limited availability of this innovative product is designed to create buzz and attract consumers seeking adventurous snack experiences
• In May 2022, Walkers, the U.K.'s leading premium potato crisp brand Sensations, launched a series of special flavors in celebration of the Queen’s Jubilee. The unique flavors, including spit-roast pork and apple sauce as well as baked cheese and sweet honey, aim to delight consumers with innovative and festive snacking options. This limited-time offering is designed to create excitement and capitalize on the celebratory mood surrounding the royal event

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