Insight:
- Potatoes currently rank third on the list of the most consumed foods worldwide.
- The global potato market in 2024 has witnessed numerous positive developments while also facing many challenges.
Comprehensive overview of the global potato market
According to a report from Mordor Intelligence, the global potato market was valued at $123.32 billion in 2023 and is projected to reach $159.39 billion by 2031, exhibiting a compound annual growth rate (CAGR) of 3.46% during the forecast period 2024-2031.
The report further segments the potato market geographically into North America, Europe, Asia Pacific, South America, and Africa. The potato market size was estimated to be $115.74 billion in 2024.
Fresh potatoes and chilled potatoes are the two primary types in the global potato market. Fresh potatoes are used for daily consumption, while chilled potatoes are exported or imported and used in the food processing industry.
Even in countries that traditionally did not consume potatoes, they have gained popularity due to their long shelf life.
In the food processing industry, where processed products account for a significant portion of potato consumption, the demand for fresh potatoes has surged worldwide. According to the International Trade Map 2020, France, Germany, China, the Netherlands, Canada, and the United States are the largest exporters of fresh potatoes globally.
China, India, Russia, the United States, and Germany were the top potato-producing countries globally in 2020, with production of 78.2 million tons, 51.3 million tons, 19.6 million tons, 18.8 million tons, and 11.7 million tons, respectively.
The global potato market is expected to grow to a size of 137 billion dollars.
Within the global agricultural landscape, the potato market is projected to experience robust growth over the next five years, expanding from $115.74 billion in 2024 to an estimated $137.46 billion by 2029. With such promising prospects, potatoes are anticipated to serve as a staple food and play a significant role in the global food economy. Several key factors contributing to this growth include:
- A truly global food: The potato, the third most important food crop after rice and wheat, has solidified its position. There are over 4,000 edible potato varieties, primarily found in the Andes of South America. Additionally, there are over 180 wild potato species, although they are not edible. The crop’s adaptability to various climates, easy storage, and high nutritional value have made it a sought-after food staple.
- Shifting to processed potato products: Another significant trend is the shift from consuming fresh potatoes to processed potato products. Currently, over 50% of the world’s potato crop is processed into various food products such as frozen french fries, potato chips, flour, and starch.
- Regional market fluctuations: Asia-Pacific is currently the largest and fastest-growing potato market. Changes in consumer behavior have driven demand for this food, while Europe still has a high per capita consumption of potatoes. Regional demand continues to grow strongly for both fresh and processed potatoes.
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Opportunities in the dried potato product market
The trend of potato consumption is also shifting towards dried potato products. According to a report from Market Us, the global dried potato market alone is projected to reach a value of approximately $12.1 billion by 2033, with a CAGR of 6.9% from 2024 to 2033.
Dried potatoes can be in the form of granules, cubes, or flakes. The drying process simply removes the water content from the potato, leaving behind all the essential nutritional qualities such as potassium, complex carbohydrates, vitamin B6, and fiber.
For instance, as reported by USAID, drying potatoes can extend their shelf life up to 18 months. Dried potatoes are also easier to handle and transport compared to fresh potatoes, providing an added convenience for manufacturers.
Dried potatoes have a wide range of applications in the food and beverage industry. They are used to thicken sauces and gravies, added to baked goods, and are also used to enhance the texture of food.
The increasing demand for convenient and frozen foods is expected to drive the market. Additionally, the growing demand for plant-based snacks and packaged foods, especially from vegan consumers, is projected to fuel market growth during the forecast period.
For instance, according to a 2021 study by The Vegan Society, a global vegan organization, approximately 18,000 food products were registered under the vegan label in 2021 worldwide.
Overall, more and more companies and businesses are developing the production of dehydrated potatoes. Technological techniques are also being invested in to enhance product quality and production efficiency. This creates numerous new opportunities for dehydrated potatoes.
Future prospects and trends
Overall, the global potato market is poised for continued growth, driven by increasing production, consumption, and expanding markets.
Additionally, the role of potatoes in ensuring food security for millions worldwide further solidifies its importance in the global agricultural landscape.
With growing trends and demands from the market, the volume of potatoes, from fresh to processed, has increased across many markets. Potato utilization for processing in the United States reached 14 million tons, slightly higher than in 2020.
The total weight of potatoes used for making potato chips and french fries was 3 million tons, a 2% increase from the previous year.
Frozen french fries and other frozen products utilized 8.6 million tons of raw potatoes in 2020, a 2% increase compared to 2018.
Frito Lay was the largest supplier of potato chips in the United States in 2020, with sales exceeding 4.8 billion US dollars. Frito Lay’s brand portfolio includes, among others, Lay’s potato chips, Cheetos, and Doritos.
Factors affecting the potato market
The changes and development of the potato market have both positive developments and challenges. However, in general, some factors affecting the potato market can be mentioned as:
- The demand for convenient food: The busy pace of modern life has led consumers to increasingly favor convenient, easy-to-prepare food products such as French fries, instant mashed potatoes, and so on.
- Product diversification: Manufacturers continuously introduce new potato products to meet the diverse needs of consumers.
- Raw material prices: Input costs such as fertilizers, pesticides, and energy can directly impact the production costs of potatoes and the final selling price.
- Government policies: Government policies supporting agriculture, trade, and consumption can affect the development of the potato market.
Conclusion
The global potato market, with its diverse varieties and applications, has proven to be a dynamic and promising industry. Growing demand for convenience foods, interest in organic products, and advancements in technology have created strong drivers for market growth. However, the market also faces challenges such as climate change, diseases, and intense competition from other crops.
