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Oct 7, 2019 6:00 AM ET

Processed Potato Market is set to inflate with growth of 4.05% CAGR between 2019 and 2025 | OGAnalysis




iCrowd Newswire - Oct 7, 2019

Processed Potato Market Value by Product Type, $Billion, 2019

Processed Potato Market is set to growth with a CAGR of 4.05% through 2025, the large consumption of processed foods is embarking significant growth for the market over strong preference for convenient and affordable snacking options.

Potato processing is one of the significant sub-segments of processed foods market, estimated to value around 2.5% of total $3000 billion processed foods market during 2018.

The ongoing trend of concerns over the nutritional content of snacks is emerging as a long term Processed Potato market opportunity during the forecast period. Owing to increase in health consciousness, the potato chips manufacturers are launching value-added products.

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In addition, manufacturers are focusing on technology transfer, sharing best practices and emphasis on future advantage platforms.

Maximum percentage of sales of processed potato snacks is conducted through e-commerce portals. Strong demand growth for e-commerce business in both developed and developing countries is encouraging key vendors from international markets to promote their products worldwide.

However, cross contamination and degradation of nutritional value of ingredients during manufacturing processes are among crucial challenges in production of Processed Potato.  To promote high nutritional value and low health issue related ingredients companies are required to invest in high costing raw materials and manufacturing process which hinders market growth.

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Increased production of potato chips significantly positively impacts market growth

Increasing consumption of potato chips is driving the processed potato market by being the most appropriate food option over the forecast period which is obtainable for consumers to keep bound with their busy life style.

The potato manufacturers are expanding their R&D activities to introduce diverse products in processed potato market to strengthen their product portfolio. Amid processed potato products, potato flakes with advantage of increased shelf life are penetrating market growth.

Technological advancements observed across Supply Chain is set to drive market growth

Advancements in terms of reduced transportation and storage costs, growth of GM potato and processing healthier potatoes with lower acrylamides to ensure supply of export quality potatoes to international markets are being targeted.

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In addition, manufacturing technologies such as opti-flow technology, new roasting technologies, incorporation of artificial intelligence and machine learning methods are being observed.

Potato processing companies are forming joint ventures with farmers and entering into contract farming. To ensure uninterrupted supply and ensure required key producers such as PepsiCo are entering into contract farming.

Unorganized sector poses stiff competition across developing processed potato market

Unorganized manufacturers with less popular brands pose stiff competition to organized sector with corporate standards and global presence across developing countries. Processed potato market in India, China, South East Asia, Latin American and across African regions have significant dominance of local products.

Launch of new flavours across Asia Pacific along with ease of distribution remain core strengths of local players. Diverse distribution channels that includes both online and offline mode are paving new ways for the processed potato product revenue.

Whereas, developed markets across US and Europe prefer branded products in organized sector and are driven by convenient and oil-free potato snacks. In addition, increase in number of foods services and restaurants cater growth strategies for producers across processed potatoes market.

Further, growing demand for French fries is one of the primary factors driving the processed potato market growth across European countries. On similar lines, key manufacturer of French Fries and Potato specialties in Europe are entering strategic alliances to increase productivity. For example, in 2018, the Lamb-Weston/Meijer in aggregation with a partner in the Russian Federation started production at a newly-constructed French fry processing facility in south Moscow.

Prominent players across market are set to positively imapct the Processed Potato market value

Key companies are planning to expand into emerging markets primarily through acquisition of small and focused snack sellers. Unilever Acquires Graze to strengthen its presence in Processed Potato Market during 2019 while Hershey Company acquired Amplify Snack Brands, a leading manufacturer of Processed Potato and Unilever plans to acquire Haldirams, an Indian local snacks company.

Further, amidst intensifying competition, leading players are emphasizing more on launching new varieties of processed potato products. The Kraft Heinz Company, McCain Foods, Lamb Weston, JR Simplot and Aviko BV are some of the key players emphasizing on new product varieties.

Additionally, processed potato market growth is set to flourish by key players focussing on frozen potato processing and undergoing acquisition to expand storage facilities. For instance, in 2018, Lamb Weston acquired Marvel Packers Pty Ltd. to add 50 million pounds of production capacity to the company and form new avenues in order to serve its customers.

Key players holding the macro market share include Lamb Weston Holdings Inc., PepsiCo Inc., Intersnack Group GmbH & Co. KG, The Kraft Heinz Company, Kellogg Company, McCain Foods Limited, Aviko B.V., J.R. Simplot Company, Idahoan Foods, LLC, Farm Frites International B.V., Agristo NV, and Lima grain Cereals Ingredients.

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