Global Potato Chips Market Size and Share Outlook - Forecast Trends and Growth Analysis Report (2024-2032)

Global Potato Chips Market Growth

Potato chips are widely consumed because they offer convenience, affordability, and broad flavour variety, driving steady potato chips demand growth. As a favoured ready-to-eat snack, they fit seamlessly into busy lifestyles and offer an extended shelf life, making them attractive to retailers and consumers. Health-focused options, such as baked and low-sodium chips, expand the customer base, while innovative packaging boosts freshness and portion control. Strong branding efforts, with diverse flavours and wider access through e-commerce and retail networks, keep potato chips highly popular. Together, affordability, accessibility, and variety secure potato chips' role as a global snack staple reinforcing their presence in the snack food market.

Global Potato Chips Market Analysis

The potato chips industry growth is influenced significantly by such factors as convenience and accessibility. In this era of smart technology where retail shops, online shops, and vending machines are in plenty, potato chips appeal to people in need of speedy solutions to hunger. Furthermore, its pack size means it is an ideal product for active individuals either to take short work breaks or even during trips. This makes it available to a large pool of consumers regularly thereby making potato chips a safe and preferred option within the larger snack market leading to continual market expansion.

Consumers are becoming more health conscious, giving rise to the demand for better-for-you snacks, increasingly significant in the growth of the potato chips market. Hence, the availability of baked, low sodium and or organic potato chips provides the joy of indulging in delicious potato chips but with less psychological burden as it meets the eating habits of individuals without compromising the taste of the food. Companies have reacted to this trend by enlarging their product range enabling them to offer low-calorie, no-added preservatives and no trans-fat products. Thus, this appeals to many more consumers in this case the health-conscious ones thereby increasing the market supply and improving the category as a snack that can be enjoyed any time.

The potato chips market dynamics and trends are driven greatly by advances in packaging. Examples include resealable packs, single-serve packs and materials engineered to optimize freshness, convenience, and packaging sustainability as well. In addition, resealable packs assist in retaining the quality of the product, thus appealing to the market segment that appreciates fresh flavours. What’s more, single-serve packs are intended for instant snacking, for people who are ever on the move. What is more, green packaging attracts the attention of consumers who are conscious of the environment, contributing to customer loyalty and brand appeal. All in all, these enhancements in containers facilitate the use of the products, increase the size of the potential market, and attract sales in a competitive category of snacks.

Figure: Key Potato Producing Region Globally (MMT), 2022

Potato Chips Industry Outlook

According to the National Horticulture Board (NHB), potato production across Indian states for 2021-22 shows a substantial output, with Uttar Pradesh leading at 15,892,000 tonnes, accounting for 29.65% of India’s total. West Bengal follows with 12,600,000 tonnes (23.51%), and Bihar with 9,125,000 tonnes (17.02%). Gujarat, Madhya Pradesh, and Punjab also contribute significantly, each producing between 3,500,000 and 3,800,000 tonnes, collectively making up around 20% of the national output. Overall, India’s total potato production for this period is 53,602,600 tonnes.

U.S. potato utilisation and production data show that in 2022, potato production reached 40.2 billion pounds, increasing to 44.07 billion pounds in 2023, reflecting higher yields and overall output. Of this production, 22% is allocated to making chips, highlighting the strong demand within the snack segment. This will boost the potato chips market revenue as this production growth aligns with the high utilisation rate for popular products like chips, reinforcing the potato’s importance in the U.S. snack industry.

According to the Australian Bureau of Statistics, between 2018-19 and 2022-23, per-person consumption of snack foods in Australia has risen by 10%. During this period, potato chip consumption specifically increased by 16%, highlighting the growing popularity of this snack category. This upward trend reflects changing consumer preferences and the strong demand for convenient, ready-to-eat snack options.

Canada’s potato Production reached 121,111 (1,000 cwt) in 2021, climbed to 125,520 (1,000 cwt) in 2022, and peaked at 128,115 (1,000 cwt) in 2023. This consistent increase underscores the growing capacity and demand within Canada’s potato sector. This consistent growth supports increased production capacity, meeting high consumer demand for potato chips and fostering market expansion by significantly boosting the potato chips industry revenue.

Established market presence with high brand recognition across major regions drives the potato chips market demand.

• Wide flavour variety and innovative options cater to diverse consumer tastes.
• Strong distribution channels, including retail, e-commerce, and vending, ensure accessibility.

High competition from both established brands and niche health-focused snacks.

• Negative perception regarding high salt and fat content impacts health-conscious consumers.
• Dependency on fluctuating raw material prices, especially for potatoes and oil.

Rising demand for healthier options like baked, low-fat, and organic potato chips can boost the potato chips industry growth.

• Expansion into emerging markets with growing middle-class populations.
• Innovation in packaging and sustainability appeals to eco-conscious consumers.

Increased regulatory scrutiny and taxes on high-fat, high-salt snacks in certain regions.

• Growing popularity of alternative snacks, such as vegetable and protein-based chips.
• Supply chain disruptions impacting raw material availability and production costs.

Key Players in the Global Potato Chips Market and Their Key Initiatives

Kellogg Company

• Launched spicy varieties like Pringles Scorchin’ to tap into the growing demand for bold flavours globally.
• Utilizing data-driven marketing, Kellogg targets consumers more effectively to boost brand engagement.

PepsiCo, Inc.

• Expanded regenerative farming practices across 7 million acres, supporting sustainable potato production to meet the growing demand of the potato chips market.
• Its Lay’s "Farm to Pack" program features QR codes on packaging, enabling consumers to trace the origins of the potatoes used.

Utz Brands, Inc.

• Invested in expanding its Power Brands, such as Utz® and Zapp’s®, across new geographic markets, while strengthening its core U.S. presence.
• Building a new logistics centre in Pennsylvania to boost storage capacity, supporting long-term growth.

The Lorenz Bahlsen Snack-World GmbH & Co KG

• Committed to reduce plastic use by 15% across packaging by 2025, enhancing sustainability efforts.
• Partnered with Klim to promote sustainable potato farming, increasing biodiversity and soil health.

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Global Potato Chips Industry Segmentation

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Potato Chips Market Share

Baked chips are expected to hold a significant market share due to consumer demand for healthy snacking.

Baked potato chips have 14% fewer calories, 50% less fat and 67% less saturated fat than traditional potato chips. Such chips are in much demand in regions such as North America and Europe. Leading market players such as Pepsico, Parle, and Alaska Chip Company, Inc. are capitalising on this trend to gain a competitive edge in the market. Fried potato chips are the widely adopted chips category due to their wide availability and affordability. The rising popularity of snack food, a rise in population, and living standards aid the demand for snacks, including fried potato wafers, propelling the potato chips industry growth.

Plain/salted chips account for a major share of the market

Plain/salted chips dominate the growth of the potato chips market as these are mostly served with fast food items such as burgers and sandwiches. Gen Z and Millennials both prefer chicken and snacks as their go-to fast food items. According to industry reports, around 1/3 of the global population is Gen Z. Flavoured potato chips made from spices and added flavourings are widely popular as an indulgent snack across the globe. To keep up with consumers' changing tastes, producers need to develop new flavours. In developing countries, like Vietnam, these flavours are partly influenced by foreign cuisine introduced through globalisation.

Supermarkets and hypermarkets are pivotal in driving the growth of the potato chips market due to their extensive reach and ability to attract diverse consumer demographics.

These retail channels provide high visibility, enabling brands to display a wide range of potato chips, from popular flavours to new health-conscious varieties, making them accessible to a broad audience. The large shelf space available in these stores allows brands to showcase various packaging sizes, appealing to both single-serve snackers and bulk buyers. Additionally, in-store promotions, discounts, and sampling events help stimulate impulse purchases, a common driver for snack foods like potato chips. As trusted and convenient shopping destinations, supermarkets and hypermarkets play a crucial role in expanding consumer access and bolstering brand sales which significantly drives the potato chips market revenue.

Leading Companies in the Potato Chips Market

The companies specialise in producing and marketing a diverse range of snack foods, beverages, food products and health-focused items that cater to evolving consumer preferences.

• Kellogg Company
• PepsiCo, Inc.
• Utz Brands, Inc.
• The Lorenz Bahlsen Snack-World GmbH & Co KG
• Campbell Soup Company
• Burts Snacks Limited
• Herr Foods Inc.
• Calbee, Inc.

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