Potato Chips and Crisps Market Size, Share & Trends Analysis Report By Type (Flavored, Salted, Plain), By Variant (Fried, Baked), By Category (Conventional, Organic), By Distribution Channel (Supermarkets, Specialty Stores, Convenient Stores, Online Market) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2023-2031

Market Overview

The global potato chips and crisps market size was valued at USD 32.34 billion in 2023. It is expected to reach USD 47.03 billion in 2032, growing at a CAGR of 4.25% over the forecast period (2024-32). Urbanization and the rise of dual-income households have led to busier lifestyles, increasing demand for convenient snack options like potato chips and crisps that require minimal preparation and can be consumed on the move

Potato chips and crisps are thin slices of potato baked or deep-fried until crisp. These are among the most popular treats in the world. They are available in two varieties, including plain and flavored. The increased demand for ready-to-eat snacks is the key factor driving the global expansion of the market. In addition, the rising demand for snack foods is expected to drive the market's expansion over the next several years. Moreover, manufacturers' continual R&D innovation is anticipated to influence market growth positively.

Highlights

• The flavored segment is the major contributor to the market by type.
• The conventional segment is the major contributor to the market by category.
• The store-based segment is the major contributor to the market by distribution channel.
• North America is the major revenue contributor by region.

Market Dynamics

Global potato chips and crisps market drivers

Successive demand for snack products

Changing lifestyles, evolving dietary patterns, and the availability of convenience food are all factors that influence consumer food choices. The growing trend of snacking on potato chips and crisps began in the Western world and rapidly spread to other parts of the world. It is because of the rise in busy lifestyles, the fixed "three-meals-a-day" model is no longer relevant. The global population, particularly millennials and Gen Z, has adopted snacking attitudes. Customers look for various snack options to satisfy their cravings until their next meal. The rising demand for snack products such as potato chips and crisps has been fueled by rising urbanization and the growing need for an on-the-go snack among people with hectic work schedules.

Potato chips are consumed by approximately 94% of the U.K. population, according to SR report. The growing trend of eating potato chips and crisps began in the Western world and quickly spread to other parts of the world. Snack products such as potato chips and crisps are highly preferred for everyday munching, primarily driving the market growth. Also, potato chips and crisps have been on the market for a long time. With continuous developments by manufacturers in this market, there is a wide variety of potato chips and crisps available. This gives consumers more options, increasing the consumer base in favor of the product among all snack products.

Global potato chips and crisps market restraint

Access to healthy alternatives

Healthy snacking has grown in popularity in recent years as consumers seek foods that satisfy hunger while supporting their physical and mental well-being. Although potatoes are one of the most popular snack ingredients, there is a growing interest in superfood vegetables. Raw materials with a healthy halo, such as kale, parsnip, beet, and spinach, are increasingly being used as a healthy snacking alternative to potatoes. Manufacturers also turn to superfood fruits like banana, kiwi, and mango to expand their healthy snacking offering.

Furthermore, legumes such as chickpeas and lentils are gaining popularity as snacking options among the health-conscious population. As a result of this shift in consumer taste and preferences, market players in potato chips and crisps have expanded their product offerings to include health-benefiting ingredients. This factor will significantly restrain the market during the forecast period.

Global potato chips and crisps market opportunities

Expanding online sales 

Potato chip and crisp sales are not limited to store-based distribution channels. Potato chips and crisps are also available in non-store or e-commerce channels. Grocery delivery sites have improved the customer experience by making the process simple and efficient. Customers can easily select their preferred delivery slots. This results in the timely delivery of products that meet the customers' needs. The global Gen-Z population is increasingly purchasing groceries online.

The Gen-Z generation is the most tech-savvy and is willing to pay a premium for online services, including same-day product delivery. Furthermore, the presence of some key players in online groceries, such as Walmart Inc. and Amazon.com, Inc., as well as various regional players, is increasing global sales of potato chips and crisps via an online channel. Furthermore, following the COVID-19 pandemic, most people gravitate toward online sales for convenience. Another major factor driving the growth of the online grocery market is the improvement in infrastructure for online grocery shopping worldwide.

Regional Analysis

The global potato chips and crisps market is divided into four regions: North America, Europe, Asia-Pacific, and LAMEA. 

North america dominates the global market

North America is the major revenue contributor and is expected to grow at a CAGR of 4.40% during the forecast period. The busy lifestyle of the population in the region is anticipated to raise demand for ready-to-eat snacks and handy foods, which is expected to propel the growth of the North American potato chips and crisps market during the forecast period. Additionally, several regional producers are concentrating on releasing novel varieties that provide consumers with a wide range of flavors, tastes, and textures of chips, supporting the expansion of the North American potato chips and crisps market during the projection period. Additionally, leading manufacturers heavily emphasize promotional activities to raise consumer awareness of the debut of new products, which will spur the demand for potato chips and crisps in North America to develop more quickly than anticipated during the forecast period. 

Asia-Pacific is expected to grow at a CAGR of 4.60% during the forecast period. The forecasted expansion of the Asia-Pacific potato chips and crisps market is supported by the rising trend of consumers purchasing snack goods like potato chips and crisps. The demand for packaged foods is increasing in developing nations like China and India, helping the Asia-Pacific potato chips and crisps market expand. Important potato chip and crisp producers discover enormous prospects in the Asia-Pacific region. The producers are launching new items to gain a competitive market share in the area. One of the key drivers of the forecasted increase in potato chips and crisps market sales is projected to be the tremendous rise of online groceries.

In 2022, Europe held the third-largest market share (25.14%) of the global potato chips and crisps market, and this trend is anticipated to last for the duration of the forecast. Numerous factors contribute to the market expansion for potato chips and crisps. Consumers in Europe are moving toward organic snacks as they become more aware of the harmful effects of chemicals. Growing customer demand for organic potato chips and crisps results from Europeans' increased health consciousness. The organic food industry is well established in Europe and spreads throughout Western nations like France, the United Kingdom, and Germany.

South America is anticipated to continue to rule during the projection period. The rising customer preference for convenience meals and the high demand for snacks like potato chips is aiding the forecasted growth of the South American potato chips and crisps market. In the RoW market, the Middle East also holds a good market share and is expected to experience the highest growth rate of 4.32% over the forecast period. The increased demand for packaged meals is one of the critical drivers of potato chips and crisps growth. Rising consumer disposable income will continue to fuel the expansion of the potato chips and crisps market in the rest of the world during the anticipated period.

Segmental Analysis

The global potato chips and crisps market is segmented by type, category, and distribution channel.

Based on type, the global market is bifurcated into flavored and plain.

The flavored segment is the major contributor to the market and is estimated to grow at a CAGR of 4.35% during the forecast period. Foods with different tastes added to them to enhance their taste are referred to as flavored potato chips and crisps. Potato chips and crisps with different flavors are also known as flavored potato chips and crisps. "flavored potato chips and crisps" refers to both types of snacks. The flavor is one of the critical qualities of a product that has a considerable impact on customers' purchasing decisions. This is because taste significantly enhances a customer's whole eating experience with the product. Also, the flavor of a product is one of the aspects that contribute to the overall enjoyment that a consumer obtains from using a particular product.

Potato chips and crisps, except salt, do not contain different tastes or flavors. The term "plain" is used to describe these varieties. Potatoes are used in the preparation of these chips and crisps. The flavor of plain potato chips and crisps can only be traced back to the primary ingredients used in the production process. This means that the taste of these snacks is entirely unremarkable.

Based on category, the global market is bifurcated into conventional and organic.

The conventional segment owns the highest market share and is estimated to grow at a CAGR of 4.15% during the forecast period. The potatoes used to make typical potato chips and crisps are farmed using conventional farming methods. Contrary to organic cultivation, the traditional production of potatoes contains synthetic chemicals, including pesticides, fertilizers, hormones, and antibiotics. The organic product has less detectable pesticide residue than conventionally cultivated produce. Additionally, conventional foods could include genetically modified organisms or be genetically modified themselves. Thus, traditional chips and crisps aren't made in their most natural state. However, the cost of conventional goods is less than that of organic goods. As a result, ordinary potatoes are used to make cheaper potato chips and crisps.

The potatoes used to make organic potato chips and crisps are cultivated naturally, without synthetic chemicals. To ensure purity and a low or zero chemical concentration, these potatoes are grown without chemicals and under strict rules and supervision. Significant capital expenditures are needed to grow and process potatoes for organic potato chips and crisps. Due to the rising need for organic products, the organic segment is predicted to increase with an outstanding CAGR throughout the projection period. Data from the CBI, Netherlands Ministry of Foreign Affairs, indicates that Europe's organic food market is expanding noticeably.

Based on the distribution channel, the global market is bifurcated into store-based and non-store-based.

The store-based segment is the major contributor to the market and is estimated to go up at a CAGR of 4.35% during the forecast period. Supermarkets and hypermarkets, convenience stores, and other stores comprise the store-based section. Given that these channels account for most potato chips and crisps sales, the supermarkets and hypermarkets sub-segment is anticipated to be the largest. Strong vendor networks, great product appeal due to attractive packaging, and accessibility contribute to the segment's growth. Customers visit supermarkets and hypermarkets conveniently to do all their shopping in one location. These shops provide a wide variety of products in a small space devoted to one type of food. Additionally, people frequently prioritize price over other factors; thus, supermarkets and hypermarkets provide discounts to entice customers.

E-commerce is a part of the non-store-based industry where producers sell their potato chip and crisp products on various online stores' websites. The main factors encouraging consumers to buy food online are convenience and time savings. Companies need help with using brick-and-mortar stores to reach customers in various locations. Therefore, e-commerce channels give businesses a way to serve customer needs better and establish their brands. Additionally, this kind of distribution aids in supplier brand recognition development.

Recent Developments

• April 2024 - Pringles and Crocs created the ideal munching companion. They released a number of limited-edition items from the "Pringles X Crocs" collaboration, which included the USD 100 boots shown above in sizes for both men and women.
• December 2023 - Goldfish® introduced THE NEW Goldfish Crisps as their next great food innovation. Goldfish Crisps are an enticing snack that combines the best parts of Goldfish with chips. They are always cooked in the recognizable Goldfish form and are light and airy. Goldfish Crisps are a whole new and delicious snack experience.