Potato processors are increasingly inclined to make investments in product innovations and exploring opportunities to enhance nutrition and the convenience experience to meet the growing demand for processed potato products such as French fries and potato chips, according to research company MarketsandMarkets (MM).
The global potato production had grown steadily from 336m tons in 2004 to 376m tons in 2014. As per the statistics of the FAO, potato production in developing countries increased by 94.6% over the last 16 years (1991–2007).
“Currently, the major markets for frozen potato products are still predominantly the developed economies of the US, Europe, Canada, and Japan. However, these markets are now matured and have limited growth potential. The maturity in the market is evident from the relatively slow expansion of traditional burgers and fries outlets in countries such as the US. The markets in Japan and Europe are also nearing maturity since the comparative consumption levels are declining as compared to developing countries,” says Rinkal Dawra, senior research analyst, Agriculture and Food & Beverage, MM.
The research company believes that markets with significant potential for frozen potato products in the coming years are likely to be those where the trend of quick service restaurants (QSR) is picking up, particularly in Asia and Latin America. Two countries with perhaps the most potential for QSR growth and potential for frozen potato products are China and India. India’s foodservice Industry is one of the fastest-growing in the world with more than 10% of the annual growth rate in sales. Most frozen potato products such as French fries find application in the foodservice industry. As per the statistics of Idaho Potato Commission, the food services industry accounts for more than 85% of total revenue. However, the retail industry is expected to grow at a higher rate.