The potato flake market is likely to benefit from expansion of retail chains, both digital and physical, in combination with increasing product lines and product portfolios of established players. The retail sector is witnessing a robust rise worldwide across various domains of consumer products, and potato flakes are no exception. While focusing on the production of high-quality, lightweight potato flakes, leading companies are strengthening their online presence to extend their market reach and gain higher shares.
Rapid urbanization and growing gross household disposable income (GHDI) of consumers has enhanced their expenditure on ready-to-eat and processed food products, which partly offers relaxation in their increasingly hectic routines. Rising demand for such food is further rubbing off on growth of the potato flake market, and the status quo is likely to prevail between the period 2018 and 2028, according to a recently published report of Fact.MR. The report opines that demand for potato flakes, which are rich in carbohydrates and contain imperative minerals, will ride the coattails of shifting consumer preferences toward consumption of nutrition-rich food and beverages.
The report predicts that the potato flake market will register an impressive growth at 7 percent compound annual growth rate (CAGR) through 2028. Incessant growth of retail sales in the baby food industry, coupled with the imperativeness index of potato flakes as a key ingredient in several baby food products, will further impact growth of the potato flakes market in the near future.
Organics Proliferate, Conventional Holds Strong
Pace of technology penetration in the food sector has been observed to be robust recently, compelling manufacturers to enhance their research and development efforts. An ever-widening range of applications has led enormous commercial vendors to develop a variety of potato flakes in their purest forms, pointing at discovery possibilities in the market in tandem with increased research activities. Efforts of key players toward realizing innovative, new product developments, and unique product offerings to gain a competitive edge and greater brand positioning, will remain key demand determinants for conventional potato flakes.
Conventional potato flakes continue to subjugate the market in terms of revenues. Over 95 percent shares of the market are held by conventional potato flakes currently, and the status quo is expected to prevail in the foreseeable future. Organic potato flakes, which are still in their infancy, are likely to gain ground fast, with growing consumer preference for natural products that involve the use of fewer additives and chemicals. Although revenues from the conventional variant remain substantial, sales growth of organic food products is projected to be faster than the former through 2028. A wide variety of organic potato flakes have permeated the market that fall in line with surging consumer demand for higher nutrient value and non-GMO-labeled products.
The concept of organic farming has brought significant changes in the overall farming practices employed across agriculture-based regions worldwide. This has further influenced landowners and farmers in opting for organic fertilizers, in a bid to maintain soil fertility and sustainability. According to the USDA, total available arable land for organic farming has been increasing rapidly in the U.S. for several years. This will further impact developments and demand for potato flakes.
Ecommerce Should Fuel Sales Growth
Growth of ecommerce, internet proliferation and an increase in online stores, in comparison with review sites, are key transformations that have facilitated consumers to compare price levels of potato flake product variants. Greater availability of inherent intelligence on products, and other relevant details such as details of producer and the crop’s origin, has resulted in greater product transparency in the potato flakes market, thereby favoring its growth. Additionally, competitive pricing of potato flake products, coupled with various profitable coupons or offers involved in online purchases are expected to bode well for the future growth of the potato flake market.
Asia-Pacific excluding Japan (APEJ) continues to remain the mainstay for potato flake manufacturers, as the region is home to world’s leading food producers, exporters and importers. Future growth opportunities for the potato flake market in APEJ are immense, on account of huge demand for nutrition-rich processed food from a growing middle-class population. Heightened pace of activities among players who seek entering or consolidating their position, in tandem with massive alterations in consumer lifestyle made by the ripple effects of urbanization, are key factors impacting the growth of APEJ’s potato flake market.
Growth of the potato flake market will also be impacted by stagnant GDP growth in most prominent economies, and disparate recovery and growth estimated for the same in the foreseeable future. Emerging and developing nations are expected to significantly contribute to expansion of the potato flake market on account of their improving consumer lifestyles and lucrative opportunities paved by the rise in the fast-moving consumer goods sector in these countries. Overall, according to the Fact.MR report, prospects of the potato flake market continue to remain promising in the forthcoming years.