On a global scale, the European market accounts for two-thirds of the frozen potatoes exported worldwide, making it the largest processed exporter in the world. According to the latest research, the European market for French fries, chips, flakes, and mashed potatoes is expected to grow steadily.
The European market has been holding strong in the face of the COVID-19 pandemic, with chips being the best performing category. In terms of market segmentation, research shows that Western European countries, which include some of the largest potato producers and processors in the world, are consolidating their leading position. However, there is great potential for growth in Eastern European countries, from Poland to Romania, Hungary, or the Russian Federation.
European Market Overview
The European Market is using close to 20 million tons of potatoes for processing and exports in 168 countries worldwide, according to recent information. Translated into money, this is the equivalent of 1,13 billion euros on the frozen fries front, with an 8 billion per year turnover. The strong European position is also valid for raw potatoes, as previously reported.
Potato Chips: a Steadfast Category
The latest European market data shows the potato chips market in Europe was not significantly affected by the pandemic, compared to other processed potato products or the overall food industry. Such resilience to the crisis was attributed to the solidity of the demand from consumers and analysts say that the chips market in Europe will continue to remain solid in the short to medium term. Over the next 10 years, the chips market is expected to grow, expanding with a CAGR of almost 1% and increasing the market volume to 2 million tons by the end of 2030.
European French Fries Segment Expected to Recover
The European category of French Fries has been the most affected of all, with food service outlets across Europe being closed or partially open because of COVID-19. As such, the market for French fries is slowly re-starting and is predicted to overcome the decline and stagnation, however, uncertainty remains when referring to its growth.
There is a positive outlook for this category in Europe, as many processors have adapted to the pandemic, by accommodating the needs of Quick Service Restaurant chains (McDonald’s, Burger King, KFC, Taco Bell and many others), as well as other food service outlets, which have been focusing on offering takeaway meals, to counteract the effects of the lock-down measures. This slowly led to growth within the food delivery market, with French fries remaining a consumer favorite.
Potato Flakes Will Increase the European Industrial Segment
Potato flakes represent a key segment in the potato processing industry of the European market, as they are a versatile ingredient that is especially used in industrially-produced mashed potatoes, but also in a variety of other foods. Both consumer and industrial demand were affected by COVID-19, especially on the food service channels. However, data shows that there are signs which point toward a rapid return to growth, especially in Western Europe.
Conclusion
To conclude, the European market is estimated to occupy the largest share in the global potato processing market, in terms of value and volume, due to a large number of processors in the West, especially in Germany, the UK, France, the Netherlands, and Belgium. On the other hand, the East shows great promise for future growth. Data shows that the Russian Federation remains the largest processed potato consumer, representing almost 35% of the total volume in Eastern Europe, with Ukraine in second place and Romania coming third, with around 16% of the total consumption. Overall, the European Market for processed potatoes shows significant signs of recovery in the post-pandemic era, with demand from consumers rising in almost all EU and non-EU countries.