Sustainable Growth and New Development Drivers
According to Technavio’s forecast, the global processed potato market is expected to grow by USD 48.7 billion between 2025 and 2029, with a compound annual growth rate (CAGR) of over 5.5%. Key growth factors include the expansion of potato processing capacity and the popularization of online retail. However, stricter government regulations may create certain difficulties for producers.
Influence of Consumer Preferences
According to Cedric Porter’s Five Forces analysis, the main market drivers are:
- Younger generation — demand for French fries, chips, potato flakes and starchy products continues to grow.
- Healthy lifestyle — consumers increasingly choose organic and low-trans fat products.
- Vegetarian and vegan trends — potato snacks are becoming a popular alternative to other snacks.
- Fast food segment growth — processed potato products are in demand in fast food chains (fries, frozen foods, soups, snacks).
- Conscious consumption — information about potential health risks (hypertension, cardiovascular disease, cancer, stroke, obesity) forces manufacturers to adapt by reducing the use of oil, trans fats and cholesterol.
Where is the market heading?
Companies are actively working to improve product characteristics, reducing the content of harmful components and offering healthier options for processed potatoes. At the same time, strict regulatory requirements can complicate market entry and limit innovative developments.
What areas of potato processing do you think may become the most promising in the coming years?