According to a recent analysis published by Fact.MR, the frozen potato market is expected to reach US$ 103.5 billion by 2021, increasing at a CAGR of 6% over the projected period. The expanding popularity of fast food establishments and quick service restaurants throughout major geographies is a primary driver of growth.
Demand for frozen potatoes increased at a CAGR of 5% between 2016 and 2020, reaching US$ 55.5 billion after the period. Furthermore, demand increased by 3.9 percent year over year in 2021 over 2020. People stockpiled up on frozen items during the COVID-19 epidemic, anticipating possible shortages during the lockdown, which boosted sales even more.
Frozen Potato Market: Key Takeaways
- By 2021, the global frozen potato market is expected to be worth US$ 57.8 billion.
- Frozen potato fries will produce US$ 19 billion in revenue, accounting for 41% of total revenue.
- Three out of every five frozen potato sales will occur in the commercial sector.
- Modern trade is likely to account for 33% of revenue by distribution route.
- India is expected to be the fastest-growing market for frozen potatoes, with a CAGR of 7%.
- Germany is expected to be the most profitable market in Europe, with a CAGR of 5%.
“The rising prevalence of fast-paced lifestyles has enhanced demand for fast food, with a considerable percentage of the worldwide population opting for vegetarian alternatives, extending growth potential for frozen potatoes,” a Fact.MR analyst notes.
Will Increasing Global Potato Production Open New Doors for Frozen Potato Industry Expansion?
Global potato production was projected at 388,191,000 tones in 2017, according to the Food and Agriculture Organization of the United Nations (FAO Stat). China and India are the world’s top potato producers, with 992 million tonnes and 486 million tonnes of output, respectively. The vegetable is grown on practically every continent and is the world’s third-largest food crop.
As global potato output declines, food manufacturers will have more opportunities to introduce a wide range of potato-based food products, both fresh and frozen, resulting in a rush of new product debuts in recent years. The excellent nutritional content of frozen potato products is the fundamental reason for their rising consumption.
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