Agriculture

Potato Market is Expected to Reach USD 159.39 Billion by 2031

Jun 2024

Agriculture

As per the report published by Kings Research, the global Potato Market was valued at USD 123.32 billion in 2023 and is projected to reach USD 159.39 billion by 2031, growing at a CAGR of 3.46% from 2024 to 2031.

The global potato market is undergoing a period of transformation, driven by evolving consumer preferences and technological advancements in agriculture. One of the most notable trends shaping the market is the increasing adoption of precision farming techniques, which are revolutionizing potato cultivation and improving overall productivity. Precision farming technologies, such as GPS-guided tractors, drones, and sensors, enable farmers to optimize inputs, reduce wastage, and enhance crop quality, leading to higher yields and profitability.

Moreover, the rising demand for convenience foods and processed potato products is driving innovation in the market, with manufacturers introducing a wide range of value-added products to cater to diverse consumer preferences. From frozen fries to dehydrated potato flakes, the market offers a plethora of options to meet the demands of modern consumers seeking convenience and quality.

Additionally, the expanding urban population and changing dietary habits in emerging economies are creating new opportunities for market growth. As urbanization progresses and disposable incomes rise, there is a growing demand for convenient and nutritious food options, including potatoes and potato-based products.

Key Insights

  • Based on application, the residential segment held the largest market share of 74.74% in 2023
  • Based on type, the inorganic segment generated the highest revenue of USD 101.07 billion in 2023
  • Based on product type, the non-processed classification segment is anticipated to generate a value of USD 125.90 billion in 2031
  • On the basis of region, Asia-Pacific accounted for the largest market share of 41.53% in 2023

Simplot Aims at Expanding Production Capacities with the Acquisition of Agronico

November 2023- Simplot finalized the purchase of Agronico, a Tasmanian seed potato producer, after obtaining regulatory clearance. This strategic move ensures a steady supply of minitubers and enhances Simplot's early-generation seed potato production capacity. Additionally, it expands Simplot's expertise and commercial-scale capabilities throughout the frozen potato value chain.

Global Population Growth to Boost Product Demand

The steady rise in the global population, projected to reach 9.7 billion by 2050 according to the United Nations, is a key factor contributing to the increased demand for staple foods such as potatoes. Particularly pronounced in emerging economies, this demographic expansion is accompanied by rapid urbanization and a corresponding increase in disposable incomes. As a growing number of people migrate to urban areas and experience improvements in living standards, there is a growing demand for affordable yet nutrient-rich food options such as potatoes. This demographic trend presents significant opportunities for potato producers and suppliers to cater to the evolving dietary needs of an expanding and increasingly urbanized population. Moreover, with the global population expected to continue to grow in the coming decades, the potato market is poised to experience sustained expansion,. However, this growth depends on producers effectively meeting the growing demand and addressing associated challenges such as resource constraints and environmental sustainability.

Health and Wellness Trends to Aid Market Growth

With a growing emphasis on health and wellness, consumers are increasingly seeking nutritious and wholesome food options. Potatoes, which are rich in essential nutrients such as vitamin C, potassium, and dietary fiber, are well-positioned to capitalize on this trend. Marketing potatoes as a healthy and versatile food choice presents an opportunity to attract health-conscious consumers looking for alternatives to processed carbohydrates and meat-based dishes. By highlighting the nutritional benefits and culinary versatility of potatoes, producers can further enhance product demand and capture a larger share of the health-focused consumer segment.

International Trade and Export Opportunities to Support Market Growth

The globalization of the potato market provides producers with opportunities to engage in international trade and exports. As demand for potatoes continues to surge, particularly in regions such as Asia and Africa with growing populations and changing dietary preferences, there is immense potential for market expansion through strategic partnerships and market diversification initiatives. By leveraging their expertise in potato cultivation and processing, producers can establish strong footholds in new markets and capitalize on the increasing global demand for this versatile staple crop. Expanding international trade networks can not only drive market growth but also enhance profitability and resilience in the face of fluctuating domestic demand and market conditions.

Europe to Experience the Highest CAGR of 4.31% Due to Shifting Consumer Preferences

Based on region, the global potato market is classified into North America, Europe, Asia Pacific, MEA, and Latin America. 

Europe emerges as the fastest-growing region in the global potato market, with a notable CAGR of 4.31% projected during the forecast period from 2024 to 2031. By 2031, the region is expected to reach a market value of USD 19.43 billion, underscoring its significant growth trajectory. This robust expansion can be attributed to various factors, including increasing consumer awareness of the nutritional benefits of potatoes and a growing preference for healthier food options. Furthermore, government initiatives promoting sustainable agricultural practices and supporting potato cultivation are driving market growth. Additionally, the rising popularity of convenience foods and processed potato products is fueling demand across European countries. With its favorable demographic trends and supportive regulatory environment, Europe is positioned to sustain its rapid growth and emerge as a key player in the global potato market.

Market Leaders Concentrate on Collaborations and Acquisitions to Sustain Growth

The global potato market is fragmented with key players such as McCain Foods Limited, Lamb Weston, Inc., J.R. Simplot Company, Farm Frites, PepsiCo, The Kraft Heinz Company, Cavendish Farms Corporation, Aviko, Pizzoli S.p.A and others. Companies employ a variety of strategic measures such as acquisitions, mergers, partnerships, product introductions, and collaborations to expand their business globally and enhance their competitive position.

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