Frozen Potato Market

Frozen Potato Market Snapshot (2022-2032)

In FY 2021, the frozen potato market reached a valuation of US$ 57.8 Billion, and is likely to register a Y-o-Y growth rate of 5.0% in 2022, closing at US$ 61.27 Billion. Furthermore, across the 2022-2032 period of assessment, growth is expected to accelerate at a whopping 6.0% CAGR, reaching US$ 109.72 Billion.

Frozen potato has gained a lot of traction in recent years, owing to its introduction of new flavors as well as new products, which has resulted in a rise in the demand of frozen potatoes. Due to the rapid growth in domestic and international demand for frozen potato products, it will increase the demand for frozen potato globally by fast food restaurants.

Report Attribute	Details
Anticipated Base Year Value (2021)	US$ 57.8 Billion
Expected Market Value (2022)	US$ 61.27 Billion
Projected Forecast Value (2032)	US$ 109.72 Billion
Global Growth Rate (2022-2032)	6.0% CAGR
Expected Growth Rate of Indian Market (2022-2032)	5.9% CAGR
Anticipated Growth Rate of Germany Market (2022-2032)	5.8% CAGR
Prominent Frozen Potato Service Players	McCain Foods Limited Bart’s Potato Company Lamb Weston Holdings Inc. J.R Simplot Company Aviko Holding B.V Kraft Heinz Company Himalaya Food International Ltd. Agrarfrost Holding GmbH & Co. KG Pohjolan Peruna Oy Agristo N.V American Lorain Corp. Farm Frites International B.V Greenyard Group

The increased consumption of ready-to-eat and ready-to-cook foods has had a huge impact on the market for frozen potatoes around the world. According to new studies, frozen vegetables have more nutrients than fresh vegetables. Consumers are gradually becoming aware of this reality, which has begun to reflect in the demand for frozen vegetables, especially frozen potatoes.

Sales in the frozen food sector are being driven by an increase in the number of women in the workforce, as well as the resulting time constraints and socializing at home. The growing acceptance of western culture in emerging nations and a rise in demand for freshly prepared food are expected to be the primary drivers for the expansion of the convenience foods category, which, in turn, is expected to support the frozen potato products industry in the forecast period.

2017-2021 Revenue Analysis of Frozen Potato Market vs. Growth Outlook 2022-2032

According to Fact.MR- a market research and competitive intelligence provider- sales of frozen potato products experienced an incline at around 5.0% value CAGR from 2017-2021. Sales are especially high across the frozen potato fries domain, given its widening popularity as an accompaniment to other fast foods. Simultaneously, demand for other frozen potato snacks such as wedges, slices and dices have also augmented significantly.

As the COVID-19 pandemic expanded its tentacles, demand for frozen food products and snacks augmented significantly, attributed to the imposition of strict lockdowns, preventing consumers from frequently visiting supermarkets or grocery stores to stock up on foodstuffs. This boded well for several categories of frozen potato products, including frozen potato chips and nuggets.

As people globally increasingly incline towards consuming plant-based fast foods, amid concerns over the adverse impact of meat consumption on the environment, sales of frozen potato products will elevate even further. According to Fact.MR, the market is anticipated to yield US$ 103.51 Billion by the end of the 2022-2032 forecast period, surging at a CAGR of 6.0%.

Key Market Drivers Influencing Frozen Potato Industry Expansion

Rapidly Expanding Quick Service Restaurants to Foster Market Growth Prospects

The fast-food and quick service restaurants have now become the need of the hour for the consumers. These restaurants provide mass-produced foods that have been attracting an increasing number of people to these restaurants. These restaurants are becoming more and more popular due to the convenience they offer and the good taste of the food. Also, they are economical in terms of money and time.

Fast food and quick service restaurants are on the rise because they cater to the consumers' changing needs. Consumers now want convenience and quick service with their food. Quick service restaurants cater to the need of the consumers as they offer sit and dine, along with numerous services such as drive-thru, takeout, and home delivery, which suits the modern lifestyle of the consumers. Due to the growth and expansion of these quick-service restaurants or QSRs, the demand for frozen potatoes has also increased.

Products like frozen French fries, hash browns, and shaped and stuffed/topped potatoes are mostly demanded by the QSRs because frozen potato requires less preparation time and is easy to use. This helps the QSRs to provide the consumers with their food quickly, which is the main strength of the quick-service restaurants.

Increase in the Number of Women Working Population to Accelerate the Market Growth

The demand for frozen potatoes is witnessing a rapid rise across the world. The increasing number of fast-food joints, bolstering demand for processed food, urbanization, and rising export and import of frozen potatoes are some of the key factors, boosting the growth of this market.

Going forward, the significant rise in female workforce is likely to fuel the demand for convenience food, such as French fries and hash browns, which, in turn, is expected to propel the global frozen potato market in the forthcoming years.

Key Challenges encountered by Frozen Potato Industry

Rising Prevalence of Obesity to Hinder the Market Prospects

Rising prevalence of obesity and heart conditions associated with too much consumption of junk food is one of the major factors that is expected to restrain the growth of the frozen potato market during the forecast period. Further, the high cost associated with the research and development proficiencies is expected to obstruct the market growth.  

High Cost Associated with Machinery to Impede the Market Prospects

High costs associated with the machinery and large-scale availability of healthier alternatives are projected to challenge the market over the analysis period. In addition, the high cost associated with transportation and storage is another factor that is anticipated to limit the market growth in the near future.

Country-wise Analysis

How will the Growth of Frozen Potato Market Escalate across India?

Ever-Widening Popularity of Fast-Food Joints to Enhance the Market Prospects

According to Fact.MR’s recent report, the India frozen potato products industry is likely to surpass US$ 1 Bn by 2021-end, expected to grow at a 5.9% CAGR during the forecast period of 2022-2032. Growth is being impelled by the ever-widening popularity of fast-food joints and quick services restaurants, attributed to the prevalence of hectic, fast-paced lifestyles.

The Indian market for fast food surged by 18% over the past 5 years, with fast-food chains such as McDonald's, Wendy's, Subway, KFC, Burger King, and Dominos, among others, having a significant impact. Out of these fast-food providers, KFC and McDonald's report that French Fries are their most popular selling fast-food products, with the former reporting that 50% of its burger meals sold involve a serving of French Fries.

Furthermore, retail channels such as Big Bazaar and Spencer Retail report the snack to be the fastest RTE selling product. Moreover, global players such as McCain Foods have also reported an increase in the sale of French Fries across the Indian market. Besides French Fries, demand for other potato-based dishes, such as Aloo Tikki and Aloo Chaat are also augmenting frozen potato sales across the country.

How will Germany Perform in the Global Frozen Potato Industry Landscape?

Increasing Potato Production Level in Germany to Boost the Market Growth

According to the German Agricultural Society (DlG), Germany produces 10-11 million tons of potatoes annually, rendering it the largest producer throughout the European Union. The sector generates an estimated € 3 billion annually, through sales across three main industries: food, industrial and seed potatoes respectively.

Area wise, potato cultivation takes place on more than 29,000 farms, with a combined area of nearly 250,000 hectares. The total area includes 20,000 small producers with under five hectares of cultivation, and 9,000 farms growing larger areas of the crop. Attributed to such elevated production levels, the market for frozen potato products is expected to flourish across Germany.

Numerous regional level manufacturers are active across the market in Germany. Prominent manufacturers include Ardo GmbH, Agrarfrost GmbH & Co. KG, Hilcona AG, Iglo GmbH Tiefkühlkost and Keck Spezialitäten GmbH among others. According to Fact.MR, the region will likely accelerate at a CAGR of 5.8% through 2031.

Country-wise Forecast CAGRs for the Frozen Potato Market

Contry	CAGR
India	5.9%
Germany	5.8%
US	5.7%
China	5.6%
UK	5.6%

Category-wise Insights

Which is the Most Sought-after Product Type Category?

Frozen Potato Fries Segment to Dominate the Frozen Potato Market

According to projections published by Fact.MR, by product type, the Frozen Potato Fries segment is forecast to register a whopping 5.8% value CAGR across the 2022-2032.

By product type, the frozen potato fries segment is likely to contribute around 41% revenue, reaching a revenue share of nearly US$ 19 Billion by 2022. Rising popularity of fast food and subsequent emergence of quick service restaurants (QSRs) have largely widened growth prospects. The fries market also exhibits high growth potential due to the ability of key manufacturers to develop new products and variations to meet consumer preferences.

Which Segment to Remain Dominant in the End-User Category?

Commercial Segment to Enhance Growth Prospects

According to projections published by Fact.MR, by end-user, the Commercial segment is forecast to register a whopping 5.7% value CAGR across the 2022-2032. The commercial sector is the primary end-user of frozen potatoes, with high market potential for investment due to rising demand and the expansion of QSRs in various countries. Commercially, frozen potatoes and related products are used in hotels, fast food chains, and quick-service restaurants (QSRs).

Because of their reduced preparation time and ease of use, these products are widely accepted on a commercial scale. Furthermore, many caterers are inclined to use frozen food due to the convenience provided by these products. Fact.MR forecasts the sector yield a US$ 3.5 Billion incremental opportunity, capturing 3/5th revenue.

Frozen Potato Market- Competitive Landscape

Prominent players in the Frozen Potato Industry are taking advantage of the rapidly increasing demand for the Frozen Potato in various applications. To further their outreach, players are relying on collaborations, partnerships and acquisitions with existing small, medium and large-scale vendors. Some prominent market developments are as follows:

• In January 2022, The Tolochin Cannery has opened a line to manufacture frozen semi-finished French fries in Belarus. This is the country's first manufacture of such items.
• In December 2021, Himalaya Food entered into an agreement with B.K Dist. Co-Operative Milk producer and AMUL for frozen potato processing products at the company’s Vadnagar Plant in India.
• In April 2021, McCain Foods Limited announced that the company decided to localize production in Russia in order to supply customers with processed French Fries and other specialty potato snacks, with a US$ 150 million investment. The goal is to decrease Russia's reliance on frozen food imports.

Key Segments Covered in the Frozen Potato Industry Survey

• By Product Type :

  • Frozen Potato Fries
  • Frozen Potato Wedges
  • Frozen Stuffed Potatoes
  • Frozen Potato Chunks
  • Frozen Potato Slices
  • Frozen Potato Dices
  • Frozen Baked Potato
  • Other Frozen Potato Types

• By End-User :

  • Commercial Use
  • Residential Use

• By Distribution Channel :

  • Modern Trade
  • Grocery Stores
  • Convenience Stores
  • Online Frozen Potato Sales
  • Other Distribution Channels

• By Region :

  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia & Oceania
  • Middle East Africa