This article appears in the December 2017 issue of Potato Grower.
Frozen potato products are already consumed on a large scale in developed countries; they are also gaining popularity in developing countries. Manufacturers are providing packed frozen potatoes in various forms, employing high-tech machinery to manufacture a variety of products. Frozen potatoes are also seeing high demand from quick-service restaurants, which themselves are expanding their business globally.
However, the high price of frozen potato and increasing health consciousness among consumers may hamper the growth of the global frozen potato market.
According to a recent report by Fact.MR, the global frozen potato market is expected to see moderate growth over the next five years. The market is projected to register a 4 percent compound annual growth rate (CAGR) through the forecast period of 2017 through 2022. The following insights show how the global frozen potato market is expected to perform in the next five years.
The report also provides a detailed profile on some of the key market players in the global frozen potato market. These include companies such as McCain Foods, Lamb-Weston Holdings, J.R. Simplot Co., and Kraft Heinz Co.
Fact.MR’s full report can be accessed at www.factmr.com/report/307/frozen-potato-market.
Europe is expected to dominate the global frozen potato market over the next five years. By the end of 2017, Europe’s frozen potato market is projected to account for nearly one-third of the sector’s global revenue share. Increasing investment in new product development, rising consumer attraction toward fast food and the presence of the major market players are some of the reasons contributing toward the growth of frozen potato market in Europe.
North America is also expected to emerge as the second-most lucrative market in the global frozen potato market. Products like french fries and cooked potatoes are some of the fastest-selling products in North America.
Fries are expected to be the most-consumed frozen potato product. Fries are projected to exceed $18.9 billion in revenue by the end of 2022. Wedges as a frozen potato product are also expected to witness growth during the forecast period.
The commercial sector is expected to be the largest end-user of frozen potatoes. The commercial sector is projected to account for more than half of the revenue share by the end of 2017. Meanwhile, the residential sector is projected to create an incremental opportunity of over $3.5 billion between 2017 and 2022.
Modern trade—such as multi-brand retail stores and foodservice sellers—is expected to be the world’s largest distribution channel for frozen potato, topping traditional channels like small, local markets and roadside vendors still prevalent in developing nations. By the end of 2022, modern trade of frozen potato products is projected to exceed $25.1 billion in revenue globally.