Global Potato Granules Market Size, Share, Growth Analysis Report - Forecast 2034

Potato Granules Industry Prospective:

The global potato granules market size was worth around USD 7.90 Billion in 2024 and is predicted to grow to around USD 13.77 Billion by 2034 with a compound annual growth rate (CAGR) of roughly 5.72% between 2025 and 2034. The report analyzes the global potato granules market's drivers, restraints/challenges, and the effect they have on the demands during the projection period. In addition, the report explores emerging opportunities in the potato granules industry.

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Potato Granules Market: Overview

Potato granules are dehydrated and pre-cooked potatoes that are produced especially in particle form and consist of either whole tissue cells or aggregated cells. The main characteristics of the product are easy & convenient preparation along with high bulk density. Potato granules require only a small amount of hot liquid to be mixed simply. They are prepared using higher quality, finely sliced, dried, and cooked potatoes. Some manufacturers add another during the preparation phase which includes gently mixing the mashed & cooked potato with dry granules for the final product to absorb moisture and result in a granular dried product consisting of potato cells.

Some of the recommended use of potato granules include use in nursing homes, hospitals, schools, and other such places given their consistent quality and cost-effectivity. They can be used in almost all applications where conventional flakes are used. A global trend of higher adoption of potato granules can be witnessed amongst many food manufacturers. Potato granules are hot and swelling because they contain low-free starch. They also exhibit a high potato taste along with superb consistency.

The process of manufacturing potato granules is extremely simple and can be prepared with basic utilities as well. The steps involve cooking and mashing potatoes, then crushing them with the help of rollers on a drum surface. The mashed potato is then dried quickly until the humidity level reaches the desired stage. Post this, the layer of potato granules is scraped off from the drum. With the help of a mill sifter, the sheet is broken which results in the production of potato granules.

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Key Insights

• As per the analysis shared by our research analyst, the global potato granules market is estimated to grow annually at a CAGR of around 5.72% over the forecast period (2025-2034).
• Regarding revenue, the global potato granules market size was valued at around USD 7.90 Billion in 2024 and is projected to reach USD 13.77 Billion by 2034.
• The potato granules market is projected to grow at a significant rate due to rising demand for convenient, shelf-stable foods, growth in the processed food industry, health-conscious consumer preferences for clean-label and plant-based products, and expanding applications in foodservice, animal feed, and pharmaceuticals.
• Based on Product Type, the Instant Potato Granules segment is expected to lead the global market.
• On the basis of End-Use Industry, the Food and Beverage segment is growing at a high rate and will continue to dominate the global market.
• Based on the Form, the Powder Form segment is projected to swipe the largest market share.
• By Packaging Type, the Packaging Type segment is expected to dominate the global market.
• In terms of Distribution Channel, the Online Retailers segment is anticipated to command the largest market share.
• Based on region, Asia-Pacific is predicted to dominate the global market during the forecast period.

Potato Granules Market: Growth Drivers

Increasing demand for precooked food to propel global market growth

The global potato granules market size may benefit from the rising trend of consumption of precooked or convenience food across the globe. Owing to the extremely hectic lifestyle led by many individuals, there is a significant growth in the demand for food that can be cooked easily and require less time for preparation. This is also owed to the presence of multiple domestic and international market players offering ready-to-eat food items. As per a survey conducted by Assocham, over 79% of the Indian market prefers convenience food due to time restrictions. Since a lot of these regions are undergoing rapid modernization, they hardly have the time to prepare food which may take longer. Due to the shift in preference, the global market may grow during the forecast period.

Since potato is an extremely versatile food product, it can be applied in many food forms. Potato granules have a longer shelf life and can be easily stored, they are high in demand as compared to raw potatoes in many households. In the USA, out of the total annual potato production, 60% of the output is used to manufacture either frozen potato-related goods or potato granules & flakes.

Potato Granules Market: Restraints

The presence of substitutes may restrict the global market growth

The global market cap may get restricted owing to the large-scale availability of other substitutes like rice flour, cornstarch, xanthan gum, etc. Since some of these substitutes even offer higher nutritional value and have a less harmful impact on overall health, there may be a shift in preference amongst a large section of the global population. This may be propelled by the rising awareness about the availability of substitutes along with growing health consciousness amongst end consumers.

Potato Granules Market: Opportunities

Exhaustive marketing initiatives by private firms to provide lucrative growth opportunities

The global market is witnessing growth in the target market initiatives undertaken by private market players to expand their global footprint. The food & beverages sector is one of the safest bets for many market investors since food products are a major part of essential commodities. It is extremely unlikely for the F & B sector to incur heavy losses. Given the potential of the sector, the global market has marked the emergence of many players which has also initiated tough competition amongst manufacturers which in turn has resulted in even more steps taken towards heavy marketing.

Potato Granules Market: Challenges

The fluctuating price of raw materials creates challenges for global market expansion

Given the high demand for potatoes which is the most basic raw material required to produce potato granules, the price of the raw material keeps fluctuating in the international market. This could be related to the political and economic state of the nation either importing or exporting the raw material. In case of high prices, it is less cost-effective for small-scale manufacturers to import potatoes, and hence they may shift towards adopting other substitutes which may cause challenges for global market growth.

Potato Granules Market: Segmentation

The global potato granules market is segmented as follows based on application, product, packaging, distribution channel, and region.

Based on application, the global market segments are bakery products, snacks, potato products, and soups & sauces. The revenue generated by the bakery products segment was more than USD 1000 billion in 2022 and the revenue in the coming years is expected to grow at a higher rate. The high growth is related to the extensive use of potato granules in a variety of baked goods like bread, biscuits, pancakes, etc.

By product, the global market is segmented into conventional potato granules and organic potato granules. There is a growing market for organic potato granules because of the various health benefits associated with them. Chips created with the aid of organic potato granules have 80% less sodium than the ones prepared with conventional chips.

Packaging, bulk, and retail packaging are the two segments. The global market generates more revenue from the bulk packaging segment because even though the profit margin is not more than 5% in the case of bulk packaging, this segment can send more products than retail packaging.

By distribution channel, the global market segments are convenience stores, supermarkets, and online retailers. The highest revenue generated in the global market is by the supermarket and online retailers segment.

Recent Development

• In January 2022, Way Cool, a leading agri-commerce company completed its investment of USD 5 million in SiddhiVinayak Agri processing which is a completely integrated leader in the potato supply chain ecosystem. The investment will aid both companies to leverage the supply chain process while boosting the quality of potato seed, and its processing and storage in India.
• In May 2022, Qu Dongyu, the Director-General of the Food and Agriculture Organization of the United Nations (FAO), while presenting to the 11th World Potato Congress, stated that the total potato production could be doubled in the coming 10 years when potatoes will be contributing heavily to the world food security and history.

Potato Granules Market: Report Scope

Potato Granules Market: Regional Analysis

North America and Europe to dominate global market expansion.

The global potato granules market is expected to be dominated by North America and Europe during the forecast period. The USA is one of the key markets for the global market cap since the US is one of the top four producers of potatoes worldwide. It also has one of the highest consumption patterns. The region is responsible for exporting potato granules to some of the leading regions like China, Mexico, Japan, etc. In the USA, there is a rising trend of higher demand for organic food materials like organic potato granules which may aid regional growth.

Canada is also recording high consumption of potato granules owing to the adoption of convenience food. The regional growth may also be attributed to rising marketing initiatives undertaken by key market players.

Potato Granules Market: Competitive Analysis

The report provides a company market share analysis to give a broader overview of the key market players. In addition, the report also covers key strategic developments of the market, including acquisitions & mergers, new product launches, agreements, partnerships, collaborations & joint ventures, research & development, and regional expansion of major participants involved in the potato granules market on a global and regional basis.

The global potato granules market is dominated by players like:

• Agrawest
• Idaho Pacific
• Mydibel
• Procordia Food
• Aviko
• Emsland Group
• KMC
• Engel Food Solutions
• Solan S.A.
• TaiMei Potato

The global potato granules market is segmented as follows;

By Product Type

• Instant Potato Granules
• Regular Potato Granules
• Organic Potato Granules
• Flavored Potato Granules

By End-Use Industry

• Food and Beverage
• Snack Food Industry
• Foodservice and Catering
• Processed Food Manufacturers
• Retail and Consumer Markets

By Form

• Powder Form
• Granule Form
• Flake Form

By Packaging Type

• Packaging Type

By Distribution Channel

• Online Retailers
• Supermarkets/Hypermarkets
• Specialty Stores
• Wholesale Distributors

By Region

• North America
  • The U.S.
  • Canada
  • Mexico
• Europe
  • France
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • Australia
  • South Korea
  • Rest of Asia Pacific
• The Middle East & Africa
  • Saudi Arabia
  • UAE
  • Egypt
  • Kuwait
  • South Africa
  • Rest of the Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America