Global Potato Granules Market To Grow At A CAGR Of 5.5% During The Forecast Period

04-Aug-2022 | Zion Market Research

The global potato granules market size was worth around USD 7 billion in 2021 and is predicted to grow to around USD 12 billion by 2028 with a compound annual growth rate (CAGR) of roughly 5.5 % between 2022 and 2028

Potatoes are one of the most essential crops worldwide. It has been a staple in many diet forms for centuries and is widely used in the food sector with multiple applications. A few of the reasons why potatoes are a favorite across the globe are their versatile quality and richness in flavor. The potato processing industry is one of the fastest growing industries given the higher demand for potato-based food items. Manufacturers are now producing dehydrated forms of the potato because of the increased shelf-life, efficacy, and efficiency offered by processed potatoes. Since the potato processing industry has undergone multiple innovations, the global economy is now benefiting from the potato granules industry. As per a survey submitted by the US Food and Agriculture Organization, more than 55% of the total potato production is used to create potato-derived products and less than 50% of potatoes are used in their raw form. Potato granules are produced by processing raw potatoes, dehydrating them, and making them undergo boiling followed by mashing. The end products are dense and free-flowing forms ultimately known as potato granules that can be rehydrated by adding boiling water. 

Global Health Care Provider Management Market

Covid-19 had a negative impact on the global potato granules market growth because of stringent rules and regulations pertaining to the functioning of manufacturing units. Even though the demand for product granules was high, producers were finding it difficult to meet the demand because of the scarce availability of raw material, the absence of skilled personnel, and other reasons as a result of Covid-19 infection.

The global potato granules market growth may be attributed to the rising number of applications that potato granules have across the food sector. They can be used to prepare baked goods. The global bakery food market has been growing exponentially in the last couple of years. One of the major reasons why baked food demand is increasing globally is because of the presence of a variety of food items propelled by the rising number of domestic players in the segment. The tastes offered by baked goods are another reason why a large section of society is attracted to these goods. A lot of manufacturers are now incorporating healthy raw materials to expand their reach. This may aid global market size growth during the forecast period. Since potato granules are more cost-effective than other counterparts, they are used extensively in hospitals and nursing homes. The rise in the number of healthcare facilities across the globe may also aid global market growth during the projection period.

However, the presence of substitutes may restrict the global market growth. Though, the exhaustive marketing initiatives by private firms are anticipated to provide lucrative growth opportunities. Nonetheless, the fluctuating price of raw materials is expected to create challenges for global market expansion.

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

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.

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 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.

By 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.

North America along with Europe may generate the highest revenues in the global potato granules market owing to the high consumption rate in regions like the USA and Canada. In Europe, Germany is showing signs of significant growth owing to changing preference of consumers toward convenience food along with growth in the baked food segment. Asia-Pacific is expected to register significant CAGR during the forecast period driven by regions like China and India. The East Asia market of potato granules may be dominated by China with a market share of over 52% in the coming years. India is also expected to grow rapidly because of the rising e-commerce industry thus making potato granules products readily available and aiding regional market expansion.

The global potato granules market is dominated by players like Agrawest Foods Limited, Solan S.A., Meelunie B.V., Rainy Day Foods, Groupe Emsland, Engel Food Solutions, Idaho Pacific Corporation, Birkamidon GmbH, and Aviko.

Recent Development:

  • In June 2020, JUST and Emsland Group collaborated to form an alliance in order to expand their product portfolio while creating better & more sales opportunities.
  • In June 2019, the Emsland group managed to install four drum dryers in their Hagenow plant. The drums will be used in their new potato flakes line thus aiding higher production of potato flakes in order to meet the growing global demand.

Browse the full Global Potato Granules Market By Application (Bakery Products, Snacks, Potato Products, and Soups & Sauces), By Product (Conventional Potato Granules and Organic Potato Granules), By Packaging (Bulk Packaging and Retail Packaging), By Distribution Channel (Convenience Stores, Supermarkets, and Online Retailers), and By Region - Global and Regional Industry Overview, Market Intelligence, Comprehensive Analysis, Historical Data, and Forecasts 2022 – 2028. Report at

The global potato granules market is segmented as follows:

By Application

  • Bakery products
  • Snacks
  • Potato Products
  • Soups & Sauces

By Product

  • Conventional Potato Granules
  • Organic Potato Granules

By Packaging

  • Bulk Packaging
  • Retail Packaging

By Distribution Channel

  • Convenience Stores
  • Supermarkets
  • Online Retailers

By Region

  • North America
    • The U.S.
    • Canada
  • Europe
    • France
    • The UK
    • Spain
    • Germany
    • Italy
    • Rest of Europe
  • Asia Pacific
    • China
    • Japan
    • India
    • South Korea
    • Southeast Asia
    • Rest of Asia Pacific
  • Latin America
    • Brazil
    • Mexico
    • Rest of Latin America
  • Middle East & Africa
    • GCC
    • South Africa
    • Rest of Middle East & Africa

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