Global Dehydrated Potato Market By Product Form (Powder, Dices, Flakes, Shreds, and Others), Nature (Organic and Conventional), Distribution Channel, (Supermarkets/ Hypermarkets, Convenience Stores, Food Service, Online Platforms, and Other Distribution Channels), Region and Companies – Industry Segment Outlook, Market Assessment, Competition Scenario, Trends and Forecast 2024-2033

Report Overview

The Global Dehydrated Potato Market size is expected to be worth around USD 12.1 billion by 2033 from USD 6.2 billion in 2023, growing at a CAGR of 6.9% from 2024 to 2033.

Dehydrated potatoes, as the name suggests, are manufactured by removing the water content from whole potatoes. It is obtained by dehydrating pre-cooked or raw potatoes and made into granulated, powdered, or flake forms. Dehydration only removes water content from the potatoes, leaving behind all the essential nutrients such as potassium, complex carbohydrates, vitamin B6, and fiber.

For instance, according to the article published by the USAID, dehydration of potatoes enhances their shelf life by up to 18 months. Dehydrated potatoes are also easier to handle, and transport compared to regular potatoes which is an add-on for manufacturers. Dehydrated potatoes have versatile applications in the food & beverage industry. They are used for thickening gravies & sauces, added to bakery items, and also used to enhance the texture of food.

The rapid expansion of the food & beverage industry and the surging advancements in food technology are anticipated to drive the global dehydrated potatoes market during the forecast period. Potatoes are nutritious and fiber-rich foods that are considered a part of a healthy diet across the globe. They are used in a variety of cuisines and have a range of derivatives.

The growing demand for convenience & frozen food is expected to drive the market. Additionally, the increasing demand for plant-based snacks and packaged food, especially from vegan consumers is expected to drive the market during the projection period. For instance, according to a 2021 study by The Vegan Society, a global vegan organization, about 18,000 food products were registered under the vegan trademark in 2021, worldwide.

Key Takeaways

• In 2023, the global dehydrated potato market generated a revenue of USD 6.2 billion, with a CAGR of 6.9%, and is expected to reach USD 12.1 billion by the year 2033.
• The product form segment held a major share of the market, with the powder segment taking the lead in 2023 with a market share of 40.5% owing to the ease of handling of powdered dehydrated potatoes.
• By nature, the conventional segment accounted for a significant share of 55.8% due to its wide scope of applications in various foodstuffs.
• By distribution channel, the food service among the other sub-segments held a significant revenue share of the market with 36.8% of the global dehydrated potato market.
• Asia Pacific region led the market by securing a market share of 38.8% in 2023.

By Product Form Analysis

Based on product form, the market is categorized into powder, dice, flakes, shreds, and others. The powder segment held the largest share of 40.5% in 2023 owing to the range of application of the product. Dehydrated potato powder is a versatile food ingredient that is used to add flavor and promote thickening in various recipes.

It is mainly used in soups, broths, curries, baked goods, snacks, and sauces. The dehydrated powder of potato has a longer shelf life compared to other product forms and is easier to store and transport from a commercial perspective. Moreover, the increasing demand for processed foods such as instant mashed potatoes, vegetable broths, and soups is expected to fuel this segment in the coming years.

The flakes segment is projected to grow at a rapid rate during the forecast period, owing to the rising consumer preference for dehydrated potato flakes. This is attributed to the growing consumption of convenience food. Fast food items such as frozen snacks, soups, burger patties, and frozen French fries use flaked potatoes to give them an authentic texture to enhance the product’s appeal.

They are also used in, deep-fried snacks, and gourmet cuisines to add an extra crunch to the food’s outer crust. The flakes are easy to store & transport and require a small storage place. Potato flakes, similar to the other forms of dehydrated potato, have high nutritional value. The growing demand for flaked dehydrated potatoes from restaurants and processed food manufacturers is anticipated to fuel this segment in the coming years.

By Nature Analysis

Based on the nature segment, the market is divided into organic and conventional segments. Among these, the conventional segment held a significant share of 55.8% due to the affordability of the product for end consumers. Conventional dehydrated potatoes are manufactured from non-organic potatoes. Non-organic potatoes are affordable for manufacturers as they are available at cheaper rates, compared to organic potatoes.

This is mainly attributed to their cultivation, which takes place under general environmental conditions and is treated with a combination of natural & artificial fertilizers.  Low expenses on raw materials further help manufacturers cut production costs thereby reducing the final product cost leaving them greater profit margins.

Additionally, conventional potato powders are available in abundance which is expected to boost the segment during the forecast period. The organic nature segment is projected to hold a major market share during the projection period, due to the increasing awareness among consumers regarding the consumption of organic farm yield & its benefits. Organic farming is performed using natural pesticides and fertilizers.

The crops are allowed to grow at their natural pace without interfering with their growth cycle using genetic modification. This lets crops retain high higher nutrition value. When organic potatoes are dehydrated, they outdo conventional potato powders in terms of nutrition. The rising consumer interest in clean-label food and the growing concerns related to the consumption of non-organic food products are anticipated to fuel the organic segment during the assessment period.

By Distribution Channel Analysis

The global dehydrated potato market is segmented based on distribution channels into supermarkets/ hypermarkets, convenience stores, food services, online platforms, and other distribution channels. The food service segment had a tremendous growth rate, with a revenue share of 36.8% owing to the rising global popularity of street foods and quick-serve restaurants. This is attributed to a rising trend of dining out and other food trends being viral on social media channels.

Globally popular fast food chains such as KFC, McDonald’s, and Burger King are among the highest sellers of instant foods that use dehydrated potatoes for their signature recipes. Furthermore, the growing efficiency among supply chains and logistics associated with food businesses is one of the factors projected to contribute to the segment’s growth.

The hypermarket/supermarket segment is expected to grow at a rapid pace during the projection period. This is attributed to the increasing preference of consumers toward one-stop shopping destinations. The supermarkets avail a wide range of alternatives for the same product, in different price ranges. They offer several in-store discounts & offers to customers.

The hypermarket giant, Walmart, has made shopping easy for consumers by digitalizing the consumers’ shopping experience with their mobile applications. The app customizes the user’s feed to offer attractive discounts & cashback offers and membership benefits. The increasing credibility of these stores in both online and offline purchase scenarios is anticipated to drive this segment in the years to come.

Key Market Segments

Product Form

• Powder
• Dices
• Flakes
• Shreds
• Others

Nature

• Organic
• Conventional

Distribution Channel

• Supermarkets/Hypermarkets
• Convenience Store
• Food Service
• Online Platforms
• Other Distribution Channels

Drivers

Increasing demand for convenience foods drives the market.

Rapid urbanization has led to a global consumer shift toward convenience food. Quick bites, frozen food, and ready-to-make food are in high demand, especially among the rapidly expanding global urban population. Snacks such as potato chips, potato wedges, potato fritters, and other ready-to-make snacking varieties derived from potatoes are widely consumed and purchased.

These snacks are mainly popular for a variety of flavors, spices, and crunch. They are also addictive owing to the burst of flavor and texture which makes consumers buy them often. For instance, according to the report published by the NIH on November 19, 2020, potato chips and packaged foods have a high content of fats and are addictive. The increasing demand for dehydrated potatoes from frozen fast food manufacturers is anticipated to drive this market.

The increasing prevalence of celiac disease fuels the market.

Celiac disease is a chronic digestive disorder that causes an inability to digest gluten. Gluten is present in foods derived from wheat, barley, and rye. Consumers who are allergic to gluten, are hence more likely to choose the snacking options that consist of dehydrated potatoes.

Furthermore, the increasing consumer awareness about gluten allergies is also expected to contribute to market growth in the coming years. For instance, according to the data published in October 2020 by the National Institute of Health (NIH), Celiac disease is a genetic disorder and about 2 million people across the world had this disease on the date of publishing.

Restraints

Fluctuating Prices Of Raw Materials Restrain The Market.

Several environmental factors affect the potato crop yield leading to a shortage of raw potatoes in the market. This results in a price hike of potatoes in the local markets which further impacts the manufacturing costs for dehydration. The increase in production costs for manufacturers affects the final product costs. It makes consumers shift toward its cheaper alternatives.

The growing uncertainty associated with these factors is likely to hamper the market during the projection period. Hence, the fluctuating prices of raw materials, particularly raw potatoes, impose significant restraints on the dehydrated potato market by destabilizing production costs, disrupting supply chains, complicating pricing strategies, deterring investment, and potentially compromising product quality. These factors collectively hinder the market’s ability to grow sustainably and maintain competitiveness in a volatile economic environment.

Opportunities

Growing Demand For Organic, Clean-Labeled Products Is Expected To Drive The Market.

Clean-labeled food products assure consumers of fresh and organic farm yield & other ingredients used in the manufacturing of a product. The food products are assured to have non-genetically modified origins (non-GMO). These products are added with natural preservatives, and food colors, and are free of any synthetic additives.

Currently, consumers are looking for cruelty-free foods that are grown organically. The rising demand for natural, organic, and whole foods is anticipated to create lucrative opportunities for the market. Moreover, governments and regulatory bodies worldwide are imposing stricter regulations on product labeling and the use of certain chemicals. This has prompted manufacturers to adopt cleaner, more natural ingredients and processes to comply with these regulations.

Clean labeling, which emphasizes simple, recognizable ingredients, is becoming a standard expectation, particularly in regions with stringent food safety and labeling laws. As the market becomes more saturated, brands are seeking ways to differentiate themselves. Offering organic and clean-labeled products provides a competitive edge, fostering brand loyalty among health-conscious consumers. The premium positioning of these products often allows for higher profit margins, further incentivizing manufacturers to cater to this demand.

Latest Trends

The rising trend of vegan food consumption drives the market.

Increasing global awareness regarding animal cruelty is encouraging people to follow vegan lifestyles. Vegan consumers do not purchase foods & other consumer goods derived from animals to boycott the produce. This initiative has been gaining global popularity owing to the awareness campaigns run by world animal organizations such as PETA, WAF, and others.

They encourage consumers to replace animal-based food products, clothing, accessories, and other goods with plant-based origin. The growing global acceptance of the vegan lifestyle is projected to drive the market in the coming years. For instance, according to the report published on June 1, 2024, by the World Animal Foundation (WAF), there are about 88 million vegans across the globe.

Increasing demand for on-the-go foods is expected to boost the market.

This is attributed to the rapid growth of the global urban population worldwide, which demands take-away meals or ready-to-eat foods. These foods are available at the special outlets created by various fast food chains and restaurants, to make it convenient for consumers to purchase food while traveling.

This concept has a unique consumer-centric approach and is widely adopted by fast food giants such as McDonald’s, Pizza Hut, Domino’s, KFC, and Burger King. Moreover, the increasing consumer shift toward convenience & comfort is projected to drive the market.

Geopolitical Impact Analysis

Geopolitical factors have a significant influence on the global dehydrated potato market. Rapidly altering geopolitical scenarios across various countries impact the market dynamics by creating challenges or by leveraging the players in the market. The European Union took the initiative of the Green Deal back in 2020 which is expected to benefit the market.

According to this deal, the EU targets to lower its greenhouse emissions to zero by 2050 using sustainable lifestyle, goods, and food. This encourages the players in the market trading with the EU to adopt sustainable production and distribution methods. Although dehydrated potatoes fall under vegan and clean-label foods, the market is likely to gain traction in this area.

The geopolitical scenario between India and the US has reaped mixed results for both countries. The dehydrated potato exports from India have competitive prices in the US but may as well be less affordable for localities. The unavailability of the trade metrics is likely to create challenges for the players located in the US. However, friendly relations between the countries are likely to benefit the market, thereby improving the trade dynamics on the regional level.

Regional Analysis

Asia Pacific is leading the Global Dehydrated Potato Market

Asia Pacific dominated the market with the highest revenue 2.40 billion, commanding a share of 38.8% in 2023. This is attributed to countries such as Japan, Vietnam, India, and China, which are the largest producers of potatoes. This ensures a smooth supply of raw materials for local players thereby availing the end-product in abundance.

This opens immense opportunities for the regional players to trade internationally. Furthermore, the rising population in the region is directly proportional to the growing demand for ready-to-make meals and fast foods. Moreover, the government in the Asia Pacific are making substantial investments in food technology and food processing industries which in turn is projected to drive the market in the region during the projection period.

Europe is expected to grow at a significant pace during the projection period, this is attributed to a high number of players in the market, in the region. The government in the region has signed trade agreements with about 41 countries around the world, to benefit local players in the market. This ensures that all the regulations and quality standards set by the regulatory bodies are checked for every food trade.

In 2020, the EU government took the initiative of the Green Deal to reduce the overall carbon footprint which has given a rise in demand for clean label foods in the region. Moreover, the increasing incorporation of technologically advanced equipment and industrial methodologies in the production of dehydrated potatoes is expected to boost the market in the region, during the projection period.

Key Regions and Countries

• North America
  • The US
  • Canada
• Europe
  • Germany
  • France
  • The UK
  • Spain
  • Italy
  • Russia & CIS
  • Rest of Europe
• APAC
  • China
  • Japan
  • South Korea
  • India
  • ASEAN
  • Rest of APAC
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of MEA

Key Players Analysis

The major players in the global dehydrated potato market are continuously focused on innovation and expansion by implementing multiple business strategies to attain a higher position in the market.

On the competitive ground McCain Foods Limited, Lamb Weston Holdings, Inc., Emsland Group, and The J. R. Simplot Company are major players known for diversified global dehydrated potato production and supply chain network. These key players along with other industry participants collectively influence the global dehydrated potato market’s growth, supply, and demand dynamics.

Players in the market have adopted automation in their business processes to attain overall productivity and optimize the output. Modern technologies such as AI and IoT are helping manufacturers seamlessly manage their production resources and product quality. IoTs are enabling efficiency in supply chains and making it easier for companies to trace their assets.

Key market companies can effectively market their products through digital marketing and social media channels. The increasing credibility of digital business solutions is expected to bolster market growth during the projection period.

Top Key Players

• Agrana Fruit Austria GmbH
• Augason Farms
• Basic American Foods
• Emsland Group
• Idahoan Foods, LLC
• Lamb Weston Holdings, Inc.
• McCain Foods Limited
• Pacific Valley Foods Inc.
• Rixona B.V.
• The J. R. Simplot Company
• Others

Recent Developments

• On June 12, 2024, McCain Foods Limited announced the expansion of its network innovation hub farms in North America. The company highlights its objective to implement regenerative agriculture across all its potato acreage by 2030 with this expansion.
• On May 11, 2023, Agrana Fruit Austria GmbH expanded its production capacity for technical starches. The company invested € 23 million at the Gmünd site to build an additional drum drying plant and to boost the production of technical special starches for the adhesive and construction sectors.

Report Scope