At CAGR of 5.5% Global Potato Granules Market Size & Share | 2022 - 2028 | Projected to Hit USD 12 Billion: Industry Trends, Value, Analysis & Forecast Report by Zion Market Research

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.

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 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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Zion Market Research published the latest report titled "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." into their research database.

Industry Dynamics:

Potato Granules Market: Growth Drivers

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 that 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 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 the 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.

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Potato Granules Market: Opportunities

The global market is witnessing a 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

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 economical 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.

Global Potato Granules Market: Segmentation

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.

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.

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.

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Recent Developments

Regional Dominance:

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.

Global Potato Granules Market is segmented as follows:

Potato Granules Market: By Application Outlook (2022-2028)

Potato Granules Market: By Product Outlook (2022-2028)

Potato Granules Market: By Packaging Outlook (2022-2028)

Potato Granules Market: By Distribution Channel Outlook (2022-2028)

Potato Granules Market: By Region Outlook (2022-2028)

North America

Europe

Asia Pacific

Latin America

Middle East & Africa

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