Market Overview:
The US Potato Chips Market size is expected to grow from USD 10.02 billion in 2022 to USD 14.14 billion by 2030, at a CAGR of 4.4% during the forecast period (2023-2030).
The potato chips market in the US country is firmly established and mature, as a result of several factors. Its widespread popularity is attributed to its affordability and relatively low cost compared to other snack options, even extending to premium variants. This cost-effectiveness has made potato chips a favored choice across all age groups, contributing to its enduring appeal.
Among the population, the younger demographic holds a significant influence, driving the upward trajectory of the potato chips market. This phenomenon can be attributed to the diverse range of flavors available, including variations such as salty, spicy, and other unique options. The increase in disposable incomes, rapidly changing lifestyles, and increasing urbanization will remain strong factors for the growth of this market during the forecast period.
Top Key Players in US Potato Chips Market:
Kraft Heinz Company, Pepsico Inc, ConAgra Foods, Calbee Foods, Diamond Foods, General Mills, Arca Continental, Kellogg Company, The Hain Celestial Group, and Other Major Players
Market Dynamics and Factors for US Potato Chips Market:
Drivers:
Development Of Fortified Potato Chips
The swift socio-economic progress witnessed over the years has been accompanied by the emergence of various health concerns, including heart disease, cancer, and diabetes, impacting different segments of the population. As a response to the escalating health awareness, consumers are now gravitating towards fortified savory snacks like potato chips, seeking added health advantages. Notably, there's been a recent trend of infusing potato chips with antioxidants to extend the shelf life of frying oil.
The evolving lifestyles that promote on-the-go consumption and the growing inclination to substitute full meals with nutritionally balanced snacks have contributed to a heightened inclusion of potato chips in daily dietary habits.
Opportunities:
Rising Popularity of Snacking Products
The surging popularity of snacking products presents a promising opportunity within the US Potato Chips Market. The trend towards increased snacking, driven by shifting consumer preferences and evolving lifestyles, has positioned potato chips as a favored choice among a diverse range of consumers. This burgeoning demand for snacking options aligns seamlessly with the convenience and satisfying crunch offered by potato chips. As more individuals seek convenient and enjoyable on-the-go options, potato chips have gained traction as a versatile and easily accessible snacking solution.
Furthermore, the US Potato Chips Market stands to benefit from the growing emphasis on healthier eating habits. Consumers are now seeking snacking products that not only tantalize their taste buds but also offer nutritional value. This shift has prompted innovation within the industry, leading to the development of fortified potato chips infused with beneficial ingredients that cater to health-conscious consumers.
Segmentation Analysis of the US Potato Chips Market:
By Flavour, the Plain/Salted product segment had the largest market share. This segment has attained maturity and the primary reason for it can be attributed to the millennial population who don’t go for trying new flavors and experimenting.
By Distribution Channel, Supermarket/Hypermarket is likely to dominate in this area. Supermarkets/hypermarkets are the major distribution channel for the sale of potato chips in the US. The discount on large quantity purchases and the ease of shopping offered by supermarkets is expected to drive the demand for these products through this distribution channel.
Key Industry Development:
In August 2022, Lays launched a premium potato chips range, Lays Gourmet. In addition to the launch, the company also released a TVC film to promote and uniquely position its product among customers.
In April 2022, Utz Brands Inc. launched two new potato chip offerings, which are its limited-time-only offerings. The company launched these in partnership with Grillo’s Pickles by innovating Classic Drill Pickle flavored chips.
In May 2022, Walkers (United Kingdom) premium potato crisp brand sensations added a range of special flavors for Queen’s jubilee. The flavors launched by the company included spit-roast pork and apple sauce and baked cheese and sweet honey.
