Potato Grower

January 2020

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The potato flake market is likely to benefit from expansion of retail chains, both digital and physical, in combination with increasing product lines and product portfolios of established players. The retail sector is witnessing a robust rise worldwide across various domains of consumer products, and potato flakes are no exception. While focusing on the production of high-quality, lightweight potato flakes, leading companies are strengthening their online presence to extend their market reach and gain higher shares. Rapid urbanization and growing gross household disposable income (GHDI) of consumers has enhanced their expenditure on ready-to-eat and processed food products, which partly offers relaxation in their increasingly hectic routines. Rising demand for such food is further rubbing off on growth of the potato flake market, and the status quo is likely to prevail between the period 2018 and 2028, according to a recently published report of Fact.MR. The report opines that demand for potato flakes, which are rich in carbohydrates and contain imperative minerals, will ride the coattails of shifting consumer preferences toward consumption of nutrition-rich food and beverages. The report predicts that the potato flake market will register an impressive growth at 7 percent compound annual growth rate (CAGR) through 2028. Incessant growth of retail sales in the baby food industry, coupled with the imperativeness index of potato flakes as a key ingredient in several baby food products, will further impact growth of the potato flakes market in the near future. Organics Proliferate, Conventional Holds Strong Pace of technology penetration in the food sector has been observed to be robust recently, compelling manufacturers to enhance their research and development efforts. An ever- widening range of applications has led enormous commercial vendors to develop a variety of potato flakes in their purest forms, pointing at discovery possibilities in the market in tandem with increased research activities. Efforts of key players toward realizing innovative, new product developments, and unique product offerings to gain a competitive edge and greater brand positioning, will remain key demand determinants for conventional potato flakes. Conventional potato flakes continue to subjugate the market in terms of revenues. Over 95 percent shares of the market are held by conventional potato flakes currently, and the status quo is expected to prevail in the foreseeable future. Organic potato flakes, which are still in their infancy, are likely to gain ground fast, with growing consumer preference for natural products that involve the use of fewer additives and chemicals. Although revenues from the conventional variant remain substantial, sales growth of organic food products is projected to be faster than the former through 2028. A wide variety of organic potato flakes have permeated the market that fall in line with surging consumer demand for higher nutrient value and non-GMO- labeled products. The concept of organic farming has brought significant changes in the overall farming practices employed across agriculture-based regions worldwide. This has further influenced landowners and farmers in opting for organic fertilizers, in a bid to maintain soil fertility and sustainability. According to the USDA, total available arable land for organic farming has been increasing rapidly in the U.S. for The market for potato flakes should increase steadily the next few years. Feeling Flaky Diggin' In Diggin' In MARKETS | Industry Report 60 POTATO GROWER | JANUARY 2020

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