Numerous causes, including a rise in product popularity due to longer shelf life, might be blamed for the increase. The growing demand for items that are ready to eat is one of the main factors driving the dehydrated potato market's expansion. Growing urbanization and rising Gross Household Disposable Income (GHDI) are also factors contributing to the sector expansion. However, supply chain constraints and fluctuating raw material prices may prevent the industry from growing.

In 2021, the market for dehydrated potatoes was USD 5.54 billion, and by 2030, it will reach USD 9.79 billion, growing at a 6.76% CAGR during the forecast period. 

Market Dynamics

Drivers

The need for gluten-free, whole-grain, and high-fiber products by consumers is fueling the baking sector's expansion. Since it serves as a binding agent in baked goods, the product is gluten-free. Due to its capacity to produce baked goods free of gluten and with a desired crumbly texture, the substance is commonly used in muffins and bread. It is suitable for use in healthy baked goods since it has a high nutritional value and contains potassium, iron, vitamin C, and fiber. It is anticipated that the bakery industry will develop greatly as the number of cafés rises and the demand for baked goods rises.

Restraints

Due to labor shortages, logistical issues, and raw material shortages, this market has a constrained supply, which is affecting market expansion. Additionally, fluctuating raw material costs result in supply chain bottlenecks, which have a big impact on the sector. Additionally, health-conscious consumers demand more nutritious options over processed meals that are rich in calories and additives, which restrains industry growth.

Opportunity 

The market for dehydrated potatoes has a huge opportunity due to the rise in demand for quick meals. Numerous instant food products, such as instant mashed potatoes, potato chips, and snack foods made with potatoes, are frequently made with dehydrated potatoes. The demand for convenient and quick-to-prepare foods is projected to rise, given the hectic and fast-paced lifestyles of today.

Market Segmentation 

By Form 

With the greatest CAGR of 8.4% throughout the anticipated period, the powder sector is most likely to lead the global market. In many different culinary preparations, such as baked goods, ready-to-eat meals, and other dishes, potato powder is widely used as a thickening component. Convenience foods and things that are ready to cook have gained appeal recently. Potato powder will thrive in this setting and become a well-liked mass-market item.

By Nature

The organic segment will expand at a CAGR of 9.1% throughout the anticipated time frame. One of the main causes of the explosive growth of dehydrated organic potatoes is the idea of organic farming, which has had a significant impact on agricultural methods.

By Flavour

Regular potatoes led the market with a share of 61% in 2022. Regular potatoes, sometimes referred to as white potatoes, are the potato that is most frequently utilized in the dehydrated potato market. They are frequently discovered in products made from dried potatoes, such as potato flakes, granules, and starch. Normal potatoes are frequently used in mashed potatoes, French fries, and potato chips and are rich in dietary fiber, vitamins, and minerals.

By Distribution Channel

In 2022, the food service sector had a sizable market share of 58%. The food services sector includes lodging, dining, fast food, cafeterias, and other food service businesses. The market for food services is experiencing rising product demand as a result of the expansion of food delivery methods. Product demand is driven by the growing acceptance of full-service and quick-service cafés among growing international and national businesses.

Regional Analysis 

Asia Pacific led the entire regional market. The highest market shares in the area belong to China and India. In these nations, potatoes are a significant vegetable farmed as a staple diet and a source of revenue, particularly for farmers in hilly regions with poor soil. 

During the projection period, North America will expand rapidly. The U.S. processed food business is expanding quickly, which in turn, helps the local market expand. As the consumption of instant soups and salads increases in the region, the U.S. has the greatest market share. The processors use cutting-edge techniques, technologies, and rigid standards to preserve the fresh-potato texture and flavor in the rehydrated product. U.S. potato manufacturers created several clean-label dehydrated choices in response to consumers' growing worries about additives.

Key Players 

· Augason Farms (U.S.)

· Idahoan Foods (U.S.)

· Lamb Weston (U.S.)

· Mccain Foods (Canada)

· Aviko (Nederland)

· Intersnack Group (France)

· R. Short Milling (U.S.)

· Pacific Valley Foods (U.S.)

· Basic American Foods (U.S.)

· Agrarfrost International

· Unisur Alimentos Ltda (Chile)

· Emsland Group (Germany)

· Chengde Kuixian Food (CN)

· Keystone Potato Products LLC

· Simplot (U.S.)

· Augason farms

· Idaho Supreme Potatoes (U.S.)

· Bem Brasil Alimentos LTDA

· Birkamidon Rohstoffhandels GmbH (Germany)

· Short Milling (U.S.)

In 2021, the market for dehydrated potatoes was USD 5.54 billion, and by 2030, it will reach USD 9.79 billion, growing at a 6.76% CAGR during the forecast period. The market is driven by a growth in the popularity of these products due to their longer shelf-life and year-round availability, which are driving the industry.

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