potato chip market Archives

IndexBox has just published a new report: ‘EU – Potato Chips – Market Analysis, Forecast, Size, Trends, and Insights.’ Here is a summary of the report’s key findings.

Potato chips constitute a very widely known and popular product in the EU. The market size is estimated at $4.5B (this figure refers to producers and importers’ revenues, excl. retail margins), which equated to approx. 1.9M tonnes. The countries with the highest volumes of potato chip consumption are Germany (487K tonnes), Italy (249K tonnes), and France (246K tonnes), with a combined 53% share of total consumption. The Netherlands, the UK, Spain, Sweden, Portugal, Belgium, Romania, Poland, and Finland lagged somewhat behind, accounting for a further 38%.

In value terms, Germany ($996M), the UK ($689M), and France ($431M) were the countries with the highest levels of market value, with a combined 47% share of the total market (IndexBox estimates).

These same countries feature among the key importers of chips. France ($245M), Germany ($197M), and the Netherlands ($165M) constitute the markets with the highest levels of imports, together comprising 45% of EU imports. The UK, Ireland, Belgium, Italy, Spain, Denmark, Sweden, Austria, Poland, and Portugal lagged somewhat behind, holding a further 38%.

The countries with the highest levels of potato chips annual per capita consumption include the Netherlands (11 kg per person), Sweden (7 kg per person), and Germany (6 kg per person).

During the COVID-19 pandemic and the related lockdown, consumers tend to visit shops and malls less often and stock up on purchases for future use. However, Europeans did not reduce their consumption of potato chips tangibly.

This is confirmed by the fact that the production of chips in the largest EU countries quickly recovered after a short-term drop caused by the pandemic. In April-May 2020, there was indeed a decline in the production of potato chips against the lockdown background, but the fall’s depth differs from country to country. In France, over April-May 2020, there was a strong decline in production volumes, while in Germany, after a slight reduction in April, production started to recover immediately in May. Afterward, the production fluctuated within its common seasonal trend pattern.

Based on 2020 data, the potato chips market is less affected by the pandemic than many other food industries. The market shows resistance to the crisis due to the stability of consumer demand for this product, meaning the market is expected to remain solid in the medium term.

Driven by increasing demand for potato chips in the European Union, the market is expected to continue an upward consumption trend over the next decade. Market performance is forecast to retain its current trend pattern, expanding with an anticipated CAGR of +0.6% for the period from 2019 to 2030, projected to bring the market volume to 2M tonnes by the end of 2030.

Source: IndexBox AI Platform

IndexBox has just published a new report: ‘United Kingdom – Potato Chips – Market Analysis, Forecast, Size, Trends And Insights’. Here is a summary of the report’s key findings.

The revenue of the potato chips market in the UK amounted to $686M in 2018, dropping by -4.6% against the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers’ margins, which will be included in the final consumer price). In physical terms, however, the volume of consumption stood at 197K tonnes in 2018, flattening against the previous year. Over the last five years, the market was relatively stable, fluctuating mildly from 189K tonnes in 2013 to the mentioned level of 2018.

Production in the UK

Potato chips production in the UK amounted to 194K tonnes in 2018, coming down by -3.8% against the previous year. Despite this, the total output volume increased at an average annual rate of +2.5% over the period from 2013 to 2018; the trend pattern remained relatively stable, with somewhat noticeable fluctuations being observed throughout the analyzed period.

Exports from the UK

In 2018, exports of potato chips from the UK stood at 56K tonnes, remaining stable against the previous year. Over the period under review, the total exports indicated a buoyant expansion from 2013 to 2018: its volume increased at an average annual rate of +11.1% over the last five-year period.

The most prominent rate of growth was recorded in 2017 when exports increased by 18% y-o-y. Over the period under review, potato chips exports reached their peak figure in 2018 and are expected to retain its growth in the immediate term.

In value terms, potato chips exports totaled $216M (IndexBox estimates) in 2018. The total export value increased at an average annual rate of +4.0% over the period from 2013 to 2018; the trend pattern generally reflected that of the volume of exports.

Exports by Country

Ireland (17K tonnes), Nigeria (11K tonnes) and the Netherlands (3.4K tonnes) were the main destinations of potato chips exports from the UK, with a combined 55% share of total exports. These countries were followed by France, the United Arab Emirates, Pakistan, Belgium, Germany, the U.S., and Sierra Leone, which together accounted for a further 24%.

In value terms, Ireland ($65M) remains the key foreign market for potato chips exports from the UK, comprising 30% of total potato chips exports. The second position in the ranking was occupied by Nigeria ($30M), with a 14% share of total exports. It was followed by France, with an 8.6% share.

From 2013 to 2018, the average annual growth rate of value to Ireland totaled +1.3%. Exports to the other major destinations recorded the following average annual rates of export growth: Nigeria (-4.3% per year) and France (+17.3% per year).

Export Prices by Country

In 2018, the average potato chips export price amounted to $3,869 per tonne, jumping by 5.6% against the previous year. Over the period under review, the potato chips export price, however, experience a noticeable decline. Over the period under review, the average export prices for potato chips attained their maximum at $5,384 per tonne in 2013; however, from 2014 to 2018, export prices stood at a somewhat lower figure.

There were significant differences in the average prices for the major foreign markets. In 2018, the country with the highest price was France ($5,752 per tonne), while the average price for exports to Ireland ($3,919 per tonne) was amongst the middle-level destinations.

From 2013 to 2018, the most notable rate of growth in terms of prices was recorded for supplies to France, while the prices for the other major destinations experienced a decline.

Imports into the UK

In 2018, potato chips imports into the UK stood at 59K tonnes, growing by 14% against the previous year. The total import volume increased at an average annual rate of +3.2% over the period from 2013 to 2018; the trend pattern remained consistent, with somewhat noticeable fluctuations over the period under review. The growth pace was the most rapid in 2018 with an increase of 14% year-to-year. In that year, potato chips imports reached their peak and are likely to continue its growth in the immediate term. In value terms, potato chips imports amounted to $116M (IndexBox estimates) in 2018.

Imports by Country

The Netherlands (31K tonnes), Belgium (16K tonnes) and Germany (3.7K tonnes) were the main suppliers of potato chips imports to the UK, with a combined 85% share of total imports. Spain, Ireland, France and Poland lagged somewhat behind, together accounting for a further 11%.

From 2013 to 2018, the most notable rate of growth in terms of imports, amongst the main suppliers, was attained by Spain, while the other leaders experienced more modest paces of growth.

Import Prices by Country

In 2018, the average potato chips import price amounted to $1,948 per tonne, going up by 9.9% against the previous year. Over the period from 2013 to 2018, it increased at an average annual rate of +2.2%.

There were significant differences in the average prices amongst the major supplying countries. In 2018, the country with the highest price was France ($5,244 per tonne), while the price for the Netherlands ($1,246 per tonne) was amongst the lowest.

From 2013 to 2018, the most notable rate of growth in terms of prices was attained by France, while the prices for the other major suppliers experienced more modest paces of growth.