Potato Processing Business

Written by Elfas Mcloud Zadzagomo Shangwa (Hunter)

Farmer’s Pride International joins the Potato production processing and exports  industry that brings the transformation of potatoes into different forms, including potato chips, French fries, dehydrated potatoes, and starch. The global potato processing industry has had significant growth in recent years, which has been driven by the increasing demand for convenience foods and snacks.

The global potato market has been segmented on the idea of channelling into food service and retail. Potato processing is gaining importance within the food service segment due to the expansion of food delivery channels and the increase in demand for nutrition. Aside from the demand for full-service and quick-service restaurants, an increase in the number of national and international brands within the hotel industry is predicted to drive the demand for potato products within the food service industry during the forecast period.

COVID-19 Impact analysis

As per Cedric Porter, manager of World Potato Markets magazine, the Corona-infection significantly affected the worldwide potato industry since its disclosure and spread recently. Coronavirus was on the surge as farmers in the northern half of the globe arranged to plant potatoes. Numerous producers around the world planted more table assortments in light of expanded purchaser interest for these potatoes that fell strongly. 

Top Impacting Factors

· The Potato processing market has been segmented into frozen, chips & snack pellets, dehydrated, etc. The frozen segment dominated the worldwide potato processing market, and this trend is predicted to continue through the forecast period. 

· Frozen potato products are highly consumed due to the rise in demand for french-fried potatoes, served in restaurants and nutrition chains, worldwide. The chips & snack pellets segment was the second-largest thanks to the growing popularity of potato chips among the young population and simple availability.

· Processed potato products utilized in ready-to-cook & prepared meals may be a booming market thanks to the rise in consumer preference for food products, busy work schedules, and on-the-go consumption habits. Aside from ready-to-cook & prepared meals, processed potato products also find applications within the snacks segment, like potato-based snacks with low carbs, low salt, air-dried, baked products with a variety of flavors, which also drives the demand for the potato processing market.

Market Trends

The processed potato market is highly competitive, with many players competing for a share of the market. Global Potato Processing market size is expected to reach USD 46.99 billion by 2030 

Some of the key trends in the industry include:

· Rising demand for convenience foods - Consumers are increasingly looking for foods that are easy to prepare and consume, which has driven growth in the potato chip and French fry markets.

· Increasing health consciousness - As consumers become more health-conscious, they are looking for healthier snack options, which has led to an increase in demand for baked chips and low-fat French fries.

· Growing demand for dehydrated potatoes - Dehydrated potatoes have a longer shelf life than fresh potatoes and are used in a range of applications, including mashed potato mixtures and snacks.

Other Processing Methods

There are several methods of potato processing, which include:

· Slicing - Potatoes are sliced to make potato chips and French fries.

· Drying - Potatoes are dehydrated to make potato flakes, which can be used to make mashed potatoes and other potato dishes.

· Extrusion - Potatoes are extruded to make potato sticks and other types of snacks.

· Freezing - Potato products, such as French fries, are frozen to extend their shelf life.

· Starch production - Potatoes are used to produce starch, which is used in a range of food applications, including bakery products and snacks.

Challenges

Despite the many opportunities in the potato processing industry, there are also several challenges that businesses in the industry face, including:

· Rising costs of raw materials and energy - Potatoes are one of the key raw materials in the industry, and fluctuations in potato prices can have a significant impact on profitability.

· Increasing competition - The industry is highly competitive, with many players competing for a share of the market.

· Changing consumer preferences - The industry is subject to changing consumer preferences, which can impact demand for different types of potato products.

 

New Technologies and Innovations

To remain competitive in the potato processing industry, businesses need to keep up with new technologies and innovations. Some of the latest trends include:

1. Automation - Automating certain aspects of the processing line can improve efficiency and reduce labor costs.

2. Sustainable practices - Consumers are increasingly concerned about the environmental impact of food production, so implementing sustainable practices such as reducing waste or using renewable energy sources can be a selling point.

3. New product development - Developing new products that cater to changing consumer preferences, such as gluten-free options or plant-based snacks, can help businesses stay ahead of the competition.

4. Digital marketing - Using digital channels to promote products and engage with customers can be an effective way to increase brand awareness and drive sales.

5. Precision agriculture - Adopting precision agriculture techniques, such as using drones or sensors to monitor crop growth, can improve yield and reduce input costs.

By incorporating these new technologies and innovations into their operations, potato processing businesses can stay competitive in a rapidly evolving market.

6. Food safety measures - Implementing strict food safety measures can help businesses build trust with consumers and avoid costly recalls or lawsuits.

As the potato processing industry continues to grow, businesses must adapt to changing consumer preferences and market trends while also addressing challenges such as rising costs and competition. By embracing new technologies and innovations, such as automation, sustainable practices, and digital marketing, businesses can remain competitive in a dynamic market. Additionally, prioritizing food safety measures is crucial for maintaining consumer trust and avoiding potential legal issues. Overall, the potato processing industry offers many opportunities for growth and success for businesses that are willing to invest in innovation and strategic planning.

Conclusion

The potato processing industry offers many opportunities for businesses looking to enter the market. However, businesses need to be aware of the challenges in the industry and develop strategies to address them if they want to succeed.

Learn more at our skills and knowledge transfer sessions near you.

All Rights Reserved @Farmer’s Pride International