The key players operating in the global frozen potato market include Lamb Weston Holdings, Inc.; McCain Foods Limited; The Kraft Heinz Company; J.R. Simplot Company; Bart’s Potato Company; Aviko B.V; Agristo NV; Greenyard; Himalaya Food International Ltd.; and Farm Frites International B.V. These companies are highly focused on developing high-quality and innovative products to fulfill the changing requirements of customers. Players realized the immense potential of frozen potato and were highly involved in merger and acquisition, product innovation, and other such market initiatives.
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There is a surge in demand for frozen food due to the rising purchasing power and growing consumer preference toward convenience food items. As the lifestyle of the consumers is changing, the demand for convenience products is also increasing. The demand for convenience food is increasing as the consumers are now leading a hectic lifestyle due to the workload. Globally, there has been significant growth in the women’s employment rate. The woman employment rate in the US and China is 55.4% and 60.4%, respectively. As women’s employment is increasing, it becomes difficult for them to manage household work and office work. It becomes difficult for them to cook meals because of the lack of time. Due to this reason, the demand for convenience food like frozen products—which includes frozen potatoes, frozen meats, and frozen snacks—has increased in recent years.
Moreover, there has been a significant rise in the number of single-person households in recent years that also contributes to the demand for convenience food. Frozen potatoes are readily available in retail outlets or stores, as well as various fast-food chains, hotels, and quick-service restaurants. The rise in the number of retail outlets, convenience stores, and supermarkets has increased the availability of ready-to-eat food, propelling the frozen potato industry to new heights. Frozen potatoes give the same benefits and taste as fresh potatoes but have a longer shelf life, which is boosting the market growth. Furthermore, foods such as French fries and wedges are becoming increasingly popular globally, particularly among children and youth, which is catalyzing the growth of the frozen potato market.
Frozen potato market: segmental overview
In terms of product, the frozen potato market is segmented into French fries, hash brown, shaped, mashed, battered/cooked, topped/stuffed, and others. The French fries segment is projected to grow at the fastest CAGR over the forecast period due to the rising demand from quick-service restaurants. Quick service restaurants are one of the major consumers of French fries because it requires less preparation time.
Based on end users, the frozen potato market is segmented into residential and commercial. The commercial segment accounted for a larger share of the frozen potato market in 2020. The majority of the frozen potato companies have a very short supply chain, and they deliver the produce almost regularly to convenience stores and supermarkets, including Walmart and Wholefoods. Retail stores such as hypermarkets and supermarkets have a high customer traffic. Therefore, companies distribute their products through different retail channels to enhance sales. Moreover, these stores have modern storage facilities which keep the frozen potato fresh. Thus, the high consumer traffic in various commercial stores is projected to increase the segment’s growth during the forecast period.
Impact of COVID-19 pandemic on frozen potato market:
The COVID-19 pandemic has affected economies and industries in various countries due to lockdowns, travel bans, and border restrictions. The food & beverages industry has also suffered severe disruption due to the shortage of raw material, labor, and shutdown of production units. During the initial days of the pandemic, various companies announced possible delays in product deliveries and slump in future sales of their products. In addition, the global travel bans imposed by countries in Europe, Asia, and North America have been affecting business collaborations and partnership opportunities. However, the demand for frozen potatoes remained steady even during the lockdowns. The COVID-19 outbreak has considerably increased the demand for frozen food because it retains nutrition for longer and has a longer shelf life than fresh vegetables. The lockdown situation worldwide increased the demand for frozen food products, enabling customers to avoid regular market visits. This factor also positively impacted the demand for frozen potatoes during the initial months of the COVID-19 pandemic. However, due to supply chain disruptions, raw material and labor shortages, and operational difficulties, there was a demand and supply gap that affected the global frozen potato market growth. For instance, McDonald’s Japan discontinued sales of medium and large-size orders of French fries in mid-December due to the chain’s continuing potato shortage. Moreover, due to the opening of restaurants and cafes across the globe, the frozen potato market is expected to witness significant growth in the coming years. Furthermore, residential sales grew significantly even during lockdowns as consumers had more family meals at home than ever before, and they were looking for convenient and cost-effective food products.
