Ans4

The global potato chips market is forecasted to witness a CAGR(Compound Annual Growth Rate) of
4.40% during the forecast period (2020 - 2025).

 Product variety, a mix of regional snacks flavors, changing consumer lifestyles and growth in
distribution channels are major factors contributing to increasing sales of potato chips across
the globe.
 The introduction of healthier alternatives, like the low-fat and low-sodium chips, in the
emerging markets also influencing the growth of the potato chips market.
 However, there are many potato chip substitutes available in the market, and this could be a
major threat and likely to hamper the market growth at some extent during forecast period.

Developing countries are expected to drive the global potato chips market during the projected
forecast period. Earlier, the consumption of potato chips was largely confined to the western
countries. However, with the emerging trend of westernisation of food consumption patterns in
addition to growing economy, rise in middle class population and increasing urbanisation, the
consumption of potato chips in developing countries is expected to grow at a significant rate.
Moreover, with the increase of infrastructure development such as metro station, cinema halls,
airport and others, the demand is expected to rise further in the developing countries particularly in
India and China. PepsiCo India acquired the country’s first home-grown potato chips brand, Uncle
Chips, in 2000 and made it the Cinderella to stepsister Lay’s, limiting distribution to a few markets in
the North and East, and virtually stopping advertising. Despite this, sales have increased 10-fold.
Uncle Chipps is now India’s No. 2 brand by volume, surpassing ITC’s Bingo and Parle’s Wafers. Uncle
Chipps attributes this to a sharp regional focus in deciding flavours, packaging, and communication.
Customers even send emails or Facebook messages asking for the brand in their cities or towns. In
the last 18 months, PepsiCo seems to have reconciled with the brand’s popularity, expanding it to
the South and West, with new flavours—Bombaat Chilli and Jhakaas Tomato—created for these
markets.

Ans5

The global potato chips market reached a value of US$ 31.2 Billion in 2020. The market is further
expected to exhibit moderate growth during 2021-2026. Potato chips represent one of the most
popular snack foods consumed across the globe. These are thin slices of potato which are seasoned
after being fried until crisp. At the time of frying, the sugar present in potatoes combine with amino
acids and turns brown which results in the yellowish-brown colour of potato chips. The growth of
the organized retail sector is currently having a positive impact on the global potato chips market.
Earlier, a number of global players were hesitant to sell their products in emerging regions because
of lack of infrastructure, storage facilities, and appropriate knowledge about the developing
markets. However, with an increase in the number of organised retail stores, many players are
investing in these markets. This is anticipated to eventually result in the augmented consumption of
potato chips during the next few years.

The global potato chips market is expected to be highly competitive in future, owing to the
increasing demand for snacks products. The market is primarily dominated by North American and
European countries, due to established culture of eating chips as a snack on a regular bass.
Moroever, China and India are experiencing increased demand for potato chips, thus adding to the
rising acceptance of the same in large proportions. The competition in this market is expected to
intensify further in the coming years due to increased industrialization, product extensions, nutrient
innovations, and high-quality, in-house manufacturing of potato chips. Some of the key players in
the global potato chips market are PepsiCo, Kellogg Company, Herr Foods Inc., and Calbee, Inc.