Dehydrated Potato Market Share To Rise by USD 12.1 Bn | 2033

Updated · Jan 10, 2025

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Table of Contents

Overview
Key Takeaways
Key Market Segments
Regional Analysis
Top Use Cases
Recent Developments
Conclusion

Overview

New York, NY – January 10, 2025 – The global Dehydrated Potato Market is experiencing significant growth, driven by the increasing demand for convenience foods and ready-to-eat meals. In 2023, the market was valued at approximately USD 6.2 billion and is projected to reach around USD 12.1 billion by 2033, reflecting a compound annual growth rate (CAGR) of 6.9% during the forecast period from 2024 to 2033.

This growth is primarily attributed to the rising consumer preference for quick and easy meal solutions, which has led to a surge in the popularity of dehydrated potato products. These products offer extended shelf life, ease of storage, and versatility in various culinary applications, making them highly attractive to both consumers and food manufacturers.

The market’s expansion is further supported by innovations in food processing technologies, which have enhanced the quality and flavor of dehydrated potatoes, thereby broadening their appeal. Additionally, the growing trend toward plant-based diets and the increasing consumption of processed and packaged foods are contributing to the market’s upward trajectory. As urbanization continues and lifestyles become busier, the demand for convenient and nutritious food options is expected to drive further growth in the dehydrated potato market.

Key Takeaways

The global Dehydrated Potato Market generated a revenue of USD 6.2 billion, with a CAGR of 6.9%, and is expected to reach USD 12.1 billion by the year 2033.
The product form segment held a major share of the market, with the powder segment taking the lead in 2023 with a market share of 40.5% owing to the ease of handling of powdered dehydrated potatoes.
By nature, the conventional segment accounted for a significant share of 55.8% due to its wide scope of applications in various foodstuffs.
By distribution channel, the food service among the other sub-segments held a significant revenue share of the market with 36.8% of the global dehydrated potato market.
Asia Pacific region led the market by securing a market share of 38.8% in 2023.

Key Market Segments

The Dehydrated Potato Market is divided into several product forms, including powder, dice, flakes, shreds, and others. Among these, the powder segment captured the largest market share of 40.5% in 2023, primarily due to its versatile application across various food products. Dehydrated potato powder is widely used to enhance the flavor and texture of soups, broths, curries, baked goods, snacks, and sauces.
The Dehydrated Potato Market is categorized into organic and conventional segments. In 2023, the conventional segment accounted for a significant share of 55.8%, primarily due to its affordability. Conventional dehydrated potatoes are made from non-organic potatoes, which are cheaper to produce because they are cultivated under general conditions with a mix of natural and artificial fertilizers. This cost advantage enables manufacturers to offer these products at a lower price, thus boosting the demand for conventional varieties.
The global Dehydrated Potato Market is also segmented by distribution channel into supermarkets/hypermarkets, convenience stores, food services, online platforms, and other channels. The food service segment saw remarkable growth, with a revenue share of 36.8%, driven by the growing popularity of street foods and quick-serve restaurants. Well-known fast-food chains such as KFC, McDonald’s, and Burger King rely heavily on dehydrated potatoes for their signature dishes. The rising trend of dining out, combined with increased social media exposure to food trends, is expected to continue fueling this segment’s growth.

Regional Analysis

The Asia Pacific region leads the global dehydrated potato market, accounting for the largest revenue share of USD 2.40 billion and holding a 38.8% share in 2023. This dominance can be attributed to major potato-producing countries like China, India, Japan, and Vietnam, which ensure a steady supply of raw materials for local producers. The abundant availability of potatoes allows regional players to produce and distribute dehydrated potato products on a large scale, creating opportunities for international trade.

The growing population in Asia Pacific is also driving the demand for ready-to-make meals and fast food, further boosting the market. In addition, governments in the region are investing significantly in food technology and processing industries, which is expected to propel market growth in the coming years.

Top Use Cases

Instant Mashed Potatoes: Dehydrated potato flakes are commonly used to prepare instant mashed potatoes. By simply adding hot water, consumers can enjoy mashed potatoes without the need for peeling, boiling, or mashing fresh potatoes. This convenience appeals to busy households and food service providers.
Soup and Sauce Thickener: Dehydrated potato flakes serve as effective thickeners for soups, gravies, and sauces. Their natural starch content helps achieve the desired consistency without altering the flavor profile of the dish. This application is particularly useful in the food industry for mass-produced products.
Baking Ingredient: In baking, dehydrated potato flakes can be incorporated into bread and dough recipes to enhance texture and moisture retention. They contribute to a softer crumb and extended shelf life of baked goods. This use is prevalent in commercial bakeries seeking consistent product quality.
Emergency Food Supply: Due to their long shelf life and ease of storage, dehydrated potatoes are a staple in emergency food kits and preparedness plans. They provide a reliable source of carbohydrates and can be quickly rehydrated for consumption.
Pet Food Supplement: Dehydrated potatoes are sometimes used as an ingredient in pet foods, particularly for dogs. They offer a digestible source of carbohydrates and can aid in gastrointestinal health. This inclusion caters to the growing demand for specialized pet diets.

Recent Developments

J.R. Simplot Company, In 2022, Simplot entered into a long-term agreement with Kraft Heinz to become the exclusive manufacturer and supplier of Ore-Ida products. This partnership involves Simplot taking ownership of Kraft Heinz’s potato manufacturing facility in Ontario, Oregon, expanding Simplot’s dehydrated potato production capabilities.
The Emsland Group announced plans to expand its potato flake production in Emlichheim, Germany, with total investments in the mid-double-digit million euro range. The project is set to more than double potato flake production at the site, enabling growth in food segments like snacks and potato products. Construction of a new reaction tank for starch modification (nicknamed ROxy) is planned for late 2024, with production expected to begin in 2025. This €15 million investment will enhance Emsland’s modified starch capabilities, potentially benefiting their dehydrated potato product line.
Emsland Group: In January 2024, Emsland Group announced plans to expand its potato flake production in Emlichheim, Germany, with total investments in the mid-double-digit million euro range. The project will more than double potato flake production at the site, enabling growth in food segments like snacks and potato products. Construction of a new reaction tank for starch modification (nicknamed ROxy) is planned for late 2024, with production expected to begin in 2025.
Idahoan Foods, LLC In 2023, Idahoan Foods introduced new flavors to its Steakhouse Potato Soup line and launched Fully Loaded Mashed products in single-serve cups. Idahoan’s offerings have a shelf life ranging from 9 months (for Vitamin C-containing products) to 18 months for plain slices.
McCain Foods Limited, In June 2024, McCain Foods announced the expansion of its network of innovation hub farms in North America. This initiative aims to implement regenerative agriculture practices across all of McCain’s potato acreage by 2030. On November 7, 2024, McCain Foods opened a new production facility in Kruiningen, The Netherlands.

Conclusion

The global Dehydrated Potato Market is experiencing significant growth, driven by the increasing demand for convenience foods and ready-to-eat meals. This growth is primarily attributed to the rising consumer preference for quick and easy meal solutions, which has led to a surge in the popularity of dehydrated potato products.