The frozen potato market is projected to experience considerable expansion, with its value expected to grow from $66.32 billion USD in 2024 to $70.42 billion USD in 2025, reflecting a compound annual growth rate (CAGR) of 6.2 per cent.
This growth can be attributed to several factors, including changing consumer lifestyles, the increasing popularity of fast food restaurants, the globalization of the frozen potato industry, urbanization, and a rising demand for convenience foods, according to a recent press release.
By 2029, the market is anticipated to reach $85.31 billion USD, achieving a CAGR of 4.9 per cent. This sustained growth will be driven by similar trends, as well as a growing consumer interest in healthier options, plant-based alternatives, and sustainable choices in the frozen potato segment.
One of the main catalysts for this market growth is the booming fast-food industry. Frozen potatoes are essential in this sector due to their convenience, consistent quality, and longer shelf life compared to fresh potatoes. According to Budget Branders, expenditures on fast food have reached an estimated $200 billion USD annually in 2023, with projections indicating this figure could rise to $931.7 billion USD by 2027 in the United States alone. This sharp increase underscores the vital role that frozen potatoes will play in meeting the demands of the fast-food market.
Major companies within the frozen potato industry are increasingly focusing on product innovation to align with evolving consumer preferences and capitalize on emerging opportunities.
Frozen potato products are typically convenient, pre-packaged items that are processed and stored for efficient distribution. For instance, Amul, a dairy company based in India, launched a new range of frozen potato products in November 2022, including French fries, potato wedges, hash browns, and burger patties. This strategic move allows Amul to diversify beyond dairy products while leveraging its established infrastructure and distribution network.
As the frozen potato market continues to evolve, industry participants are well-positioned to adapt to changing consumer dynamics and drive future growth.
