The Chips Revolution

Not computer chips - but potato chips: the little sins we all succumb to at different times. Potato chips, or better said, eco-friendlier and healthier versions of potato chips are predicted to be a growth market until 2032. Main drivers are new flavors, gluten free options and: sustainable packaging.

A newly released report by ResearchAndMarkets.com, titled Potato Chips: Global Forecast Report and Company Analysis 2024–2032, provides an in-depth analysis of key trends shaping the industry and forecasts substantial opportunities for manufacturers and stakeholders worldwide.

The potato chips market is adapting to the dual demand for both unique flavor experiences and healthier snacking options. Once limited to classic flavors like plain, salt and vinegar (which in my view still are the best), the market now sees a surge in gourmet innovations.

Consumers are increasingly drawn to bold and novel flavors such as truffle, exotic spices, and artisan-crafted recipes, reflecting a shift towards a more adventurous palate.

Concurrently, there is a growing emphasis on health-conscious choices, with manufacturers offering chips made from alternative ingredients like sweet potatoes, chickpeas, and kale, often baked rather than fried, to cater to the demand for snacks that align with a healthier lifestyle. This evolution within the market highlights how potato chips are no longer just a simple indulgence but a versatile snack that appeals to both traditional and modern tastes.

key draw to Growth: healthier options and eco-friendlier packaging

The potato chips sector is increasingly embracing environmental sustainability, driven by growing consumer awareness and demand for eco-friendly practices. Companies are shifting towards biodegradable and recyclable packaging to minimize their environmental footprint and meet sustainability targets.

This transition not only helps in reducing waste and conserving resources but also enhances brand image and consumer loyalty. By adopting such sustainable practices, companies are not only aligning themselves with global initiatives to combat environmental degradation but are also carving out a competitive edge in the market. A shift that reflects a broader trend across the food industry, where sustainability is becoming a key factor in consumer decision-making and brand differentiation. As consumers become more and more aware of integrating consumption more into a more aligned approach with the environment, it naturally has to impact packaging which, traditionally, has been the hardest to change and a costly aspect of consumer products. Efforts in adapting packaging contributes to a more sustainable future and can inspire other sectors to follow suit.

Eco-friendly packaging though has to go hand in hand with consumer education and education in general. To date, in the US, just judging by wrappers and empty chips bags flying on the street, it showcases that educating children and adults alike to be more conscious consumers is a long road ahead. One that must be tackled by packaging companies, retailers, teachers and parents in unison. Kids do as their parents do. So, let us invite you to bring more focus on the need of co-constructing more sustainable education hand in hand with packaging companies and consumer trends.

Dominating market expansion: the US and Europe

North America and Europe maintaining their positions as dominant markets, thanks to robust consumer demand and well-established production infrastructures. However, the Asia-Pacific region is emerging as a hotbed for rapid growth.

This surge is primarily driven by factors such as increasing urbanization, rising disposable incomes, and a burgeoning snack culture that aligns with changing lifestyle patterns.

To capitalize on this trend, manufacturers in the Asia-Pacific region are innovating by incorporating localized flavors and catering to regional preferences. This strategy not only helps them capture a larger market share but also enhances consumer engagement by offering products that resonate culturally with their target audiences.

Key Factors:

Of course, innovation and advanced manufacturing technologies as well as increased integration of artificial intelligence in production processes drive efficiency. To what extent remains to be seen long term. The large players, Pepsi Co (Lays) and Kellogg (Pringles) are strongly suited to utilize advanced technologies as the packaging industry has always been driven by innovation and volume. After all, packaging can make or break a consumer product. You can have the best product - if the packaging doesn’t capture a consumer’s interest - there’s little the product can do. So, as long as we purchase with our physical eyes and less with our hearts and consciousness, packaging will always play a key role. But: the ultimate power lies with the consumer. - Once they become aware of it and care.

Watch an episode about refills and sustainable packaging.

Time to end single use plastics: https://www.youtube.com/watch?v=Vrh8vOsDwpE

Refill Systems and Refill Product Options: Road to Sustainable Consumption? https://www.youtube.com/watch?v=DF8muExzfZY

Watch more on YT: www.youtube.com/@SmartSustainability