Chip off the block: Growth is limited by health consciousness but may be boosted by innovation

Operators in the Potato Crisps and Snacks Production industry include manufacturers of frozen and dehydrated potatoes and producers of potato snacks and crisps. Industry revenue growth has fluctuated over the five years through 2018-19, leading to an expected compound annual growth rate of 3.3%. This includes an estimated 0.1% decline in 2018-19 to a total industry revenue of £2.2 billion. This revenue decline is in part due to health consciousness constraining demand for traditional potato products that are rich in salt and saturated fat. Rising health consciousness has increased product innovation from businesses aiming to keep up with consumer demands and food trends.Premium products, particularly in the crisp market, have surged in popularity over the past five years...read more.

Industry Statistics & Market Size
Revenue
£2.2bn
Annual Growth 14-19
3.3%
Forecast Growth 19-24
Profit
Employment
9,925
Businesses
51

Industry Threats & Opportunities

  • Operators have capitalised on consumer trends through expansion and innovation
  • Consumer preferences have shifted towards higher quality products, encouraging innovation
  • Industry growth is expected to be modest, encouraged by busy lifestyles and consumer habits
  • Industry Report - Industry Products Chapter

    Potato crispsPotato crisps account for the largest share of industry revenue and are expected to generate 51% of revenue in the current year. Crisps are products made from thin slices of potato rather than a composition containing potato flour. Examples include Walkers, McCoy's and Kettle Chips. Crisps are usually made by thinly slicing a potato and baking the slices before frying and then seasoning them. Crisps such as Pringles, which are made from dough comprised of potato, rice and corn flours, are also included in this segment. Crisps are the most popular savoury snack foods in the United Kingdom. Revenue generated by potato crisps has increased modestly over the five-year period through 2018-19 due to the sustained trend of snacking. Alt...purchase to read more.

    Additional Insights for the Potato Crisps & Snacks Production Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Potato Crisps & Snacks Production Industry are

  • Ensuring pricing policy is appropriate
  • Establishment of brand names
  • Maintenance of excellent customer relations
  • IBISWorld analysts also discuss how external factors such as Demand from supermarkets and Health consciousness in the Potato Crisps & Snacks Production industry impact industry performance..

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    What's in this report

    What is the Potato Crisps & Snacks Production Industry?

    Businesses in this industry produce potato snacks, crisps, flour and meal, as well as dehydrated mashed potatoes and prepared frozen potatoes. This industry also includes industrial potato peeling. Companies that are contracted by retailers to produce own-label potato products are also included in this industry.

    Industry Products
  • Potato crisps
  • Prepared frozen potatoes
  • Potato snacks
  • Dehydrated mashed potatoes
  • Industry Activities
  • Manufacturing prepared frozen potatoes
  • Manufacturing dehydrated mashed potatoes
  • Manufacturing potato snacks
  • Manufacturing potato crisps
  • Manufacturing potato flour and meal
  • Industrial potato peeling
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Demand from supermarkets
  • Health consciousness
  • Demand from grocery wholesaling
  • Demand from pubs and bars
  • Household expenditure on food and non-alcoholic beverages

  • Current Performance
  • Healthy snacking
  • Going global
  • Premium growth
  • Profit freeze
  • Chart: Revenue Growth

  • Industry Outlook
  • Trading bloc
  • Supermarket competition
  • Table: Potato Crisps & Snacks Production Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Potato Crisps & Snacks Production Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Grocery Wholesaling
  • Supermarkets
  • Full-Service Restaurants
  • Takeaway & Fast-Food Restaurants
  • Pubs & Bars

  • Key Selling Industries
  • Condiments & Seasoning Manufacturing
  • Food & Beverage Processing Machinery Manufacturing
  • Vegetable Growing

  • Products & Services
  • Potato crisps
  • Prepared frozen potatoes
  • Potato snacks
  • Dehydrated mashed potatoes
  • Chart: Potato Crisps & Snacks Production Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Supermarkets
  • Wholesalers
  • Food-service industries
  • Chart: Major Market Segmentation for the Potato Crisps & Snacks Production Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesMarketingOther costs
  • Chart: Cost Structure Benchmarking – Sector vs Potato Crisps & Snacks Production

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Potato Crisps & Snacks Production Industry

  • Industry Globalization
    McCain Foods (GB) Limited, KP Snacks Limited, Walkers Snack Foods Ltd,
  • Table: McCain Foods (GB) Limited - financial performance
  • Table: KP Snacks Limited - financial performance
  • Table: Walkers Snack Foods Ltd - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Potato Crisps & Snacks Production Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Potato Crisps & Snacks Production Industry
    Includes:
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Exports (2010-2024)
  • Imports (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Acrylamide
  • A chemical substance formed when starchy foods, such as potatoes and bread, are cooked at high temperatures (above 120°C).
  • Dehydrated Mashed Potato
  • Potato that has been cooked, mashed and processed into a powdered form that can be quickly turned back into mash by adding water or milk.
  • Saturated Fat
  • Fat consisting only of saturated fatty acids. Consuming large amounts is associated with major health problems, including cardiovascular disease.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Potato Crisps & Snacks Production market research report offers insightful industry analysis and research into the market at the national level. IBISWorld’s in-depth industry market research is presented in a logical and consistent format. The industry report contains key industry statistics, market size, industry trends, and growth and profit forecasts for a 5-year outlook period.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
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    This report on Potato Crisps & Snacks Production:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Potato Crisps & Snacks Production market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Potato Crisps & Snacks Production, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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