Organic Chips Market– Statistics And Analysis & Forecast To 2025

Posted by Mrudula Anil Karmarkar on December 22nd, 2020

The global organic chips market size is expected to reach USD 18.6 billion by 2025, according to a new report by Grand View Research, Inc., expanding at a CAGR of 4.1% over the forecast period. Changing eating habits of the population is majorly driving the sales of organic chips owing to consumer’s shift towards eating between the meals in a day. Additionally, the trend of consumption of clean-label food products on a global level is expected to drive the market.

Amidst the global pandemic crisis and the indefinite lockdown across nations, the consumer food & beverage industry first witnessed high demand for household staples, healthy food items, and consumables with longer shelf lives. The demand for frozen food products, fruits & vegetables, eggs, flour, and whole grains, among others, witnessed a considerable increase during the early stages of the crisis. Presently, most companies in the industry are faced with low consumption of their products and supply chain challenges. The companies are focusing more on altering their supply chains in order to reinforce their online presence and delivery measures, in an attempt to adapt to the present business environment. The changes in consumer buying behavior and the dynamic shifts towards online and D2C distribution channels may have serious implications on the near future growth of the industry. Our team is diligently working towards accounting these factors in our report with the aim of providing you with the up-to-date, actionable market information and projections.

Increasing availability of advanced distributing channels and networks for organic chips including hyper/supermarkets is expected to fuel the demand. Manufacturers are focusing on targeting the demographic of urban consumers willing to switch from the conventional and other baked chips to healthier alternatives. They are majorly strategizing on involving more product variations in the portfolio to grab the attention of the consumers. Growing health awareness and demand for chemical free food products are the major factors propelling the market growth. High investment in the research and development sector is expected to fuel the revenue of the major players in the market.

In 2018, North America held the largest share of 34.2% in terms of revenue. Growing popularity of organic chips and rising prevalence of obesity in the countries such as U.S. have propelled the market growth in the region. Another factor boosting the market growth in North America is the strong presence of the key players in the country such as Kettle Foods, Inc. (U.S.), Luke’s Organic, General Mills Inc., and The Hain Celestial Group, Inc. (U.S.). Asia Pacific is expected to witness the fastest growth in the market over the forecast period due to improving economic conditions and growing disposable income of consumers in the region.

Organic Chips Market Report Highlights

• On the basis of product type,fruit organic chips are projected to expand at a CAGR of 4.3% in terms of revenue over the forecast period. The vegetable product segment dominated the global market with a share of 34.9% in 2018
• North America dominated the organic chips market in 2018, which constituted for 34.2% of the market. This trend is projected to resume over the next few years
• Countries such as Germany and France are expected to be the major markets, due to high disposable income of the consumers, followed by India, China, and Japan in Asia Pacific
• Various manufacturers are concentrating on product portfolio expansion to fulfill the consumer demand for a variety in the organic chips taste-wise and estimating existing and future demand patterns from upcoming application segments.

The product segment of the market is categorized as vegetable, fruits, cereal, and grain. The vegetable product segment hold the largest share of the overall revenue, due to its easy availability and popularity. In addition, consumer preference for potato chips over any other fruit chips is another factor driving the segment.

Apart from vegetables, cereal and grain chips are expected to witness high growth due to awareness of the health benefits of cereals and grains. Increasing demand for spices in these organic products in Asia Pacific has provided opportunities to the players for their product portfolio expansion in order to maintain a strong foothold in the market.

Changing eating habits of the population are majorly driving the sales of organic chips owing to consumer’s shift towards eating between the meals in a day. For instance, consumers in North America are more inclined towards having short meals several times a day, and their health-conscious nature compels them to consume organic food. Their short meals include snacks, which primarily include chips. This, in turn, becomes one of the major driving factors in the market.

Manufacturers are engaged in improvising their production process and further development of value addition to their existing products, owing to the growing demand for varieties in organic chips by the consumers. For example, in January 2018, Barnana penetrated the salty snacks category by launching ridged plantain chips. The company’s strategy is to involve more in product innovations that grabs consumer’s attention.

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The market is considered to be competitive due to the presence of a significant number of established players who are identified to be investing more in R&D activities in order to create product differentiation. Various manufacturers are also engaged in the production plant-based chips, targeting the vegan population of the globe, since a large number of consumers are observed to be inclined towards veganism. For instance, in May 2017, Eat Real, which is a U.K.-based company, announced the launch of three new organic vegan and gluten-free snacks as an addition to its product portfolio, namely organic hummus, organic veggie straws, and organic lentil chips.

Manufacturers are also strategizing in designing their products with different flavors and added benefits in order to increase their revenue. Moreover, in order to suffice the rising demand for chemical-free snacks, some manufacturers are more inclined towards natural and organic flavors. For instance, in January 2017, Bare Snacks announced the launch of a new range of their Bare Organic Coconut Chips, in three new flavors namely, coffee bean, sweet ginger, and toasted. Key players having a strong foothold in the market include The Hain Celestial Group, Inc. (U.S.); Tyrrells Potato Crisps Limited (U.K.); Kettle Foods, Inc. (U.S.); Popchips (U.S.); Rhythm Superfoods (U.S.); Luke’s Organic (U.S.); and General Mills Inc. (U.S.).

Grand View Research has segmented the global organic chips market on the basis of product type, distribution channel:

Organic Chips Product Type Outlook (Revenue, USD Billion, 2015 - 2025)

• Vegetable
• Fruits
• Cereal
• Grain

Organic Chips Distribution Channel Outlook (Revenue, USD Billion, 2015 - 2025)

• Retail and Supermarket
• Online Platform

About Grand View Research

Grand View Research, Inc. is a U.S. based market research and consulting company, registered in the State of California and headquartered in San Francisco. The company provides syndicated research reports, customized research reports, and consulting services. To help clients make informed business decisions, we offer market intelligence studies ensuring relevant and fact-based research across a range of industries, from technology to chemicals, materials and healthcare.

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