Sweet Potato Products Market - Forecast(2023 - 2028)

Key Takeaways

• Geographically, the Asia-Pacific Sweet Potato Products Market accounted for the highest revenue share in 2021 and it is poised to dominate the market over the period 2022-2027.
• Tons of health benefits associated with sweet potatoes are said to be a preeminent driver driving the growth of the Sweet Potato Products Market. Environmental challenges and curving demand due to lockdowns are said to reduce the market growth.
• Detailed analysis on the Strength, Weaknesses, and Opportunities of the prominent players operating in the market will be provided in the Sweet Potato Products Market report.

Sweet Potato Products Market Segment Analysis-By Application

The Sweet Potato Products Market based on the application type can be further segmented into food and beverages, sweeteners, and animal feeds. The food and beverages segment held the largest share in 2021. The growth is owing to rising applications and demand for sweet potato products. Globalization has made RTE products like dried chips a renowned snack option throughout the globe. According to a report, around 86% of the US and 84% of Great Britain's population consumes chips. On another hand, the availability of innovative flavors has its fruitful contribution in intensifying the overall demand for such products. Moreover, the food and beverages segment is estimated to be the fastest-growing segment with a CAGR of 5.6% over the forecast period 2022-2027. This growth is owing to a broadening demand for natural sweeteners in confectionery items and other energy drinks. Moreover, as western influence is growing in middle- and lower-income countries, the taste and preferences of people are changing. Consequently, the demand for products such as snack pellets, pectin, and others is enlarging. Moreover, the low-fat nature of sweet potatoes is alluring to several obese consumers as they don’t pose any detriment to health.

Sweet Potato Products Market Segment Analysis-By Distribution Channel

The Sweet Potato Products Market based on distribution channels can be further segmented into offline platforms (=hypermarkets/supermarkets, convenience stores, smaller retail shops, and others), and online platforms. The offline segment held the largest share in 2021. The growth is owing to the far-reaching presence of retail outlets in urban and pastoral areas. According to a report, 12-13% of sales in the U.S. happen through online mediums whereas, more than 90% occurs offline as of 2021. The majority of consumers still believe that offline channels are much better as compared to online as they extend security while browsing. On another hand, due to eventful lives, busy shoppers love to shop in bulk at supermarkets. Nevertheless, the offline segment is estimated to be the fastest-growing with a CAGR of 6.0% over the forecast period 2022-2027. The growth is owing to the trust of people on offline platforms. There is no doubt about it that online platforms are gaining relevant market share but still, it is quite low. It will take more than 10-12 years for online options to flourish and function properly in pastoral areas. More than 3 billion people still live in the countryside as of 2021. Out of which majority of them are deprived of online shopping facilities.

Sweet Potato Products Market Segment Analysis-By Geography

The Sweet Potato Products Market based on Geography can be further segmented into North America, Europe, Asia-Pacific, South America, and the Rest of the World. North America held the largest share with 38% of the overall market in 2021. The growth in this segment is owing to the massive consumption of chips in North American countries. More than 80% of the total American population consumes crisps. According to a national consumer survey (NHCS), around 284.3 million residents consumed chips in 2020. On another hand, a state-of-the-art network of distribution channels acts as a potent trigger and encourages people to make such purchases. Europe stands second highest in terms of total sweet potato product consumption with GB and France being the leading players. However, Asia-Pacific is expected to be the fastest-growing segment over the forecast period 2022-2027. This growth is owing to factors such as the presence of countries with the largest consumption of sweet potatoes. According to a report, around 70-80% of sweet potato world supply comes from China only. Even though the consumption in China is less compared to the U.S. and other European nations, around 55-60% of total production is used as animal feeds in China. But with growing western influence in other countries like India, Pakistan, Indonesia, Japan, and others the overall consumption is anticipated to rise. On the other hand, enlarging the disposable income of residents is another prominent reason behind the growth of the respective market in this segment.

Sweet Potato Products Market Drivers

Enlarging health awareness among people is Anticipated to Boost Product Demand

CVDs have merged as the leading cause of death throughout the globe. A report claimed that 1 in every 4 deaths in the U.S. occurs due to heart attack, and around 659,000 people lost their lives due to heart attacks in 2021. Moreover, with the relentless pace at which diabetes and obesity are proliferating, they are expected to reach epidemic proportions before long. On another hand, in the last two decades, blindness problems have come to the foreground like never before. In 2020, there were more than 49 million people who were suffering from blindness and 221.4 million with moderate visual impairment. Whereas, according to WHO, around 1 billion people had vision impairment (near/distant) in 2021. Considering such a massive surge in figures of illnesses people are turning more conscious about health and consuming all sorts of products deemed to be helpful in promoting health and sweet potatoes being one of them thus driving the market growth.

Enlarging flavor options and Contemporary manufacturing processes and broadening mergers & acquisitions are Expected to Boost Product Demand

With technological advancements, several top-notch manufacturing processes have been invented where frying of chips occurs in vessels and temperature is kept under control through machines. According to tastewise, sweet potato is the topmost ingredient for fries with demand from 34.01% of the population. Therefore, the presence of such machines that have reduced all the manual monitoring is playing a considerable contribution to the growth of the sweet potato products market. Besides, recently India revoked PepsiCo’s potato chips patent which will allow many farmers and MSMEs to produce chips on a wide scale. On another hand, players in their respective markets are undergoing various mergers and acquisition activities to gain a larger share of the sweet potato products market.

Sweet Potato Products Market Challenges

Environmental complications and reduced focus on research due to the COVID-19 are Anticipated to Hamper Market Growth

Environmental complications are posing a severe and sizable threat to the sweet potato products market, which is anticipated to strangle the growth of the aforementioned market. Due to rising global warming, the evaporation of water has spurred. Consequently, the atmosphere is holding more moisture and resulting in excessive rainfall throughout the year and damaging the crops. On another hand, the soil is losing its richness and fertility considering the widescale use of fertilizers which is anticipated to reduce the overall yield. According to AG Marketing Resource Center, U.S. sweet potato production has increased substantially over the last 15 years but has started to decrease slowly. The production was 30.67 million hundredweight in 2020 with an estimated value of $726.18 million. The decrease in sweet potato production is due, in part, to a decrease in acreage harvested from 163,300 acres in 2016 to 156,800 acres in 2020. On another hand, the overall demand for such products is declining due to the COVID-19.

Sweet Potato Products Industry Outlook:

Product launches, mergers and acquisitions, joint ventures, and geographical expansions are key strategies adopted by players in the Sweet Potato Products Market. Key companies of this market are-

1. J. R. Simplot Company
2. Yantai China Pet Foods
3. The Kraft Heinz
4. Lamb Weston Holdings
5. Dole Food Company
6. Nash Produce
7. McCain Foods
8. Bright Harvest Sweet Potato
9. Ham Farms
10. ConAgra Foods

Recent Developments

• On July 13, 2021, Spudsy, an American brand that is well-known for manufacturing crispy snacks launched its sweet potato fry in the whole food market. Spudsy claimed that the product has longer shelf stability and is totally gluten and grain-free. The launch is anticipated to allure several vegan consumers throughout the country.
• On January 30, 2021, China-based pet food company “Yantai China Pet Foods” announced the successful acquisition of New Zealand-based company “Petfood NZ.” Yantai China acquired 70% of the total shareholding in Petfood with a payment of $24 million. The transaction extends Yantai several advantages to strengthen its pet food portfolio.
• On January 17, 2020, Idaho, United States-based food processing, farming, and fertilizer manufacturer “J. R. Simplot” announced that it has successfully acquired US-based farm supply distribution firm “Pinnacle Agriculture.” The finances of the deal were kept hidden by the company. The acquisition extended Simplot a strategic advantage over its competitors.

Relevant Links:

Potato Chips and Crisps Market – Forecast (2022 - 2027)

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