French fries, commonly known as chips in many countries, are one of the most popular side dishes available in restaurants and fast food outlets worldwide. Made by cutting potatoes into even strips and then deep frying them in hot oil, French fries are crisp on the outside and soft inside. They have a distinctive flavor and can be easily paired with main courses, sandwiches and burgers. The global popularity of fast food chains is a key factor boosting the demand for French fries as they are one of the most commonly ordered side items in these outlets.
The Global French Fries Market is estimated to be valued at US$ 15.72 Bn in 2024 and is expected to exhibit a CAGR of 4.8% over the forecast period 2024 to 2031.
Key Takeaways
Key players: Key players operating in the French Fries market are McCain, JR Simplot, Lamb-Weston, Aviko, Farm Frites, Ore-Ida, Cascadian Farm Organic, Alexia Foods, Trader Joe's Fan, Checkers & Rally's, and Arby's IP Holder among others.
Key opportunities: The growing popularity of various fast food cuisines worldwide presents lucrative opportunities for French fries market players to expand their consumer base. Additionally, product innovation through introduction of healthier variants such as baked fries is fueling the market growth.
Global expansion: Major French fries producers are focusing on strengthening their global supply networks and distribution channels to cater to the rising international demand. Various companies are also exploring opportunities in emerging Asian and Latin American markets through partnerships with local food chains and retailers.
Market Drivers
The increasing popularity and consumption of fast food items globally is one of the key drivers for the French fries market. Fast food chains account for a major share of French fries sales worldwide owing to their prominent positioning as a side item in menus. The demand for convenient and affordable snacking options is further augmenting the consumption of French fries among consumers. Moreover, busy lifestyles have led to rising on-the-go eating habits which benefits the sales of French fries.
PEST Analysis
Political: The government policies regarding agriculture, imports and exports have a significant impact on the French fries market. Changes in policies can affect availability and price of key ingredients.
Economic: Factors such as disposable consumer income, GDP growth and population size determine the spending power of consumers. A steady economy favors growth of the food industry including French fries.
Social: Evolving dietary trends and cultural preferences impact the types of French fries consumed. Health awareness drives demand for healthier options made with minimal oil and additives.
Technological: Advancements in potato seed varieties, farming techniques and processing equipment help increase yields and quality while reducing costs. Frozen food supply chain relies on cold storage and transportation infrastructure.
The North American region accounts for the highest value share in the global French fries market due to high per capita consumption and availability of key potato varieties. Countries like the United States and Canada have suitable agro-climatic conditions and a well-established frozen food retail infrastructure.
The Asia Pacific region is expected to witness the fastest growth during the forecast period attributed to rising disposable incomes, urbanization and growth in the quick service restaurant industry. Countries such as China and India offer immense growth opportunities owing to their large population sizes and changing food consumption patterns. The region will also benefit from investments by international brands looking to tap emerging economies.
