Project report for Potato Chips

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Potato chips are one of the most popular ready to eat snacks item in India. And any individual can start a small-scale manufacturing project with small capital investment. Additionally, from the same unit, you can produce french fries and banana wafers also. It will increase the overall profitability of your unit. Currently, the potato chips are available in different tastes and flavors. The list includes salty, sour, sweet, hot sauce, ketchup, light salted, red hot, etc. Potato chips in the pouch packets are the most popular in the market. Additionally, hotels, restaurants, and caterers are the major institutional buyers of this item. Also, the product has great export potential.

A potato chip is a thin slice of potato that has been either deep fried or baked until crunchy. They are commonly served as a snack, side dish, or appetizer. The basic chips are cooked and salted; additional varieties are manufactured using various flavorings and ingredients including herbs, spices, cheeses, other natural flavors, artificial flavors, and additives. Potato chips form a large part of the snack food and convenience food market in Western countries. The chips were commonly prepared in someone's kitchen and then delivered immediately to stores and restaurants or sold on the street. Shelf-life was virtually nil. The chips were hand-packed into the bags, which were then ironed shut.


Market potential & Strategy

The global potato chips market reached a value of INR 231, 500 Crores in 2020. The market is further expected to exhibit moderate growth during 2021-2026. Potato chips represent one of the most popular snack foods consumed across the globe. These are thin slices of potato which are seasoned after being fried until crisp. Developing countries are expected to drive the global potato chips market in the coming years. Earlier, the consumption of potato chips was largely confined to the western countries. However, with the emerging trend of westernization of food consumption patterns in addition to growing economy, rise in middle class population and increasing urbanization, the consumption of potato chips in developing countries is expected to grow at a significant rate.

The growth of the organized retail sector is currently having a positive impact on the global potato chips market. Earlier, number of global players were hesitant to sell their products in emerging regions because of lack of infrastructure, storage facilities, and appropriate knowledge about the developing markets. However, with an increase in the number of organized retail stores, many players are investing in these markets. This is anticipated to eventually result in the augmented consumption of potato chips during the next few years. Due to the rising health consciousness among global population, several potato chips manufacturers are launching value added products that are healthier as compared to traditional potato chips. This includes products with reduced fat and calorie content, fortified with healthy ingredients, lower cholesterol, etc. Chips that are gluten-free, non-GMO verified and made with sea salt, natural colors and flavors are gaining more popularity than the traditional ones. These are some factors which are having a direct impact on the growth of the market.

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