Project report for Potato Processing Industry

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India is the world's third largest potato-producing nation, although its potato-processing industry is still in its infancy. Indian potato processing industry has emerged fast due to economic liberalization coupled with growing urbanization, expanding market options and development of indigenous processing varieties. Currently about 40% of total potato produce is being processed in organized and unorganized sector. Potato processing industry mainly comprises 4 segments: potato chips, French fries, potato flakes/powder and other processed products. However, potato chips still continue to be the most popular processed product. The major challenge facing the industries lies in arranging round the year supply of processing varieties at reasonable price for their uninterrupted operation, besides several others which have been discussed at length and addressed with concrete solutions.

Potato consumption is migrating away from raw potatoes and toward manufactured food products. Potatoes are processed to improve their taste, flavour, and shelf life. Frozen potatoes, which include French fries provided in most quick-service restaurants (QSRs) around the world, are one of the most popular commodities in the processed potato market. Potato crisps, another manufactured product, are the most popular snack foods in developed countries. The potato processing industry is thriving, and it's going through a time of expansion, thanks to rising global demand for vegetarian foods, the growth of the hospitality business, hotel dining, the growth of the processed food industry, and customer desire for higher quality and sustainability.

Market potential & Strategy

The potato Processing Market size is estimated to reach INR 2,887.16 Crores by 2027, growing at a CAGR of 5.3% during the forecast period 2022-2027. Potato processing is performed to satisfy the considerable demand ensuing from different uses of processed potato-like processed food, animal feed, biofuel, and glue. Processed foods like potato fries and chips are acquiring recognition among the consumers principally owing to their taste. Just produced potatoes are baked, boiled, or fried and utilized in an overwhelming series of recipes like mashed potatoes, potato pancakes, potato dumplings, twice-baked potatoes, potato soup, potato salad, potatoes and more. The potato chips and wafers are recognized processed food items that offer significant value addition to potatoes. The soaring demand for snacking options like potato chips which is also a convenient food is set to propel the growth of the Potato Processing Market during the forecast period. The snack pellet production line utilizes potato starch, potato flakes, corn starch, corn powder, wheat flour, cassava starch, and more as raw materials which are subjected to the pellet production technique of blending, extruding, forming, and drying to generate dried snack pellets. This manufacturing technique of snack pellets can generate numerous innovative forms. The surging demand for vegetarian food products like potato pancakes and potato chips in conjunction with the consumer demand for greater quality and sustainability is set to drive the Potato Processing Market Industry analysis indicates that demand for processed potatoes has been rising substantially and their adoption has been increasing in parallel due to changing market trends and consumption patterns, and these factors are expected to continue to support industry growth as well as market growth over the forecast period.

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