Australia: Potato Chips Market and the Impact of COVID-19 on It in the Medium Term

Australia: Potato Chips Market and the Impact of COVID-19 on It in the Medium Term

The potato chips market in Australia was equal to 397.00 million USD (calculated in retail prices) in 2015. Until 2025, the potato chips market in Australia is forecast to reach 580.94 million USD (in retail prices), thus increasing at a CAGR of 2.64% per annum for the period 2020-2024. This is a decrease, compared to the growth of about 5.40% per year, registered in 2015-2019.

The average consumption per capita in value terms reached 16.90 USD per capita (in retail prices) in 2015. In the next five years, it grew at a CAGR of 4.00% per annum. In the medium term (by 2025), the indicator is forecast to slow down its growth and increase at a CAGR of 1.49% per annum.

The growing “less but better” trend has been also widely seen in snack foods industry across the world. The expanding global economy and the rising incomes in many countries worldwide have stimulated consumers to switch to more sophisticated products of a higher quality, which have not only a better taste, but are also considered healthier. In order to capitalize on the premiumization trend, major players in savory snacks, particularly potato chips, have been investing in the development of their premium brands, which are usually more expensive and consumers are willing to buy them.

Now, as health concerns are at play here, people are extremely susceptible to any reformulations aiming to keep the number of calories under control. To stay relevant, leading manufacturers have been exploring the opportunity of baking and even air-frying chips, instead of frying it. This makes the product healthier by reducing the fat content, as well as preserves the nutritional value of the ingredients used.