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Organic Chips Products Market Size, Share, & Trends Analysis Report (2023 – 2030)
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Report Overview
The global organic chips market was valued at USD 11.3 billion in 2022 and is expected to expand at a CAGR of 10.4% from 2023 to 2030. The growing demand for healthier food options is one of the major factors driving the organic chips market. In addition, the increasing awareness of the health benefits associated with organic products has been encouraging consumers to opt for organic chips over conventional chips. The organic chips market is driven by the increasing demand of consumers for organic, natural, and healthy snacks.
Organic chips are made with organic ingredients and are free of pesticides and preservatives. The growing demand for organic and natural food products is increasing the demand for organic chips. Furthermore, the rising health-consciousness among consumers is driving the growth of the organic chips market. Consumers are becoming increasingly aware of the health benefits associated with organic products, which is resulting in the high demand for organic chips.
Furthermore, the rising demand for snacks with natural ingredients is driving the organic chips market as organic chips are made without synthetic chemicals. Additionally, organic chips are gluten-free and contain a high concentration of nutrients and minerals. Moreover, organic chips do not contain any trans fat or hydrogenated oil, which further enhances its health benefits.
The increasing demand for organic chips from the retail sector is also driving the market growth. Consumer preference for organic items is rising, and the retail sector is expanding to meet the demands of health-conscious customers. Additionally, the popularity of organic chips among foodservice establishments such as restaurants, cafes, and convenience stores is also bolstering market growth. Furthermore, the availability of organic chips in supermarkets and hypermarkets is increasing, which is further driving the market.
The market is witnessing an increase in the number of innovative product launches to cater to the growing product demand from customers. For instance, in June 2021, Frito-Lay, a division of PepsiCo, launched organic chips with natural ingredients, such as organic yellow corn, organic sunflower oil, and sea salt. Moreover, the rising trend of premiumization in demand for organic chips is also driving the market. For instance, in December 2021, Kettle Foods introduced a new range of organic chips with flavors such as sea salt and black pepper and Himalayan pink salt. This is increasing the price of organic chips, which is further driving the market.
Product Insights
The organic potato chips segment is projected to dominate the market and accounted for a share of around 28.7% in 2022. Increasing consumer preference for organic snacks and growing health consciousness among individuals are driving the demand for organic potato chips. Furthermore, the presence of several market players offering organic potato chips has further propelled the market growth. According to an article published by Food Industry Executive, in February 2020, organic potato chips accounted for 45% of the total organic chips sales in the U.S.
The organic corn chips segment is anticipated to expand at the fastest CAGR of 8.9% over the forecast period. Growing consumer demand for organic snacks and increasing popularity of organic foods have been driving the demand for organic corn chips. According to an article published by Food Industry Executive, in February 2020, organic corn chips accounted for 40% of the total organic chips sales in the U.S. In addition, increasing availability of organic corn chips through e-commerce channels is another factor driving the growth of the market.
Distribution Channel Insights
The supermarkets and hypermarkets segment held the major share of the organic chips products market in 2022. Supermarkets and hypermarkets are the primary distribution channel for organic chips products as they offer a wide variety of products. Supermarkets also offer competitive prices and discounts, which make them a preferred buying destination for organic chips products. Additionally, supermarkets and hypermarkets provide several other services such as home delivery, loyalty programs, and convenient shopping experience.
Online retailing is expected to grow at the highest CAGR of 14.3% over the forecast period. The rising penetration of internet and increasing number of online shoppers has led to the growth of online retailing of organic chips products. In addition, the availability of online platforms such as Amazon and Flipkart provide an easy and convenient shopping experience to consumers and have led to an increase in the sales of organic chips products. Moreover, online retailers provide discounts and offers, which further helps to increase the sales of organic chips products.
Type Insights
The regular segment accounted for the largest revenue share of 41.5% in the year 2022. The rising trend of snacking is driving the demand for regular chips. Furthermore, the increasing number of convenience stores, supermarkets, and hypermarkets is making it easier for consumers to access regular chips. The rising demand for ready-to-eat products is also fueling the demand for regular chips.
The organic segment is anticipated to expand at the highest CAGR of 8.7% over the forecast period. The rising health consciousness among consumers is driving the demand for organic snacks. Furthermore, the increasing availability of organic products at supermarkets and hypermarkets is propelling the demand for organic chips. For instance, in June 2021, Frito-Lay, a subsidiary of PepsiCo, Inc., launched a new line of organic chips under its “Simply” brand. The company offers organic chips in various flavors such as Sea Salted, Lightly Salted, Barbeque, and Sweet Chili & Sour Cream.
Regional Insights
Europe accounted for a significant revenue share of over XX% in 2022. This growth is attributed to the presence of numerous health-conscious individuals in the region along with the growing demand for organic snacks. Moreover, the presence of stringent regulations regarding the production of organic products is expected to further drive the growth of the market. For instance, in April 2021, Germany’s organic market increased by XX%, as the country witnessed an increase in the demand for organic products.
North America is expected to witness the fastest growth in the coming years. Increasing demand for healthy snacks is one of the major driving factors in this region. Furthermore, the rising demand for organic snacks among health-conscious consumers is expected to drive product innovation and launch of new products in this region. For instance, in May 2021, Burton’s Biscuit Company launched a range of organic chips in the U.S. market.
Financial Projections
In this part of the organic chips products business plan we will provide a detailed breakdown of all income and expense categories of the business. These forecasts include cash flow projections and capital requirements for your organic chips products business. Usually, these projections are drafted for a 5-year period.
Revenue Assumptions
The main source of revenues for an organic chips products business comes from retail sales, online sales, wholesale distribution, and bulk orders. Here you will find a list with a description of each of them and other possible sources of profit such as bulk orders, subscription services, and fundraising events.
Projecting Expenses
In this section, all the regular expenses related to keeping the organic chips products business running will be described. The list of operating expenses includes ingredients, packaging, marketing and advertising, utilities, wages, insurance policies, and others.
Key companies & market share insights
Some of the key companies operating in the organic chips market are increasingly focusing on product launches and expansion of the distribution channel to gain prominent visibility among consumers. Some of the initiatives are:
– In July 2022, PepsiCo Inc. launched a new range of organic chips made from a variety of vegetables.
– In August 2022, Kettle Brand launched a range of organic chips made from potatoes, sweet potatoes, and corn.
– In September 2022, Frito-Lay launched a range of organic chips made from potatoes, corn, and whole grains.
Some of the prominent players in the organic chips market include:
– PepsiCo Inc.
– Kettle Brand
– Frito-Lay
– The Hain Celestial Group
– Beigel & Beigel
– Kettle Foods
– Lay’s
– Late July Snacks
– Terra Chips
– Popchips
Global Organic Chips Market Segmentation
This report forecasts growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the global organic chips products market based on product type, distribution channel, and region:
1. Product Type Outlook (Revenue, USD Million, 2017 – 2030)
– Potato Chips
– Corn Chips
– Tortilla Chips
– Others
2. Distribution Channel Outlook (Revenue, USD Million, 2017 – 2030)
– Supermarkets & Hypermarkets
– Online
– Others
3. Regional Outlook (Revenue, USD Million, 2017 – 2030)
– North America
– Europe
– Asia Pacific
– Central & South America
– Middle East & Africa
Frequently Asked Questions
[Q]: What are the Key Players in the Organic Chips Products Market?
[A]: Key players operating in the organic chips products market include, PepsiCo, Inc., The Hain Celestial Group, Inc., Kettle Foods, Inc., Frito-Lay North America, Inc., General Mills, Inc., Boulder Canyon Foods, Inc., Simba Chip Company Ltd., and Beanitos, Inc.
[Q]: What are the Factors Driving the Organic Chips Market?
[A]: Factors driving the organic chips market include the rising demand for healthy snacks, increased consumer preference for natural and organic products, and the growing awareness about the health benefits of organic snacks.
[Q]: What are the Major Opportunities for Organic Chips?
[A]: The growing demand for organic chips from health-conscious consumers and the increasing trend of snacking are major opportunities for organic chips market.
[Q]: What are the Challenges Facing the Organic Chips Market?
[A]: High cost of organic ingredients and the stringent regulations regarding the use of organic ingredients are the key challenges faced by the organic chips market.
[Q]: Which Regions are Expected to Offer the Largest Opportunities for Organic Chips?
[A]: North America is expected to be the largest regional market for organic chips, followed by Europe and Asia Pacific. The growing health consciousness among the population in these regions is expected to drive the organic chips market.
Research Methodology
Impact Analytix employs a comprehensive and iterative research methodology focused on minimizing deviance in order to provide the most accurate estimates and forecasts possible. The company utilizes a combination of bottom-up and top-down approaches for segmenting and estimating quantitative aspects of the market. In Addition, a recurring theme prevalent across all our research reports is data triangulation which looks market from three different perspectives. Critical elements of the methodology employed for all our studies include:
Preliminary data mining
Raw market data is obtained and collated on a broad front. Data is continuously filtered to ensure that only validated and authenticated sources are considered. In addition, data is also mined from a host of reports in our repository, as well as a number of reputed paid databases. For a comprehensive understanding of the market, it is essential to understand the complete value chain and in order to facilitate this; we collect data from raw material suppliers, distributors as well as buyers.
Technical issues and trends are obtained from surveys, technical symposia, and trade journals. Technical data is also gathered from an intellectual property perspective, focusing on white space and freedom of movement. Industry dynamics with respect to drivers, restraints, and pricing trends are also gathered. As a result, the material developed contains a wide range of original data that is then further cross-validated and authenticated with published sources.
Statistical model
Our market estimates and forecasts are derived through simulation models. A unique model is created and customized for each study. Gathered information for market dynamics, technology landscape, application development, and pricing trends are fed into the model and analyzed simultaneously. These factors are studied on a comparative basis, and their impact over the forecast period is quantified with the help of correlation, regression, and time series analysis. Market forecasting is performed via a combination of economic tools, technological analysis, industry experience, and domain expertise.
Econometric models are generally used for short-term forecasting, while technological market models are used for long-term forecasting. These are based on an amalgamation of the technology landscape, regulatory frameworks, economic outlook, and business principles. A bottom-up approach to market estimation is preferred, with key regional markets analyzed as separate entities and integration of data to obtain global estimates. This is critical for a deep understanding of the industry as well as ensuring minimal errors. Some of the parameters considered for forecasting include:
Market drivers and restraints, along with their current and expected impact
Raw material scenario and supply v/s price trends
Regulatory scenario and expected developments
Current capacity and expected capacity additions up to 2030
We assign weights to these parameters and quantify their market impact using weighted average analysis, to derive an expected market growth rate.
Primary validation
This is the final step in estimating and forecasting our reports. Exhaustive primary interviews are conducted, face to face as well as over the phone to validate our findings and assumptions used to obtain them. Interviewees are approached from leading companies across the value chain including suppliers, technology providers, domain experts, and buyers so as to ensure a holistic and unbiased picture of the market. These interviews are conducted across the globe, with language barriers overcome with the aid of local staff and interpreters. Primary interviews not only help in data validation but also provide critical insights into the market, current business scenario, and future expectations and enhance the quality of our reports. All our estimates and forecast are verified through exhaustive primary research with Key Industry Participants (KIPs) which typically include:
Market-leading companies
Raw material suppliers
Product distributors
Buyers
The key objectives of primary research are as follows:
To validate our data in terms of accuracy and acceptability
To gain an insight into the current market and future expectations
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