French Fries Market Trends Towards Healthier Options by 2031

The French fries market comprises potato strips or cubes that are deep fried or pan fried. French fries are popular snacks consumed across the world due to their crispy texture and salty taste. They can be prepared at home as well as ordered from restaurants and fast food outlets. The global popularity of fast food chains like McDonald's that predominantly serve fries has boosted the demand for French fries. Moreover, fries are considered a complementary food item and consumed with burgers, sandwiches and nuggets.

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 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 Takeaways

Key players: McCain is a leading producer of frozen potato products including fries. Lamb-Weston is another major player focused on producing quality fries for restaurants and retailers. The advent of private food labels has further increased competition in the market.

Growing demand: Changing lifestyle and popularity of fast food have boosted the global demand for fries tremendously over the past few decades. Developing regions in Asia Pacific and Latin America are witnessing strong growth in fries consumption.

Global expansion: Leading fries brands are expanding their footprint globally through strategic partnerships with quick service restaurants. Companies are also launching new product lines targeting the foodservice and retail channels for further growth opportunities.

Market Key Trends

One of the key trends gaining traction in the french fries market is the demand for healthier options. With growing health consciousness, consumers are looking for fries with lesser fat, calories and sodium. This has prompted companies to introduced oven-baked fries, vegetable-based fries and those made from alternative ingredients like plantains. Furthermore, products with clean label status and non-GMO claims are also witnessing higher offtake in the market.

Porter's Analysis

Threat of new entrants: The french fries market is well established with major players, making entry difficult for new players. However, requirements for starting small fry shops is relatively low.

Bargaining power of buyers: Large retailers like supermarkets have significant influence on prices due to their sizable demands and abilities to substitute among brands. However, for regular fry shops and fast food chains, buyer power remains relatively weak.

Bargaining power of suppliers: The major inputs for fries include potatoes and oil. As primary potatoes suppliers are fragmented with many small farms, supplier influence is restrained. Similarly, oil suppliers do not possess significant leverage over buyers.

Threat of new substitutes: While alternative snacks exist, fries have established themselves as a popular side dish. Overall threat from perfect substitutes is low.

Competitive rivalry: Being an highly commoditized product, fries industry relies on strong brand identity, quality, taste, and competitive pricing to survive intense competition.

Geographical concentration: North America currently holds the largest share of the global french fries market. The U.S. alone accounts for over 30% of the total market value due to high per capita consumption.

Fastest growing region: Asia Pacific is anticipated to witness the fastest growth during the forecast period. Rising incomes, western influences, and growing fast food chains are fueling heavy demands, predominantly in India and China. Developing taste for snacks like fries will likely propel the region to become the new growth engine