The potato chips market in Ireland between 2017 and 2021 was driven by changes in consumer preferences, health trends, and the COVID-19 pandemic. These factors shaped the market, influencing its growth trajectory and company strategies.
Irish Potato Chips Market Size 2017-2021
The potato chips market in Ireland increased at a compound annual growth rate (CAGR) of 3.76%. As a result, it reached 147.20 million EUR in 2021.
The consumption per capita of potato chips in Ireland showed an overall increase in the period 2017-2021. Until 2021, it grew at a CAGR of 2.50% to reach 29.493 EUR per capita.
In 2021, the potato chips market in Ireland was dominated by regular potato chips, which accounted for 87.1% of the total volume. It was followed by low-fat potato chips with a share of 12.9%.
Broken down by retail distribution channels, the potato chips market in Ireland was led by supermarkets and hyper markets. In 2021, they accounted for 58.7% of the total volume. That left 41.3% to all other retail distribution channels in the same year.
In 2021, the leading company on the potato chips market in Ireland was PepsiCo with its PepsiCo Lay's and Walkers brands. In 2021, they accounted for 43.6% of the total volume. The leading company was followed by Kellog’s (Pringles), Tayto Snacks, and Valeo Foods with shares of 13.5%, 8.7%, and 7.9%, respectively. That left 26.3% to all other companies in the same year.
Imports and Exports of Air Conditioner in Ireland
The imports of potato chips to Ireland in the period 2017-2021 grew at a CAGR of 14.33% to reach 295.10 million EUR.
The exports of potato chips from Ireland in the period 2017-2021 grew at a CAGR of 5.34% to reach 116.11 million EUR.
As a result, the trade balance of potato chips in Ireland was negative and recorded an overall increase during the analyzed period. Until 2021, the trade balance increased at a CAGR of 22.91% to reach -178.99 million EUR.
Key Trends in the Irish Potato Chips Market
Over the past several years, consumers in Ireland became increasingly health conscious. This has driven demand for healthier snacks with reduced fat, calories, and sodium content. There is also more interest in "clean label" products, which are free from artificial preservatives, gluten, and genetically modified organisms (GMOs). Potato chip producers responded to these trends by introducing new versions of their products that cater to these consumer preferences.
The demand for gluten-free snacks is particularly notable. An increasing number of consumers prefer them due to rising awareness of celiac disease and other autoimmune conditions. Since most potato chips are naturally gluten-free, the trend positively influenced the market.
However, keto and paleo diets, which emphasize low-carbohydrate intake, pose a challenge to the potato chip market in Ireland. Despite that, other diets like veganism and vegetarianism support potato chips, as they are usually free from animal products. Therefore, the growing popularity of plant-based diets in Ireland indirectly supports demand for potato chips.
Sustainability is both a challenge and an opportunity within the potato chips market in Ireland. Consumers and governments alike demand more environmentally responsible practices. Packaging became a focal point as companies explore plant-based and biodegradable packaging solutions. Furthermore, the demand for convenience in snacking led to resealable and smaller packaging formats that appeal to consumers with busy lifestyles.
Digitalization significantly transformed the way potato chips are marketed and sold. E-commerce, accelerated by the COVID-19 pandemic, gained more traction in Ireland. Many consumers shifted to purchasing snacks online, leading to more opportunities for manufacturers to directly engage with customers through digital platforms.
Moreover, consumers increasingly seek out bold and unique flavors, such as spicy dill pickle or lime and sea salt. The shift led producers to innovate, offering an array of exotic and ethnic flavor options. Alongside this, the development of kettle-cooked chips, perceived as a more premium product, has become a key differentiator in the market.
Restraints in the Irish Potato Chips Market
The COVID-19 pandemic presented both opportunities and challenges for the Irish potato chips market. Initially, lockdowns and stay-at-home orders led to increased snacking. However, the subsequent economic disruptions, supply chain issues, and increased unemployment negatively impacted consumer spending, especially on non-essential goods.
As the pandemic persisted, supply chain disruptions became a significant challenge for the potato chip market in Ireland, with producers facing difficulties in sourcing raw materials and maintaining production levels. The situation was further exacerbated by rising costs of packaging, energy, and essential inputs like vegetable oil.
Rising input costs strained profit margins for potato chip producers. Climate change, geopolitical conflicts, and disruptions in global supply chains led to price volatility, which producers struggled to absorb. Inflation further compounded the issue, with many consumers opting for cheaper snacks.
Despite growing interest in health-conscious products, potato chips are associated with negative health outcomes, particularly when indulging in larger quantities. Concerns over high levels of fat, salt, and acrylamide, a compound linked to potential health risks, restrained the market’s growth to some extent. That pushed producers to invest in research and development to create healthier alternatives without sacrificing flavor.
In addition, the increasing prevalence of diabetes and obesity in Ireland made consumers more cautious about their snacking choices. For example, the aging population in Ireland, a key demographic affected by diabetes, is likely to reduce their consumption of carbohydrate-rich snacks like potato chips. That could hinder market growth in the medium term.
The rise of healthy snacks, such as vegetable chips, poses a significant challenge to the traditional potato chips market. With consumers increasingly prioritizing nutrition over indulgence, products perceived to be healthier, even if only marginally, gained traction. The trend could potentially limit the growth of potato chips, especially as producers of alternative snacks continue to innovate and market their products as better-for-you options.
Forecast for the Irish Potato Chips Market
Under the base forecast scenario, the Irish economy is expected to show steady growth in the medium term. As a result, the Irish potato chips market is expected to reach 204.55 million EUR by 2027.
If the Irish economy does not reach expectations, it will show declining rates in the medium term. In this case, the potato chips market in Ireland will fall to 111.19 million EUR by 2027.
If the Irish economy exceeds expectations, the potato chips market in Ireland is forecast to reach 241.10 million EUR by 2027.
