The french fries market - Brazil

1.1 Market presentation

French fries are believed to have originated in the United States at the end of the 19th century and have since become a best-seller in the retail sector. French fries are a sub-segment of the snack market, largely dominated by the United States.

There are different types of potato chips:

• Classic/traditional packet crisps (thin, flat, square etc.)
• Flavored potato chips (e.g. barbecue, cheese, onion, vinegar)
• Vegetable potato chips (e.g. radish, parsnip, carrot, beet etc.)
• Healthy packet potato chips
• Top quality potato chips

The global market for packet potato chips is predominantly Western, with the United States and Europe largely dominating in terms of revenue generated.

The Brazilian chip market is diverse, with flavors ranging from the traditional, such as potato and corn, to more innovative options that reflect the local cuisine. According to the Brazilian Food Industry Association (ABIA), this market was worth billions of reais a year before the COVID-19 pandemic. The consumption of chips is popular among all age groups and in various situations, whether as a quick snack or as an accompaniment to meals.

The COVID-19 pandemic has impacted the potato chip market in Brazil, leading to an increase in sales during quarantine periods due to social distancing measures and increased consumption at home. However, the sector has been affected by disruptions in the supply chain and changes in consumer habits.

Against this backdrop, the main market players are striving to diversify their offer with new recipes (vegetable and fruit potato chips), but also investing in the higher end of the market to stimulate more regular demand (snacks) or consumption as an accompaniment to meals. In addition, the potato French fry market is not immune to the impact of the trend towards "organic" and "healthy " products and is seeing the emergence of several light, palm oil-free and responsibly produced products, such as sweet potato and cassava.