The chips market - Italy

The global potato chips market continues to be a dominant segment in the savory snacks industry, catering to changing consumer preferences for snackable and ready-to-eat options. Asia, led by China's potato production exceeding 99 million tons, has become a key player in the market, although traditional leaders like Europe and the United States remain significant markets, with Americans spending over $6 billion on crisps annually. The Italian potato chips market specifically shows a growth of 5.6% and is culturally integrated with consumption trends linked to alcoholic beverages, particularly during the traditional aperitivo. 

The Evolving Landscape of Potato Chip Consumption in Italy

Italy's potato chip market is witnessing an interesting transformation driven by shifts in consumer preferences and lifestyle changes. The demand for this beloved salty snack is molded by the integration of chips with traditional customs like the aperitivo, as well as the surge in health consciousness among consumers. Potato chips are traditionally paired with alcoholic beverages, especially during the aperitivos, a social occasion that remains deeply ingrained in Italian culture. However, Italians don't limit their chip consumption to these gatherings, as home snacking also constitutes a significant portion of consumption. The market for these savory treats in Italy saw a substantial turnover of around 300 million euros, showing resilience and recovery from previous declines. With changing lifestyles, now more than ever, consumers are seeking convenience. This idea of "food anytime" is propelling companies to supply products that cater to this need, positioning potato chips as both an impromptu snack and a ready-to-eat food item. European trends reflect that chips are commonly consumed at home, yet a sizable 40% is also enjoyed on-the-go.

Millennials exhibit a notable influence on the market, maintaining consistent consumption habits both in and out of the home. This demographic has also been leading the way in transforming traditional food and beverage consumption patterns in Italy. Alcohol remains closely tied to chip consumption, with beer and cocktails being the preferred choices of drink to accompany potato chips. Surprisingly, the surge in the demand for alcoholic aperitifs, accounting for over half the consumption in volume, hints at the prospective growth of the chips segment linked to this practice. Health awareness is another critical factor molding the market. As consumers become increasingly health-conscious, around 23% are anticipated to cut down on snack consumption. This trend is pushing companies within the historically "unhealthy" snacking segment to innovate and diversify their offerings, bringing in natural and vegetable chips to the table. Online purchasing behaviors are also shifting, with snacks representing a significant category in the e-commerce food and beverage sector. Speaking of offerings, the Italian market experienced a growth in retail sales by over 7% in recent years, primarily due to the diversification and introduction of novel products. Chips now come in various flavors and styles, from the traditional plain salted variety to the more exotic flavored varieties such as barbecue, onion, and cheese. The saturation of the market means pricing strategies are crucial. 

Titans of the Chip Industry: Key Players Shaping Our Snack Time

The potato chip market is a dynamic playing field where only the strongest contenders thrive.

• At the global forefront is PepsiCo, a behemoth in the snack industry, renowned for its extensive portfolio of products that cater to a variety of tastes and preferences around the world. This giant of gastronomy doesn't just satisfy cravings; it sets trends and defines snacking cultures on every continent.
• Not far behind is World International, another major force in the global arena. With its diverse offerings, World International has garnered a loyal following, with consumers reaching for its familiar and comforting flavors.
• Kellogg's might be best known for its breakfast cereals, but the company has made significant inroads into the snacking sector. Its strategic play into chips has allowed it to grab a slice of the market pie, providing more options for consumers who trust in the Kellogg's name. On the home front in Italy, national pride is embodied in brands that have captured the hearts and taste buds of the local populace.
• Unichips leads the pack, with its strong presence and dominance in the Italian market, proving that local flavors and preferences play a significant role in consumer choices.
• Following closely is Amica Chips, another key player that has delighted Italian snackers with its quality products and innovative flavors. By focusing on the nuances of local tastes, Amica Chips has solidified its stake in the hearts of the Italian people.
• Ica Foods might not telegraph its financial success, but it's a company that speaks volumes through its product offerings and market strategies that appeal to a diverse Italian audience.
• Preziosi Food, albeit smaller in scale compared to its titanic counterparts, stands its ground by delivering products that resonate with tradition and homely goodness, striking a chord with consumers who value authenticity.

In terms of distribution, Italy houses several giants that ensure these savory treats reach every nook and cranny of the nation.

• Coop serves as a vital artery in the country's food supply chain, ensuring a steady flow of chips from manufacturers to consumers' baskets.
• Conad keeps pace, with its expansive network not only in Italy but also internationally, reinforcing the global nature of the snacking industry.
• Esselunga, with a focus on quality and customer service, carves out a significant portion of the snack distribution market, providing Italians with their favorite nibbles. 

Inforamtion

• Number of pages : 30 pages
• Format : Digital and PDF versions
• Last update : 06/12/2021

Summary and extracts

List of charts

• Main EU producers of potatoes
• Retail value of potato chips
• Internation trade of "potatoes"
• Main potatoes supplying countries for Italy
• Main potatoes exporting countries for Italy
• Wholesale retail value of beverages
• Times of consumption of salty snacks
• Preferred beverages with chips
• Categories of groceries and beverages purchased online
• Potato production
• Industry revenue of processing and preserving potatoes