A top Western European food firm hired Dragon Sourcing to do a market study on India’s potato industry. The objective was to provide a detailed feasibility study covering three key areas: raw potatoes, processed potatoes, and retail market dynamics.
In the raw potato segment, Dragon Sourcing’s analysis revealed that India is the world’s second-largest potato producer, after China. Its potato output is expected to exceed 45 million tons in 2016. The study identified the top producing states, including Uttar Pradesh, West Bengal, and Bihar, and highlighted export zones such as West Bengal and Punjab. The research listed 15 potato varieties grown in India. It provided insights into the diverse raw materials available.
For processed potatoes, the investigation uncovered a rapidly growing market. Despite processing only about 5% of national potato production into chips, the sector demonstrated promising growth potential. In 2015, the study estimated the size of potato-based snacks, breaking them down into chips, extruded potato products, and deep-frozen potato products. Notably, potato chips emerged as the most popular item, commanding over 60% share of the salty snack market.
The retail analysis painted a picture of a dynamic, evolving landscape. Dragon Sourcing’s research forecasted a 12% annual growth rate for the overall retail industry, with organized retail gradually gaining momentum. The study detailed the market share among retailers. It looked at large organized retailers, small and medium ones, and the still-dominant unorganized sector, which includes over 12 million mom-and-pop stores.
Dragon Sourcing’s report gave the client vital insights into the Indian potato value chain. It covered market size, growth trends, key players, and regional variations. This intelligence let the Western European company decide about entering the Indian market, sourcing, and developing products for its unique consumers.
This case study shows Dragon Sourcing’s ability to provide deep market intelligence. It helps international firms make decisions about opportunities in emerging markets like India.