ENVIRONMENTAL FACTORS

Environmental factors — which are also sometimes called ‘ecological factors’ — refer to variables
regarding the physical environment (the climate of Earth, for example). This can include things like
consumer health, climate change, the availability of energy, or any direct consequences of these things.
In line with the business, the possible environmental factors that may affect the business are as follows:

 Climate
 Climate change
 Weather Pollution
 Availability of non-renewable goods

However, on the part of the production of the crop, since the raw ingredients of the product comes
from the agricultural cultural and truly needs to maintain its freshness the following instances may
hinder the production of the crops that may lead to the insuffiency of the ingredients needed.

1. PEST AND DISEASES

Pest include birds, rodents etc while disease pathogens include bacteria, viruses, protozoa. They
can reduce the quantity and quality of crops Diseases may affect man and other animals during
consumption of infected crops Some pest are vectors of diseases
2. SOIL ORGANISMS
3. These can be micro-organisms like bacteria, fungi and viruses; they can also be like earthworm,
rodents, millipede, termites etc. Other features are: Their activities can reduce the quality and
quantity of crops They can be essential for aerating the soil Some can help in soil formation
Some can help in the decomposition of plant materials to form humus. They help to break down
organic matter in the soil and help in digestion in ruminants.

Thus, the business should not overlook this factor, and as a solution, an alternative supplier must be
needed, and proper inventory management is a must.

GLOBAL ANALYSIS

Technavio’s market research analyst predicts that the global potato chips market will grow at a
modest CAGR of just over 4% during the predicted period. A key growth driver for the global potato
chips market is the rising number of private label products. Many of these labels offer the same quality
and taste in products as established vendors, but at lower prices. Wider choices have led to cost-
conscious consumers buying private label products, which in turn helps these companies to capture a
larger share of the market. Intense competition in the potato chips market is making it easier for
consumers to get the products they want. Since existing vendors have to compete intensely with each
other to retain market shares, it will boost market growth till the end of 2020.

In this industry report, the analysts have estimated eminent trends, such as the introduction of healthier
products, to spur market growth during the forecast period. Innovations in the market are helping
vendors to introduce new products like baked, low-fat, and low-sodium chips to help consumers eat
healthier versions of their favorite snack. The well-known vendor Kettle offers a broad range of baked
potato chips with flavors such as olive oil, sea salt and vinegar, hickory honey barbecue, cheddar, and
roasted tomato. The launch of such innovative products and an expanded product range will have a
definite and positive impact on market growth during the forecast period.

Segmentation by distribution channel and analysis of the potato chips market

 Supermarket/hypermarket
 Convenience store
 Independent retailer

In 2015, the supermarket/hypermarket segment dominated the distribution channel segment with a
market share of just over 73%. Due to the widespread availability of a wide array of products, retailers
like Walmart, Kroger, and Target will account for a significant share of the market in terms of sales.

Geographical segmentation of the potato chips market:

 Americas
 APAC
 Europe
 MEA

The Americas dominated the global potato chips market in 2015 with a market share of almost 59%.
Factors driving market growth are the availability of unique flavors and the popularity of meals such as
sandwiches and burgers. The introduction of new flavors and the increasing demand for quick snacks
will also contribute towards market growth during the forecast period.

Competitive landscape and key vendors

The global potato chips market is a highly fragmented market with numerous vendors, both global and
regional. Vendors compete on the basis of brand recognition, product differentiation, technology,
portfolio, and pricing to gain a competitive edge over their peers. The current market has suppliers of
varying sizes, some of whom specialize in specific commodities while others have larger financial
resources. The competition between vendors is expected to intensify during the forecast period due to
the introduction of new flavors. Survival and success of the vendors will depend on their ability to
distinguish product offerings by offering clear and unique value propositions.

Key suppliers in this market are -

  Calbee Foods
 Herr
 Intersnack Group
 PepsiCo
 Snyder’s-Lance
 UTZ Quality Foods

Other prominent vendors in this market are Burtschips, Golden Flake Snack Foods, Great Lakes Potato
Chips, Kettle Foods, Koikeya, Lorenz Bahlsen Snack World, Notions Group, Old Dutch Foods, Popchips,
Proper Crisps, Shearer’s Snacks, Tyrrell's Potato Crisps, and Wise foods.