There is a 'seasonal specialty' for potato chips, just like for fruits. In the snack industry, it is said that potato chips made from domestically sourced new potatoes from June to November are the most delicious. This is because fresh potatoes harvested during this period can be processed right away into potato chips. Domestically sourced new potatoes are rich in moisture and nutritional content, earning them high praise for their exceptional flavor when made into potato chips.
From December to May, it is difficult to secure domestic potatoes, so potatoes imported from the United States and Australia are used. The general assessment in the industry is that imported potatoes may have lower moisture and freshness compared to domestically sourced new potatoes.
In fact, potato chip sales in the country are higher in the second half of the year. According to the food industry statistics information system (FIS), the sales of potato snacks in the second half of the year have exceeded those in the first half over the past five years. In 2020, the first half recorded 158.1 billion won, and the second half recorded 177.8 billion won. In 2021, sales were 174.3 billion won in the first half and 177.8 billion won in the second half. From 2022 to last year, second-half sales also outpaced first-half sales. This suggests that consumers tend to purchase more potato chips during the time they are considered to be the most delicious.
However, potato snack sales slightly dipped in the second half of last year. In this regard, an industry official noted, 'It was a time when overall snack consumption decreased due to an economic downturn and reduced spending.'
The domestic potato chip market is led by ORION, Nongshim, and Haitai Confectionery. Each food corporation often has multiple representative potato chip brands.
Potato snacks are divided into two categories: 'shaped potato snacks,' which are made by kneading potato powder, flour, and other ingredients into a specific shape and then frying or baking, and 'fresh potato chips,' made by slicing potatoes thinly and frying them as they are. ORION's O-gamja and Nongshim Kellogg's imported Pringles fall into the category of shaped potato snacks, while ORION's Pokachip, Swing chip, Nongshim's Potato chip, and Sumi chip, and Haitai Confectionery's Honey Butter chip are fresh potato chips.
While shaped potato snacks are tasty, the industry judges that they cannot replace the thin and crispy texture and savory flavor of fresh potato chips.
Domestic food corporations have been developing fresh potato chips as their main product line. Nongshim's potato chips were the first fresh potato chips launched in the country in 1980, while ORION's Pokachip, released in 1988, has consistently maintained the highest market share, surpassing potato chips. Haitai Confectionery is praised for injecting new energy into the market with its Honey Butter chip, which sparked a 'sweet and salty' potato chip craze in 2014.
According to the food industry statistics information system (FIS), last year, the sales of Pokachip reached 98 billion won, Potato chips reached 45.9 billion won, and Honey Butter chip reached 34.6 billion won. The sales of the shaped potato snack Pringles totaled 72.4 billion won, following Pokachip.
With the potato chip market becoming increasingly competitive and the taste often varying based on the characteristics of raw materials, food corporations are also grappling with which potatoes to use that match the product characteristics.
The most widely used variety for fresh potato chips is the 'Daeseo' potato. It is rich in starch and low in moisture, making it suitable for achieving a crispy texture. However, low sugar content and a mealy texture are cited as drawbacks.
In response, ORION established the country's first potato research institute in 1988 and introduced a new variety it developed called 'Dubak.'
'Sumi' potatoes are recognized as the best-tasting potatoes. They have thin, firm skins and a strong sweetness, making them the most commonly used potatoes on dining tables. Sumi potatoes account for 70% of domestic potato production and have a short growing period of about 100 days, which allows for the use of domestically sourced potatoes year-round for potato chip production. However, they are also known for having high moisture content, making them prone to crushing, and they can turn dark when fried, making them less suitable for frying or potato chips.
However, with Nongshim developing a 'vacuum low-temperature method,' the 'Sumi chip' made from Sumi potatoes was released in 2010. Although its high price means it has lower sales among the general public, it has been consistently favored by consumers who prioritize taste. Nongshim reportedly has contract farming agreements with over 450 farms nationwide to ensure a stable supply of Sumi potatoes and operates large storage facilities.
The potato chip market is expected to continue facing fierce competition through various variety developments and manufacturing method innovations. It will be interesting to see how far the competition to capture consumers' tastes will go.