HS Code:
Potato chips, classified under HS Code 2005.20, are a popular snack food made from thinly sliced potatoes that are fried or baked until crispy. They are often seasoned with various flavors and packaged for retail. This category is a significant segment of the global snack food industry, driven by consumer demand for convenient and tasty ready-to-eat products. The trade of potato chips reflects regional preferences, production capabilities, and international supply chains.
Total Trade Volume
USD 7.2 billion
Data from 2022
Source
United Nations Comtrade Database, International Trade Centre (ITC)
USD 2.1 billion
29.2% of total trade of total trade
Increasing
USD 1.3 billion
18.1% of total trade of total trade
Increasing
USD 0.9 billion
12.5% of total trade of total trade
Stable
USD 0.6 billion
8.3% of total trade of total trade
Stable
USD 0.5 billion
6.9% of total trade of total trade
Increasing
Average Rate
8.5% ad valorem
Highest Rate
35% (imposed by certain developing countries to protect local industries)
Lowest Rate
0% (under free trade agreements like NAFTA/USMCA or EU single market)
Growing demand for healthier snack options
Increased production of low-fat, baked, and organic potato chips to cater to health-conscious consumers, driving innovation in the category.
2021-2023
Rise of premium and gourmet flavors
Manufacturers are introducing exotic and regional flavors to attract diverse consumer bases, boosting export potential in niche markets.
2020-2022
Sustainability in packaging
Shift towards eco-friendly and recyclable packaging materials due to consumer and regulatory pressure, impacting production costs and trade dynamics.
2022-2023
Revised rules under the USMCA have facilitated smoother trade of potato chips between the US, Canada, and Mexico by reducing tariffs and harmonizing food safety standards.
July 2022
Increased trade volume among member countries, particularly benefiting Canadian and US exporters.
The European Union introduced stricter regulations on acrylamide levels in potato chips, requiring manufacturers to adjust production processes.
April 2023
Potential short-term cost increases for exporters to the EU, but long-term benefits in consumer trust and market access.
Geopolitical tensions and post-pandemic recovery challenges have led to disruptions in potato supply and transportation costs, affecting export volumes.
Mid-2022
Temporary price spikes and reduced trade volumes in key markets, with recovery expected by 2024.