China is becoming a potato chip superpower

China leads the world in exports of steel, battery-powered cars, cell phones, rare earth minerals, and many other products.

China’s next target for global dominance? French fries.

In recent years, frozen French fries produced in China have gained market share in countries such as Indonesia, the Philippines, and Japan. This is putting pressure on North American French fries exports, which are struggling to compete with cheaper Chinese French fries.

“There’s a lot of activity in the potato processing sector globally. China and India are gaining market share in the East,” said Victoria Stamper, general manager of United Potato Growers of Canada.

In late April, DCA Market Intelligence published a report on China’s rapid rise as a "frozen French fry giant."

The report explains that fast-food chains like KFC and McDonald’s continue to expand in China, creating more demand for French fries.

In 2019 alone, China relied on frozen French fries imports to meet that demand, but starting in 2022, it became a net exporter of French fries.

“Major investments are key to China’s potato processing boom,” according to a DCA report. “In Ulanqab, Inner Mongolia—known as China’s ‘Potato Capital’—Lamb Weston opened a state-of-the-art processing plant in November 2023.”

China now produces enough frozen French fries to supply the domestic market and export the product to nearby countries, including Japan.

“Japan was traditionally a stronghold for US-produced potato chips, but that is no longer the case,” DCA stated. “The list of countries to which China exports continues to grow, with ample supply available to meet demand.”

China’s market share grab in East Asia has disrupted the flow of potato chip trade and could be affecting potato production in North America.

Canada is a major exporter of frozen potato products, with $2.7 billion in exports in the 2023-24 crop year.

Most exports went to the United States. Canadian supplies allow the United States to export potato chips to countries like Japan. But if Japan doesn’t buy, American exports and the demand for Canadian potato chips to supply the American market are reduced.

Stamper realized that China was becoming a bigger player in the frozen potato market about three years ago.

“My experience with them (China)… is that when they set their mind to something… they have the support of the government and are very organized,” he said.

And it’s a very gradual growth. So you don’t pay much attention. Suddenly, you turn around and find yourself facing a fierce competitor. That’s exactly what’s happening.