The Australia potato chips market, valued at AUD 551.87 million in 2024. The market is forecast to grow at a compound annual growth rate (CAGR) of 5.60% from 2025 to 2034, potentially reaching AUD 951.65 million by 2034.

Potato chips are convenient and make them a perfect choice for busy lifestyles. They serve as a quick snack or part of a meal, thus driving the potato chips market. In response to the growing health consciousness among consumers, companies are innovating by producing value-added products that are healthier than traditional potato chips. These healthier options include chips with lower cholesterol, fat, and calorie content, often fortified with beneficial ingredients. Additionally, gluten-free, non-GMO-verified chips made with sea salt, natural colours, and flavours are gaining popularity over ordinary chips.

Categorically, potato chip flavours are segmented into plain/salted and flavoured varieties. The plain/salted chips remain a classic favourite, appreciated for their simplicity and traditional taste. Flavoured chips, however, are gaining popularity with innovative options such as barbecue, sour cream onion, and spicy varieties, catering to diverse taste preferences and driving market growth through constant flavour innovation.

The Australian Horticulture Statistics Handbook shows the industry continues to produce about 1.4 million tonnes of spuds per year, but the value of that production in 2022-2023 witnessed a significant increase of a whopping 24 per cent. A strong potato production base provides make its relatively for the manufacturers to source quality potato.

By distribution channel, the segment is categorized into supermarkets and hypermarkets, convenience stores, and online channels. Among these, supermarkets and hypermarkets are experiencing substantial growth within the Australia potato chips market, prompting food processing industries to diversify their product market reach to incorporate these offerings.

In August 2023, Kellogg ’s-owned brand Pringles announced the launch of two new spicy flavours in the Australian and New Zealand markets. The innovative additions, Sizzlin’ Chipotle Sour Cream and Smokin’ Cajun Spice blend bold spice with tangy citrus notes, catering to the growing consumer demand for adventurous and dynamic taste experiences.

Top 5 Potato Chips Companies in Australia

1. The Smith's Snackfood Company Pty Ltd. (PepsiCo)

The Smith's Snackfood Company Pty Ltd. has been a cornerstone of the Australian snack industry for decades. Known for its iconic potato chips, Smith's has built a reputation for quality and innovation, offering a wide range of flavors that cater to diverse consumer preferences. As part of the global PepsiCo family since 1998, Smith's continues to set the standard for excellence in snack food production.

2. Snack Brands Australia

Snack Brands Australia is one of the leading snack food manufacturers in the country. The company boasts an impressive portfolio of popular brands including Kettle, Thins, and Cheezels. Snack Brands Australia is dedicated to delivering high-quality, innovative snacks that meet the evolving tastes of Australian consumers. The company's commitment to sustainability and excellence has cemented its position as a key player in the industry.

3. Tyrrells Crisps Holdings Pty Limited (KP Snacks)

Tyrrells Crisps Holdings Pty Limited is renowned for its hand-cooked potato crisps, emphasizing the use of high-quality, locally sourced ingredients. The company's commitment to artisanal production methods and distinctive flavors has earned it a loyal following both locally and internationally. As part of the Intersnack Group, Tyrrells continues to expand its reach and innovate within the snack market.

4. Kellanova (PRINGLES, S.A.R.L.)

Kellanova, the company behind the globally renowned Pringles brand, is famous for its unique saddle-shaped crisps and innovative packaging, offering a wide range of flavours to satisfy global taste preferences. Kellanova focuses on delivering consistent quality and pioneering new flavours, making Pringles a favorite snack worldwide.

5. Tixana Pty Limited

Tixana Pty Limited is the company behind the popular Chicca Chips brand. Tixana has quickly made a mark in the competitive snack food market by focusing on high-quality ingredients and innovative production techniques. Chicca Chips are known for their delicious flavour and crispy texture, appealing to a wide range of consumers. The company continues to grow and expand its product offerings to meet consumer demand.