According to the DCA Market Intelligence report, the proliferation of Western fast-food chains in China has spurred an increased appetite for frozen French fries. Yum China Holdings, operating brands like KFC, Taco Bell and Pizza Hut, opened over 1,200 new outlets in 2021 alone and is aiming to operate 20,000 stores by 2026. According to the companies own figures it currently has 15,861 stores up and running, of which 11,283 are KFC.
Similarly, McDonald’s surpassed its target of 4,500 stores ahead of schedule in early 2022 and opened 1,000 stores in 2023 alone. By the end of 2027 the total number should be nearer to 10,000, according to the companies Chinese CEO, Zhang Jiayin.
This would make the country the largest market for the fastfood chain, bigger even than its home market the US. Local chains, such as Wallace, have expanded rapidly, particularly in third and fourth-tier cities, contributing to the surge in demand for processed potato products.
Industry Growth
Major investments are at the heart of China’s potato processing boom. In Ulanqab, Inner Mongolia—dubbed China’s “Potato Capital”—Lamb Weston inaugurated a state-of-the-art processing facility in November 2023. With an annual capacity of 113,000 tons of frozen potato products, the $250 million plant underscores the company’s commitment to meeting the growing demand. The company also has a plant in Shangdu, which is also in Inner Mongolia.
Domestic enterprises are also scaling up. Kaida Hengye, a prominent Chinese processor, has integrated advanced technologies into its Beijing facility. Snow Valley Zhangjiakou, which was a partner of Dutch company Aviko Potato until 2018, is one of the companies that has increased its output. In 2022 the company produced 150,000 tonnes of frozen French fries.
Aviko in turn took a majority stake in local producer Hongyuan Louis in 2020. 50,000 tonnes of frozen fries are produced in its plant in Xilinhot.
Between 2005 and 2020 a lot of new players have started facilities, along with traditional names from the West.
Global Supply Shift
China’s ascent in the frozen French fries export market is notable. In the first ten months of 2024, exports reached 155,100 tons, surpassing the total for 2023 and marking a significant milestone since becoming a net exporter in 2022. This growth is partly attributed to supply chain disruptions in traditional exporting countries, prompting nations like Indonesia and the Philippines to turn to China for their frozen fries imports.
2024 ended with a small decrease, but 2025 started out with a very strong export level of French fries. Volumes reached in March were almost double compared to a year ago. Key export markets the Philippines, Japan and Thailand all put in big orders. Perhaps the country is taking advantage of recent political developments that are hitting world trade or at least making the situation more insecure.
The price per tonne has also decreased, which makes Chinese fries more attractive for Asian buyers in particular. Japan traditionally was a stronghold for US produced fries, but this is no longer the case. The list of countries it exports continues to increase, with ample supplies available to feed the demand. The US and large European exporters are the first to notice this development.
Challenges and the Road Ahead
While the industry’s trajectory is promising, challenges persist. Seasonal limitations in potato harvesting affect year-round processing capabilities, and maintaining consistent quality remains a concern. However, ongoing investments in technology and infrastructure aim to mitigate these issues.
The country still imports a small amount of processed potato products, although this has significantly dropped to below 2,000 tones. Only five years ago this was sometimes more than 10,000 tonnes.
The US is still the biggest supplier of French fries, even managing to increase its volume at the start of this year, despite strong words from President Trump about a tariff war. Turkey and Belgium are the other significant suppliers for the Peoples Republic of China, with the Netherlands taking fourth place.
Global market shift
China’s strategic focus on enhancing its potato processing industry reflects a broader ambition to diversify its agricultural exports and strengthen its position in global food supply chains. As the sector continues to evolve, it stands as a testament to China’s capacity for rapid industrial advancement and adaptation in the face of global market shifts.
Fries and other fastfood snacks are becoming ever more present in everyday Chinese culture, but it is also the rapid export pace that is making an import on the worldwide market for frozen fries. With high prices being paid for European and US based products, China finds itself in a comfortable situation. Especially in the Asian market it is more than competitive and taking full advantage of the situation in hand.
Easyfresh China is actively involved in the food trades. If you need logistics solutions for fresh & frozen in China, please contact sales.china@easyfresh-logistics.com
Source: DCA Market Intelligence & www.potatonewstoday.com
