Orion's potato snack sales near W1tr mark as company ramps up supply

Orion's potato snack lineup has grown at an average annual rate of 9 percent over the past three years, putting the company on the verge of hitting 1 trillion won ($682 million) in annual sales, the company announced Thursday. Its strategy is to introduce locally tailored products suited to consumer tastes in each market while expanding production capacity across its overseas subsidiaries.

Orion currently offers six potato snack brands across South Korea, China and Vietnam, spanning more than 70 flavor varieties. Last year, the company's potato snack sales reached 874 billion won, with overseas markets accounting for 73 percent of that figure. Of Orion's nine global mega-brands — each generating more than 100 billion won in annual sales — four are potato snacks: Pocachip, Oh! Gamja, Swing Chips and Yegam.

In China, Oh! Gamja posted single-brand sales of 260 billion won last year. Swing Chips surpassed Choco Pie in sales in the first quarter of this year, rising to become the company's second-best-selling brand in the country. Together, Oh! Gamja, Swing Chips and Yegam accounted for 41 percent of Orion's total sales in China last year.

In South Korea, the company launched new-harvest potato versions of Pocachip and Swing Chips in June. Once an expansion of the production line at its Cheongju factory is completed in the second half of this year, production capacity will increase by 50 percent compared with current levels.

In China, Orion has introduced new flavors including garlic butter Oh! Gamja (sold locally as Ya! Tudou), green onion and coriander taco Swing Chips (Haoyouqu), and barbecue and passion fruit Yegam dipping chips (Shuyuan Zhanjiang). Potato snack sales in China rose 21 percent year-on-year in the first quarter of this year. Once a planned expansion of the Swing Chips production line is complete, supply will increase by 25 percent.

In Vietnam, Orion has released sour cream Pocachip (sold locally as Osta) and taco Swing Chips (Swing), and is expanding dedicated snack display sections in stores. Pocachip has held the top market share in Vietnam's potato snack segment since 2017, surpassing Lay's, the world's top-selling potato snack brand.

"Potato snacks are one of the highest-growth core categories in the global market," an Orion official said. "We will strengthen our competitiveness based on our potato research and development capabilities and local production infrastructure to compete with global brands."