Potato Starch Market Research Report 2023

Potato Starch Market Synopsis

Potato Starch Market Size Was Valued at USD 4.4Billion in 2022 and is Projected to Reach USD 5.93 Billion by 2030, Growing at a CAGR of 3.8% From 2023-2030.

Potato starch is made by crushing potatoes to release the starch grains, which are then separated from the solution and dried to form a light, powdery consistency. It is a common ingredient used in many recipes due to its flour-like consistency. The starch is extracted from the cells of the root tubers of the potato plant, which contain leucoplasts. It is a versatile ingredient that can be used in various ways in cooking, baking, and food processing.

• The Potato Starch Market is expanding due to its versatility as an ingredient that can improve the texture and thicken various foods, such as sauces, puddings, and baked goods. Additionally, it has potential health benefits, such as aiding in digestion, supporting immune health, and regulating blood sugar when used as a supplement.
• The food and beverage industry has developed new products incorporating starch as a crucial ingredient due to its appealing texture, taste, and potential health benefits. The global starch market is growing as a result of the increasing popularity of organic foods.
• Potato starch is widely used in the paper industry, primarily as a bonding agent, surface size, and adhesive in various products such as laminated grades, corrugated boards, and coatings. Starch is consumed by weight in papermaking and paper conversion processes after cellulose fiber and mineral pigments, making it an essential component of several paper grades.
• The growth of the potato starch market is attributed to several factors, such as the rising demand for processed and convenience food, the increasing need for potato starch in the paper industry, the surging incidence of celiac disease and other food allergies, and the growing demand for functional food products.

Top Key Players Involved Are:

"Cargill, Incorporated (U.S), Pepees S.A(Poland), Ingredion, Incorporated (U.S), KMC a.m.b.a (U.S), AGRANA Beteiligungs -AG (Austria), Tereos (France), Avebe (Netherlands), Emsland Group (Germany), Novidon, Roquette (France), Tata & Lyle (UK), VIMAL PPCE (Ukraine), Lyckeby (Sweden), Radchen USA (US), AKV Langholf (Denmark), and Other Key Players".

Potato Starch Market Trend Analysis

Potato Starch Is Increasingly Being Used In Many Industries

The potato starch market is witnessing steady growth due to increased industrial use of potato starch in various industries such as paper, food, and textiles. The versatility of potato starch as an ingredient in various applications, including adhesives, binders, and thickeners, is driving the demand for potato starch.

• In the paper industry, potato starch is used as a bonding agent, surface size, and binder for coatings and adhesives in corrugated boards, laminated grades, and other paper products. The use of potato starch in papermaking and paper conversion processes has increased due to its ability to enhance the mechanical properties of paper and improve its adhesiveness.
• In the food industry, potato starch is widely used as a thickener and stabilizer in sauces, puddings, and baked goods. Its ability to enhance the texture of food products and extend their shelf life has made it a popular ingredient in the food industry.
• Furthermore, the demand for functional food products is driving the growth of the potato starch market. Potato starch has been found to have certain health benefits, including improving digestion, immune health, and blood sugar control, when used as a supplement.
• In conclusion, the increased industrial use of potato starch in various industries, coupled with its versatility and health benefits, is driving the growth of the potato starch market. The trend is expected to continue as the demand for potato starch in various applications continues to grow.

Increasing Usage Of Potato Starch In Dietary Supplements

Potato starch is being increasingly used in dietary supplements due to its potential health benefits. It is a rich source of resistant starch, which is a type of dietary fiber that resists digestion in the small intestine and reaches the large intestine intact. This resistant starch acts as a prebiotic, promoting the growth of beneficial gut bacteria and improving overall gut health.

• In addition, potato starch has been found to have a positive effect on blood sugar control. It has a low glycemic index, which means that it does not cause a rapid increase in blood sugar levels after consumption. This property makes it a suitable ingredient for dietary supplements aimed at managing blood sugar levels.
• Moreover, potato starch has been found to improve immune function by increasing the production of short-chain fatty acids in the gut. These fatty acids have been shown to have anti-inflammatory and immune-boosting properties.
• The increasing demand for natural and plant-based dietary supplements has also contributed to the growing usage of potato starch in dietary supplements. It is a gluten-free and non-allergenic ingredient, making it a suitable option for people with food allergies or sensitivities.
• In conclusion, the increasing usage of potato starch in dietary supplements is driven by its potential health benefits, including improving gut health, blood sugar control, and immune function. As the demand for natural and plant-based dietary supplements continues to grow, the usage of potato starch in this market is expected to increase further.

Regional Analysis Of The Potato Starch Market

Europe is Expected to Dominate the Market Over the Forecast Period

• Europe is the leading region in the global potato starch market. The region's dominance can be attributed to several factors, including the availability of high-quality raw materials, a well-established food processing industry, and increasing demand for organic and natural products.
• Potatoes are widely cultivated in Europe, with major producers including Germany, France, the Netherlands, and Poland. This provides a reliable and sustainable source of raw materials for potato starch production. Moreover, Europe has a long history of potato cultivation and processing, which has led to the development of advanced processing technologies and a highly skilled workforce.
• The food processing industry is also well established in Europe, with a wide range of food products that use potato starch as an ingredient. These include processed meats, sauces, soups, and baked goods. The high demand for these products has led to the development of advanced processing technologies and a highly competitive market.
• Moreover, there is increasing demand for organic and natural products in Europe, which has boosted the demand for potato starch as an ingredient. Consumers are increasingly concerned about the quality and safety of their food and are willing to pay a premium for products that are free from artificial additives and preservatives.
• In addition, the European Union has implemented several policies to support the production and consumption of organic and natural products. For example, the EU organic logo is a widely recognized symbol that indicates that a product has been produced according to strict organic standards. This has led to an increase in the production and consumption of organic and natural products, including those that use potato starch as an ingredient.
• In conclusion, Europe's dominance in the potato starch market can be attributed to the region's reliable and sustainable source of raw materials, well-established food processing industry, increasing demand for organic and natural products, and supportive government policies.

                                                                                                                                                                                                         Source: Statista

According to the above graph, an increase in potato production can lead to an increase in the potato starch market in Europe due to increased supply, demand, and the health and wellness trend. and the demand for potato starch is expected to raise further.

Covid-19 Impact Analysis On Potato Starch Market

The Covid-19 pandemic has had a mixed impact on the potato starch market. On the one hand, the closure of restaurants and food service establishments led to a decline in demand for certain types of processed foods and sauces that use potato starch as a thickening agent. On the other hand, the pandemic led to a surge in demand for packaged and processed foods, which has boosted the demand for potato starch as an ingredient.

• The closure of schools and workplaces during the pandemic also led to an increase in home cooking, which has driven the demand for potato starch as a cooking ingredient. The increased demand for packaged and processed foods, as well as the shift towards home cooking, has led to a surge in demand for potato starch in the retail sector.
• However, the disruptions in the supply chain caused by the pandemic have also had an impact on the potato starch market. The closure of borders and restrictions on international trade have led to difficulties in sourcing raw materials and exporting finished products. This has led to increased prices for potato starch in some regions.
• The pandemic has also highlighted the need for food security and self-sufficiency, which has led to an increase in the production of potatoes and other starch crops in some regions. This has created new opportunities for local potato starch manufacturers.
• In conclusion, the Covid-19 pandemic has had a mixed impact on the potato starch market. While the closure of food service establishments has led to a decline in demand for certain types of processed foods, the surge in demand for packaged and processed foods and the shift towards home cooking have boosted the demand for potato starch. The disruptions in the supply chain have also had an impact on the market, highlighting the need for greater self-sufficiency in the production of starch crops.

Top Key Players Covered In Potato Starch Market

• Cargill Incorporated (U.S)
• Pepees S.A(Poland)
• Ingredion Incorporated (U.S)
• KMC a.m.b.a (U.S)
• AGRANA Beteiligungs -AG (Austria)
• Tereos (France)
• Avebe (Netherlands)
• AGRANA Beteiligungs-AG (Austria)
• Emsland Group (Germany)
• Novidon
• Roquette (France)
• Tata & Lyle (UK)
• VIMAL PPCE (Ukraine)
• Lyckeby (Sweden)
• Radchen USA (US)
• AKV Langholf (Denmark)

Key Industry Developments In The Potato Starch Market

In November 2022, Ingredion, Incorporated The company has announced that it will invest $160 million in capital investments through 2024 to selectively expand and increasingly localize its production capacity to meet customers’ growing demands for specialty starches that provide texture for taste along with formulating and label-friendly options for food and beverages.

In January 2022, Avebe has invested in new equipment to develop innovation in potato starch products and create market value. The new equipment includes a spray dryer which has arrived. This technology enables Avebe to respond even better to the growing demand for plant-based products.