Potato Starch Market

Potato Starch Market Outlook (2024 to 2034)

The global potato starch market size is projected to reach US$ 4.81 billion in 2024 and climb to a value of US$ 7.69 billion by the end of 2034. The market has been forecasted to expand at 4.8% CAGR from 2024 to 2034.

Potato starch has gained popularity due to its increasing utilization in various industries such as textiles, food & beverages, pharmaceuticals, paper, and others. Use of potato starch is growing in various applications because it is highly valued for its gelling, binding, and thickening properties.

The market is also being driven by the growing popularity of potato-based snacks such as chips, extruded snacks, and other savory delicacies. The essential component that gives these items their desired texture, crispiness, and mouthfeel is potato starch. Manufacturers are producing more of these items due to rising consumer preference for quick and delicious snack options.

Key Market Growth Drivers

• Utilization of potato starch is increasing as a thickening and stabilizer in various processed food products such as soups, sauces, snacks, and others, driven by increasing demand for quick and ready-to-eat food products.
• The gluten-free product market is growing as celiac illness and gluten intolerance are becoming more common. People facing these problems are using potato starch in place of wheat flour as it is a naturally gluten-free substance.
• Other than just food, the use of potato starch is increasing in other industries such as paper, textiles, pharmaceuticals, and others due to its sticky, binding, and film-forming qualities.
• One of the key potato starch market trends is increasing developments in extraction and processing techniques, making it more effective and adaptable for various uses.
• High popularity of potato-based snacks such as chips, crackers, balls, and extruded items is contributing to increasing demand for potato starch.
• The North American and Western European regions account for high market expansion because of the increasing popularity of potato starch in the processed food industry.

Report Attributes	Details
Potato Starch Market Size (2024E)	US$ 4.81 Billion
Forecasted Market Value (2034F)	US$ 7.69 Billion
Global Market Growth Rate (2024 to 2034)	4.8% CAGR
North America Market Share (2024E)	23.7%
East Asia Market Value (2024E)	US$ 1.07 Billion
Modified Potato Starch Segment Value (2034F)	US$ 6.14 Billion
Organic Potato Starch Segment Value (2034F)	US$ 6.9 Billion
Key Companies Profiled	Cargill, Inc.; KMC a.m.b.a; National Starch Food Innovation; Tereos Syral S.A.S.; SMS Corporation Co., Ltd.; AKV Langholt AMBA; Novidon BV; Emsland Group; Pepees S.A.; Tate & Lyle; Ingredion Incorporated

Why is Consumption of Potato Starch Rising Worldwide?

“Growing Sales of Ready-to-Eat Food Products”

The market for potato starch is expanding due to its increasing use in processed food products. Continuously growing demand for convenience and ready-to-eat food items is boosting the sales of potato starch as a key ingredient. Potato starch is popular for its excellent thickening and stabilizing properties that enhance the texture and consistency of food products. It is commonly found in products such as soups, snacks, sauces, and others, where it helps maintain the desired viscosity and shelf life of the end product.

Demand for potato starch is also increasing from non-food industries such as textile, chemicals, paper, pharmaceuticals, and various others. Power starch is widely used as a sizing agent in the textile industry as it gives strength to materials and smoothness when they are woven. In paper production, it is utilized because of its adhesive qualities that improve printability and surface quality. In the pharmaceutical industry, potato starch works as a binding agent in tablet formulation and guarantees its integrity and consistency.

What’s Hampering Demand Growth of Potato Starch?

“Raw Material Cost Fluctuations Negatively Impacting Profitability of Producers”

Price fluctuation of raw materials is a key problem that is hampering potato starch market growth to some extent. Cost of potatoes fluctuates continuously depending on agricultural methods, supply chain, and more importantly, weather patterns that impact crop yield. Unfavorable weather conditions sometimes result in fewer potato crops, which ends up raising costs. The cost structure of producing potato starch is affected by this raw material price fluctuation, making it challenging for manufacturers to maintain stable prices. Producers find it difficult to pass on rising costs to customers without losing market share, which impacts profitability.

Country-wise Insights

The North American region is estimated to account for 23.7% of the worldwide potato starch market share in 2024. Market growth in the region is being driven by increasing demand for processed foods and snacks. Other than this, a strong agricultural sector and well-established production facilities are contributing to market growth in the region. The Western Europe region holds a significant market share due to it being one of the top potato producers in the world.

What is the Demand Outlook for Potato Starch in the United States?

“Companies Benefiting from Well-Known Processed Food Industry”

Attribute	United States
Market Value (2024E)	US$ 505.3 Million
Growth Rate (2024 to 2034)	5.2% CAGR
Projected Value (2034F)	US$ 841.5 Million

The United States is set to account for 44.3% of North American market share in 2024. Well-established processed food industry in the United States is a key reason behind the growing sales of potato starch. Potato starch is an important component of the food manufacturing process as it is widely used to thicken, stabilize, and texturize several items such as sauces, soups, baked goods, snacks, and others. High demand for quick-to-eat meals from consumers is driving up the need for potato starch in the country. Its rising use is a result of its ability to enhance texture and consistency in processed meals.

How is the Personal Care & Cosmetic Industry Boosting Sales of Potato Starch in South Korea?

“Provides Desirable Structure to Various Products Such as Lotions, Powders, and Creams”

Attribute	South Korea
Market Value (2024E)	US$ 241.5 Million
Growth Rate (2024 to 2034)	5.5% CAGR
Projected Value (2034F)	US$ 413.9 Million

Demand for potato starch is increasing in South Korea, primarily from the personal care and cosmetic sector. Potato starch is a natural ingredient in various personal care products due to its beneficial properties of calming and absorbent effects. It adds a desirable texture and improves product durability by thickening lotions, creams, and powders. It's also soft and hypoallergenic, which makes it appropriate for formulas for sensitive skin.

Usage of potato starch in personal care products is increasing, further strengthening its market stance and generating demand for this adaptable ingredient. South Korea's beauty and skincare business is growing constantly due to both, high local and international interest.

Category-wise Insights

Based on end uses, the market is segmented into food & beverages, industrial, pharmaceuticals, cosmetics & personal care, and animal nutrition. The food & beverage segment holds a significant share of the worldwide market because of increasing its use in the production of processed food products.

Why is Demand for Modified Potato Starch Increasing Globally?

“Enhanced Gel Formation, Thickening, and Stability Properties”

Attribute	Modified Potato Starch
Segment Value (2024E)	US$ 3.86 Billion
Growth Rate (2024 to 2034)	4.7% CAGR
Projected Value (2034F)	US$ 6.14 Billion

Demand for modified potato starch is higher in comparison with native variants due to its excellent and enhanced functional qualities. To enhance its performance in different applications such as better gel formation, enhanced thickening properties, and enhanced stability in hot and acidic environments, modified potato starch is subjected to chemical or physical modifications. These changes enable it to be used in more products such as sauces, dressings, and processed foods, where exact consistency and texture are crucial.

Modified potato starch is becoming more popular over native starch due to its greater functionality and adaptability, as more companies look for more dependable and flexible components to satisfy specific formulation requirements.

Why is Preference for Organic Potato Starch High Compared to Conventional Forms?

“High Consumer Preference for Potato Starch without any Pesticides and Fertilizers”

Attribute	Organic Potato Starch
Segment Value (2024E)	US$ 4.3 Billion
Growth Rate (2024 to 2034)	4.8% CAGR
Projected Value (2034F)	US$ 6.9 Billion

Demand for organic potato starch is high compared to conventional starch due to growing consumer preference for natural products. Consumers and end users prefer organic potato starch as it is produced without pesticides or fertilizers. Pesticide- or fertilizer-based potato starch somehow negatively impacts health, and because of this concern, demand for organic potato starch is high. As consumers seek more natural and eco-friendly options, organic potato starch is becoming a preferred choice for food manufacturers and other industries, contributing to its higher demand relative to conventional starch.

Competitive Landscape

Key players in the potato starch market are focusing on expanding their product lines to include various types of potato starch products, such as organic, modified, specialty, and other starches, to meet different needs of consumers as well as applications.

• In July 2024, a new gelling agent derived from potato starch was introduced by Danish ingredient supplier KMC, enabling the creation of plant-based confections with a texture that is both soft and chewy.
• In March 2021, a new addition to its wide range of potato-based solutions for the United States and Canada - ULTRA-TEX 1311 modified potato starch, was announced by Ingredion Incorporated, a leading global provider of ingredient solutions to various sectors.

Fact.MR provides detailed information about the price points of key manufacturers of potato starch positioned across the world, sales growth, production capacity, and speculative technological expansion, in this new market report.

Segmentation of Potato Starch Market Research

• By Product Type:

  • Modified
  • Native

• By Nature:

  • Organic
  • Conventional

• By End Use:

  • Food & Beverages
    • Dairy Alternatives
    • Bakery
    • Confectionery
    • Soups & Sauces
    • Snacks & Savory
    • Meat & Seafood
    • Infant Formulae
  • Industrial
    • Paper
    • Textiles
    • Chemicals
  • Pharmaceuticals
  • Cosmetics & Personal Care
  • Animal Nutrition

• By Region:

  • North America
  • Western Europe
  • Eastern Europe
  • Latin America
  • East Asia
  • South Asia & Pacific
  • Middle East & Africa