Industry: Food and Beverages
Published Date: March-2022
Format: PPT*, PDF, EXCEL
Delivery Timelines: Contact Sales
Number of Pages: 435
Report ID: PMRREP28528
The global market is anticipated to expand at a CAGR of 4.8%, being currently valued at US$ 10.27 Bn in 2022. As such, potato starch sales are predicted to be worth US$ 16.48 Bn by the end of the year 2032.
| Attribute | Key Insights |
|---|---|
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Potato Starch Market Size (2022E) |
US$ 10.27 Bn |
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Projected Sales of Potato Starch (2032F) |
US$ 16.48 Bn |
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Value CAGR (2022-2032) |
4.8% |
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Value Share of Top 5 Countries (2021A) |
34.4% |
Potato starch consumption accounted for around 15% to 20% value share of the global food ingredients market in 2021.
Historical value CAGR of the market was 3.3% over the period of 2017-2021. The market is anticipated to register growth in terms of volume (MT) at a comparatively higher CAGR of 4.3% over the forecast period, i.e., 2022-2032.
Demand for potato starch from bakery, dairy alternatives, confectionery market, soups & sauces, and meat & seafood is anticipated to be more due to the increasing sizes of these industries.
With growing population and increasing living standards, consumers are consuming products that fit their checklist in terms of ingredients, labels, and other such factors. Due to such consumer trends, major industries such as food & beverages, pharmaceuticals, cosmetics & personal care, etc., are switching to ingredients and additives that just do not solve a single purpose but an array of requirements, and in such a scenario, potato starch is turning out to be a promising ingredient.
Demand for potato starch from the bakery segment is anticipated to surge at a CAGR of 6% while demand for organic potato starch is expected to increase at 4.5% CAGR, which is higher than that of conventional potato starch.
“Increasing Demand for Starch Ingredients Propelling Market Growth of Potato Starch”
Starches are used in numerous industrial applications, mainly as viscosifiers, emulsifiers, deforming, encapsulating, and sizing agents. They have gained popularity in industrial applications due to their ability to impart textural characteristics and aid in the formation of gels or films.
From a production point of view, these starches are required to be chemically or physically modified to improve their performance or provide functional properties in various industrial applications.
The genetics behind the biosynthesis of these starches come into play. Native starches are being increasingly modified to allow the alteration of physical and chemical properties, and are termed modified starches. Native and modified are the only two categories of starches that are commercially consumed due to their numerous applications in molding the physical properties of end products.
“Rising Potato Starch Usage in Paper Industry”
Paper manufacturing consists of several major steps, including stock preparation, sheet forming, pressing, drying, and surface finishing. Starch is among the most crucial ingredients in papermaking, and it is so vital that starch consumption by weight in papermaking and conversion is ranked third after cellulose fiber and mineral pigmentation.
Starch is used for flocculating & retention aiding, as a bonding agent, as a surface binding agent for coatings, as an adhesive for corrugated boards, laminated grades, and other products.
Majorly utilized starch types include potato starch, maize starch, wheat starch, and tapioca starch, with potato starch consumption topping the list in the papermaking industry. Refined starches are supplied throughout the industry in powder form or as slightly aggregated pearl starch. Most starches for use in papermaking are specialty products that are modified for controlled hydrolysis or oxidation.
In the paper manufacturing industry, potato starch is a much more preferred type of starch as compared to the other starch types available in the market. Unmodified potato starch is highly preferred over other types for manufacturing coated paper due to its firm foaming properties, unparalleled binding properties, and lower moisture retention properties. These properties result in better coating and also reduce the load on the drying section, which aids in improving the mechanical efficiency of the overall process of papermaking.
“Growing Textiles Industry Demanding Potato Starch”
Application of potato starch as an active ingredient in textile making/weaving has observed an increase over the last two decades. Potato starch in the textile industry works as an adhesive sizing agent, and its variants are used for coating threads because they aid in increasing thread strength and prevent breaking during the weaving of the fabric.
Moreover, the entire industry designates potato starch as a promising sizing material for staple fiber yarns made from wool, rayon, linen, and also for the mixtures of these fibers with manmade fibers.
Many market players serving the textile industry are focusing on improving the characteristic features of starch.
“Rising Demand for Gluten-free Alternatives Offering Growth Opportunities”
The food industry is evolving at an exceptional pace, which is a direct consequence of the ever-evolving consumer demand for label-friendly end products. The food industry, especially the bakery industry, is observing increased demand for gluten-free edibles, as it is among the top utilizers of wheat flour, which is a direct and easily available source of gluten protein.
Health issues related to a gluten-based diet include celiac disease and non-celiac gluten sensitivity. Due to growing awareness and health management expenses, consumers often end up avoiding gluten-based diets.
Wheat-based foods, barley, rye, triticale, malt, and brewer’s yeast are among the most widely available sources of gluten. These ingredients are found in bread, pasta, cereals, baked goods, snacks, sauces, beverages, and other food products.
Potato starch is an effective alternative to wheat flour, especially in bakery applications. It does not differ a lot from wheat flour in its physical appearance and chemical composition, and also does not contain even small amounts of gluten.
“Availability of Potato Starch Substitutes Hampering Market Growth”
When it comes to substitutes and/or alternatives to potato starch, the market is flooded with many options such as corn starch that is suitable for thickening and frying applications, wheat flour for bakery applications, arrowroot powder for gluten-free baking and thickening sauces, rice flour for baking and thickening, and tapioca starch for baking and thickening applications. All these substitutes are hindering market growth of potato starch in some way or the other.
Moreover, many alternatives are already being increasingly utilized in numerous food applications, such as sweet rice flour in gluten-free baking, corn starch in frying applications, arrowroot as a replacement for potato starch in gluten-free bread, water chestnut flour in bakery applications, as well as wheat, ground matzo, and coconut flour.
These substitutes are gaining ground because they offer more health benefits over potato starch and are much more easily available. In industrial applications, when high-temperature processing is required, modified corn starch is used instead of potato starch as it gets cracked at higher temperatures. Increasing popularity of potato starch substitutes / alternatives has the potential to suppress market growth over the coming years.
Who is Leading Market Growth in the European Market?
In the European region, Nordic, BENELUX, the U.K. and Spain are set to experience the highest value CAGRs of 5.4%, 5.1%, 4.9% and, 4.3%, respectively, over the forecast period of 2022-2032.
This is due to fact that end-use industries are evolving in these geographies, and hence, an optimistic potato starch demand outlook is anticipated from them.
Will the U.S. Continue to Attract Potato Starch Suppliers?
The U.S. holds a monopoly in the North America potato starch market with a market share of more than 80%.
The U.S. market is valued at US$ 2.05 Bn and is expected to reach US$ 2.74 Bn by the end of 2032. Overall, the U.S. market is representing an absolute $ opportunity of US$ 50 Mn in 2022 over 2021.
Why is Native Potato Starch Market Highly Sought-after?
Native product type of potato starch accounts for a majority share in the global market with more than 50% in 2022. Segment value is estimated at 3.9 Mn (MT) in 2022, and is expected to register growth at a CAGR of 4.5% over the forecast period.
Which End Use Segment Accounts for Major Potato Starch Demand?
The food & beverages segment holds a majority market share due to numerous sub-segment applications of potato starch. This is because the demand matrix for ingredients and additives is evolving and need for such versatile ingredients is observing a dominance.
Demand for potato starch from the food & beverage sector is anticipated to register growth at 5% CAGR over the forecast period.
This unprecedented pandemic had repercussions on the global market for potato starch as resulted in reduced Y-o-Y growth in 2020 as compared to 2019. This dip in demand was due to the imposed lockdowns as precautionary measures to restrict the spread of this novel virus, which led to the shutting down of industries, and hence, demand for raw materials was also low.
As we move forward, the market scenario is evolving due to the increasing size of end-use industries. As demand for end products such as paper, textiles, food & beverages, etc., increases, the need for ingredients is also likely to be more. This results in an optimistic market demand outlook for potato starch for the years ahead.
Key manufacturers of potato starch market are coming up with innovative ways of increasing production capacity due to growing demand for their end products from various end-use industries. Key vendors are also emphasizing on providing tailor-made custom solutions to their clients to increase their customer base. They are also investing in new machinery to increase the efficiency of their processes.
| Attribute | Details |
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Forecast period |
2022-2032 |
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Historical data available for |
2017-2021 |
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Market analysis |
US$ million for value |
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Key regions covered |
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Key countries covered |
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Key market segments covered |
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Key companies profiled |
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Report coverage |
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Customization & pricing |
Available upon request |
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The global potato starch market is currently valued at US$ 10.27 Bn.
Health benefits of potato starch, increasing utilization in paper industry, growing textile industry, and need for versatile ingredients are driving potato starch demand growth.
From 2017 to 2021, demand for potato starch increased at a CAGR of 3.3%.
Sales of potato starch are projected to increase at 4.8% CAGR and be valued at US$ 16.48 Bn by 2032.
AGRANA Beteiligungs-AG, Cargill, Incorporated, Ingredion, Roquette Frères S.A., Tate & Lyle, and Tereos are the top 5 potato starch manufacturers accounting for around 60% to 65% market share.
The Germany potato starch market accounts for the largest share of 15% in the European region.
The U.S., Brazil, Mexico, Germany, and France account for the highest consumption of potato starch.
Germany, the Netherlands, Japan, Denmark and France are major producers of potato starch.
Germany, Poland, Belgium, Canada, and the Netherlands are key exporting countries of potato starch.
In 2022, Japan held a market value of US$ 604.4 Mn, while South Korea accosted for sales of US$ 378.7 Mn.
