According to the report “Potato Starch Market by Type (Native, Modified), End-User (Food & Beverages, Feed, and Industrial), Nature (Conventional, Organic), and Region (North America, Europe, Asia Pacific, Rest of the World) – Global Forecast to 2027“, published by MarketsandMarkets™, the market is estimated to be valued at USD 4.3 billion in 2022. It is projected to reach USD 5.2 billion by 2027, recording a CAGR of 3.7% during the forecast period. The global potato starch market has been influenced by some of the macroeconomic and microeconomic factors witnessed in some key countries. This would prove strong enough to drive the market significantly in terms of value sales during the forecast period. With the rise in demand and preference for natural food ingredients, the trend of clean-label and plant-based products has significantly boosted the utilization of potato derivatives in the food industry. Potato starch is used as a binder, and this enhances its properties, such as smoothness, hardness, gloss, and whiteness.

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Agrana offers a wide range of organic potato starch in the food and luxury food sectors.

The organic industry is growing fast. According to the Organic Trade Association, more than 82% of US households buy organic, more than 75% of all categories on supermarket shelves offer organic options. The rising popularity of organic products due to their perceived health benefits is fueling the growth of organic potato starch. Organic foods are perceived to be safer and healthier as they are free from any chemicals and pesticides. Organically processed foods are emerging as mainstream retail products in the developed markets of North America and Europe. The growing popularity of clean-label food & beverages is expected to increase the demand for organic starch across the food processing industry.

Feed market is a relatively untapped and small market in comparison to other non-food applications and the rapidly growing food & beverage market.

Potato starch is used as one of the components of feed, majorly as a milk replacer and as a source of energy, to improve digestibility and help increase the weight of livestock. Companies are focusing on the development of extraction and processing of potato starch to discover new feed applications. Starch is the primary source of carbohydrates in swine feed. Modified potato starch, when fed as a substitute for corn to weaning pigs, can improve their growth performance. Modified starch in ruminant feed acts as a milk replacer for newborn calves. It is a source of carbohydrates, which helps in improving digestibility in ruminants and helps them gain weight. It is rapidly digested by rumens; however, an excess of it could induce acidosis in cattle, which could be harmful.

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Modified potato starch provides internal strength to paper

Potato starch contributes to the paper industry in many ways as it provides several functional properties to the paper and works as a process aid as well. The papermaking industry uses a large number of potato starches, both as a wet-end additive and as a modifier in surface sizing and coating colors. They impart the body to the paper by  holding the pulp together. Potato starches are used as glue and adhesives for paper edges. They provide internal strength and enhance the surface of the paper. They also improve printability and writing properties. Typically, printing and writing papers contain 4.1% starch; paperboard 2% starch; and domestic & industrial papers 1.9% starch. The growing use of recycled paper has led to the increasing use of starch derivatives to avoid the deterioration of the quality of fibers during recycling.

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North America is projected to reach USD 479.86 million during the forecast period.

In 2021, North America accounted for a market share of 10.48% in the global potato starch market. The North American potato starch market is completely driven by the US market. The US potato starch industry has witnessed technological advancement, which has increased its usage in various industries. In the US, potato starch is primarily used in canned soups and in blends where its thickening power is exploited, especially for fill viscosity. It is also used as a base for gelling agents in confections, for thickeners in products such as pastry and pie fillings, and in instant puddings. The growing trend of ready-to-eat meals and processed food is also driving the potato starch market in the region. Potato starch is frequently used in food applications due to its functional properties.

Key Players:

The key players in this market include Tate & Lyle (UK), Emsland (Germany), Ingredion Incorporated (US), and Avebe (Netherlands).