The Potato Starch 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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Potato Starch Market Dynamics
Drivers:
In the food business, convenience is one of the biggest trends. It is a part of the daily diets of consumers in most developed countries. These foods require extensive processing and preparation, which is facilitated using technological innovations in preservation, packaging, freezing, artificial flavorings & ingredients, among others. Based on their annual consumption rates, it is evident that convenience foods are popular in North American and European countries. Globalization and the resultant changing lifestyles have also led to an increase in the consumption of convenience food in other countries around the world, especially in the developing markets of Asia, subsequently leading to an increased demand for potato starch.
Restraints:
The global potato starch market faces high competition from alternative sources of starch, such as corn, wheat, rice, and arrowroot starch, among others. These starches have multiple similarities and differences based on their nutrient and chemical contents and can be substituted for potato starch depending on the requirements. Below is the list of starches alternatives to potato starch.
Opportunities:
Bioplastics are plastics derived from biological materials and are biodegradable. These are made from renewable sources and are increasingly being preferred in packaging, food service, consumer electronics, agriculture/horticulture, consumer goods, automotive, and household applications. According to European Bioplastics, in 2020, the global production of bioplastics stood at 2.11 million tons, with packaging accounting for 47% of the application area for bioplastics. The global bioplastics market is set to register a growth of 36% between 2021-2026, driven by investments from countries, including China, the US, and European countries.
Challenges:
With the advancement in technologies and production processes across the manufacturing sector, the production of potato starch is a highly competitive market. Along with highly technical production processes, the consumer demand for quality products has risen tremendously. The demand is also high in terms of volume for various food, feed, and industrial applications.
Agrana offers a wide range of organic potato starch
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.
Potato starch as one of the components of feed
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.
Modified potato starch
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.
North America Potato Starch Market
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.
Top potato starch compnaies include
- Pepees S.A. (Poland)
- Agrana Beteiligungs-AS (Austria)
- KMC (Denmark)
- Tate & Lyle (UK)
- VIMAL PPCE (Ukraine)
- Avebe (The Netherlands)
- Tereos (France)
- Lyckeby (Sweden)
- Rädchen USA (US)
- Royal Ingredients Group (The Netherlands)
- Roquette Frères (France)
- Emsland (Germany)
- Südstärke GmbH (Germany)
- Ingredion Incorporated (US)
- AKV Langholt (Denmark)
