Potato Starch Market By Type (Native Potato Starch, Modified Potato Starch, Pregelatinized Potato Starch), By Application (Food & Beverages {Bakery Products, Confectionery, Dairy Products, Soups, Sauces, and Gravies, Processed Foods, Meat Products} Industrial {Paper Industry, Textile Industry, Adhesives & Binders, Pharmaceuticals, Cosmetics & Personal Care, Bioplastics}, Animal Feed), By Nature (Organic, Conventional), By Distribution Channel(Online, Offline {Supermarkets, Specialty Stores, Others}), Global Market Size, Segmental analysis, Regional Overview, Company share analysis, Leading Company Profiles, And Market Forecast, 2025 – 2035

Industry Outlook

The Potato Starch market accounted for USD 3.68 Billion in 2024 and is expected to reach USD 6.2 Billion by 2035, growing at a CAGR of around 4.85% between 2025 and 2035. The potato starch market largely comprises the production and consumption of starch that is derived from potatoes. It is used principally in the food, pharmaceutical, and industrial fields because of its properties such as thickening, binding, and stabilizing. It is employed in processed food products such as soups, sauces, and cooked foods and is useful for gluten-free baking.

In the pharmaceutical industry, it is used as a disintegrant in tablet formulation and for other industrial applications. They include automotive and other industrial products such as adhesives, flexible textiles, and biodegradable polymers. The market is fueled by the growing consumer need for clean-label, gluten-free, & plant-based ingredients. This growth is supplemented by advancements in starch modification technologies and increasing uses in the newly developing economies.

Report Scope:

Market Dynamics

The growth of convenience foods increases potato starch usage as a thickener

The convenience foods business has significantly increased the potato starch market since potato starch is essential in the creation of convenience foods, meals, soups, sauces, and gravies, among other things. This makes it easier to process because it does not form lumps, has a long shelf life, and does not easily alter texture at different temperatures, which appeals to food manufacturers. Because of the increasing demand for convenience foods and ready-to-cook dishes in metropolitan areas, the use of potato starch in processed and convenience foods have increased dramatically.

It adheres to the clean label trend by being gluten-free, which is essential for shoppers looking for natural products. They are inventing and expanding the potato starch market, making it an important ingredient in today's food compositions.

Rising demand for sustainable, biodegradable plastics and packaging made from potato starch

The potato starch market is rapidly expanding in the creation of environmentally friendly polymers and packaging materials. In view of rising pollution and overuse of plastics, potato starch is now being used as a raw material to create environmentally friendly plastic alternatives. Consumable polymers created from fresh potatoes dissolve naturally, making them the ideal solution to the problem of collected rubbish in landfills. They are also widely used in the food, consumer, and one-use industries as carriers and cutlery.

Bureaucracies and businesses around the world are encouraging the sustainable use of products through rules and incentives for similar substances, making starch-based packaging attractive. This makes it excellent for use in composites, where it can be combined with other eco-friendly goods to increase strength and performance. Further, consumers' growing consciousness of sustainability is shaping new advances in this area. Therefore, potato starch offers promising development possibilities due to its use as a component in the development of environmentally friendly packaging.

Significant costs related to energy, labor, and infrastructure impact profitability in production

The strain on the worldwide potato starch market is mostly owing to high production expenses such as energy, labor intensity, and fixed asset expenditures, all of which may hurt profit. Washing potatoes, grinding, and drying potato mash are all energy-intensive tasks in the potato starch manufacturing process. This means that as energy costs rise, so do operating costs, putting pressure on companies to significantly increase production costs. Overhead also has an impact on labor expenses, particularly in places with higher wage rates or limited trained labor accessible for starchy preparations.

Processing equipment and facilities require capital expenditure when first constructed and ongoing pricey overhauls, both of which raise the cost. Supply instabilities of raw materials, such as potatoes, caused by prevailing weather or agricultural conditions, exacerbate matters. Nonetheless, this is in high demand in the market, and financial pressures may limit possible profits per value stream map. Overcoming such costs through the use of energy-saving equipment and materials for an efficient supply chain is critical to the potato starch market's continued expansion.

Growing demand for processed foods boosts starch consumption in developing regions

Demand and consumption rates for convenience foods such as snacks, biscuits, cakes, and other processed food products have shifted as population density and per capita income have increased. Potato starch is often used in processed foods to improve thickness, stability, and texture. It has been observed that the food processing businesses in developing markets are expanding, as is demand for starch. Westernization has an impact on food behavior and the creation of fast-food restaurant services in response to this increase. As a result of the low production costs and the wide range of applications for potato starch, producers want to meet the needs of growing economies. This scenario also demonstrates how developing countries can strengthen their standing as key drivers of the global potato starch market.

Increased demand for eco-friendly, potato starch-based biodegradable packaging solutions.

The new application in the packaging sectors, particularly biodegradable packaging materials, which have raised demand for potato starch, is a major driver of growth. An increase in knowledge of the effects of environmental pollution, and legislation that has put pressure on the industry to find better solutions than the usage of plastic, has resulted in industries embracing sustainable alternatives. This means that potato starch-based packaging materials are naturally biodegradable or compostable, allowing them to disintegrate without emitting harmful substances. This has made it extremely appealing for single-use items such as food packaging containers, knives, utensils, and bags. Because of its properties, potato starch can be mixed with other natural polymers to increase stiffness and value.

Consumers' interest in sustainable packaging encourages the development of starch-based packaging as they seek greener alternatives. To comply with sustainability and environmental standards, corporations frequently include such solutions into their operations. The use of biodegradable packaging materials opens up a new market for green packaging, benefiting the global potato starch market.

Industry Experts Opinion

“Our specialty potato starches for confectionery enable the ultimate break from animal-derived gelling agents. Manufacturers gain unprecedented freedom to tailor textures to market needs using their existing processing equipment.”

• Peter Buchreitz Thesbjerg, confectionery product manager.

Segment Analysis

Based on type, the Potato Starch Market is classified into native potato starch, modified potato starch, and pregelatinized potato starch. Native potato starch, when processed naturally, is appropriate for use as a thickening, stabilizing, and texturizing agent in food and beverage manufacturing processes. It meets the growing desire for natural, minimally processed food ingredients. Manipulated potato starch is the most versatile, since it may be chemically or physically manipulated to improve its functional qualities for applications such as food processing, sticky coatings, and paper production. This material is highly prized for its heat and acid tolerance, especially in industrial and food processing applications. Pregelatinized potato starch, a new product that swells in cold water, is gaining popularity in convenience foods and treatments owing to its simplicity of use and binding qualities.

Based on application, the Potato Starch Market is classified into food & beverages, industrial, and animal feed segments. The global market leader in the food and beverage industry is experiencing rising demand due to the consumption of processed foods, bakery products, and gluten-free goods. Potato starch serves as a perfect thickener, stabilizer, and contributor to the development of the proper texture. Another important segment is the industrial sector, which employs potato starch for papermaking, adhesives, and biodegradable polymers because of expanding green ideas. Potato starch serves as a binder in animal feed, improving feed quality and durability while meeting the demand for livestock feeding efficiency.

Regional Analysis

The European potato starch market is leading, owing to its well-developed food and beverage industry and growing consumption of processed/convenience foods. This advancement enabled the use of natural raw materials such as potato starch in biodegradable packaging and sustainable industrial applications. Further, Europe leads in the development of innovative products and services based on modified and pregelatinized potato starch, notably for low-gluten products, animal alternatives, and plant-based diets. Current technological breakthroughs and flowing investments by European companies are aimed at developing new applications for potato starch, with its qualitative and effective properties fulfilling a wide range of customer needs.

The Asia-Pacific potato starch market is expanding owing to increased urbanization, a growing middle-class population, and a thriving food processing market. The region is seeing an increase in the usage of potato starch in food and beverage goods, particularly in emerging economies like China and India, because of changing diets and a growing demand for industrialized bakery products. Furthermore, Asia-Pacific is implementing new technologies, like the use of potato starch in bio-packaging and bioplastics, to meet social and environmental norms. This rapid growth is owing to advancements in extraction and modification methods, which have improved the functional application of potato starch.

Competitive Landscape

The global potato starch market is incredibly competitive, defined by a range of large-scale manufacturers that consider product expansion and market coverage major goals. Some specialize in innovations touching on product portfolio and sustainability of raw material supply to meet rising demand in food, beverages, and industrial uses. Some of its key suppliers include Cargill Inc., Tate & Lyle ALK/KMC, Kirsten Moller Christensen, Avebe Royal Ingredients Group, etc. Cargill's production capacity has improved through the expansion of plants and stepping up on clean-label solutions. Tate & Lyle has also focused on sustainability with strategies such as carbon emission cuts and utilization of renewable energy sources. To meet the demand for its products, Avebe has developed superior products such as potato starch that is used in the pharma and bio-based products. KMC has been diversifying the company and opening new business ventures to accommodate the growth of the functional starches industry in the food and non-food industries.

Potato Starch Market, Company Shares Analysis, 2024

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Recent Developments:

• In October 2024, the National Union of Potato Producers (UNPT) in France welcomed the announcement from the Ministry of Agriculture, Food Sovereignty, and Forestry about the new National Strategic Plan (PSN).
• In June 2023, Brenntag Specialties formed a strategic partnership with the well-known potato starch manufacturer, Royal Avebe, marking a significant development in supply collaborations within the nutrition segment. The collaboration aimed to leverage the strengths of both entities, combining Brenntag Specialties' distribution expertise with Royal Avebe's excellence in potato starch production.

Report Coverage:

By Type

• Native Potato Starch
• Modified Potato Starch
• Pregelatinized Potato Starch

By Application

• Food & Beverages
  • Bakery Products
  • Confectionery
  • Dairy Products
  • Soups, Sauces, and Gravies
  • Processed Foods
  • Meat Products
• Industrial
  • Paper Industry
  • Textile Industry
  • Adhesives & Binders
  • Pharmaceuticals
  • Cosmetics & Personal Care
  • Bioplastics
• Animal Feed

By Nature

• Organic
• Conventional

By Distribution Channel

• Online
• Offline
  • Supermarkets
  • Specialty Stores
  • Others

By Region

North America

• U.S.
• Canada

Europe

• U.K.
• France
• Germany
• Italy
• Spain
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• Australia
• South Korea
• Singapore
• Rest of Asia Pacific

Latin America

• Brazil
• Argentina
• Mexico
• Rest of Latin America

Middle East & Africa

• GCC Countries
• South Africa
• Rest of Middle East & Africa

List of Companies:

• Cargill, Inc.
• Ingredion Incorporated
• Roquette Frères
• Emsland Group
• Avebe
• KMC
• Tate & Lyle PLC
• AgranaBeteiligungs-AG
• PepsiCo, Inc.
• Royal DSM
• Starch Europe
• China National Starch and Chemical
• MGP Ingredients, Inc.
• Kroger Co.
• LyckebyCulinar AB

Frequently Asked Questions (FAQs)