Potato Starch Market Size, Share & COVID-19 Impact Analysis, By Nature (Organic & Conventional) End-use (Textile & Paper, Food & Beverages, and Pharmaceuticals), Type (Native and Modified), and Regional Forecast, 2020-2032

The global potato starch market size was USD 500.07 million in 2019 and is projected to reach USD 1142.78 million by 2032, exhibiting a CAGR of 6.62% during the forecast period based on our analysis in the existing report. North America dominated the potato starch market with a market share of 35.74% in 2019.

This market is primarily driven by evolving consumer preferences for natural food ingredients. The trend of clean-label and plant-based products has significantly increased the utilization of potato derivatives in the food industry. The rising trend of organic processed foods has contributed to new product developments in the food & beverage industry by using starch as an important ingredient. Enticing sensorial & textural appeal and health benefits are some of the factors that are driving the growth of the global market.

Disruptions in Production amid COVID-19 Pandemic to Affect Potato Starch Consumption

The production and sales of potato starch has experienced a sudden slump owing to the outbreak of the COVID-19 pandemic. The pandemic resulted in nationwide lockdown in many countries, which heavily impacted on the production of this substance. The disruption in the supply chain also affected the availability of raw material required for the production of this starch. However, increased interest in ready-to-cook products as well as ingredients required in home cooking has re-established the demand for naturally-derived ingredients across the food processing industry. The growing concerns regarding food safety amidst the pandemic is expected to boost the demand for starch as a clean-label ingredient.

LATEST TRENDS

Emerging Trend of Plant-based Products Contributes to Market Growth

The growing awareness regarding animal welfare concerns as well as environmental sustainability has developed the trend of plant-based products among consumers. Plant-based products are gaining popularity in many sectors across food industry. The evolving perception of consumers that plant-based products are safer & healthier as compared to animal-originated products is fueling the starch market growth. Growing number of people following veganism and vegetarian diets has necessitated leading manufacturers to innovate & develop starch-based food products. Potato is now extensively utilized to develop plant-based meat alternatives, which supports the potato starch market growth.

DRIVING FACTORS

Rising Popularity of Clean Labels to Increase the Demand for Starches in the Food Industry

In the past few years, the trend of clean-label products has gained traction owing to the growing demand for healthier, safer, and natural products. Starches are becoming popular as they fit well with the clean-label tag. Starch is utilized as a natural additive in various foods and beverages to increase their thickness and stability. Research & innovation in starch sourced from potato has been proved to work well in applications such as sauces, soups, and gluten-free products. Potato derivatives are also utilized as plant-based binding agents that improve sensory appeal in a range of food products. The growing demand for organic & clean-label products is expected to boost the demand for potato-based organic starch in the forthcoming years.

Robust Demand for Cost-effective Additives to Propel Growth

The flourishing global food industry is driving innovations and new product developments by leading manufacturers. People nowadays look for nutritious products that provide indulgence. Starch is mainly used as a binding agent, thickening agent, and texturizer in food products such as bakery, soups, sauces, confectionery, and the meat industry. It is becoming popular as a cost-effective as well as clean alternative for food processors. The growing popularity for vegetarian meat alternatives is expected to fuel the demand for this starch as a low-cost meat alternative.

RESTRAINING FACTORS

Consumer Awareness Regarding Health Risks Caused by Carbohydrate Consumption to Hamper Growth

The growing awareness among consumers regarding health risks caused by excessive carbohydrate consumption acts as a major restraint for the growth of this market. People are shifting their preferences towards low-carb diets to reduce the risk of lifestyle-realted health conditions such as obesity, cardiovascular diseases, and diabetes. According to the Global Diabetes Community, U.K., it is estimated that 415 million people had diabetes in 2018 across the world and the number is expected to rise to 642 million by 2040. The growing consumption of low-carb food & beverages to maintain overall health is expected to hamper the growth of the market in the foreseeable years.

SEGMENTATION

By Nature Analysis

Organic Segment to Hold the Largest Share Backed by Growing Preference of Organic Food

The rising popularity of organic products owing to their perceived health benefits is fueling the growth of the organic potato starch segment. 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 & Europe. Growing popularity of clean-label food and beverages is expected to increase the demand for organic starch across the food processing industry. The flourising textile & paper industry is expected to fuel the growth of the conventional segment.

By End-user Analysis

Food & Beverages Industry Exhibits Significant CAGR Supported by Extensive Application of Starch Products

The widening application of starch across the food and beverage industry is expected to support the growth of this market. This starch form is becoming an important ingredient in a range of processed foods. It is utilized as a thickening, binding, and stabilizing agent and the demand is steadily growing on account of the rising popularity of clean-label and plant-based products. The growing demand for ready-to-eat & ready-to-cook products is also driving the demand for starch. Additionally, its increasing demand/ utilization in sweeteners is expected to propel the market growth in the foreseeable years.

By Type Analysis

Growing Popularity of Natural Ingredients to Boost Growth of the Native Potato Starch Segment 

Starch has been utilized in food, textile, and pharmaceutical industries for many years. Previously, modified starch was extensively utilized owing to is higher content of amylose. However, in recent years, the increased utilization of starch in food and beverage industry has transformed the demand dynamics to increase the demand for its native variant. Growing interest in natural and clean-label ingredients attributed to their perceived health benefits further drives the growth of the native segment.

REGIONAL INSIGHTS

North America holds a commanding position in the potato starch market share on account of growing demand from the food and beverage industry. The market in the region is primarily propelled by the growing trend of clean-label and plant-based products. Consumers nowadays are looking for healthy products that also provide indulgence. There is a growing popularity of functional foods, which also include healthy snacks that utilize starch as a natural additive.

Europe market for potato starch holds the second-largest share in the global market which is owing to the rising interest in organic and plant-based food products in the region. This directly propels the growth of the organic starch segment in the region. Furthermore, the rising trend of consuming natural foods in the region will also boost the market growth in the upcoming years.

The market in Asia Pacific is expected to grow at a significant CAGR. The demand for starch in the region is mainly driven by the flourishing food industry in developing markets such as India and China. The growing popularity of ready-to-eat and ready-to-cook products in the region fuels the demand for this starch from the food processing industry in the region. The rising interest in trying western cuisines has increased the demand for sauces, dressings and bakery products, and convenience foods, which is expected to drive the market growth in the region.

South America and the Middle East and African regions are growing at a medium pace due to the pandemic situation. Majorly affected countries such as Brazil and South Africa, have a major impact on the non-essential food products. This has led to the decline in the sales of potato starch.

KEY INDUSTRY PLAYERS

Cargill, Inc. Is Investing in Innovation & Expansion to Strengthen Market Presence

Cargill, Inc. is focused on investing in the development of innovative products to strengthen its position in the market. For instance, in September 2018, the company launched a new range of label-friendly potato starches for meat alternatives. The market exhibits a moderately consolidated structure. The industry is dominated by a few major players owing to their huge client base, strong brand loyalty, & distribution network. Key players such as Emsland Group, Ingredion, Inc. and Roquette are focusing on strategic mergers, acquisitions, and partnerships to further consolidate their market position.

LIST OF KEY COMPANIES PROFILED:

• Emsland Group – Lowe Saxony, Germany


• Cargill, Inc. – Minnesota, U.S.


• PEPEES Group – Lomza, Poland


• Roquette – Lestrem, France


• Ingredion, Inc. – Illinois, U.S.


• KMC a.m.b.a. – Brande, Denmark


• Coöperatie Koninklijke Cosun U.A. – Dinteloord, Netherlands


• AGRANA Beteiligungs-AG – Vienna, Austria


• Tereos - Moussy le Vieux, France


• Lodaat Pharma – Illinois, U.S.

KEY INDUSTRY DEVELOPMENTS:

• January, 2019 – Ingredion Inc. acquired the U.S.-based Western Polymer Corporation. The company produces modified and native potato starches. This acquisition helps the company deliver raw materials for industrial purposes.


• January 2018 – Cargill Inc. signed a joint venture with AKV Langholt AmbA and invested in its new potato starch plant in Denmark. This new facility will help meet the rising consumer demand for clean label and native starches.

REPORT COVERAGE

The potato starch market research report provides a detailed analysis of the market and focuses on key aspects such as leading companies, product types, and leading distribution channel of the product. Besides this, the report offers insights into the market trends and highlights key industry developments. In addition to the aforementioned factors, the report encompasses several factors that have contributed to the growth rate of the market over the recent years.

Report Scope & Segmentation: