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Potato Starch Market Expected to Surpass US$ 16.48 Bn by 2032 - Persistence Market Research

04-08-2025 09:46 AM CET | Food & Beverage

Press release from: Persistence Market Research

Potato Starch Market Expected to Surpass US$ 16.48 Bn by 2032 -

The global potato starch market has emerged as a dynamic segment within the broader food ingredients industry, steadily gaining traction across multiple verticals. With its wide range of applications spanning from food and beverages to pharmaceuticals, textiles, and paper manufacturing, the market has grown substantially in recent years. According to current market analysis, the potato starch industry was valued at US$ 10.27 billion in 2022 and is projected to reach US$ 16.48 billion by 2032, expanding at a CAGR of 4.8% over the forecast period. This notable growth is attributed to its versatile functionality and consumer demand for clean-label and gluten-free alternatives, especially in processed foods and industrial applications.

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The food and beverage sector continues to be the dominant end-use segment, driven by increased consumption in bakery, soups, sauces, and gluten-free alternatives. Meanwhile, Europe holds a prominent position in the global market, with the Nordic, BENELUX, U.K., and Spain markets posting high CAGRs. This growth can be attributed to the evolving landscape of food production, paper manufacturing, and a growing focus on clean-label and sustainable ingredients across the region.

Key Highlights from the Report:

➤ The global potato starch market is expected to reach US$ 16.48 Bn by 2032, growing at a 4.8% CAGR.
➤ The food and beverage segment holds the largest market share, growing at a projected CAGR of 5%.
➤ Native potato starch accounts for over 50% of the global product type segment.
➤ Europe is expected to lead regional growth, driven by evolving end-use industries.
➤ The U.S. dominates the North American market, with over 80% market share.
➤ Organic potato starch demand is growing at a higher CAGR of 4.5% compared to conventional variants.

Market Segmentation

The potato starch market can be segmented based on product type, nature, and end-use industries. Under product type, native and modified potato starch are the primary segments, with native starch leading due to its broad applications in the food industry and superior binding properties.

When segmented by nature, conventional potato starch dominates, although organic variants are witnessing a rapid increase in demand owing to health-conscious consumers and clean-label trends.

By end-use, the food and beverages industry is the largest segment, encompassing bakery, dairy alternatives, soups, sauces, snacks, and confectionery. Potato starch is also gaining traction in non-food sectors like textiles, paper manufacturing, pharmaceuticals, and cosmetics, where its binding, adhesive, and moisture retention properties are highly valued.

Regional Insights

Europe remains the leading region in the potato starch market, supported by the mature and evolving industries across Nordic countries, the U.K., Spain, and BENELUX. These regions exhibit robust growth, with the Nordic region expected to post a 5.4% CAGR, fueled by demand from food, textile, and paper industries.

North America, particularly the United States, continues to dominate the regional market, holding over 80% of the share. The country's well-established food processing and packaging industry, coupled with growing awareness about gluten-free diets, boosts its potato starch consumption. The U.S. market is expected to grow from US$ 2.05 billion in 2022 to US$ 2.74 billion by 2032.

In Asia-Pacific, emerging economies such as China, India, and Indonesia are anticipated to present significant opportunities due to growing population, rising disposable incomes, and an expanding food and textile sector.

Market Drivers

The rise in demand for gluten-free alternatives in food applications has substantially fueled the growth of the potato starch market. Consumers are increasingly shifting toward dietary options that cater to gluten sensitivity and celiac disease. Potato starch provides a similar consistency and performance as wheat flour but without gluten, making it a preferred ingredient in bakery and processed foods.

In industrial applications, the adoption of potato starch as a viscosifier, binder, encapsulating agent, and emulsifier has gained momentum. The paper industry heavily relies on potato starch due to its exceptional binding and water retention properties, aiding in sheet formation and surface coating. Similarly, the textile industry is adopting potato starch as a sizing agent, improving thread strength and reducing breakage during weaving.

The rising popularity of clean-label products and consumer preference for natural, non-GMO ingredients further bolster the market. Moreover, innovations in starch modification technologies have expanded the utility of potato starch in specialized applications, creating robust growth pathways.

Market Restraints

Despite its wide application scope, the potato starch market faces challenges due to the availability of multiple substitutes such as corn starch, wheat flour, arrowroot, and tapioca starch. These alternatives are often preferred in specific applications due to their affordability, availability, and thermal stability during high-temperature processing.

Another factor restraining the market is the volatile pricing of raw potatoes, which can impact the cost-effectiveness of potato starch production. Seasonal variation and climatic conditions also influence the potato yield, leading to supply uncertainties. These factors may drive manufacturers and end-users to explore more stable and cost-effective alternatives.

Market Opportunities

The rising demand for organic and non-GMO ingredients provides a significant opportunity for market expansion. With growing health consciousness and stricter labeling regulations, manufacturers are capitalizing on the demand for organic potato starch that caters to clean-label and allergen-free product segments.

Another opportunity lies in the development of modified starches tailored for niche applications in pharmaceuticals, biodegradable packaging, and sustainable textiles. As industries seek environmentally friendly and functional ingredients, modified potato starch solutions offer potential for innovation and market penetration.

Additionally, increasing investments in R&D and advancements in processing technologies will continue to open new avenues for applications, particularly in high-growth regions such as Asia-Pacific and Latin America.

Reasons to Buy the Report:

✔ In-depth analysis of market trends, drivers, and challenges for strategic decision-making.
✔ Comprehensive insights into product segmentation, end-use applications, and regional trends.
✔ Detailed market forecasts and growth projections up to 2032.
✔ Coverage of key players and recent developments shaping the competitive landscape.
✔ Tailored recommendations and opportunities for stakeholders across the value chain.

Company Insights

• Agrana Beteiligungs-AG
• Avebe
• Cargill, Incorporated
• Emsland Group
• Euroduna Food Ingredients GmbH
• Hanseland Ltd.
• Ingredion
• Ingreto Ingredient Solutions
• Lyckeby Starch AB
• Meelunie B.V.
• Novidon
• Pepees S.A.
• PPZ Trzemeszno Sp. z o.o.
• Roquette Frères S.A.
• Royal Ingredients Group
• Škrobárny Pelhřimov a.s.
• Südstärke GmbH
• Tate & Lyle
• Tereos
• Vimal PPCE

Contact Us:
Persistence Market Research
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Brentford, London, TW8 0GU UK
USA Phone: +1 646-878-6329
UK Phone: +44 203-837-5656
Email: sales@persistencemarketresearch.com
Web: https://www.persistencemarketresearch.com

About Persistence Market Research:
At Persistence Market Research, we specialize in creating research studies that serve as strategic tools for driving business growth. Established as a proprietary firm in 25.92, we have evolved into a registered company in England and Wales in 2023 under the name Persistence Research & Consultancy Services Ltd. With a solid foundation, we have completed over 3600 custom and syndicate market research projects, and delivered more than 2700 projects for other leading market research companies' clients.

Our approach combines traditional market research methods with modern tools to offer comprehensive research solutions. With a decade of experience, we pride ourselves on deriving actionable insights from data to help businesses stay ahead of the competition. Our client base spans multinational corporations, leading consulting firms, investment funds, and government departments. A significant portion of our sales comes from repeat clients, a testament to the value and trust we've built over the years.

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