U.S. Potato Flour Market Expected to Reach US$ 198.1 Million by 2032 - Persistence Market Research

The U.S. potato flour market is experiencing robust growth and is projected to expand at a CAGR of 6.4% from 2022 to 2032. The market is expected to grow from a valuation of US$ 106.8 million in 2022 to US$ 198.1 million by 2032. This surge is primarily driven by increasing demand for gluten-free and plant-based products, rising health consciousness among consumers, and growing adoption of potato flour in bakery and foodservice industries.

Potato granules dominate the product type segment with a market share of 56.5% in 2022, owing to their ease of use and wide applicability in processed foods. Geographically, the Western United States leads the market due to the presence of major food manufacturers, advanced processing facilities, and higher consumer preference for organic and health-centric products.

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➤ Key Highlights from the Report

➤ The U.S. potato flour market is forecasted to reach US$ 198.1 Mn by 2032.
➤ Potato granules held a dominant 56.5% market share in 2022.
➤ Over 40% of U.S. potato flour is used in the bakery industry.
➤ Food industry end use accounts for 64.1% of market share in 2022.
➤ Demand for organic and clean label products is accelerating.
➤ Western U.S. is the leading regional market due to advanced food infrastructure.

Market Segmentation

The U.S. potato flour market is segmented by product type into potato flakes and potato granules. Potato granules are the most widely used due to their superior thickening and binding properties, making them an ideal ingredient in soups, sauces, and processed meals. On the other hand, potato flakes are gaining ground with growing demand from the foodservice industry, especially for instant food applications and bakery mixes.

In terms of end use, the market is categorized into food industry, foodservice, and retail/household. The food industry dominates with a 64.1% share, driven by large-scale applications in bakery products, savory foods, and ready-to-eat meals. However, the retail and household segment is also expanding as consumers increasingly seek versatile and healthy cooking ingredients for home use.

Regional Insights

The Western United States leads the regional market, supported by the presence of top-tier food processing companies and an established supply chain. States such as California and Oregon contribute significantly to production and distribution, benefiting from access to raw materials and advanced farming practices.

The Midwestern region is also showing notable growth, fueled by rising consumer awareness around gluten-free diets and plant-based nutrition. Increasing availability of potato flour in specialty and organic food stores is helping this region emerge as a high-potential market.

Market Drivers

Growing consumer awareness about the health benefits of gluten-free and plant-based diets is a major driver of the U.S. potato flour market. Potato flour is low in glycemic index, rich in resistant starch, and ideal for celiac patients, making it an appealing substitute for traditional wheat flour. Its versatile use across bakery, soups, and processed foods further fuels its demand.

Market Restraints

One of the key challenges restraining market growth is the premium pricing of potato flour. The complex dehydration and processing techniques involved make it more expensive compared to traditional flours. Additionally, high equipment and labor costs contribute to the final product price, potentially limiting widespread adoption among price-sensitive consumers.

Market Opportunities

With consumers increasingly seeking organic and clean label products, there lies a huge opportunity for manufacturers to expand their offerings. Launching USDA-certified organic potato flour and targeting health-conscious and vegan populations can open new revenue streams. Moreover, the growing e-commerce ecosystem offers direct-to-consumer distribution opportunities, especially for niche products.

Company Insights

✦ Bob's Red Mill Natural Foods
✦ Idaho Pacific Holdings
✦ Edward & Sons Trading Co.
✦ Kipuka Mills
✦ American Key Food Products
✦ Shiloh Farms
✦ Authentic Foods
✦ Barry Farm
✦ King Arthur Baking Company
✦ Keystone Potato Products
✦ Carrington Farms
✦ ONSET WORLDWIDE, LLC
✦ HTY USA
✦ TRADIN ORGANIC AGRICULTURE B.V.
✦ Olu Foods
✦ AGRANA Beteiligungs-AG
✦ Emsland Group
✦ Lamb Weston Holdings, Inc
✦ Basic American Foods
✦ Oregon Potato Company
✦ The American Golden Foods
✦ McCain Foods Limited
✦ Agrarfrost GmbH & Co. KG
✦ Goodrich Cereals
✦ Hearthy Foods
✦ Cadoro

■ Tradin Organic Agriculture B.V. introduced a new line of USDA Organic certified potato flour targeting the premium health food market.
■ Emsland Group expanded its U.S. operations to meet rising demand for clean label potato flakes and granules.

Frequently Asked Questions (FAQs)

➤ How Big is the U.S. Potato Flour Market in 2022?
➤ What is the Projected Growth Rate of the U.S. Potato Flour Market?
➤ Who are the Key Players in the U.S. Potato Flour Market?
➤ What is the Market Forecast for Potato Flour through 2032?
➤ Which Region is Estimated to Dominate the U.S. Potato Flour Industry during the Forecast Period?

Conclusion

The U.S. potato flour market is on an upward trajectory, fueled by rising demand for gluten-free, plant-based, and organic ingredients. While premium pricing poses a hurdle, innovations in production and distribution, coupled with a health-focused consumer base, are expected to drive growth. Companies that align with evolving dietary trends and prioritize quality and transparency will be well-positioned to lead in this expanding market.

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