1. Market for Potato Starch: Growth
By 2025, the market for potato starch is anticipated to have grown at a CAGR of 7.2%, reaching a value of $9.19 billion. Because potato starch has so many uses in the food and beverage, pharmaceutical, and paper and textile industries, demand for it is rising. Furthermore, the market is anticipated to increase as a result of the rising demand for biodegradable and environmentally friendly packaging materials.
The potato starch market is divided into three categories based on kind, use, and geography. The market is split into two categories based on type: native starch and modified starch. Waxy and non-waxy starches are further classified as native starches.Pregelatinized starch, acid-modified starch, and other modified starches make up the modified starch section. The market is divided into food and beverage, animal feed, paper and textiles, and others based on application.
The market is further segmented by region into North America, Europe, Asia-Pacific, South America, and the Middle East and Africa.Given the rising demand for processed foods and beverages across the continent, potato starch is anticipated to have the greatest market in North America. Due to the region’s rising need for biodegradable packaging materials, Europe is anticipated to be the second-largest market. Due to the region’s expanding population and rising disposable incomes, Asia-Pacific is predicted to have the greatest market growth.
Cargill (US), Archer Daniels Midland Company (US), Ingredion (US), Roquette Frères (France), AVEBE (Netherlands), Tate & Lyle (UK), Kerry Group (Ireland), and Nippon Shokuhin Kagaku are the major competitors in the market (Japan).
2. Market Challenges for Potato Starch
The potato starch market faces a number of difficulties. The high production costs are one of the main obstacles. Manufacturers find it challenging to compete because the price of potato starch is much higher than the price of other starch products available on the market. Furthermore, compared to other starch markets, the potato starch market is rather tiny, making it challenging to locate customers for the product.
The shortage of raw resources is another issue the potato starch business must deal with. Since potatoes are a seasonal crop, only a brief period of time each year may be used to create potato starch. Because of this, it could be challenging for manufacturers to satisfy consumer demand. Furthermore, potatoes are a perishable crop, which means that they can only be kept for a short period of time before being consumed. The management of inventories may suffer as a result.
The potato starch market also confronts difficulties with regard to maintaining quality. It can be challenging to standardise the quality of potato starch because it is a natural substance. Manufacturers may find it challenging to fulfil client expectations as a result. Furthermore, if potato starch is not stored properly, it might decay quickly because it is a delicate product. The shelf life may suffer as a result.
3. The Market for Potato Starch: Key Trends
During the forecast period, the potato starch market is anticipated to expand at a CAGR of about 5%.
The demand for natural and healthy ingredients is on the rise, as is the demand for goods made with potato starch in the food and beverage and pharmaceutical sectors. These are the main reasons propelling the expansion of the potato starch market.
The growing desire for clean label and gluten-free products, as well as the rising demand for organic potato starch, are the main trends in the potato starch industry.
The varying costs of raw materials and the strict laws governing the use of starch in food and beverage applications are the main difficulties that market participants in potato starch confront.
Roquette Freres (France), AVEBE (Netherlands), Cargill (US), Ingredion (US), Archer Daniels Midland (US), and Tate & Lyle (UK) are the leading companies in the potato starch business.
4. Market Impact of Potato Starch in COVID-19
The potato starch market has been impacted by COVID-19 in a variety of ways. The pandemic has led to the closure of foodservice and hospitality firms, which has decreased demand for potato starch. As a result, potato starch prices have dropped. Due to the pandemic-related closure of factories and farms in key potato starch-producing nations, the supply of potato starch has also been affected. As a result, there is a potato starch market deficit.
5. The Market for Potato Starch: Key Industry Developments
The market for potato starch is expanding quickly as a result of rising disposable incomes and increased demand for processed foods. The market is also being influenced by changing lifestyles and the expanding population. From 2018 to 2025, the market is anticipated to expand at a CAGR of 5.5%.
The potato starch market is segmented according to type, use, and geography. The market is divided into three types of starches: native starch, modified starch, and pre-gelatinized starch. The market is divided into food and beverage, animal feed, paper and pulp, and others based on application. The market is divided geographically into North America, Europe, Asia Pacific, Latin America, and the Middle East and Africa.
The major players are using a variety of tactics to expand their market share. Expansions, mergers and acquisitions, and joint ventures are some of the major strategies used by the players. For instance, Roquette Frères invested USD 400 million in February 2018 to increase its ability to produce potato starch in Cassano Spinola, Italy.
One of the key factors propelling the expansion of the potato starch market is the increased demand for processed foods. Other market-driving factors include the rise in disposable incomes and changes in lifestyle. The expanding population is another factor driving the industry. However, it is anticipated that the market expansion will be constrained by the fluctuation in raw material prices.
Due to the expanding population and shifting lifestyles, the Asia Pacific region is the region with the highest market for potato starch. Due to the rising demand for processed foods, the industry in North America is predicted to expand quickly. Because of the rise in disposable income, the market in Europe is anticipated to expand.
6. Potato Starch Market: Industry Verdict
During the forecast period, the potato starch market is anticipated to expand at a CAGR of about 6%. The main factors driving market expansion are the rising demand for convenience foods and the demand for natural and healthy ingredients. The primary obstacles limiting market growth, however, are the availability of replacements and the fluctuating pricing of raw materials.
The potato starch market is divided into three categories: type, application, and region. Modified and unmodified starch are the two categories into which the market is split based on kind. Native starch and pregelatinized starch are subcategories of the unmodified starch segment. During the projection period, it is anticipated that the modified starch segment will increase at the greatest CAGR. The market is divided into categories for food, drinks, animal feed, paper, and other applications. The food industry is further broken down into the dairy, bread, confectionery, and convenience food sectors. During the projection period, the bakery segment is anticipated to develop at the greatest CAGR.
The potato starch market is divided into five regions based on geography: North America, Europe, Asia Pacific, Latin America, and the Middle East and Africa. During the projected period, the market in Asia-Pacific is anticipated to develop at the fastest rate. The main forces behind the market expansion in this area are the increased demand for processed foods, the expanding population, and the rising disposable incomes.