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How has the potato starch market grown in recent years?

In the recent past, the potato starch market has seen robust growth. The market is projected to expand from $6.64 billion in 2024 to $7.01 billion in 2025, at a compound annual growth rate (CAGR) of 5.6%. The observed growth in the historic period is a result of an increasing demand for processed food items, a surge in the demand for gluten-free products, a boom in production and export possibilities, the diversification of uses for potato starch in several industries, and the introduction of modified potato starch to improve its quality for enhanced efficacy in various industrial applications.

How is the potato starch market size expected to evolve during the forecast period?

The market for potato starch is predicted to witness substantial expansion in the coming years. Its value is projected to hit $8.72 billion by 2029, with a compound annual growth rate (CAGR) of 5.6%. The spike in growth during the forecast period can be credited to the escalating demand for entirely plant-based food items, the global rise in veganism, increased knowledge of the health benefits that come with plant-based products, growing industrial applications, the surge in gluten-free and allergen-free diets, as well as increased international food commerce and globalization. Prominent trends expected in this forecast duration include innovative non-edible uses, environmentally-friendly packaging, enhanced starch varieties, as well as clean label and natural ingredients and the formulations thereof.

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Which key drivers are propelling the potato starch market’s growth?

The expected surge in the potato starch market is attributed to the increasing demand for ready-to-eat food products. These foods, which are safe from bacteria and stable on the shelf, do not require refrigeration and can easily be stored and consumed as required. The readiness of consumers to invest in ready-to-eat goods such as fast food, coupled with the lack of time to cook at home due to fast urbanization, is the main factor promoting the demand for ready-to-eat meals. Potato starch is typically used in canned soups and mixtures for its thickening power, particularly for fill viscosity. Additionally, it serves as a base for gelling substances in candies, thickeners in products like pastry and pie fillings, and instant puddings. The United States Department of Agriculture reported in October 2023 that from 2022 to 2023, Japan’s fast-food sector is predicted to maintain its growth, with estimated sales increasing from nearly $26.6 billion in 2022 to around $28.1 billion in 2023, a growth rate of roughly 5.6%. Consequently, the escalating demand for ready-to-eat food products will fuel the expansion of the potato starch market.

What are the market segments in the potato starch industry?

The potato starch market covered in this report is segmented –

1) By Type: Native Starch, Modified Starch, Sweeteners

2) By Nature: Organic, Conventional

3) By Distribution Channel: Indirect, Direct, Other Distribution Channels

4) By Application: Fооd Іnduѕtrу, Рареr Іnduѕtrу, Сhеmісаl Іnduѕtrу, Техtіlе Іnduѕtrу, Other Іnduѕtries

Subsegments:

1) By Native Starch: Granular Native Potato Starch, Powdered Native Potato Starch, Liquid Native Potato Starch

2) By Modified Starch: Physically Modified Starch, Chemically Modified Starch, Enzymatically Modified Starch

3) By Sweeteners: Maltodextrin, Dextrose, Fructose Syrups

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Which leading companies are shaping the growth of the potato starch market?

Major companies operating in the potato starch market include Cargill Incorporated, Pepees SA, Emsland Group, Sudstarke GmbH, Novidon Ltd., Ingredion Inc., AGRANA Beteiligungs-AG, Cooperative AVEBE UA, AKV Langholt AmbA, Tereos Starch & Sweeteners SAS, Roquette Freres SA, Finnamyl Ltd., Manitoba Starch Inc., Tate & Lyle plc, Aloja Starkelsen SIA, KMC Ingredients, Lyckeby Starch AB, Vimal Group, Universal Starch Chem Allied Ltd., Qingdao CBH Co. Ltd., Gujarat Ambuja Exports Ltd., ShreeGluco Biotech Private Ltd., Shubham Starch Chem Pvt. Ltd., Matsutani Chemical Industry Co. Ltd., Sanstar Bio-Polymers Ltd., Jay Sardar Starch & Gum Consultant, Tirupati Starch & Chemicals Ltd., Ambuja Exports Ltd., Daymer Ingredients Limited, The Wah Starch Public Company Limited

What key trends are currently impacting the potato starch market’s development?

The proliferation of groundbreaking products is an emerging trend in the potato starch industry. To provide superior solutions to customers, potato starch enterprises are swiftly allocating resources to the development of new goods. For example, in 2024, KMC Kartoffelmelcentralen Amba, a firm based in Denmark that supplies ingredients, unveiled its marquee ingredient, Gelamyl 625, delivering a competitive benefit through remarkable extensibility. The low drying temperature of this solution, 25°C/77°F, far less than the usual 55°C/131°F for plant-based gelling agents, raises processing efficiency. Its high resilience gives a sturdier texture, allowing confectionery producers to lessen or entirely replace animal-originated gelatin. Plus, the decrease in drying temperature enhances energy savings and cost-effectiveness without affecting the product’s excellence.

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Which geographic areas are influencing the growth of the potato starch market?

Western Europe was the largest region in the potato starch market in 2024. The regions covered in the potato starch market report include Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.

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