Potato Starch Market (2022-2029)

Potato starch is extracted from potatoes and has a wide range of food & beverage applications. The growing demand for processed and convenience food, the increasing need for potato starch in the paper industry, the rising incidence of celiac disease and other food allergies, and the rising demand for functional food products are the key factors driving the growth of the potato starch market. However, the alternative starches available in the market are expected to hinder the growth of this market to a notable extent.

Furthermore, the growing adoption of potato starch-based bioplastic provides significant growth opportunities for potato starch manufacturers in the coming years.

The COVID-19 pandemic has severely affected human health and well-being. To control the spread of the virus, governments worldwide announced partial or complete lockdowns, which severely impacted many industries, including food & beverage, pharmaceuticals, pulp & paper, home & personal care, dietary supplements, animal feed, and textile. The pandemic had both negative and positive effects on the potato starch market.

The COVID-19 outbreak created a severe public health emergency globally, spreading rapidly in more than 150 countries. Many countries worldwide announced complete nationwide, state-wide, or citywide lockdowns to combat and control the spread of this disease, halting all travel, transport, manufacturing, educational institutions, and non-essential trade, which significantly impacted many industries globally.

According to the United States Department of Agriculture (USDA) agricultural projections, some major agricultural exporters, such as Russia, Ukraine, and Vietnam, introduced export quotas or outright bans of international shipments, primarily food products. Agricultural production was also hampered due to the low availability of labor. According to the European Parliament, due to the pandemic's impact on the agri-food sector, governments and commissions had to adopt various measures to support producers. People also moved toward homemade food rather than dining out. Additionally, the food demand from hotels and restaurants was reduced due to social distancing practices, which impacted the demand for potato starch in the market.

According to the Organization for Economic Co-operation and Development (OECD), imports and exports in many countries were stopped, and ports were closed due to regulations and restrictions. Several shipping containers were docked in Chinese ports, and restrictions on their movement led to a shortage that affected the cargo prices, demand for food products, and traffic volume. Air freight costs were raised by about 30% between China and North America and around 60% on some routes to Europe and North America. Thus, it affected the export market due to higher logistics costs and movement restrictions.

However, the demand and use of potato starch increased in industries such as food & beverage, animal feed, and pharmaceuticals due to increased awareness of health & wellbeing. During the pandemic, the demand for ready-to-eat food products increased. The young generation preferred ready-to-cook or ready-to-eat products.

Moreover, there was a rise in the demand for functional & immunity-boosting products as people sought solutions to boost their overall health and well-being. During the COVID-19 pandemic, health-conscious customers turned to functional and gluten-free products. Hence, increasing health consciousness and the high demand for functional food products encouraged manufacturers and product formulators to focus on these products. The pandemic also spurred a shift toward healthy living, improving people's food habits. For instance, according to the Food Information Council survey 2021, in 2020, 85% of Americans changed their food habits, and 39% followed specific diets. These changing food habits boosted the healthy living trend in the U.S., further driving the demand for functional products in the country.

Therefore, strong demand for pharmaceuticals, food & beverage, and home care support the growth of the potato starch market. Considering the overall impact of COVID-19 on various industries that use potato starch, the impact of the pandemic on the potato starch market was positive.