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Potato Starch Market by Nature (Conventional, Organic); Type (Modified, Native); Function (Thickener, Binder, Stabilizer, Disintegrant); Application (Food [Bakery, Dairy], Beverages, Paper Industry, Animal Feed, Pharmaceutical) - Global Forecasts to 2029
Report ID: MRFB - 104698 Pages: 175 Dec-2022 Formats*: PDF Category: Food and Beverages Delivery: 2 to 4 Hours Download Free Sample ReportPotato 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.
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In recent years, the rise of functional foods and dietary supplements has played a key role in healthy habits due to the growing concerns about health and the perception that diet directly affects health. The global demand for functional food is mainly driven by increasing consumer awareness regarding micronutrient deficiencies, growing health concerns, rising incidence of diseases, and increasing disposable income. Additionally, the rising incidence of chronic diseases across the globe is contributing to the growing demand for nutritional food.
According to an NIH-funded study, a healthy eating diet is directly proportional to overall health improvement and reduces heart disease, stroke, and type 2 diabetes. A healthy eating trend is gaining traction and evoking interest, significantly driving healthful food formulation. Potato starch is emerging as an ingredient in the formation of functional food and dietary supplements due to its unique functional properties and health benefits. It has health benefits such as glycemic control, control of fasting plasma triglyceride and cholesterol levels, and absorption of minerals.
Furthermore, in response to the COVID-19 pandemic, consumers are increasingly demanding products that offer immunity-boosting benefits as a preventive measure. The functional food industry is seeing a rapid surge in demand for products containing immune-boosting natural ingredients. For instance, according to the International Food Information Council’s (IFIC) 2020 Food and Health Survey, in 2020, 43% of people followed a specific diet, with an increase of 38% from 2019, followed by a 7% low-carb diet. The motivation for teaching new diets is losing weight (47%), enhancing physical health (39%), preventing future health concerns (37%), and preventing weight gain (36%).
Thus, rising demand for functional food products is expected to boost the growth of the potato starch market.
Based on nature, the potato starch market is segmented into organic and conventional. The organic segment is projected to register the highest CAGR during the forecast period. The fast growth of this segment is mainly attributed to the growing trend of sustainable & natural food and awareness about clean-label products. Additionally, organic foods are perceived to be safer and healthier as they are free from any chemicals and pesticides, which further supports the growth of this segment.
Based on type, the potato starch market is segmented into modified and native potato starch. In 2022, the modified potato starch segment is expected to generate the largest portion of the revenue of the potato starch market. Key factors contributing to the dominant position of this segment are the growing application of modified potato starch in food & beverages, pharmaceuticals, and the paper industry due to its enhanced functional properties.
Based on function, the potato starch market is segmented into thickener, binder, stabilizer, disintegrant, and other functions. In 2022, the thickener segment is expected to account for the largest share of the potato starch market. The large market share of this segment is mainly attributed to its growing use of potato starch as a thickener in the food & beverage, pharmaceuticals, and paper industries due to its enhanced functional properties. It primarily provides thickness and texture in food products to address consumer requirements and maintain stable texture in various conditions.
Based on application, the potato starch market is segmented into food & beverages (bakery & confectionery products, dairy products, soups & sauces and savoury & prepared food products, meat & seafood products, and other food & beverage products); paper industry; pharmaceuticals & chemicals; animal feed; and other applications. The food & beverages segment is projected to register the highest CAGR during the forecast period. The fast growth of this segment is mainly attributed to the increasing consumer awareness regarding the consumption of food products with natural ingredients, the wide range of potato starch applications in the food & beverages industry, the growing consumer preference for clean label & healthy products, and the rising demand for ready-to-eat and ready-to-cook food products.
The potato starch market is divided into five regions: North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa. In 2022, Europe is expected to account for the largest share of the potato starch market. Increasing demand for convenience foods; growing health and wellness concerns; a well-established food & beverage industry; and strong demand for organic, gluten-free food products are the factors attributed to the large share of this market. However, the Asia-Pacific region is projected to register the highest CAGR during the forecast period.
The report includes a competitive landscape based on an extensive assessment of the key strategic developments by leading market participants in the industry over the past four years.Some of the key players operating in the potato starch market are Cargill, Incorporated (U.S.), Ingredion Incorporated (U.S.), Roquette Frères (France), AGRANA Beteiligungs-AG (Austria), Emsland Group (Germany), KMC a.m.b.a. (Denmark), Südstärke GmbH (Germany), Peepes S.A. (Poland), Novidon B.V. (Netherlands), HANSELAND Ltd. (Turkey), Royal Ingredients Group B.V. (Netherlands), Meelunie B.V. (Amsterdam), and Agrum Foods India Pvt. Ltd (India).
Key Questions Answered in the Report:
The potato starch market is projected to reach $5.6 billion by 2029, with a CAGR of 3.9% from 2022 to 2029.
Based on nature, the organic potato starch segment is projected to record the fastest growth rate during the forecast period owing to the growing trend for sustainable & natural food and awareness about clean-label products. Additionally, organic foods are perceived to be safer and healthier as they are free from any chemicals and pesticides, which further supports the growth of this segment.
Based on the type, in 2022, the modified starch segment is expected to account for the largest share of the potato starch market. The large market share of this segment is mainly attributed to the growing application of modified potato starch in food and beverages, pharmaceuticals, and the paper industry due to its enhanced functional properties.
Based on application, in 2022, the food & beverages segment is expected to account for the largest share of the potato starch market. The large market share of this segment is mainly attributed to increasing consumer awareness regarding the consumption of food products with natural ingredients, a wide range of potato starch applications in the food & beverage industry, growing consumer preference for clean label & healthy products, and rising demand for ready-to-eat and ready-to-cook food products.
The increase in demand for processed and convenience food, increasing need for potato starch in the paper industry, rising incidence of celiac disease and other food allergies, and rising demand for functional food products are the key factors driving the growth of the potato starch market.
The growing adoption of potato starch-based bioplastic is expected to create a lucrative opportunity for the players operating in this market.
The major key players operating in the potato starch market are Cargill, Incorporated (U.S.), Ingredion Incorporated (U.S.), Roquette Frères (France), AGRANA Beteiligungs-AG (Austria), Emsland Group (Germany), KMC a.m.b.a. (Denmark), Südstärke GmbH (Germany), Peepes S.A. (Poland), Novidon B.V. (Netherlands), HANSELAND Ltd. (Turkey), Royal Ingredients Group B.V. (Netherlands), Meelunie B.V. (Amsterdam), and Agrum Foods India Pvt. Ltd (India).
Among other regional markets, Asia-Pacific exhibits signs of strong future growth. The rapid growth of this regional market is mainly attributed to the changing lifestyle, the emerging trend of healthy food & food ingredients, and rapid urbanization. Additionally, the growing young population and increasing demand for processed food products in emerging countries further support the growth of the potato starch market in the region.
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